Governor's executive budget emphasizes education increases, transportation and wildfire funding; public defense cost flagged

Laurie Wolf, administrator of the Division of Financial Management, presented Governor Brad Little’s executive budget to the Joint Finance and Appropriations Committee on Jan. 8, outlining what she described as a “keeping promises” budget that prioritizes education, infrastructure and state reserves while holding a $100 million set-aside for tax relief.

The executive recommendation projects general fund revenue of about $5.9 billion for fiscal 2025 and $6.2 billion for fiscal 2026, leaves an ending balance of roughly $383 million in FY25 and a projected ending balance of about $227 million for FY26 after proposed transfers, and includes sizable transfers to reserve accounts. Wolf said the governor recommends a $59 million transfer to the budget stabilization fund and a $50 million transfer to a public education stabilization fund; after those transfers the state’s revert reserve would total about $1.4 billion, or roughly 22% of the budget.

"Education is his top priority," Wolf told the committee, and the budget proposes $150 million in additional public school funding for FY26, including an $83 million allocation for teacher pay and nearly $30 million for teacher health insurance. The governor also set aside $50 million as a revenue adjustment for education choice…