The much- anticipated updated state revenue numbers for the 2025-27 state budget were released recently by the Legislative Fiscal Bureau. The latest forecast indicates the state is now expected to have $335 million less available through mid-2027 than previously anticipated in January.

According to the LFB, the state’s projected ending balance for the 2023-25 biennium is now slightly over $4.3 billion—an increase from earlier estimates due to modest gains in revenue collections and reduced net appropriations. However, the lower anticipated tax collections in the upcoming biennium contribute to the overall trend in ongoing state revenues.

This week, the Governor and Republican Legislative leaders met in person for the first time in months to negotiate the state budget. Republicans are prioritizing a tax cut and want a tax deal passed prior to the budget advancing. Meanwhile, Governor Evers is focused on his “Year of the Kid” budget priorities – including funding for K-12 education and child care. Timing is starting to get tight for the legislature to finish their budget work by June 30. Many Capitol watchers believe that once a deal is made the budget process will move incredibly quickly.