View From the Dome: Board of Economic Advisors Finds SC Economy is Rebounding Faster than Expected

Friday, Oct. 16, 2020

With no plans for the General Assembly to return to Columbia, this will be the final weekly report until after November’s general elections. We will keep you apprised should there be any legislative activity.

The Board of Economic Advisors met on Thursday to discuss economic trends.

The SC Department of Administration announced it will soon begin receiving applications for the “Minority and Small Business Relief Grant Program,” which has $40 million in funds to distribute. Grant awards will range from $2,500 to $25,000.

accelerateSC is a one-stop website to help businesses and citizens connect to important information during this crisis.

BOARD OF ECONOMIC ADVISORS

The State Board of Economic Advisors (BEA) met on Thursday but did not adjust the state budget revenue estimate.

Revenue and Fiscal Affairs Director Frank Rainwater began the meeting with good news that revenue collected is $124 million above the estimate. Our economy is rebounding faster than expected, the unemployment rate has been cut in half since the start of the pandemic and personal income continues to grow. Employment has recovered but stabilized at lower rates. The leisure and hospitality industry, however, remains a concern. Rainwater noted that moving forward much of the revenue forecast depends on assumptions regarding the degree and duration of the pandemic.

Following the BEA meeting, the BEA Regional Advisory Committee met. Economists from the Federal Reserve Bank of Richmond, Wells Fargo Securities, The Citadel, College of Charleston and the University of South Carolina gave an overview of their forecasts for FY 20-21 and FY 21-22. There was consensus among the economists that while there uncertainty remains, economic growth will be faster than average in 2021, returning to normal growth by the end of the year. They remain concerned about the federal debt and the effects it will have on the economy in the future.

The BEA is statutorily charged to provide the General Assembly with the official revenue estimate for lawmakers to draft the annual state budget. The group will meet again Nov. 10 when members will provide the General Assembly with its official revenue estimate for FY 21-22. Handouts from the meeting can be found here.

MINORITY AND SMALL BUSINESS RELIEF GRANT PROGRAM

The SC Department of Administration announced it will soon begin receiving applications for the “Minority and Small Business Relief Grant Program.” This state program was created by the General Assembly as part of Phase II CARES Act allocations. Grant awards will range from $2,500 to $25,000.

To be considered for a grant, businesses must meet the following criteria:

Employ 25 or fewer employees
Be physically located in SC
Have been in operation from Oct. 13, 2019, to present
Experienced a business impact due to COVID-19

There are addition rules for nonprofits to apply. For more information on applying for a grant, click here.

CORONAVIRUS

State Superintendent of Education Molly Spearman announced on Tuesday that the SC Department of Education (DOE) is providing more than $33 million in additional funding for personal protective equipment (PPE) and supplies for all 81 public school districts. Spearman said she has sent $43 million of protective equipment to more than 1,300 schools and has fulfilled every request made. The additional funds will support efforts to maintain and return to face-to-face instruction.