Governor Josh Stein addressed concerns about the state’s financial future following a revised revenue forecast by the Consensus Forecasting Group. The updated forecast predicts lower-than-expected state revenues for the next two fiscal years, with shortfalls 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,” stated Governor Stein. He emphasized that slower revenue growth could impact funding for essential services like public safety, education, and other critical public resources.
The governor highlighted challenges such as an uncertain economy and federal budget pressures that might threaten funding for programs like Medicaid and SNAP. Additionally, increased expenses related to Hurricane Helene recovery have further strained resources. In response, Governor Stein has proposed freezing tax rates at their current levels. While his proposal was rejected by the House in favor of maintaining existing tax cuts, they introduced new conditions to delay these cuts unless certain fiscal criteria are met.
Governor Stein urged Senate budget writers to adopt similar measures to ensure financial stability. “We need to balance our books, not bury our heads in the sand,” he asserted.
