Tax & Budget

Governor Dunleavy announced plans to introduce a comprehensive fiscal package to stabilize Alaska's volatile budget process, which relies heavily on oil prices. He emphasized holding budget growth to less than 1% annually, paying down debts, achieving four credit rating upgrades, and protecting the Permanent Fund and Dividend. He noted the state's revenue volatility is its greatest challenge to investment and called for a stable, rules-based budget process while opposing a 'tax-and-spend plan.'

Governor Ivey proposed a two percent pay raise for state employees including troopers and mental health workers. She highlighted conservative budgeting that avoided proration and announced investments totaling $69 billion that created 100,000 jobs. She also noted the state generated more than $2 billion for 500 road and bridge projects through Rebuild Alabama and proposed the largest Education Trust Fund budget in state history.

Governor Hobbs made affordability her top priority, calling on the legislature to immediately pass a Middle Class Tax Cuts Package delivering over $200 million in tax relief through increased standard deductions, cuts on overtime and tips, and senior relief. She proposed eliminating the $38 million Data Center Tax Exemption and creating a new Arizona Capacity and Efficiency Initiative to save up to $100 million over three years. She emphasized her budget was bipartisan and balanced, contrasting it with the federal budget.

Governor Newsom announced a General Fund of $248.3 billion with revenues $42.3 billion higher than forecasted, driven by economic growth. He proposed rebuilding reserves by adding $7.3 billion and paying down $11.8 billion in long-term pension obligations. He highlighted record per-student spending of $27,418 and defended California's progressive tax system, noting 11 states tax their middle class more than California does. He also proposed reauthorizing the CalCompetes tax credit program for five years.

Governor Polis celebrated cutting income and property taxes multiple times during his tenure, saving the average family of four over $600 annually and taxpayers nearly $2.5 billion last year. He noted Colorado's budget reserves reached 13% and expressed hope for further income tax rate cuts. He highlighted the impact of federal actions including HR 1 gutting the state budget by $1 billion overnight and eliminating TABOR refunds, and called for converting Pinnacol to fund the $200 million senior homestead exemption.

Governor Lamont celebrated seven consecutive balanced budgets, a $4 billion rainy day fund, and paying down over $10 billion in pension debt. He proposed energy rebates of about $400 per family from capital gains revenue. He highlighted a $400 million bipartisan middle-class income tax cut, elimination of income tax for most seniors, expanded earned income tax credits, and licensing fee eliminations for nurses and trades. He maintained $313 million to backfill unanticipated federal cuts.

Governor Meyer highlighted $65 million in new efficiencies and cost savings in the budget and promised to return the state to manageable budget growth under 5%. He committed to a responsible budget that 'puts families first' and thanked legislative budget leaders for their partnership in sustainably funding critical services, while noting the state faces fiscal pressure from federal cuts that the Attorney General has fought to recover, saving $856.7 million.

Governor Kemp proposed a fourth one-time $1 billion tax rebate ($250 per filer, $500 per couple) and a further 20-basis-point reduction in the income tax rate to 4.99%, three years ahead of schedule. He highlighted $9.7 billion in total tax relief since 2021, state reserves exceeding $10 billion, cash-funding $4.1 billion in capital projects saving $3.3 billion in interest, and reducing outstanding debt by over 20%. He also proposed a $325 million endowment for the DREAMS need-based scholarship program.

Governor Green proposed pausing tax cuts planned for 2027-2029 to recover $1.8 billion for critical services impacted by federal cuts, while preserving all current and previous tax cuts. He highlighted the largest income tax cut in state history enacted during his tenure, doubling the earned income tax credit and food tax credit, and growing the rainy day fund to $1.5 billion. He proposed $600 million of the recovered funds must go to food security and childcare needs.

Governor Reynolds highlighted cutting taxes more than any other state, including a 3.8% flat income tax, elimination of inheritance tax and retirement income taxes, and halving the unemployment insurance tax. She announced that Iowa will match all federal tax cuts from the Trump administration at the state level, including eliminating taxes on tips, overtime, and Social Security. Her major new initiative is comprehensive property tax reform including caps on local government revenue growth, freezing property taxes for seniors 65+, and creating homebuyer savings accounts.

Governor Little presented his 'ENDURING IDAHO' budget plan to balance the budget after a 14% revenue decrease without raising taxes or cutting K-12 schools. He emphasized using a mix of one-time and ongoing spending reductions, maintaining the AAA credit rating, and positioning Idaho to conform to Trump tax cuts. He noted Idaho ranks third nationally in tax friendliness and highlighted the state's lowest per-capita debt in the nation.

Governor Braun emphasized affordability as his highest priority, highlighting a historic $1.5 billion property tax cut over three years, cracking down on waste and fraud to find $465 million in Medicaid savings, and neutralizing a projected budget shortfall. He noted most state agencies are operating with 10% cuts while the revenue forecast shows strong growth. He also highlighted holding utility companies accountable and requiring data centers to pay their own power costs.

