State fiscal calendars usually switch during the summer. What once was thought as a seamless transition now has turned into an accounting nightmare.
Most state politicians have no idea what the coming months look like. South Carolina is a prime example. They will he cutting, with the first cut expectation(lowest assumed) is 7%
Before COVID-19, S.C. economists had projected lawmakers would have an added $1.9 billion to spend in next year’s 10.2 billion general fund budget.
But now, budget forecasters project the state will miss out on $507 million it had expected to bring in during the current 2020 budget year, which ends June 30.
And it estimates lawmakers will miss out on another $701 million as legislators work to write a new budget this fall. That number is up about $58 million from an early projection state economists gave when the pandemic hit South Carolina, leading to business closures aimed at slowing the spread of the coronavirus and the COVID-19 disease it causes.
That means budget writers will only have about $9.5 billion to spend in the 2021 budget, cutting into earlier proposals that passed the S.C. House in March to pay for teacher and state worker raises and other major infrastructure improvements.