Virus’ impact on state government could be worse than Great Recession

The Atlanta Journal-Constitution ^ | April 19, 2020 | James Salzer

[abb]

The Great Recession forced state governments across the country to lay off or furlough millions of workers and cut services to everything from schools to parks, but some warn the coronavirus pandemic could cause even more economic pain.

Predictions are that states could combine to face up to a $500 billion shortfall over the next few years without more federal aid as unemployment remains high and businesses shutter or struggle to regain their footing.

In Georgia, collections from income and sales taxes — which provide most of the revenue that pays for the salaries of 200,000 teachers, university staffers and state employees, and to fund billions of dollars worth of services — are expected to plummet and likely remain well below what the state originally projected in the likely recession ahead.

Georgia State University fiscal researchers came out with a report last week saying the state and local governments could see up to a $1.27 billion loss in sales tax revenue from a few key sectors of the economy this year because of the coronavirus shutdown and its aftermath.

University System of Georgia Chancellor Steve Wrigley said last week that financial losses are accumulating from an abrupt systemwide closing of campuses that triggered $200 million in reimbursements in student housing and dining hall costs.

That revenue loss will climb to $340 million to $350 million through the summer as other funding sources dry up, including income from canceled camps, professional learning programs and study abroad courses, he said.

[abb]

When the host dies, the parasites have nothing upon which to feed.

[angry elephant]

I don’t know how the states think they can continue to pay all their government workers without private industry paying sales and income tax.

[abb]

https://www.lehighvalleylive.com/coronavirus/2020/04/lehigh-valley-towns-duck-staff-cuts-amid-covid-19-but-that-could-change-survey-shows.html
Lehigh Valley towns duck staff cuts amid COVID-19, but that could change, survey shows

https://ktla.com/news/local-news/santa-monica-city-manager-resigns-cites-divisions-over-coronavirus-budget-cuts/
Santa Monica city manager resigns, cites divisions over coronavirus budget cuts

[Lurker]

“I don’t know how the states think they can continue to pay all their government workers without private industry paying sales and income tax.”

Federal bailouts. Illinois has already asked for one. So has NY.

Eff them all.

L

[abb]

https://www.parkrecord.com/news/summit-county-notebook-special-session-impacts-budget-amended-by-3m-6-planning-commissioners-appointed/
Summit County notebook: Special session impacts, budget amended by $3M, 6 planning commissioners appointed

https://www.coloradoan.com/story/sports/csu/2020/04/19/colorado-state-colorado-athletic-departments-brace-budget-cuts-due-coronavirus/5157966002/
Colorado State, Colorado athletic departments brace for budget cuts in wake of coronavirus

[Leaning Right]

> I don’t know how the states think they can continue to pay all their government workers without private industry paying sales and income tax. <

As I see it, much depends on who wins in November. If it’s Trump, the states will have to learn how to economize. If it’s Biden, there will be free money for everybody (and the deficit be damned).

[abb]

https://rapidcityjournal.com/news/local/county-approves-budget-cut-proposals-furlough-plan/article_4fcd2eda-44ca-58b6-b428-19d5381c0eb7.html
County approves budget cut proposals, furlough plan

https://www.daytondailynews.com/news/local/dayton-area-cities-brace-for-income-tax-loss-cuts-from-covid/jfiko64jvqxlPaeYPogybJ/
Dayton-area cities brace for income tax loss, cuts from COVID-19

[TheConservativeBanker]

I don’t know about the governor in your state, but Fuehrer Ralph Northam in Virginia might not have an IQ much above room temperature.

[abb]

https://www.tulsaworld.com/news/local/government-and-politics/city-of-tulsa-furloughs-many-employees-in-budget-cutting-plan-through-december/article_8dee3fa6-9003-5bd2-9f66-7ab7549461e8.html
City of Tulsa furloughs many employees in budget-cutting plan through December

https://www.sandiegouniontribune.com/news/politics/story/2020-04-17/san-diego-libraries-facing-budget-cuts-long-term-challenges-of-social-distancing
San Diego libraries face budget cuts, long-term challenges of social distancing

[abb]

https://losangeles.cbslocal.com/2020/04/16/coronavirus-los-angeles-city-county-budget-cuts/
Los Angeles County, City Talk Budget Cuts Amid Coronavirus Pandemic

https://gazette.com/premium/colorado-springs-slashes-spending-by-20-million-braces-for-deeper-cuts-as-revenues-plummet/article_fcb7e7a6-80e6-11ea-b7b0-670267f3f3f0.html
Colorado Springs slashes spending by $20 million, braces for deeper cuts as revenues plummet

[abb]

https://www.sacbee.com/news/local/education/article242091256.html
Coronavirus crisis may mean more cuts to Sacramento school district’s already battered budget

https://www.statesboroherald.com/local/wilson-coronavirus-crisis-could-cost-bullochs-school-system-25-million/
Wilson: coronavirus crisis could cost Bulloch’s school system $25 million

https://abc6onyourside.com/news/coronavirus/ohio-cities-bracing-for-budget-cuts-if-federal-funding-falls-flat
Ohio cities bracing for budget cuts if federal funding falls flat

[Son House]

Yes, still living on the fat of Capitalism most have no idea what the future is going to be if the Socialist is elected President.

To which I would like to clarify that the ‘Great Recession’ was due to electing what many perceived as a Socialist to the Presidency, many just walked away from their businesses knowing the future wasn’t going to as profitable so why even try. ‘Great Recession’ no, the election resulted in a expanded recession.

[angry elephant]

I don’t know about the governor in your state, but Fuehrer Ralph Northam in Virginia might not have an IQ much above room temperature.”

We have the incredibly stupid Jay Dimslee here in Washington state.

[billorites]

So there is a bright spot to this whole business.

[Bonemaker]

“Predictions are that states could combine to face up to a $500 billion shortfall...”

Screw the states...and DON’T EVEN think about raising taxes.

[abb]

https://www.sfgate.com/news/article/America-s-empty-roads-fewer-deaths-but-a-blow-to-15211024.php
America’s empty roads: fewer deaths but a blow to state budgets

http://altondailynews.com/news/details.cfm?clientid=17&id=302498#.XpyQ_s17mUk
Budget Analysts Expect Deep Cuts

https://www.staradvertiser.com/2020/04/19/editorial/on-politics/heavy-reliance-on-tourism-dollars-now-gone-leaves-state-with-tough-options-like-pay-cuts/
Richard Borreca: Heavy reliance on tourism dollars leaves Hawaii with tough options like pay cuts

https://www.journal-news.com/news/some-butler-county-governments-cutting-budgets-weather-coronavirus-pandemic/hh7mILIBjV3ur0rzEkiNZJ/
Some Butler County governments cutting budgets to weather coronavirus pandemic

[Ann Archy]

COULD???? COULD???? It will DWARF it!!

[Socon-Econ]

The states’ problem is not the virus; it’s their trashing of the private sector by hysteria based close-downs.

[abb]

I suspect governors will see these shutdowns in a different light this next week after hearing from their public employee unions.

[abb]

https://www.dcourier.com/news/2020/apr/18/arizona-cities-retrenching-cope-coronavirus-outbre/
Arizona cities retrenching to cope with coronavirus outbreak

https://www.concordmonitor.com/Sununu-Crisis-could-slash-state-budget-by-$500-million-lawmakers-disagree-33946008
Sununu: Crisis could slash state budget by $500 million; lawmakers disagree

https://thewestburytimes.com/2020/04/austerity-measures-in-state-budget-infuriate-cuomo-critics/
Austerity Measures In State Budget Infuriate Cuomo Critics