Joint Fiscal Office explains purpose and mechanics of FY2025 Budget Adjustment Act

Emily Byrne, of the Joint Fiscal Office, told the House Appropriations Committee on Jan. 14 that the Budget Adjustment Act (BAA) is the Legislature’s mid‑fiscal‑year mechanism for updating FY2025 appropriations to reflect changed revenue forecasts and unanticipated expenditures.

The BAA “is your mid fiscal year opportunity to make updates to the current fiscal year budget,” Byrne said, adding the bill can both appropriate unforeseen revenue and address unplanned expenses. She told the committee the adjustment is intended to be largely technical rather than a vehicle for new policy.

Why it matters: Byrne said revenue forecasts adopted by the Emergency Board have significantly changed the picture since the FY2025 budget was passed. She cited a most‑recent revenue forecast that added about $172,000,000 to FY2025 general fund resources and noted the Emergency Board was scheduled to adopt another forecast on Jan. 22. Those changes affect how much the Legislature can authorize to spend this fiscal year.

How the BAA works: Byrne outlined common reasons the adjustment is needed: new revenue estimates (for example, lower than expected sports‑betting transfers), higher or lower caseloads and per‑case costs (Medicaid was cited), delayed or accelerated projects that change timing of spending, unanticipated contract costs or billing timing…