Legislative leaders defend budget rollouts, say public hearings and reserves will guide final deals

Senate and House leaders held a joint briefing outlining newly released operating and transportation budget proposals and defended their choices on reserves, revenue and program timing.

A Senate Democrat who opened the briefing said the Senate, House and capital proposals were released in recent days and that the next weeks will give the public a chance to weigh in. "There is no bill that can pass the Senate without a public hearing. Period," the speaker said, noting revenue and tax proposals will be vetted in committee hearings next week.

House Majority Leader Joe Fitzgibbon, identified in the briefing, said both chambers face "unprecedented budget challenges" but are focused on protecting K–12 education, higher education, child care, health care and housing. He said the House and Senate have already had constructive conversations and will negotiate to adopt balanced operating and transportation budgets that protect core services.

On reserves, speakers described reasons the Senate proposal uses rainy day funds in the near term. One speaker said the state's most severe cash crunch is in fiscal year 2026 and that accessing reserve balances or the Budget Stabilization Account (BSA) for short-term borrowing helps avoid deeper cuts to services. The House speaker noted the House budget balanced without relying on the BSA but that using it remains a possibility while negotiating with the Senate.

Officials stressed that dedicated accounts remain directed to their statutory purposes. In response to questions about capital gains revenue and the Education Legacy Trust Account, speakers said those dedicated funds continue to flow to education programs but that revenue volatility and higher-than-expected demand for services can delay planned expansions.

The briefing closed with leaders saying both chambers plan hearings and that more details and amendments are likely as negotiators reconcile competing proposals.