State Revenues Above Forecast

One year ago, in March 2020, state revenue collections were off to a strong start. Nine months into the 2019-21 biennium most tax types were exceeding the legislative forecast by a comfortable margin. Overall, general fund revenues were 6.5% above forecast. Today, we are in a much different place. We have weathered the pandemic and the resulting decline in revenues, and see a return to normal ahead. In February 2021, we have only four months remaining in the biennial budget period and a positive outlook for revenue growth in the future. We are in the enviable position among states to still report a positive revenue variance. The margin has shrunk to only 1.4%, but it remains positive.