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July 22, 2026

State Budget Note

Breaking Down the FY2027 Budget: More Work is Needed

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In A Nutshell

A Research Council analysis suggests GF/GP appropriations in the recently enacted FY2027 budget exceed available revenue resources by around $600 million to $900 million; more budget adjustments are likely needed to ensure a balanced budget.
Looking ahead, the next governor and legislature will begin FY2028 budget deliberations facing a GF/GP deficit of over $500 million once cost pressures related to the federal OBBBA and other inflationary pressures are factored in.
In terms of the total budget, a fair apples-to-apples comparison suggests the enacted FY2027 budget is (a) larger than the original FY2026 budget enacted last October; and (b) smaller than the adjusted FY2026 budget once recent supplemental appropriations are added.

July 22, 2026

State Budget Note

Download Report

A Research Council analysis suggests GF/GP appropriations in the recently enacted FY2027 budget exceed available revenue resources by around $600 million to $900 million; more budget adjustments are likely needed to ensure a balanced budget.
Looking ahead, the next governor and legislature will begin FY2028 budget deliberations facing a GF/GP deficit of over $500 million once cost pressures related to the federal OBBBA and other inflationary pressures are factored in.
In terms of the total budget, a fair apples-to-apples comparison suggests the enacted FY2027 budget is (a) larger than the original FY2026 budget enacted last October; and (b) smaller than the adjusted FY2026 budget once recent supplemental appropriations are added.