The state may give itself a reprieve from the July first deadline to wrap up the budget. The state Senate adopted a bill today to lift the deadline this year due to the COVID-19 crisis.
The state’s General Fund faces a deficit of two-point-seven billion dollars this year. The School Aid Fund is short one-point-one (b) billion dollars. A deficit is also projected for the next fiscal year which begins in October.
Kurt Weiss is with the state budget office.
“COVID-19 this year is obviously the reason for this, and had a dramatic impact on our revenues, on the economy.”
Weiss says the extra three months will give the state time to assess where the economy is headed and whether more federal assistance is on the way. But he says it will be a hardship on school districts and local governments that will start their fiscal years not knowing what to expect from the state.
