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Treasury updates revenue forecast, cites strong income collections and flags one-time effects; lawmakers press on Anchor checks and naloxone contract
Summary
Treasury told the Senate Appropriations Committee that FY2025 revenues rose by $388.5 million and FY2026 by $323.2 million, driven by strong gross income tax and pass-through business tax receipts; senators pressed officials about one-off corporate loss claims that depressed CBT, erroneous Anchor checks to some recipients, and questions about a naloxone contract.
Treasury officials told the Senate Budget and Appropriations Committee on May 15 that updated collections leave the state with larger-than-expected revenues for FY2025 and FY2026 but also raise questions about durability and program integrity. The Department of Treasury said FY2025 revenue projections increased by $388.5 million to about $55.3 billion and FY2026 projections rose by $323.2 million to about $57.1 billion.
The revenue boost came largely from higher-than-expected gross income tax (GIT) and strong payments to the pass-through business alternative income tax (PT BATE). "The PT BATE accounted for 90% of the forecasting difference between Treasury and OLS," Treasury testimony said, and Treasury raised the PT BATE forecast by $461.3 million for FY25 and by $306.6 million for FY26. Treasury also increased its GIT forecast and noted unusually strong final and estimated payments in April, driven in part by large net capital gains.
At the same time,…
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