Governor Kelly highlighted responsible budget management that turned inherited deficits into surpluses, with a $2 billion rainy day fund and strong credit rating. She noted over $1 billion per year in tax cuts including eliminating the food sales tax (saving families $500/year), eliminating income tax on Social Security, and cutting taxes for seniors, parents, and farmers. She credited CNBC naming Kansas second in the country for cost of living.

Governor Beshear's budget proposal included $70 million for site development, $100 million for infrastructure, $25 million for rural economic development, $150 million for the Affordable Housing Trust Fund, $100 million for health exchange subsidies, $159 million for mandatory educator raises, $50 million for food banks, and $75 million for utility assistance. He emphasized pushing back against federal cuts while maintaining fiscal discipline and investing in Pre-K for All.

Governor Healey proposed cutting electric bills by 25% and gas bills by 10% in February and March. She highlighted a $400 million middle-class income tax cut already delivered, elimination of licensing fees, expansion of the earned income tax credit, free community college, and free school meals. She noted the state's strong economy allows continued investments without raising taxes and committed to protecting healthcare for 270,000 families affected by federal subsidy cuts.

Governor Moore presented a balanced budget with a General Fund smaller than the previous year for the fourth consecutive time, without raising taxes or fees. He proposed $100 million in additional energy rebates, filling a $40 million SNAP funding gap created by federal cuts, and $14 billion for Medicaid. He noted the state faces $25,000 federal job cuts — the most of any state — and emphasized protecting services while maintaining fiscal discipline.

Governor Mills proposed $300 Affordability Relief checks for an estimated 725,000 Maine people, drawn from the state's record-high rainy day fund of over $1 billion. She also proposed a $70 million 'American Dream' housing package. She highlighted increasing direct tax relief from $388 million to nearly $1.1 billion over seven years, including earned income tax credits, dependent exemption credits, student loan tax credits, and property tax fairness credits. She also committed $46 million to maintain 55% state education funding.

Governor Kehoe centered his address on fiscal discipline, proposing to reduce more than $600 million from the general revenue core operating budget to address a projected $2 billion future imbalance. He called for a ballot measure to phase out Missouri's individual income tax entirely, arguing the tax code needs modernization. He emphasized that voter approval would be required first and that new revenue from currently untaxed services would replace income tax revenue, with triggered rate reductions as safeguards.

Governor Pillen emphasized that tax cuts require equal decreases in government spending and proposed a budget delivering a $500 million improvement to the state's bottom line through spending cuts. He highlighted the state's nearly $2 billion general fund reserve and highest-ever credit rating. He noted that previous tax reform efforts often created 'carveouts, subsidies, loopholes, and exemptions' that amounted to tax shifts rather than cuts, and called for a new Grow the Good Life Incentive with 10% tax credits for businesses bringing new high-paying jobs to Nebraska.

Governor Ayotte strongly defended New Hampshire's no-income-tax, no-sales-tax model, warning that property tax concerns should not be addressed by instituting new taxes. She highlighted the state's lowest tax burden in the country and contrasted it with neighboring states, noting that Connecticut's income tax has been raised four times since enactment while their property taxes remain third-highest nationally. She called for local governments to practice fiscal restraint and celebrated attracting six companies from Massachusetts.

Governor Sherrill signed executive orders on her first day declaring a State of Emergency on Utility Costs, pausing new utility rate increases and opening solicitations for new power generation. She emphasized making New Jersey more affordable as her top priority, criticizing the previous trend of rising costs. She pledged not to waste money on items like 'a ballroom at Drumthwacket' and committed to spending every minute trying to make the state more affordable.

Governor Lujan Grisham highlighted nearly $1 billion in tax cuts in the prior year alone, including reducing the gross receipts tax for the first time in 40 years, expanding rebates for low-income families, creating a child tax credit, and exempting Social Security and military retirement from income tax. She proposed $150 million in tax credits for next-generation technologies like quantum computing and fusion, and called for eliminating the gross receipts tax on medical services.

Governor Hochul highlighted the lowest middle-class tax rates in 70 years, a child tax credit up to $1,000, and paying off billions in unemployment insurance debt while increasing benefits by 70%. She proposed cracking down on auto insurance fraud to lower rates, noting New Yorkers pay the highest auto insurance in the nation averaging $4,000/year. She emphasized the state's strong fiscal position with two bond rating upgrades saving $200 million and collecting $417 million more in revenue than projected.

Governor Armstrong called a special session focused solely on authorizing $199 million in federal Rural Health Transformation funds, with a two-year appropriation authority to enable quick disbursement of Year 2 funding. He emphasized fiscal responsibility, noting the state would not construct new buildings or stand up unsustainable programs that become taxpayer obligations when federal funding expires.

