Governor’s executive budget emphasizes education, reserves and ongoing funding for fire suppression

Laurie Wolf, administrator of the Division of Financial Management, told the Joint Finance and Appropriations Committee on Jan. 8 that the governor’s proposed executive budget is “his keeping promises budget,” centering on education, workforce development, infrastructure and larger reserves.

The plan projects $5.9 billion in general‑fund revenue for fiscal 2025 and $6.2 billion for fiscal 2026 and recommends an ending general‑fund balance of about $383 million for FY2025 and $227 million for FY2026. Wolf said the proposal transfers $59 million to the budget stabilization fund and $50 million to the public education stabilization fund for FY2026, leaving a revert reserve of about $1.4 billion—roughly 22% of the state budget.

Wolf said the administration used conservative revenue assumptions and left substantial balances “to hedge against any fluctuations in revenue.” The governor’s enhancements total about $151 million in recommended additions for FY2026, with roughly $129 million ongoing and the remainder one‑time items.

Major priorities and figures

Education: Wolf said the governor recommends roughly $150 million more for public schools in FY2026. The proposal includes about $83 million toward teacher pay adjustments and nearly $30 million for school health insurance costs. The budget sets aside $50 million in a revenue adjustment for…