Last week, the South Carolina Board of Economic Advisors (BEA) held its quarterly meeting where they announced that they had raised the General Fund Revenue forecast for FY2021-22 by an additional $952 million in one-time revenue. The BEA also raised its estimated General Fund Revenue forecast for FY2022-23 by an additional $335 million and revised its estimates to note that lawmakers will have an additional $1.92 billion in recurring revenue and $4.06 billion in one-time surplus, non-recurring revenue at their disposal for the FY2022-23 budget process. The main economic drivers of the revised forecasts include record sales tax collections, and higher than expected income and corporate income tax collections.
The announcement by the BEA was timely, as lawmakers began the first of many conference deliberations on the FY2022-23 budget. The additional $952 million in one-time revenue could be used to resolve some of the outstanding differences between the House and Senate versions of the budget. House Speaker Murrell Smith (R-Sumter), one of the House members of the conference committee, cautioned negotiators on how they spend the additional revenue noting that the BEA’s estimated General Fund Revenue forecast for FY2022-23 is 7% lower than the estimate for FY2021-22.
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