'News Isn't Good': State Budget Writer Warns About Coronavirus Impact On The Economy
DENVER (CBS4)- State lawmakers are suspending the legislative session for two weeks because of coronavirus. They'll wrap up what they can Saturday, and then dismiss until it's safer for large groups to gather for things like hearings.
While the House and Senate take a break, the Joint Budget Committee will be on overtime. They were nearly finished writing the new budget when the health scare blew up.
"We had built this budget on a certain expectation of a certain amount of revenue. That entire situation is up in the air now," said Sen. Dominick Moreno, Vice Chair of the committee.
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He says the economy was already starting to slow before COVID-19, now budget writers are bracing for a more serious downturn. They receive a new revenue forecast Monday.
"The news isn't good to be honest," said Moreno.
Not only will they have less money, he says, but will have to divert money for things like unemployment insurance. Gov. Jared Polis issued an executive order allowing people who are out of work because of the virus to draw on unemployment insurance.
"That is something I fully support but that fund wasn't solvent in its current form and so as people continue to draw upon it, we're going to have to figure out some measures to shore up that fund so that, if we do encounter a recession over the long term, those critical programs are still there for workers and the people of Colorado to draw on."
State resources, he said, will also be needed to supplement federal funding for things like food assistance programs. Implementation of new programs, he says, is on hold especially those dealing with health care.
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The legislature had been considering a public insurance option that would have reduced hospital payments, "I think there are a number of policy changes needed in the health care space to save consumers money, but this is a complicating factor in all that and something the legislature should remain sensitive to."
Unlike the federal government, the state must balance its budget so if more money is needed for assistance programs, there will be less for things like education. The School Finance Act has yet to be introduced.
Additional Information from the Colorado Department of Public Health and Environment:
- Practice good hygiene. Thoroughly wash your hands with soap and water. In the absence of soap and water, use hand-sanitizer; use your elbow or sleeve to cover coughs and sneezes
- Stay home if you're sick; keep your children home if they are sick. The illness can last for many days so make preparations now to work from home if possible.
- We advise Coloradans to always be prepared for an emergency-- like a large snowstorm-- and have a plan for your family. Make sure to have 72 hours of key supplies on hand like medications, infant formula, diapers, pet food, etc. FEMA guidance for pre-pandemic COVID-19 preparedness is available on Ready.gov.
- Stay informed with reliable, up-to-date information. People who have general questions about coronavirus disease 2019, can call CO HELP at 303-389-1687 or 1-877-462-2911 or email COHELP@RMPDC.org, for answers in English and Spanish (Español), Mandarin (普通话), and more.
