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DLS: Governor—s FY26 plan narrows shortfall but leaves structural gap

2219505 · February 4, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

The Department of Legislative Services briefed the Health and Government Operations Committee on the governor—s FY26 budget, saying all-funds spending rises about $790 million while general funds fall and a multiyear structural shortfall remains.

The Department of Legislative Services told the Health and Government Operations Committee that the governor—s FY26 spending plan reduces a projected shortfall for FY26 but leaves a growing structural gap in later years.

Tanya Zimmerman, operating budget manager, Office of Policy Analysis, Department of Legislative Services, said "All across all funds the budget increases by about $790,000,000 or 1.2%." She told the committee the plan reduces a multi‑year shortfall so the general‑fund balance would be about $106 million at the end of FY26 and the rainy‑day fund would be about $2.1 billion (roughly 8 percent of general fund revenue).

Why it matters: DLS said ongoing spending in the governor—s allowance exceeds ongoing revenue by…

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