Governor Stitt highlighted $1.6 billion in tax cuts during his tenure and the Path to Zero income tax plan. He called for a constitutional amendment capping recurring spending growth at 3%, a state question to allow Medicaid expansion adjustments, creation of a $750 million Taxpayer Endowment Fund from existing savings, and a state question to freeze property tax growth. He warned against veto overrides of spending bills, which he said cost taxpayers nearly $800 million.

Governor Shapiro highlighted collecting $417 million more in revenue than estimated due to economic growth, two bond rating upgrades saving $200 million, and securing $39 billion in private sector investment in three years. He proposed a $100 million Federal Response Fund to mitigate future federal funding disruptions and emphasized not raising taxes. He called for sustainable, recurring funding for mass transit beginning in 2027.

Governor McKee unveiled an 'Affordability for All' agenda projecting $215 million in first-year savings and $1.4 billion over five years. Key proposals include eliminating the state tax on Social Security, creating a permanent $325-per-child tax credit, rolling back last year's gas tax increase, reforming energy bill charges to deliver $1 billion in energy relief over five years, and making the Hope Scholarship permanent. He also proposed $600 million in bond proposals for infrastructure investment.

Governor McMaster highlighted five consecutive years of income tax cuts totaling $1.275 billion in taxpayer savings and proposed cutting the personal income tax rate further, stating he would sign an elimination bill 'the second it arrives on my desk.' He called for an additional $1.1 billion in surplus money for infrastructure projects and noted the state has had large budget surpluses year after year, enabling seven consecutive tuition freezes for in-state college students.

Governor Rhoden proposed allowing counties to replace their share of property taxes with a half-cent sales tax as a local option, not a mandate. He emphasized the state's second-most-competitive tax system in America, second-least regulations, and lowest unemployment rate. He positioned the proposal as empowering local decision-makers and noted the areas with the biggest property tax increases also attract the most visitors, allowing tourist revenue to offset property tax reductions.

Governor Lee highlighted Tennessee's triple-AAA bond rating, 50% revenue growth over eight years while reducing government employees by 1,100, and an additional $340 million directed to public schools. He proposed $80 million in grants for Memphis crime reduction and an additional $25 million for the Nuclear Fund. He emphasized fiscal stewardship as the number one reason companies choose Tennessee, noting the state's approach of reducing government size while increasing targeted investments.

Governor Cox's address focused primarily on civic virtue and founding principles rather than detailed fiscal proposals, but he outlined priorities including early literacy, housing reform, homelessness, and phone/social media policy. He cautioned against overreliance on legislation and emphasized personal responsibility and community character as foundations for prosperity.

Incoming Governor Davis outlined priorities including tackling housing costs, lowering energy costs by ensuring high energy users pay their fair share, and cracking down on drug price middlemen to reduce healthcare costs. She emphasized making life more affordable for Virginians and growing the economy in every corner of the Commonwealth, while investing in apprenticeships and job training.

Governor Scott focused his address almost entirely on education reform and its fiscal implications, noting Vermonters are set to spend $2.5 billion on pre-K through 12 (up from $1.6 billion when he became Governor) and face another $200 million increase with double-digit property tax increases. He committed to providing property tax relief as a band-aid while pushing Act 73 education reforms to change the long-term cost trajectory, and pledged not to sign any budget deviating from Act 73.

Governor Ferguson proposed a Millionaires' Tax on individuals earning over $1 million annually (less than 0.5% of Washingtonians) to fund expanded Working Families Tax Credits, small business B&O tax elimination for businesses grossing under $1 million (the 'biggest tax break for small business owners in state history'), and K-12 education investments. He also proposed historic infrastructure spending including over $1 billion for bridges and $756 million for road paving over ten years without raising taxes.

Governor Evers highlighted over $2 billion in annual tax relief with most going to the middle class, a 23% income tax cut for middle-class families, elimination of sales tax on utility bills saving $178 million over two years, and over $600 million in taxpayer savings from paying down $3 billion in state debt. He ended 30 consecutive years of checking account deficits and noted median wages reached an all-time record high. He called for meaningful K-12 funding and property tax relief this session.

Governor Morrisey emphasized fiscal responsibility while requesting $100 million for road and bridge repair beyond the current road fund, $20 million for state park improvements, and fully funding the HOPE scholarship in the baseline budget rather than depending on surpluses. He highlighted $4.5 billion in new private sector investment and proposed workforce development legislation while noting tourism generated over $1 billion in tax revenue.

Governor Gordon presented a budget focused on 'essentials' and asked the legislature to place $250 million of surplus into permanent savings in the Permanent Mineral Trust Fund. He noted the PMTF and sister trusts produced $913 million last year — now the largest single source of state income. He called for competitive state employee pay raises to 2024 market value, warned against simply cutting the Wyoming Business Council, and emphasized that his budget leaves a $500 million surplus plus an additional $250 million in harvested investment income.