Overview
- The proposal exceeds projected revenues by nearly $4.6 billion and would use more than half of the roughly $8 billion Rainy Day Fund to close the gap.
- K-12 funding would rise by $665 million while Medicaid and related human services costs are set to climb by about $1.46 billion.
- A $1 billion bond-backed Critical Infrastructure Investment Program would target new energy generation, housing investment, and repairs to aging school buildings.
- Revenue measures include regulating and taxing skill games at the 52% slots rate with projected receipts of more than $2 billion annually, legalizing adult-use cannabis with $766 million forecast in year one and record expungements, and collecting $328 million by tightening corporate tax rules.
- The plan proposes shifting an additional 1.75% of state sales tax to public transit for about $300 million a year starting in 2027, keeps income and sales tax rates unchanged, and continues cutting the corporate net income tax.