Two months into fiscal year 2026, growth in the state’s General Fund is up 6.2% from the same point in 2025, despite a decrease in one of its largest revenue sources.

Meanwhile, the combined tax receipts to the Education Trust Fund were nearly flat at .6% for October and November. Income tax revenue has increased so far this year as sales tax revenue has decreased.

Lawmakers and other state budget leaders are six weeks from the start of the 2026 legislative session. Any revenue declines will be top of mind as they craft the state’s 2027 spending plans.

General Fund

Interests in state deposits, fueled by an influx of COVID-19 federal relief funds and higher-than-normal interest rates, were a boon for the General Fund in 2023 and 2024 and held steady until a downturn at the end of fiscal

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