This budget law gives the state's government technology department new powers to set data-sharing requirements and sell IT services to other governments, sends certain federal money for 2026-2027 to the state general fund, and relaxes budget stabilization fund rules for the coming fiscal years.
Official title: state budget implementation; 2026-2027
- September 12, 2026
- Applies retroactively from and after June 30, 2026: Deposit of unrestricted federal money into the state general fund
- Fiscal years 2026-2027 and 2027-2028: Legislature not required to appropriate money to or transfer money from the budget stabilization fund
- Fiscal year 2026-2027: No 10% cap on the budget stabilization fund and no transfer of surplus to the general fund
What changes
BeforeThe department set statewide technical and coordination standards for state information technology.
NowThose standards may include a requirement that state budget units (state agencies and offices) adopt certain technologies and data-sharing practices to make running IT more efficient. The department must also develop a statewide data strategic plan to improve data sharing and data governance.
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NowThe department may delegate authority or specific IT functions to any budget unit, and may enter into agreements with any state agency or political subdivision (such as a city or county) to provide IT services. Unless the Legislature has set aside money for this, those agreements must have the department reimbursed for its costs, as the department determines.
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NowAny unrestricted federal money the state receives from July 1, 2026 through June 30, 2027 must be deposited in the state general fund and used to pay for essential government services.
BeforeExisting state law sets rules on putting money into and taking money out of the budget stabilization fund (the state's savings or 'rainy day' fund).
NowFor fiscal years 2026-2027 and 2027-2028, those rules are set aside, and the Legislature is not required to put money into or take money out of the budget stabilization fund.
BeforeExisting state law limits the budget stabilization fund to 10% of state general fund revenue and addresses moving surplus money from the fund to the general fund.
NowFor fiscal year 2026-2027, the budget stabilization fund is not capped at 10% of state general fund revenue, and the state treasurer may not move any surplus money from that fund into the general fund.
Who it affects
- State agencies and other state budget units
- Cities, counties and other political subdivisions that may contract for state IT services
- The state's government information technology department
- The Legislature
- The state treasurer
What you need to do
Nothing.
What the law doesn't answer
- Which specific technologies or data-sharing practices budget units could be required to adopt
- When the statewide data strategic plan must be finished
- How much unrestricted federal money is expected or what counts as 'essential government services'
- How much money is in the budget stabilization fund
- How the department will calculate costs charged to agencies and local governments for IT services
This summary describes the law as enacted. Later laws, court rulings or referendum petitions can change the picture. Check the official text for the current wording.