Budget office: state projects roughly $700 million structural surplus; governor proposes $338 million FY2025 ending balance

Summary

Legislative services staff told the Joint Finance-Appropriations Committee the state projects a multi‑year structural gap between revenues and expenditures but still shows a roughly $700 million structural balance in the near term; the governor's FY2025 recommendation would leave a $338 million ending cash balance.

Keith Bybee, division manager for budget policy analysis at the Legislative Services Office, told the Joint Finance‑Appropriations Committee that the state's revenue picture has changed dramatically since 2020 and that current forecasts show a continuing structural gap between recurring revenues and recurring obligations.

"The good news about all of this is the legislature has really managed its finances to put yourself in a position to make changes that are reflective of the policy, the body's policy choices," Bybee said, describing how revenue surged during the COVID years and now rests on a higher baseline than before the pandemic.

Bybee used the committee's standard projections to show recent history and the governor's recommended baseline. He said the state saw general fund revenue rise from about $4.0 billion…

Budget office: state projects roughly $700 million structural surplus; governor proposes $338 million FY2025 ending balance

Summary

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