Leadership Division reviews fiscal outlook, flags gap between ongoing revenue and spending

The Leadership Division of the Budget Section 2 Committee reviewed the state’s fiscal outlook and 2025–27 budget, hearing that ongoing revenues trail projected ongoing spending and that oil, interest and special-fund transfers remain key drivers of the totals.

Alan Knudson, Legislative Council staff, told the committee the total budget shown for 2025–27 is about $20,300,000,000 and that the general fund beginning balance entering the biennium was lower than the prior cycle, down to roughly $1.2 billion from about $1.5 billion. “Ongoing general fund spending is about $784,000,000 more than our ongoing revenues,” Knudson said.

The presentation compared major revenue lines across recent bienniums and noted transfers and beginning balances have been a large part of budget balance historically. Knudson said recent transfers included a roughly $250,000,000 transfer of legacy fund earnings into the general fund in 02/2025 and a…