The latest revenue forecast released today by the Economic and Revenue Forecast Council projected a $105 million or a 0.1 percent increase in the current 2025-27 biennium, with a $185 million or 0.2 percent decrease in the upcoming 2027-29 biennium since the last forecast released in September.
Increases in the current biennium were attributed to a higher estate tax forecast and tobacco settle revenue, while it was partially offset by a continued dampening of sales taxes.
The rate of growth in state tax collections has continued to slow over the last two years, which state economists attribute to lingering impacts from the COVID-19 pandemic including high interest rates. This slow growth has also been observed in other state economic indicators, including growth in real GDP, employment, inflation, personal income, and taxable sales.
Next month the governor will release his 2026 supplemental budget proposal, which this latest forecast will provide the basis for.