SC Board of Economic Advisors Update
Last week, the Board of Economic Advisors (BEA) met to discuss current State revenues and discuss the State’s economic outlook.
In terms of revenues, South Carolina has done exceptionally well and come in well ahead of estimates. A few highlights include:
- For Fiscal Year (FY) 2020-21:
- Finished $1.028 billion ahead of the April 2021 forecast.
- Almost all categories finished ahead of estimates, largely due to an excess generated in the last quarter after the April forecast.
- Results by tax type:
- Individual Income tax - $473 million ahead
- Sales tax - $195.7 million ahead
- Corporate Income tax - $203.3 million ahead
- The year ended with a budget surplus of $1.02 billion.
- FY 2021-22 questions remain:
- Is final FY 21 revenue a solid base when considering adjustments to FY 22?
- How long will the stimulus continue to affect revenues?
- What will the effect be when (if) the Federal Reserve adjusts interest rates?
- FY 2021-22 collections through August:
- Actual total General Fund Revenue: $1.58B ($214M over estimates)
- August individual income tax withholding collections were the second-highest ever recorded; FY 22 yearly growth is at 10.9%
- August 2021 sales tax collections were the highest ever recorded, with year-over-year growth of 27.5%
- August 2021 deed recording collections were the highest ever recorded in South Carolina, with year-over-year growth of 95.0%