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News Service of Florida: “Analysis warns of $8 to $10 billion hit to Florida budget because of coronavirus pandemic”

4/15/2020

“Analysis warns of $8 to $10 billion hit to Florida budget because of coronavirus pandemic” Christine Jordan Sexton, News Service of Florida April 15, 2020 Link HERE A new analysis predicts that Florida might have to make deep budget cuts because of the economic collapse brought on by the coronavirus pandemic. Numbers released Tuesday by Moody’s Analytics run contrary to cautious optimism expressed by legislative leaders who have contended that Florida has reserves large enough to help weather the financial blow brought on by the pandemic. Moody’s concluded that a combination of tax revenue losses and increased Medicaid spending will wipe out the reserves of many states, including Florida. If that were to happen, it would require legislators to return to Tallahassee and adjust the $93.2 billion spending plan they adopted for the upcoming 2020-2021 fiscal year. “The COVID-19 pandemic is set to inflict an unprecedented amount of stress on state governments throughout the country,” the report said. Florida Chief Financial Officer Jimmy Patronis has been calling for the state to look closer at the potential impact to the budget, but state economists have said they won’t have a clear idea of how bad the situation is until May when more information about tax collections will be available. “Today’s Moody’s report makes it clear that as more folks lose their jobs, there will be greater demand for public services like Medicaid,” Patronis said in a statement. “The report also points out that the government is going to have to move faster than normal to get families back on their feet.” ### About CFO Jimmy Patronis Chief Financial Officer and State Fire Marshal Jimmy Patronis is a statewide elected official and a member of Florida’s Cabinet who oversees the Department of Financial Services. CFO Patronis works each day to fight insurance fraud, support Florida’s firefighters, and ensure the state’s finances are stable to support economic growth in the state. Follow the activities of the Department on Facebook (FLDFS) and Twitter (@FLDFS).