State Senate Warns Of Financial Shortfall From Pandemic
Already the legislature is looking at the impact the budget will see from this crisis.
Monday morning Senator Jim Stamas of Midland said the Senate expects a $1-3 billion shortfall in the budget this year do to lack of tax revenue due to the economic shutdown.
Cars aren’t being sold, sales tax flow is down and that could carry to a similar shortfall next year.
He proposed saving money and being more efficient by moving state employees working at home to working on unemployment claims, instead of hiring new employees to handle the surge.
Governor Gretchen Whitmer dodged the question when asked in her presser today.
Then possible layoffs for those not deemed absolutely essential.
“Looking at where we’re going to find that additional revenue, there’s just not,” says Sen. Stamas, “And so finding ways that we can start saving, we asked Michigan families to sacrifice, I think the state needs to be sacrificing as well.”
The state only has about $1 billion in their “rainy day fund” and would like to avoid using it as much as possible.