REC Projecting Minuscule Budget Decline for FY21; Strong Growth for FY22

The Revenue Estimating Conference (REC) met on Tuesday and updated their latest budget projections for both Fiscal Year 2021 and 2022. The REC, a three-person panel that meets three times a year to help provide budget forecasts for the Legislature, is estimating that the budget for FY21 will be $7,911.7 billion, which is a reduction of -.2% or -$18.9 million when compared to FY20. They also projected that the budget for FY22 will be $8,230.8 billion, which is 4.0% growth or $319.1 million more than the current FY21 estimate. Members of the panel commented that there are several unknowns that could and will likely affect these numbers when the panel meets next in December including the effects of COVID-19, the derecho, a contentious election and the unemployment rate on the economy. Read more from The Des Moines Register.