The coronavirus is pounding state governments with a financial one-two punch, costing them many millions to try to contain the disease just as businesses are shutting down and tax revenue is collapsing.
The gloomy financial outlook is a sudden and stark turnaround after years in which a strong economy sent streams of cash into state coffers. Governors and lawmakers across the country had plans for that money: teacher raises, pre-K expansions, Medicaid for immigrants who are in the country illegally.California has a $20 billion reserve but also relies heavily on capital gains, which swell the budget when the stock market is soaring. Gov.
Only a month ago, Minnesota officials said the surplus for the fiscal year that goes through June would be $1.5 billion — $200 million more than previously expected. Now Gov. Tim Walz says most of the surplus would be set aside to deal with uncertainties brought by the virus. In Tennessee, Gov. Bill Lee is now basing his budget plan for the fiscal year that starts July 1 on having an economy with no growth. Previously, he anticipated a growth rate of 3%.
Governors across the country have warned that the number of cases in their states is expected to spike in the coming weeks. While their shelter-in-place or shutdown orders have varied, schools and a wide array of businesses remain closed, dramatically reducing consumer spending and, in turn, government tax revenue.The Nevada Resort Association says taxes on tourism have paid for about 38% of the state’s general fund budget in recent years.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Bye, Corona!' See the Knack's official coronavirus-themed 'My Sharona' parody'Bye, Corona!': Watch the Knack's official coronavirus-themed 'My Sharona' parody. - TODAYshow
Read more »
Got Major Anxiety Right Now? Here Are 6 Cheap Mental Health ResourcesIf you're dealing with coronavirus stress, try one of these affordable methods for help or therapy.
Read more »
Coronavirus aid deal is no panacea for coming U.S. state budget woesA massive federal spending bill aimed at deflecting the economic harm caused by the spreading coronavirus does not address the billions of tax dollars U.S. states stand to lose as major parts of the nation have shut down.
Read more »
China reports second consecutive day of no new local coronavirus transmissions, imported cases riseChina reports second consecutive day of no new local coronavirus transmissions, imported cases rise Follow the latest news on coronavirus with our live blog:
Read more »
Two Tesla employees test positive for coronavirus: company emailTwo employees of Tesla Inc have tested positive for coronavirus but have been wo...
Read more »