Senate Finance raises revenue forecasts, backs larger abuse‑settlement fund and advances mixed budget changes

The Senate Finance Committee on Thursday adopted a committee amendment raising official revenue projections and approved a series of budget adjustments, including a contested increase in funding proposed for a state child‑abuse settlement fund.

The panel voted to increase the committee’s revenue estimates after hearing a proposal from Senator Lang to raise several line items in the Department of Revenue Administration forecast, adopt an amendment to move additional funds into the budget’s second year and to apply the Legislature’s general‑fund/education‑trust‑fund split when the Legislative Budget Assistant (LBA) posts the amendment.

The committee amendment approved the following changes to the revenue lines cited by Senator Lang as recommended by DRA: business taxes, +$25,000,000 in fiscal 2026 and +$50,000,000 in fiscal 2027; rooms and meals tax, +$11,500,000 in 2026 and +$16,300,000 in 2027; and real estate transfer tax, +$2,300,000 in 2026 and +$2,700,000 in 2027. Senator Lang told colleagues that, after meeting with Commissioner Step of the Department of Revenue Administration, “the commissioner felt extremely comfortable with these changes.” The amendment passed by voice vote.

Why this matters: The committee’s revenue baseline determines how much the Legislature can appropriate without adopting additional offsets. The LBA will apply statutory splits between the general fund and the education trust fund when it posts the amendment, staff said.

Funding for child‑abuse settlement fund

A major flashpoint…