Senate’s budget revisions raise revenue estimates, alter tax splits and restore some program funding

Michael Caine, legislative budget assistant, briefed lawmakers on the Senate's proposed changes to the House-passed biennial budget, saying Senate revenue estimates were about $416 million higher across fiscal years 2025'2027 and that net revenues after adjustments were roughly $237 million above the House'passed figure.

The Senate'draft changes shift how several tax streams are split between the general fund and the Education Trust Fund, adjust video-lottery-terminal (VLT) assumptions and restore or add appropriations in areas including health and human services (HHS), developmental services, community mental health and higher education. Caine told the group the two chambers have formed a committee of conference to reconcile differences in House Bill 1 and House Bill 2.

Why it matters: the Senate'House differences affect the Education Trust Fund balance, the rainy day fund transfer, and near-term general fund lapses that determine whether a deficit will require a rainy day transfer. Those outcomes, Caine said, will hinge on final revenue and lapse numbers when the fiscal year closes and on decisions the conferees make in the coming week.

Major revenue and fund differences

- Base and adjusted revenue: Caine said the Senate'estimated base revenues for the combined general fund and Education Trust Fund were roughly $416 million higher than the House over FY25'FY27; after schedule adjustments the net difference was about $237 million.

- Video lottery terminals: VLT assumptions were a key driver. Caine said the Senate'assumed lower VLT receipts than the House by about $80 million in one year, while also proposing a different distribution of VLT tax receipts between funds. The House had…