New State Revenue Forecast Brings Good News

An improved state revenue forecast was unveiled Wednesday, with increases of $634 million for the current budget and $328 million for the two years after that.

State Senator Brad Hawkins said the positive forecast means fiscal conservatism is still possible for the upcoming budget.

"While it doesn't take into account any potential economic impact from the Governor's most recent COVID restrictions, it does demonstrate to lawmakers that balancing the upcoming budget without tax increases is certainly possible," said Hawkins.

State economists are forecasting a projected budget deficit of nearly $3 billion. The state's rainy day fund is roughly $2 billion.

In a statement following a meeting of the Economic and Revenue Forecast Council, Senate Ways & Means Committee Chair Christine Rolfes added, "This updated forecast will put the Legislature in a better position to meet the needs of struggling families and small businesses when we convene in January. Our state still has a lot of challenges ahead, which I’m confident we will continue to meet, and we continue to look to our federal government to help get us through these trying times.”

The next state revenue forecast will be issued in March.