Governor's "keeping promises" budget: $151 million in recommended enhancements, transfers to reserves, and targeted investments in education, transportation and

Laurie Wolf, administrator of the Division of Financial Management, presented the governor's executive budget to the Joint Finance and Appropriations Committee on Jan. 8, outlining revenue projections, recommended enhancements and a set of policy priorities the governor calls a “keeping promises” budget.

Wolf told the committee that education remains the governor's top priority and that the executive recommendation includes about $150 million in additional funding for public schools for FY 2026, including $83 million toward teacher pay and approximately $30 million for teacher health insurance. The budget also contains a $50 million placeholder for education choice initiatives contingent on future policy action.

Fiscal framework and balances The presentation used a conservative revenue forecast. Wolf said total FY 2025 revenue was projected at about $5.9 billion and the FY 2026 baseline (combined lines shown to committee) at roughly $6.2 billion. The recommended budget leaves a projected ending balance of about $383 million for FY 2025 and about $227 million for FY 2026 after proposed expenditures and transfers.

The governor recommends transfers to strengthen reserves: a proposed transfer of $59 million to the Budget Stabilization Fund (statutory maximum consideration) and $50 million to the Public Education Stabilization Fund…