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JFAC accepts EROC revenue recommendation of $5.99B for FY2025, $6.4B for FY2026
Summary
The Joint Finance-Appropriations Committee accepted the Economic Outlook and Revenue Assessment Committee's revenue recommendation, which is below the governor's forecast and urges caution given economic uncertainty.
The Joint Finance-Appropriations Committee on Friday accepted a report from the Economic Outlook and Revenue Assessment Committee recommending total general fund revenues of $5.99 billion for fiscal 2025 and $6.4 billion for fiscal 2026.
Sen. Kevin Cook, co-chair of the Economic Outlook and Revenue Assessment Committee, told JFAC the committee reviewed business, tax and financial data, heard testimony from economists and industry representatives, and produced a median projection that was lower than Governor Little's proposed figures. Cook said the committee recommends caution when making appropriations above its revenue recommendation because of uncertainty tied to Federal Reserve actions on inflation and the presidential election.
The committee's median projections were below the governor's numbers: for fiscal 2025 the committee's projection was about 2.7% lower than the governor's projection, and for fiscal 2027 the committee's median projection was roughly 6.6% below the governor's recommendation. After considering testimony and analysis, the committee recommended the $5.99 billion and $6.4 billion figures for fiscal 2025 and 2026, respectively.
Co-chair Horman moved to accept the EROC report and the motion was seconded; the committee approved the report by unanimous consent.
The committee's recommendations are advisory to JFAC and are intended to guide appropriations decisions during the budget-setting process. The report emphasizes prudence in budgeting given external economic risks.
