Overview
- MMB projects a $2.465 billion surplus for the 2026–27 biennium and a $2.96 billion deficit in 2028–29.
- The outlook marks an improvement from March’s $456 million surplus and roughly $6 billion long-range deficit, yet it reverses some gains since June’s budget deal that had trimmed the future gap to about $1.1 billion.
- General fund reserves stand at about $3.77 billion, with automatic deposits from the fall forecast limiting immediately available dollars.
- State economists warn this forecast carries higher uncertainty because recent employment and inflation data were unavailable due to the federal shutdown.
- MMB describes the near-term picture as stable but structurally challenged, positioning lawmakers to revisit spending and policy choices in the 2026 session.