Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Overview topic
No spam. Unsubscribe anytime.
Hobbs administration presents FY2026 executive budget with positive revenue outlook and targeted investments
Summary
The governor's Office of Strategic Planning and Budgeting presented a FY2026 executive budget that projects moderate revenue growth, maintains a positive ending balance and prioritizes housing, child care, education, health care, public safety and water-defense spending.
Sarah Brown, director of the governor's Office of Strategic Planning and Budgeting, opened the FY2026 executive budget rollout and framed the proposal around a positive revenue outlook and targeted investments to lower costs and expand access to housing, child care and health care while strengthening public safety and water supplies.
OSPB economists presented a revenue forecast that shows moderate general fund revenue increases through fiscal 2028 and a reported 2024 ending balance of just over $1 billion, compared with a previously projected $639 million. OSPB staff said the administration closed the prior-year shortfall without tapping the state's rainy-day or budget stabilization fund and that the FY2026 package balances new initiatives against a strengthening revenue outlook.
Analysts noted fiscal risks tied to federal policy changes, including the potential reduction in the enhanced Federal Medical Assistance Percentage (FMAP) for Medicaid expansion, which would shift costs to the state and raise enrollment and budgetary pressures. The budget document separates roughly $794 million in new executive initiatives into one-time and ongoing components; OSPB said about 68% of the new initiatives are one-time and 32% are ongoing.
The rollout video closed with the director thanking the OSPB team for preparing the presentation and noting that the administration will pursue the proposals through the legislative process.
