House Ways and Means approves committee revenue estimates; votes ITL on multiple tax and education bills

The House Ways and Means Committee approved an LSR that codifies the committee's revenue estimates and sent it to the clerk for assignment, and in an extended executive session recommended ITL (inexpedient to legislate) on multiple bills affecting tobacco taxes, education funding and gaming revenue.

The committee voted to accept LSR 251159 — the document that records the revenue estimates the committee adopted last week — by voice roll call, with the clerk reporting a 19-0 vote with one member absent. Representative Ullery moved to accept the house resolution referencing LSR 251159; Representative Elmi seconded.

Committee staff explained the next steps and the effect of different executive proposals on the estimates. "Once this LSR goes up to the clerk, he will assign a house resolution number to it and then, include it in the calendar for the next meeting," said Krisha, a committee staff member, describing the administrative process. Staff member Chris distributed a two-page handout comparing the governor's revenue estimates with the committee's estimates and pointed out that the governor is proposing new revenues from video lottery terminals (VLTs) that the committee has not adopted. "The governor's proposing... $10,000,000 in revenue in fiscal year 26 and $117,000,000 in '27," Chris said, noting those figures are not incorporated in the committee's baseline because the House has not voted to accept them.

Why it matters: the committee's revenue estimates feed into House Bill 1 and other budget work. Committee staff and members discussed how proposed changes to revenue splits would move money between the General Fund and the Education Trust Fund. Staff said the governor proposes changing some revenue splits (business tax, tobacco, and rent) to a 66% general fund / 34% education trust fund split for the streams named, while current business-tax splits cited by staff are approximately 59% general fund and 41% education trust fund.

During discussion before the LSR vote, Representative Schamberg registered a recorded objection on the record about the level of estimated business-tax receipts. "I do still believe that business taxes estimates are too high and should be only about in the…