DFM briefs JFAC on governor’s ‘keeping promises’ budget emphasizing schools, reserves and infrastructure

Laurie Wolf, administrator of the Division of Financial Management (DFM), told the Joint Finance and Appropriations Committee (JFAC) on Jan. 8 that the governor’s executive budget is a “keeping promises” proposal that prioritizes education, infrastructure and savings while taking a conservative revenue forecast.

Wolf said the proposal leaves a projected FY2025 ending general fund balance of about $383 million and a projected FY2026 ending balance of about $227 million after recommended actions, while directing transfers to the state’s reserves. The budget recommends a $59 million transfer to the budget stabilization fund and a $50 million transfer to a public education stabilization fund, which DFM noted would leave a large revert reserve balance — roughly $1.4 billion, or about 22% of the budget.

The nut of the governor’s pitch, Wolf said, is more investment in K-12 and workforce supports while maintaining fiscal conservatism. “This is his keeping promises budget,” Wolf said, summarizing the administration’s priorities.

Most prominent among the administration’s recommendations is $150 million in new public-school support. Wolf said the package includes roughly $83 million aimed at teacher pay and about $30 million for…