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Revenue committee urges cautious budgeting, recommends $5.99B for FY2025 and $6.4B for FY2026
Summary
The Economic Outlook and Revenue Assessment Committee told JFAC it sees lower median revenue than the governor but recommends using $5.99 billion for fiscal 2025 and $6.4 billion for fiscal 2026, urging caution because of economic uncertainty.
The Economic Outlook and Revenue Assessment Committee recommended that the Joint Finance-Appropriations Committee (JFAC) use $5,990,000,000 in general fund revenue for fiscal year 2025 and $6,400,000,000 for fiscal year 2026.
The committee presented its findings to JFAC during the committee's meeting. Senator Kevin Cook, co-chair of the EROC committee, summarized the committee’s review of business, tax and financial data and testimony from economists and industry representatives. Representative Jeff Ehlers, the committee’s co-chair, thanked members for their work and endorsed the report.
Why it matters: EROC’s median projections were lower than Governor Little’s submitted revenue estimates. The committee’s figures are intended to guide appropriations decisions and to reduce the risk of over-appropriating if economic conditions deteriorate.
The committee reported that its median projections were below the governor’s proposed general fund figures: for fiscal 2025 the committee’s median was lower than the governor’s estimate, and for fiscal 2026 the committee’s median projection was also below the governor’s recommendation. After deliberation and review of testimony, the committee recommended the two-dollar amounts above as total general fund revenues available for appropriation and cautioned against making appropriations above those recommendations because of economic uncertainty driven by Federal Reserve interest-rate actions and the recent presidential election.
Action: Co-chair Horman moved to accept the EROC report; Senator Woodward seconded. The committee accepted the report by unanimous consent.
The report will be used in JFAC’s revenue-setting and budget decisions next week, including the committee’s planned vote to set final revenue assumptions before taking up program maintenance and enhancement budgets.
