By Jim Small | AZ Mirror
Arizona’s state budget outlook has improved compared to last year and the state has more than $500 million than it expected, but fiscal challenges are expected to emerge in the coming years, according to legislative budget analysts.
Since lawmakers passed a budget in mid-June, revenues have surged beyond projections. The prior fiscal year, which ended June 30, concluded with $425 million more than lawmakers predicted, and the first quarter of the current budget year ended with $109 million more than the forecast.
In their briefing to the Finance Advisory Committee, a panel of state and private economists that advises lawmakers on the economy and budget, Joint Legislative Budget Committee analysts detailed the strong revenue collections and the short- and long-term outlooks for state finances.
The state’s general fund is projected to maintain a positive cash balance through fiscal year 2028. However, these balances are forecasted to decline over time, reaching a low of $159 million by FY 2028.
