Appropriations committee reviews FY2027 budget language, flags new school construction fund and major transfers
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Summary
The House Appropriations Committee reviewed the FY2027 budget language, including the creation of a School Construction Aid fund funded by excess estate tax receipts, an education fund backfill totaling about $115 million from multiple components, use of reversions to manage a revenue downgrade, and expanded use of position‑pool repurposing.
Madam Chair convened the House Appropriations Committee on Jan. 27 and introduced Commissioner Adam Greshing, who led a line‑by‑line review of the FY2027 budget language.
Greshing told the committee the budget packet was 34 pages and that the administration had structured it with fewer one‑time items and no separate C or E100 sections because the administration intends to repurpose vacancies from the position pool rather than create new positions. “We took mercy on you guys this year. It's only 34 pages,” Greshing said, introducing the plan.
Why it matters: The package contains several structural changes that affect multiyear funding flows. Notably, language would redirect estate tax receipts in excess of 125% of forecast to a new School Construction Aid special fund rather than the Higher Education Endowment Trust Fund. Greshing said last year’s surplus estate receipts — about $25–30 million above forecast — meant recipients still received more overall, but directing a portion to school construction would reduce distributions to the higher education trust in years with large estate receipts.
Major transfers and reserves: The commissioner explained a roughly $115 million education fund transfer that comprises three components: amounts finalized in the budget adjustment, an unreserved $30 million temporary reserve and a $10 million education fund backfill tied to purchase and use tax changes. He also described using reversions and a FEMA denial reserve to help manage a recent revenue downgrade and said the administration unreserved $30 million of a temporary reserve to prioritize housing and property tax relief ahead of the general fund waterfall.
Position pool and conversions: Greshing detailed how the position pool will be used to repurpose long‑vacant slots for current needs rather than creating exempt positions through E100 in many cases. He told the committee the pool currently contains fewer than 10 available positions and that agencies requesting additions are often expected to identify roles they can relinquish or convert.
What’s next: Committee members asked for follow‑up briefings from the treasurer or Higher Education Endowment Trust Fund board about long‑term impacts of the estate tax shift and requested more detailed FEMA risk analysis from staff. The committee recessed and scheduled further agency briefings and witnesses in subsequent meetings.
The meeting paused for a short break with additional witnesses scheduled afterward.