COVID-19 April 5 Update

Revenue projections

• As you can expect, we are closely monitoring the economic ramifications of this crisis so that we can make the best budget decisions possible when it comes time to do the state budget.
• Since this crisis began, we started consulting with our economic experts each week to stay on top of developments.
• Yesterday, I received updated projections. It should come as no surprise that the projections are that our economy and our revenues are going to take a significant hit.
• Here are some of the projections we have received from our experts:
  • Our fiscal year is July 1 – June 30; therefore, the last quarter of our fiscal year is April – June. Our revenues will experience a steep decline over this period.
  • Our Gross Domestic Product (GDP) will see a decline from last year, which may mean our revenues will be at or below last year levels.
  • For FY 2021, real GDP is likely to decline as well.
  • Unemployment will continue to see a sharp increase. Wages and salaries are expected to fall during April – June 2020.
  • It may take us quite some time before we regain lost ground.
• As you can see, these are very dire projections. Therefore, we will be proceeding very cautiously as we craft the state budget for FY 21.
• We will most likely wait until June to do the FY 21 budget so that we will have the latest and best information possible.
• Do not be surprised, however, to find a very lean budget this year. We just cannot afford to put the state into financial hardship by spending more money than we have.
• The House leadership has been very committed to living within our means over the last eight years. That is why the state is in such good financial shape today and why we are in
• a better position to absorb the financial difficulties created by the coronavirus crisis.

Update on number of cases.

• 183 new cases reported yesterday.
• Total cases statewide now number 1638.
• Unfortunately, we now have 43 deaths.
• 35 long-term care facilities around the state report active cases.

Call if you need help.

• We have had phone calls to our office forwarded to our staff. If you need any help at all, please call us at 601-359-3300.
• We have also set up an email address for you to ask questions or seek help. That address is [email protected]