Senate shifts House budget: more revenue, different tax splits, restores some HHS and judicial funding

The Senateproposal to the House-passed biennial budget raises estimated revenues and changes how some taxes are split between the general fund and the Education Trust Fund, producing different surpluses and pay-fors than the House plan, the Legislative Budget Assistant said Thursday.

Michael Caine, legislative budget assistant, told legislators the Senate's revenue estimates were about $416 million higher across fiscal years 2025to2727 than the House's base estimates and that schedule 2 adjustments and differing fund splits reduced the net difference to about $237 million over the three years. "This is called schedule 2 of the surplus statement," Caine said while walking lawmakers through the comparison.

The changes matter because they alter the Education Trust Fund and rainy-day fund balances available to fund adequacy grants, school building aid and other programs. Under the House proposal the Education Trust Fund beginning balance for fiscal 2026 was about $71.8 million; the Senate projects about $105.5 million. The House assumed a roughly $148.8 million transfer from the rainy-day fund in 2025 to cover a general fund shortfall; the Senate's comparable transfer is about $93.4 million, Caine said.

Key differences and why they were made - Revenue and lapses: Caine told the committee the Senate Ways and Means adjusted revenue estimates after April receipts and agency discussions. A notable change came from Department of Revenue Administration estimates and conversations with Commissioner Stepp; the Senate increased some business-tax revenue assumptions that contributed to the $416 million base increase.…