JFAC adopts FY2025 revenue projection; FY2026 figure remains unsettled after split votes

The Joint Finance-Appropriations Committee on Friday adopted a general fund revenue projection of $5,990,000,000 for fiscal year 2025 but did not reach agreement on a revenue number for fiscal year 2026.

Committee members voted unanimously to use the Economic Outlook and Revenue Assessment Committee's (EORAC) FY2025 estimate when setting state agency budgets. Senator Woodward moved the FY2025 figure, saying the committee needed to "make that adjustment just based on updated revenue numbers." The committee recorded a 20-0 vote (10-0 in the Senate delegation and 10-0 in the House delegation).

Lawmakers then debated several competing FY2026 proposals: a $6.40 billion projection from EORAC, a $6.261 billion figure described in the governor's materials, and a compromise substitute of $6.33 billion offered on the floor. The substitute motion (Senator Woodward) failed on a split committee vote, and the original motion to adopt the higher EORAC FY2026 recommendation likewise did not secure the required majority from both the Senate and the House delegations in JFAC. Committee leadership said voting on FY2026 would be postponed to a future meeting.

The FY2025 adoption implements the recommendation EORAC provided to JFAC, and committee chairmanship staff said the two-chamber voting practice (requiring a majority from both the House and Senate delegations) is intended to strengthen bills taken to the floors. The committee's procedural approach requires a majority from each delegation for JFAC actions to move forward to the full chambers.

The FY2026 discussion included floor debate about whether to take a more conservative projection to avoid later supplemental requests or to adopt a higher forecast to avoid under-projection and repeated supplementals. Senators and representatives on both sides urged compromise; Senator Galloway described the $6.33 billion substitute as "in the spirit of compromise and working together." Representative Tanner and others pressed for reliance on committee-produced numbers, while some members said the governor's lower forecast reflected a different baseline.

With FY2026 unresolved, staff said agencies should expect additional discussion at a later meeting before final statewide budget decisions are set.

Votes at a glance - FY2025 general fund revenue projection ($5,990,000,000): Motion by Senator Woodward; seconded. Vote: Senate 10-0; House 10-0; total 20-0. Outcome: adopted. - FY2026 EORAC recommendation ($6,400,000,000): Motion by Representative Petsky (original motion on the record); substitute and final votes failed to obtain majorities from both delegations. Outcome: postponed.

Why it matters: The revenue baseline JFAC adopts establishes the amount available to set agency budgets and affects whether agencies will receive requested increases, initiate programs, or face reductions. Because JFAC requires majorities from both the House and Senate delegations to move items, the split on FY2026 means further negotiation before that fiscal year's allocations are set.