Coronavirus could trigger a $1.3 billion budget body blow to the state economy between now and July 2021.
The Consensus Estimating Group says tax collections could actually dip by close to $1.4 billion, although revenues from other sources could climb by around $93 million.
60th District Representative Mark Schreiber of Emporia expected a “dismal” report, and that’s what he saw.
The $1.3 billion revenue reduction makes up about six percent of the overall budget, but it potentially wipes out roughly 20 percent of the general fund. Senate Vice President Jeff Longbine of Emporia says the general fund impact is alarming, although some of that may be offset by federal stimulus dollars.
The path forward is unclear. Longbine says there will be committee meetings this week to start fleshing that out.
76th District Representative Eric Smith of Burlington says lawmakers and the governor have to finalize plans now for reopening the economy when the time is right.
Smith also says residents need to brace for budget cuts, although the scope is yet to be determined. He says nobody wants to think about cuts, but with the state’s “rainy-day” fund likely exhausted by the coronavirus impact, that step has to be considered.
With coronavirus cases rising across much of the state, Longbine and Schreiber say it’s highly unlikely that lawmakers return to the Statehouse next Monday as originally planned. Plans for starting the veto session are still to be determined.
