Arizona faces estimated $1.1B budget shortfall due to virus
GLENDALE, Ariz. (AP) — Arizona faces an estimated $1.1 billion budget shortfall in the coming year because of the massive economic hit caused by the coronavirus outbreak, the Legislature's top budget analyst said Thursday.
But there is so much uncertainly around state revenue that the damage could be $500 million higher or lower for the budget year that begins July 1, according to Richard Stavneak, who heads the Joint Legislative Budget Committee. A lot depends on how quickly the state and nation recovers from slowdowns caused by the response to the virus.
The estimated loss equals nearly 9% of the state's total general fund spending in the current year of $11.8 billion.
The good news is that the state had anticipated a nearly $1 billion surplus for the coming budget year and has $1 billion in its rainy day fund. The bad news is that all that money could quickly evaporate and the economists in Stavneak's group estimate it may take three years to fully recover.
Read more: https://tucson.com/news/state-and-regional/arizona-faces-estimated-1-1b-budget-shortfall-due-to-virus/article_8b26d3e3-1870-563a-8843-03f72a1edfbc.html
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