State Receives Better Budget News As It Considers Provider Rate Requests

The Joint Budget Committee heard the March 2021 Economic Forecast from Legislative Council Staff and OSPB. It will use this forecast as it finalizes the budget package, including provider rates.

The forecast contains mostly good news with signs that the worst of the recession is behind us. Due to a surprising increase in revenue collections, the General Assembly will have a $5.29 billion surplus for FY2021-22. This is a large increase from the December 2020 projection.

The surplus is from a low baseline resulting from a historically low reserve and significant cuts made last fiscal year. Most of the increase in revenue is a result of these cuts and are rollover dollars from last year. This means much of this additional money can only be used for one-time spending. It does not reflect an ongoing increase in the state's budget in out-years.

HHAC Members: Access the forecasts here (password required)