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Appropriations Committee hears BAA overview as lawmakers weigh reserves and property tax relief

Appropriations Committee · January 7, 2026

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Summary

Administration staff told the Appropriations Committee there is roughly $121 million in additional revenue to allocate in the Budget Adjustment Act, with about $46–48 million proposed for new appropriations and roughly $75 million temporarily reserved for property-tax relief under proposed Section 50 language.

Chair (unidentified) opened the Appropriations Committee on Jan. 31, urging members to remember “the constitution, our constituents, and the community” as the panel reviews the governor’s Budget Adjustment Act. The administration’s presenter told the panel the state began the BAA process with about $121 million in available revenue after forecast upgrades and reversions.

The presenter said the BAA includes roughly $48 million in additional appropriations—reduced to about $46 million after $2 million in net transfers—leaving about $74.9 million to carry forward. “We are temporarily reserving this money, fencing it off to use for property tax relief,” the presenter said when describing proposed Section 50, which would reserve the unallocated amount and carry it into the following fiscal year.

Committee members asked for clarification about a $13 million reserve that had been carried from a prior year. The presenter explained the prior $13 million was set aside as a reserve and must be unreserved in the BAA to be available for transfer and use. The panel also discussed several technical language sections, including proposed changes to position classifications in the big bill’s e100 section.

The presentation emphasized that, while the BAA is largely accounting and net-neutral on some lines, it includes net general-fund uses in several areas and flagged items members may want to review in more detail. The committee scheduled a Joint Fiscal Office briefing later in the week to review what the legislature did in the prior budget and to provide additional context on FY27 planning.

The committee will return to language and line-by-line review in subsequent sessions and asked staff to highlight any items that warrant additional hearings or testimony.