State officials are reviewing the revenue forecast as Indiana works to emerge from the COVID-19 response.
Office of Management and Budget Director Cristopher Johnston stated in a press conference Friday afternoon that while most months have exceeded the revenue forecast, March showed a six percent loss which amounts to $70 million as a direct reaction to COVID-19. Estimates missed the forecast in all revenue categories. He noted that the casino revenue was a significant factor.
With the delay in income tax filing from April 15 to July 15, there will be pressure on the budget with the rest of the state’s fiscal year. The sales tax numbers will largely affect the budget in the next few months as well.
The impacts of COVID-19 will depend on the pace of the recovery of the economy.
The state is receiving federal assistance through the Coronavirus Preparedness and Response Supplemental Appropriations Act, Families Fist Coronavirus Response Act, and the Coronavirus Aid, Relief and Economic Security (CARES) Act.
The state anticipates $250 million in CARES Act funding which will be used toward health and human services, labor for unemployment insurance relief and program administration. Those funds will also be directed at the U.S. Department of Agriculture for the procurement of emergency food and WIC programs, housing and urban development for Community Development Block Grants and housing assistance, and justice assistance grants through the Criminal Justice Institute. The State also looks to obtain $500 million for an Education Stabilization Fund for K-12 education and higher.
About $2.4 billion will be disbursed for costs incurred from March to December 2020 that are necessary expenditures as a direct response to the COVID-19 public health emergency. These funds will not replace revenue lost.
Secretary of Commerce Director Jim Schellinger said several people will serve on Indiana’s Economic Relief and Recovery Team to oversee funds, analyze needs and guide a return to economic activity in a safe way.
