Governor warns budget remains fragile despite legislative wins
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Summary
The governor cautioned that the state budget is not stable, citing a prior $16 billion shortfall, one‑time transfers and an $800 million projected deficit in 2028, and said he will watch revenue forecasts before proposing new taxes.
The governor cautioned that, despite legislative accomplishments, the state's budgetary outlook remains uncertain and not "out of the woods." He pointed to last year's $16,000,000,000 shortfall and said the current budget relies in part on one‑time transfers and draws on reserves that leave a projected $800,000,000 deficit in 2028.
"I'm clear eyed. We're not out of the woods on that by any stretch of the imagination," the governor said, adding that he refused to sign budgets that assume revenue growth beyond expert forecasts. He said the administration has moved toward budgeting to anticipated revenue growth to avoid repeating past shortfalls.
Asked whether the income tax is likely the last new tax for a while, the governor said he would wait for updated revenue forecasts before supporting new taxes, noting that many bills remain to be reviewed and that he could not predict signing timetables.
The governor said he supported legislative steps to balance the budget responsibly, including proposals he put in his budget, and that he appreciated legislators' efforts to work through difficult tradeoffs in a short session.
He said the administration will continue monitoring revenues and may return to the Legislature next session to press remaining priorities that did not pass, including additional ferry funding.