The state budget outlook continued to improve on Wednesday as the bottom line was improved by $1.3 billion in the current 2019-21 biennium and $1.9 billion in the upcoming 2021-23 biennium, according to an updated state economic and revenue forecast.
This stronger economic outlook is largely credited to two federal stimulus packages that were passed since the last revenue forecast in November along with the trend of increasing tax collection reports in the months since, according to the report. COVID-19 vaccine distribution has been faster than anticipated which encourages some optimism in the report, however concerns to the forecast include the COVID-19 variants that may have an impact on recovery efforts and reopening plans.
While the June 2020 economic forecast presented a three-year budget shortfall thought to be $9 billion, the updated since forecasts have largely closed that gap.
The budget writers in the Senate and House will now begin finalizing their budget proposals for the 2021-23 session. The first of the two proposals could be seen in the next two weeks.