Governor's Office of Management and Budget issued the following announcement on May 13.
The Governor's Office of Management and Budget revised upward its General Funds revenue estimates by $1.469 billion for fiscal year 2021 and by $842 million for fiscal year 2022, compared to the estimates published with the Governor's introduced budget in February 2021.
Strong year-to-date receipts in the state's main revenue sources (individual and corporate income tax and sales tax) have led GOMB to revise its estimates. Through April, fiscal year 2021 General Funds revenues were outperforming revenue estimates from the February estimates by about 5 percent.
"While the increase in revenues is good news, and a sign our economy is coming out of the pandemic, much of these funds are one-time in nature and should not be expected to recur in FY2022," said Deputy Governor Dan Hynes. "The administration was pleased to propose last week that we increase the state's education budget for the coming year, using these funds and our proposal to end $1 billion in corporate welfare. However, the pandemic is still with us, and we have a lot of work ahead of us to ensure the state remains on sound fiscal footing, including repaying the federal government for loans used to cover current coronavirus expenses."
Total General Funds state revenues for fiscal year 2021 are now estimated at $36.703 billion, compared to $35.311 billion in February, with total revenues, including federal sources, estimated at $44.949 billion. Total General Funds state revenues for fiscal year 2022 are now estimated at $35.283 billion, compared to $34.589 billion in February, with total revenues, including federal sources and the governor's proposed closure of corporate tax loopholes, estimated at $42.552 billion.
The one-time sources of revenue include the double final income tax payments receipted in fiscal year 2021, and the tax receipt benefits from economic activity following individual stimulus payments and a full year of enhanced unemployment benefits throughout fiscal year 2021. Expanded unemployment benefits are currently only extended through September 2021, early in fiscal year 2022.
The resilience of the state's economy and the continued impacts to the state from stimulus payments to taxpayers by the federal government and extended enhanced unemployment benefits led to the changed forecasts.
The revisions were published in GOMB's April 2021 Report to the Legislative Budget Oversight Commission (LBOC) issued today. The full report is available here.
Original source can be found here.
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