Governor's executive budget proposes $150M for public schools, $100M for fire and water response and $100M reserved for tax relief

Laurie Wolf, Administrator of the Division of Financial Management, presented Governor Brad Little's executive budget to the Joint Finance and Appropriations Committee (JFAC) on Tuesday, Jan. 8, laying out revenue projections, recommended transfers to stabilization funds and a set of enhancements referred to as the governor's "keeping promises" priorities.

Wolf said the DFM used a conservative revenue forecast and that the proposed budget remains structurally balanced. The administration projects total general fund revenue of about $5.9 billion for fiscal 2025 and about $6.2 billion for fiscal 2026, with projected ending balances of roughly $383 million in FY25 and $227 million in FY26 after recommended transfers.

Why this matters: The executive budget frames the state's spending priorities for the legislative session and determines the baseline for JFAC's work setting program maintenance and enhancement funding. Wolf emphasized education, infrastructure, natural‑resource responses and reserves as core priorities while keeping a portion of funds available for tax relief.

Key fiscal numbers and reserves

- FY25 revenue projection: about $5.9 billion (DFM conservative update through November). - FY26 revenue projection: about $6.2 billion. - Projected ending balances: roughly $383 million (FY25) and $227 million (FY26) after transfers. - Recommended transfers include a $59 million transfer to the budget stabilization fund and a $50 million transfer to the public education stabilization fund;…