The state’s Economic and Revenue Forecast Council on Wednesday produced state revenue projections showing budget declines over the next four years.
Their updated forecast shows a decline of $89 million during the current two-year biennium and a decrease of $181 million for 2025-27 when compared to their September forecast. For reference, the overall budget is expected to exceed $71 billion in the 2025-27 biennium.
Among the puts and takes found in the report include lower sales taxes, increases on higher estate/capital gains in FY25 and decreases for FY26 and beyond. Looking ahead, interest rate cuts and improved consumer spending could animate the state’s financial forecast, though downsides now include possible tariff impacts along with escalating conflicts overseas.
This will be the final budget update that will be used by the governor to produce his proposed operating budget next month.