Each state has reserves it can use and some sources of funding easier access in terms of restrictions on use and less painful in their immediate impact on programs and employees. Also, there will be some federal funds newly available for specific use, such as COVID-19 costs. But still, there will be painful shifting of funds and program reductions in both states to meet balanced budget requirements. Unlike the federal government, they can’t print money.
In Colorado, sales tax that supplies municipal and some special district budgets and augments some county budgets is starting to drop. A $44 million, one- percent sales tax collection in the six-county Denver metro area was down approximately 8 percent in March, a month that experienced only a couple of weeks of the shutdown. The drop in April should be spectacular.
|Gov. Jared Polis provides an update on the state's response to the |
coronavirus | Andrew Kenney/CPR News
|Gov. Gavin Newsom updates the public about California's response|
to the coronavirus outbreak | Office of the Governor of California