States turn to cash reserves as coronavirus strains budgets

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States turn to cash reserves as coronavirus strains budgets
Brasil Últimas Notícias,Brasil Manchetes
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State and local government tax revenue begins taking a hit amid the coronavirus outbreak as businesses close or severely curtail operations. By DavidALieb.

New York Governor Andrew Cuomo speaks during a news conference at a COVID-19 coronavirus infection testing facility at Glen Island Park, Friday, March 13, 2020, in New Rochelle, N.Y. State officials have set up a “containment area” in the New York City suburb, where schools and houses of worship are closed within a 1-mile radius of a point near a synagogue where an infected person with coronavirus had attended events. State officials stress it is not a lockdown.

He pulled the curtain on Broadway theaters this past week while banning gatherings of 500 or more people. State and local public health agencies have been on the front lines of the response, monitoring and testing those suspected of having the virus that causes the COVID-19 disease. Costs are mounting for staff time and medical supplies.

Across all states last fiscal year, the median rainy day fund balance equaled 7.6% of general fund expenditures. That’s a record high that was way up from a 1.6% share of general fund expenditures in the 2010 fiscal year, according to the budget officers group.

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