Lisa Claire Elder

The council reviewed and adopted expenditure and revenue forecasts for the General Fund for fiscal years 2026 and 2027. Key discussions included the impact of Medicaid expenditure projections, fringe benefit and pension cost increases, and economic outlook factors such as inflation, oil price volatility, and global conflicts. The council also reviewed Transportation Trust Fund (TTF) revenue and expenditure forecasts, discussing impacts from weather events, DMV operational changes, and federal grant project timelines. Additionally, administrative adjustments for future meeting scheduling were discussed.

The council reviewed and approved expenditure and revenue estimates for Fiscal Years 2026 and 2027 for the General Fund. Discussions covered the impact of House Bill 255 on tax revenues, trends in corporate income and gross receipts taxes, and updates on lottery and realty transfer tax projections. Additionally, the council approved expenditure and revenue estimates for the Transportation Trust Fund, addressed the budget benchmark index, and established a new methodology for the Health Care Spending Benchmark. Other business included a review of the FY 2027 debt limit and the availability of the annual fiscal notebook and tax preference report.

The meeting featured a presentation from Moody's Analytics regarding the U.S. Economic Outlook, focusing on policy headwinds and artificial intelligence tailwinds. Key agenda items included reviewing and accepting General Fund Expenditure forecasts for Fiscal Years 2026 and 2027, with significant discussion centered on Medicaid expenditure growth and federal program changes. Revenue forecasts were also discussed, highlighting major downward revisions to Corporate Income Tax estimates, partly attributed to the One Big Beautiful Bill Act (OBBBA). Expenditure and revenue estimates for the Transportation Trust Fund (TTF) for FY 2026 and FY 2027 were presented and adopted, noting the impact of recent legislation on toll revenues and new electric vehicle fees. In other business, the committee voted to return the Healthcare Spending Benchmark recommendation to the Subcommittee for further review before a formal vote in December.

The meeting included presentations and discussions on General Fund Expenditure forecasts for fiscal years 2025 and 2026, covering various factors influencing these projections such as state salaries, healthcare costs, and capital outlay. The economic outlook was reviewed, noting minimal changes since the previous meeting but highlighting the potential impact of tariffs and the conflict in the Middle East. General Fund Revenue forecasts were also presented, with revisions made to account for Personal Income Tax payments and other revenue sources. The Transportation Trust Fund's expenditure and revenue forecasts were discussed, with adjustments recommended for toll road revenues and road system projects. An update was shared on the Healthcare Spending Benchmark Subcommittee, and the Debt Authorization Limit for FY 2026 was reviewed.

The virtual town hall covered topics such as the state budget, the coronavirus situation, and greenhouse gas emissions from the transportation sector. The discussion included the state's response to the first positive coronavirus test, advice for educators and the general public, and the importance of hand hygiene. The state's approach to budgeting, investments in renewable energy, and infrastructure for electric vehicles were also addressed.