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JFAC analyst says state faces tax-cut decisions as General Fund shows modest growth
Summary
Legislative analysts told the Joint Finance-Appropriations Committee the General Fund shows a 2.5% year-over‑year maintenance increase but faces potential revenue reductions if pending tax-cut bills pass, and several judicial salary and judge-creation bills could affect committee work.
The Joint Finance-Appropriations Committee on Wednesday heard an update on the General Fund “green sheet” showing a modest maintenance budget increase but a set of pending tax bills that could reduce projected revenues.
Keith Phibbe, division manager for budget and policy analysis with the Legislative Services Office, told the committee the adopted revenue projection for fiscal 2026 was $5,990,000,000 based on the Economic Outlook Committee and Revenue Assessment recommendation. He said the legislature is currently carrying an unspent balance of about $463 million and that maintenance budgets adopted so far represent a 2.5% increase over last year.
The nut of the presentation was that the committee’s work remains contingent on several pending tax and revenue bills. “Most notably, House Bill 40…would be an income tax cut,” Phibbe said, and his slides showed an estimated $253 million reduction in fiscal 2026 from that bill. He also identified House Bills 83 and 93 as moving toward floor action and flagged Senate Bill 1028 and House Bill 124 as measures that will affect committee workload because they create judges and propose judicial salary increases.
Analysts walked members through the green sheet pages the committee will use to reconcile maintenance budgets, enhancements and projected policy changes. Phibbe said the legislature’s maintenance budget totals shown on JFAC actions amount to about $5.404 billion, roughly $133.9 million more than the FY2025 original appropriation. He noted that the current adopted maintenance amount remains slightly below the governor’s proposed maintenance level by about $250 million.
Committee members asked clarifying questions but took no formal action. Phibbe closed by saying the committee will continue to monitor the bills listed on the green sheet and update revenue and appropriation figures as legislation advances.
