Legislative budget analysts are warning of a $1.4 billion budget gap for fiscal 2027, driven by federal economic policies, that is projected to grow to almost $4 billion over the next five years. (Chart courtesy Department of Legislative Services)
Lawmakers will be briefed Wednesday on a $1.4 billion budget gap they could face as they head into the 2026 legislative session, roughly five times larger than the amount predicted in April.
The briefing for House and Senate fiscal committees by the Department of Legislative Services blames the projected cash shortfall on national economic pressures, chiefly inflation and the rising costs of goods and services to state government, as well as the ever-increasing costs of Medicaid. Additionally, the state is seeing other costs driven by tariffs imposed on imported goods by the Trump administration…