Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Forecast council directs staff on reversions, revenue floor, juvenile facility costs and Medicaid eligibility savings
Summary
The Economic and Revenue Forecast Council gave staff guidance on methodology for the governor's 2026 supplemental budget outlook, settling on a compromise reversion assumption (1% in FY26, 0.9% thereafter), excluding a statutory 4.5% revenue-growth floor, and including the governor’s proposed juvenile facility operating costs and functional‑eligibility savings in the outlook.
The Economic and Revenue Forecast Council on Jan. (meeting date) voted on a set of methodological choices staff will use to prepare an outlook for the governor’s 2026 supplemental operating budget, deciding on assumptions about unspent appropriations, a statutory revenue-growth floor, a proposed juvenile rehabilitation facility, and changes to Medicaid functional eligibility.
The council adopted a compromise reversion assumption instructing staff to use 1% of general‑fund appropriations in fiscal year 2026 and 0.9% in the out years for the outlook, after a series of failed motions and discussion about conservatism versus reflecting the governor’s proposal. Rachel Knudson, senior budget advisor at the Office of Financial Management, told the council that the governor’s 1% assumption reduces projected expenditures by about $1,496,000,000 over the outlook period and that the long‑term average reversion rate is roughly 1.1%.
"Actual reversion levels in recent years have been larger than typical," Knudson said, noting the…
Already have an account? Log in
Subscribe to keep reading
Unlock the rest of this article — and every article on Citizen Portal.
- Unlimited articles
- AI-powered breakdowns of topics, speakers, decisions, and budgets
- Instant alerts when your location has a new meeting
- Follow topics and more locations
- 1,000 AI Insights / month, plus AI Chat
