Emergency board hears JFO update: Education Fund outlook shows $2.8 million cushion, policy and timing risks remain

The Joint Fiscal Office told the Legislature—s emergency board that the state—s Education Fund outlook shows a $2,800,000 positive balance with the stabilization reserve fully funded, but lawmakers were warned that several ongoing and timing risks could push rates higher if not addressed.

"After making those updates from the BAA and the downgraded revenues, we have $2,800,000 on the bottom line, with the stabilization reserve being fully funded," said Julia, a Joint Fiscal Office analyst, during a presentation of the Education Fund Outlook. Julia said the outlook reflects the most recent revenue forecast and the governor—s budget adjustments adopted by the emergency board.

The update reviewed a sequence of one‑time and ongoing actions that shaped the current position: a roughly $70 million one‑time general fund transfer used last year to buy down property tax rates; a $13 million tax‑rate offset reserve that was drawn to lower rates; and about $31 million of FY24 surplus that was also…