The coronavirus pandemic is expected to blow an $8-10 billion hole in the $93.2 billion budget Florida lawmakers adopted last month, according a recent report by Moody’s Analytics. While the state set aside $300 million in emergency coronavirus funding, which increased state reserves to $3.9 billion. The nearly three-week shutdown and near halt in consumer spending has an immediate and severe impact on Florida’s budget.
Florida Chief Financial Officer Jimmy Patronis, whose office monitors the state day-to-day spending, has been sounding the alarm that the state could run out of money and lawmakers should return to Tallahassee sooner rather than later to ensure that doesn’t happen.
“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. “The report also points out that the government is going to have to move faster than normal to get families back on their feet.”
Of the $12 billion Florida was allocated from the $2.2 trillion federal coronavirus relief package approved by Congress late last month, about $4.6 billion is for budget stabilization.
With approximately $8.5 billion in its coffers, many lawmakers were confident Florida had enough financial resiliency to weather the COVID-19 pandemic without resorting to dramatic budget cuts.
In the last six weeks, over 825,000 Floridians have filed for unemployment, a number likely low given the myriad difficulties people have with applying.
Universities brace for budget cuts
Florida’s 2021 $93.2 million state budget includes roughly $400 million in local projects, if all were vetoed aren’t nearly enough to stave of significant budget cuts.
Housing and meal plan reimbursements this spring have already cost state universities nearly $71 million combined, according to the Board of Governors. Add to that additional losses from auxiliary services such as vending machines, bookstore, and other services which have remained shuttered.
When it is safe for legislators return to Tallahassee to adjust Florida’s budget every category will likely be on the table, including education. Universities have already put in place hiring freezes. Depending on rather or not enrollments hold up, more maybe necessary.
Also see: 'Rona could create financial tsunami for colleges
Also see: 'Rona could create financial tsunami for colleges