State presents FY26 "standstill" executive budget as multi‑year revenue shortfalls loom

House fiscal staff and officials from the Division of Administration presented the governor's FY26 executive budget as a "standstill" proposal that is balanced for the coming year but depends on revenue forecasts that project significant deficits in later years. Legislative members pressed administration officials about the size and sources of the projected gaps and how one‑time and recurring funds were treated in the proposal.

Shari Robinson of the House Fiscal Division told the panel the executive budget is based on the Revenue Estimating Conference's forecast and that the FY26 package as presented is balanced. Robinson and other budget staff differentiated "surplus" (nonrecurring) from "excess" (recurring) receipts, and listed the six constitutionally permitted uses for surplus funds. Robinson noted the FY24 surplus was about $595.1 million; 50% of that would be split between the Budget Stabilization Fund and payments on the unfunded accrued liability for retirement systems under the administration's plan.

Representative Cary…