By The Asssociated Press
BOSTON (AP) — Massachusetts budget watchers are predicting a steep drop in revenue in the face of the coronavirus economic shutdown.
Democratic House Ways and Means Chairman Aaron Michlewitz said Tuesday the House typically holds its budget debate in April, a timeline he said is no longer feasible.
Massachusetts Taxpayers Foundation President Eileen McAnneny said the state could see a decline of billions of dollars in revenue and massive layoffs as high as 570,000 — nearly half of which could come from lower-income workers in the leisure and hospitality sector. That could push the unemployment rate to nearly 18%.
“Should the size, scope, or duration of this public health crisis grow, the numbers would have to be revised to reflect the deteriorating economic outlook,” she said.
One bright spot is the state’s $3.48 billion rainy day fund, which puts Massachusetts on a better fiscal footing than many states.