Legislative Budget Office of the Legislative Service Commission  
LBO BUDGET FOOTNOTES INFOGRAPHIC  
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Issue: July 2020  
Volume: Fiscal Year 2020  
State GRF tax revenues in June were below esꢀmate by $50.5 million (2.2%), a negaꢀve variance that is significantly less than the negaꢀve variances from the past three  
months since the beginning of the economic slowdown due to the COVID-19 pandemic. GRF tax revenue ended the fiscal year with a negaꢀve variance of $1.10 billion (4.6%).  
The personal income tax was the main driver of both the monthly and yearly negaꢀve variances. This tax was under esꢀmate by $78.0 million in June and $845.1 million  
(
9.7%) for the year. This tax has been below esꢀmate each month since March, but most of its negaꢀve yearly variance was caused by a negaꢀve variance of $635.7 million in  
April, which reflected the delay in the personal income tax filing deadline from April 15 to July 15, in addiꢀon to the economic slow down.  
The sales and use tax, the largest GRF tax, had a good month in June when compared to its negaꢀve variances of $167.3 million (17.6%) in May and $236.7 million (24.0%) in  
April. In June, this tax had a negaꢀve variance of $1.4 million caused by a negaꢀve variance of $35.6 million in nonauto sales largely offset by a posiꢀve variance of  
$
34.1 million in auto sales. For the fiscal year, this tax had a negaꢀve variance of $328.0 million (3.0%).  
In response to the pandemic, the federal government increased reimbursements for Medicaid spending. This is reflected in a posiꢀve variance of $613.1 million for federal  
grants deposited into the GRF in FY 2020.  
Medicaid caseloads increased by over 60,000 in June. A negaꢀve GRF variance of $431.5 million for the month was largely offset by a posiꢀve variance in non-GRF spending.  
Nevertheless, both GRF and non-GRF Medicaid spending were below esꢀmate for FY 2020. All funds Medicaid expenditures were $240.5 million (0.8%) under esꢀmate for the  
fiscal year.  
On May 7, the Governor signed an execuꢀve order requiring GRF budget reducꢀons totaling $775.0 million for FY 2020. FY 2020 GRF spending for all program categories was  
under esꢀmate, except for Other Educaꢀon, which had a small posiꢀve variance. Total program expenditures ended the fiscal year $865.1 million (2.5%) under esꢀmate.  
GRF & Medicaid Variances – Actual vs. Estimate  
Tax revenue  
$50.5 million  
Federal grants  
Total GRF sources  
-
$313.3 million  
33.7%  
$126.9 million  
3.7%  
-
2.2%  
Program expenditures  
$755.7 million  
Total GRF uses  
-
-$768.1 million  
-29.3%  
Month of June  
-
29.0%  
GRF Medicaid  
$431.5 million  
Non-GRF Medicaid  
All funds Medicaid  
-
$402.4 million  
42.4%  
-$29.1 million  
-1.2%  
-
29.3%  
Tax revenue  
$1,098.7 million  
Federal grants  
Total GRF sources  
-
$613.1 million  
6.2%  
-$559.4 million  
-1.6%  
-
4.6%  
Program expenditures  
$865.1 million  
Total GRF uses  
-
-$879.3 million  
-2.5%  
FY 2020  
-
2.5%  
GRF Medicaid  
$49.1 million  
Non-GRF Medicaid  
All funds Medicaid  
-
-$191.4 million  
-1.5%  
-$240.5 million  
-0.8%  
-
0.3%