|PCMS Advocacy Update: State Revenue Estimating Conference Meeting Recap|
The state Revenue Estimating Conference (REC) recently met to establish the revenue estimates for the remainder of Fiscal Year 2021 (ending June 30, 2021) and Fiscal Year 2022 (the next budgeting year). By law, the Governor must use these estimates when crafting her budget recommendations, which will be released on January 12.
For FY 2021, the REC increased the estimate by $57.6 million from the October estimate. The new estimate is $37 million, or 0.5 percent above actual FY 2020. Due to FY 2020 (which ended last June 30) coming in above the estimate, this means FY 2021 will have a surplus of approximately $350 million. There will likely be a need for a $100 million supplemental for Medicaid, as well as supplemental appropriations related to COVID-19.
For FY 2022, the REC increased the estimate by $34.9 million from the October estimate. The new estimate is an increase of $296.4 million, or 3.7 percent, compared to the new FY 2021 estimate. Despite legislators being cautious about promising any new expenditures, the current forecast will allow for budget growth in FY 2022. The Volunteer Physician Network appropriation, is expected to be a part of the Governor’s budget recommendations.
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