A new projection from the state Revenue Forecasting Committee shows tax revenues are expected to flatten over the next year and then decline in future years.

The projection released Thursday shows state revenues will increase by $24.4 million for the fiscal year ending in June, but will decrease by $23.3 million through fiscal years 2026 and 2027.

The committee says the projection is consistent with its previous forecast from December.

The Mills administration says it shows a need for responsible budgeting moving forward during a time of economic uncertainty.

“This report from the Revenue Forecasting Committee reinforces the need for the State to budget responsibly for the coming years, especially given the widespread economic uncertainty of this moment and an unclear outlook on future Federal support,” said Mills in a statement Thursday.

Mills signed a two-year $11.3 million budget in March to ensure continued operations of state government. The remainder of the the governor’s budget will be reviewed by the state legislature.

The Committee says if new information becomes available, it may meet before its next scheduled update on November 1, 2025.

The committee also specifically noted in its forecast there’s increased consumer and business hesitancy stemming from the tariff policies of the Federal administration.