Legislative analysts report $463 million fund balance; tax-cut bills could reduce future revenue

Legislative analysts told the Joint Finance-Appropriations Committee that the state is carrying an estimated General Fund balance of $463 million and that several pending tax bills could reduce projected revenue in future years.

The briefing Thursday by Keith Bybee, Division Manager, Budget Policy Analysis, Legislative Services Office, summarized actions to date on the committee's ‘‘green sheet.’’ Bybee told the committee that the Legislature adopted a revenue projection for fiscal year 2025 of $5,990,000,000 and that the current carryover balance shown on the green sheet is $463,000,000.

The memo presented to JFAC shows the Legislature has completed action on many maintenance budgets, leaving enhancements and several policy bills outstanding. Bybee noted the committee's maintenance budget totals about $5.404 billion, a 2.5% increase over the FY2025 original appropriation and roughly $250 million below the governor's proposal. He warned the committee that tax legislation could change the revenue outlook.

Committee members were pointed to several bills on the green sheet that could affect the revenue outlook. Most prominently, Bybee identified House Bill 40 as an income-tax-cut bill with a projected reduction of about $253 million in fiscal year 2026; he said the reduction would grow in subsequent years. He also named House Bill 83 and House Bill 93 as bills on the third-reading calendar, and he referenced Senate Bill 1028 (a bill that would create new judges in judicial districts) and an unspecified judicial salary increase bill as measures that could affect committee work and budget projections.

Bybee closed by telling members the committee still must decide on a revenue target and work through tax bills that will influence long-term budget projections.

The presentation was informational; no committee votes were recorded during the green-sheet update.