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Federal Stimulus Packages Positively Impact State’s Economic Outlook

March 9th, 2021 by WCBC Radio

The Board of Revenue Estimates voted today to slightly decrease the revenue projections for Fiscal Year 2021 by 0.004 percent to $18.8 billion, representing a $779,000 decrease from the December estimates. Additionally, the Board revised the projection for Fiscal Year 2022 to $20.1 billion, representing a 1.5 percent increase, or $299 million change, from the previous estimates.  Due to emergency legislation and veto overrides, today’s revenue estimates actually represent a 2.3 percent increase for FY21 and a 2.4 percent increase for FY22, or $424.0 million and $473.3 million, respectively. The largest share of the difference is directly attributable to the extraordinary amounts of federal stimulus that have been received as a result of the relief bills passed by Congress and the anticipation of a third stimulus package later this month. 

The direct consumer impacts as well as the macroeconomic impacts have provided a significant benefit to State revenues and accelerated the economic expansion.