OMB presents roughly $467.7 million FY2026 supplemental; House bill totals higher

Lacey Sanders, director of the Office of Management and Budget, told the Senate Finance Committee on Feb. 25 that the governor's FY2026 supplemental budget request totals roughly $467.6–467.7 million in unrestricted general funds and reflects a mix of formula obligations, fund recapitalizations and operational shortfalls.

"$467,000,000 is the number that we are talking about," Sanders said as she outlined the administration's package, noting the figure is driven in part by a previously identified $52.1 million revenue shortfall tied to oil price volatility and by a set of statutory, formula‑driven obligations.

Sanders provided a line‑by‑line breakdown on items ranging from Medicaid and senior benefits to fund capitalizations and one capital match item. She also compared the governor's package to the House version, HB 2 89, which the administration said tallies to about $489.9 million. The House bill, Sanders said, adds contingency language and additional deposits to the fire suppression fund that account for much of the difference.

Chair Steadman and committee members pressed OMB on the revenue forecast timetable. Sanders said the Department of Revenue will publish an updated forecast in mid‑March and that federal and market changes could alter the projected deficit. "This portion of the deficit that we're proposing could change," she said.

The committee did not take votes on the supplemental during the Feb. 25 meeting; Sanders walked senators through amendments submitted Feb. 18 and said OMB will follow up with additional detail where needed.

The committee scheduled public testimony for 9 a.m. the following day on the operating, capital, mental‑health and supplemental budgets, with regional call‑in access, and adjourned at about 2:30 p.m.