WHEREAS, on January 17, 2024, the Five Year Baseline Projection was presented to the Joint Legislative Committee on the Budget documenting the projected revenues based on the adopted Revenue Estimating Conference forecast and the projected expenditures for the current fiscal year and the ensuing four fiscal years.
WHEREAS, the Five Year Baseline Projection is commonly used to determine if the state is expected to have a surplus or deficit in future years.
WHEREAS, the Five Year Baseline Projection shows the incoming administration is facing a ($64,770,901) deficit for Fiscal Year 2024-2025 for which it is responsible for preparing a balanced Governor’s Executive Budget by February 9, 2024.
WHEREAS, the Five Year Baseline Projection also shows a large deficit (commonly called a fiscal cliff) in Fiscal Year 2025-2026 of ($558,784,913), growing to a deficit of ($733,381,780) in Fiscal Year 2027-2028.
WHEREAS, the fiscal cliff in Fiscal Year 2025-2026 is caused by projected revenues decreasing by (3.47%) or ($416,200,000) as compared to projected expenditures increasing by 0.65% or $77,814,012.
WHEREAS, one month after taking office, the new administration will address the Fiscal Year 2024-2025 deficit of ($64,770,901) in the Governor’s Executive Budget presented on February 9, 2024.
WHEREAS, it is advantageous to begin addressing the future fiscal cliffs as early as possible in order to provide a balanced budget for all ensuing fiscal years.