Budget

New tax proposals would include the state’s largest tax increases

The new tax package proposed by House and Senate Democrats this week includes five proposals to increase revenue. These and two other major tax bills are scheduled for executive session in the Senate Ways & Means Committee tomorrow. All would make the list of the state’s largest tax increases. They include: The table shows the […]

Bills would increase capital gains tax and estate tax rates

Increases to the capital gains tax and estate tax rates are included in the new tax package proposed by House and Senate Democrats. (I wrote about their B&O and sales tax proposals earlier.) SB 5813 and HB 2082 are identical; fiscal notes are not yet available. Capital Gains Tax The current capital gains tax rate […]

Sales tax proposal would apply the sales tax to more services (and includes a budget gimmick)

The new tax package proposed by House and Senate Democrats this week includes SB 5814 and the identical HB 2083. The bills would subject more services to the sales tax and more products to the other tobacco products tax. They would also require businesses to make a one-time prepayment of sales tax collections. (Fiscal notes […]

Savings included in the Senate- and House-passed budgets represent about 4% of the 2025–27 maintenance level

Yesterday I wrote about the new policy increases included in the Senate- and House-passed operating budgets. The increases for 2025–27 ($4.680 billion in the Senate and $4.124 billion in the House) would be offset partially by policy reductions ($3.045 billion in the Senate and $3.210 billion in the House). (The numbers in this post are […]

Compensation accounts for over 40% of the proposed increases in the Senate- and House-Passed operating budgets

Both the Senate- and House-passed operating budgets for 2025–27 would increase appropriations from funds subject to the outlook (NGFO) above the maintenance level. The maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) is estimated to be $76.840 billion. The Senate would make policy level reductions of $3.045 billion and add […]

Senate- and House-passed operating budgets move away from each other

The Senate and House have each passed their separate operating budget proposals. They do not differ significantly from the versions proposed by the committee chairs. (For more on the original proposals, see our side-by-side.) The Senate-passed operating budget for 2025–27 would appropriate $78.475 billion from funds subject to the outlook (NGFO). That is $5.3 million […]

Balancing FY 2026 with budgetary shifts

Fiscal year 2026, which begins on July 1, 2025 and is the first year of the 2025–27 biennium, appears to be the trickiest year to balance in the operating budget. First, the deficit between the maintenance level (the cost of continuing current services, adjusted for inflation and enrollment) and forecasted revenues is larger in 2026 […]

New brief: Comparing Operating Budget Proposals

Three operating budget proposals find about $3 billion in savings, but the Senate Ways and Means and House Appropriations Committee Chairs would increase net new policy spending. Additionally, the proposals from the Senate and House Chairs would each increase revenues by more than is necessary to fund even their proposed spending levels. Read the report […]

House Chair proposes a lower level of appropriations in 2025–27 than the Senate Chair, but the House proposal would cost significantly more in 2027–29

The House Appropriations Committee Chair has proposed a 2025–27 operating budget that would appropriate $77.758 billion from funds subject to the outlook (NGFO). This would be an increase of $5.813 billion (8.1%) compared to current appropriations. Although this is $711.9 million less than would be appropriated under the Senate Chair’s proposal in 2025–27, the House […]

Senate Chair proposes increasing appropriations by 9.1%

The Senate Ways & Means Committee Chair’s 2025–27 operating budget proposal would appropriate $78.470 billion from funds subject to the outlook (NGFO). Compared to current appropriations (as revised in 2024), this would be an increase of $6.525 billion (9.1%). According to the estimated outlook, this increase includes $1.630 billion in net new policy items. The […]