Governor Josh Stein has addressed the state’s fiscal outlook following a revised revenue forecast from the Consensus Forecasting Group. The report indicates that state revenues for the upcoming two fiscal years will be lower than initially expected. Specifically, there is a projected shortfall of $218 million for FY 2025-26 and $222 million for the subsequent year.
“This nonpartisan report confirms our concerns about the fiscal cliff the state faces if we do not take action to address future revenue shortfalls,” Governor Stein stated. He highlighted that slower revenue growth could impact funding for public services such as safety, education, and other critical areas.
The governor also noted the challenges posed by an uncertain economy and potential federal budget cuts affecting essential programs like Medicaid and SNAP. Additionally, there are increasing costs related to Hurricane Helene recovery efforts.
Governor Stein proposed maintaining current tax rates as a measure to manage these financial challenges. Although his proposal was rejected by the House, it did implement fiscally prudent triggers before any tax cuts can proceed. “I call upon the Senate budget writers to follow suit,” he urged, emphasizing the need for balanced financial planning.
