Governor’s budget keeps major commitments while bolstering reserves, DFM tells JFAC

Governor’s executive budget: Division of Financial Management Administrator Laurie Wolf presented the governor’s executive budget to the Joint Finance and Appropriations Committee on Jan. 8, outlining a plan that preserves a structural balance while funding education, transportation, water, wildfire response, workforce training and limited tax relief.

The administration projects general‑fund receipts of about $5.9 billion for fiscal 2025 and roughly $6.2 billion for fiscal 2026, and is recommending an ending balance of about $383 million for FY25 and $227 million for FY26 after proposed transfers and expenditures. ‘‘We took a conservative approach to how we put this budget together,’’ Wolf told the committee.

Why it matters: The budget emphasizes K‑12 and workforce investments that the governor has made central to his agenda while moving money into both the budget stabilization and public education stabilization funds. The administration also proposes one‑time and ongoing spending intended to address immediate pressures — wildfire suppression and aviation, water recharge projects, teacher pay and health insurance, expansion of career‑technical capacity, and cybersecurity — rather than relying exclusively on transfers or one‑off supplements.

Key numbers and priorities - Revenue and balances: The administration used a conservative revenue baseline for FY26. The FY25 revenue projection cited by DFM was approximately $5.9 billion; FY26 total revenue (including adjustments) was presented at about $6.2 billion. Wolf said the administration left a $383 million projected ending balance for…