Even though it seems much longer, the Joint Budget Committee received the state's revenue forecast just over a week ago. As one might expect, the picture wasn't pretty. Between plummeting oil prices and the impact of the Coronavirus to the economy, the revenue forecast was extremely uncertain. As
Colorado Public Radio summed it up: "the
Coronavirus could take a $750 Million bite out of Colorado's budget."
The Joint Budget Committee with Governor Polis at the supplemental budget bill signing
According to the
Colorado Legislative Council presentation, "This forecast assumes short-term contractions in consumer and business activity over the next several months resulting from efforts to stem the spread of COVID-19. This contraction will reduce state revenue in both the current FY 2019-20 and FY 2020-21."
This forecast, however, was from a week ago. Since then, things have changed. And the data we received last Monday is from the first quarter (January - March). The virus had only begun to impact the economy by a few days--not enough time or data to get a clear picture. We have no idea if it will get worse or how quickly we will recover. Since the forecast we have already seen massive shutdowns of various sectors that makeup the Colorado economy and an unprecedented level of unemployment claims.
Given such uncertainty, the Joint Budget Committee will be postponing our budget hearings until April 7 (at the earliest). The JBC and legislative leadership will continue to monitor the situation closely to determine when it is appropriate to resume. We will keep gathering information and JBC staff will carry on with crunching the numbers to get us to a place where we can be ready to make some decisions after we return.
For now, however, we are tapping approximately $4 Million in non-emergency reserves and approximately $5 Million from the Disaster Emergency Fund. Also, we have access to approximately $100 Million in liquid assets from the State Emergency Reserve fund. We also expect to receive some Federal assistance (perhaps as high as $400 Million). This emergency spending will help tide things over until we get a better handle on the economic situation we are facing.
When we return and resume our budget hearings, we will face some big budget decisions. As OLS stated in their forecast, "
While a near-term contraction is certain, this contraction could lead to a prolonged and severe pullback in economic activity." We must figure out how to cover the gap in this year's budget, as well as plan for next year's budget.
However, as my JBC colleague Sen. Moreno noted, "In the midst of this ongoing public health crisis, it is crucial that we put all of our focus on the immediate well being of Coloradans...we believe it would be premature to put forward a budget while so much remains uncertain. We will continue to work diligently to determine a path forward as this situation evolves."
Executive orders, updates and announcements
With things changing so rapidly, it is hard to keep up with everything! Just in case you may have missed the latest development, here are some quick highlights:
Colorado is extending the income tax payment deadline from April 15 until July 15. The federal tax payment filing and payment deadline is also extended to July 15.
If you need health insurance, there is a special enrollment period from now until April 3, 2020.
Restaurants can now sell alcohol by take-out and delivery for the length of the shutdown.
The Small Business Administration has low-interest federal loans available for small businesses.
All elective and non essential surgeries and procedures have been suspended.
Gov. Polis asked landlords to refrain from imposing late fees on tenants, to hold off on evictions, and not to foreclose on homeowners who can't make their mortgage payments.
Utility companies have been asked to give leeway to struggling customers and to not cut off service.
This list is by no means exhaustive. These are simply announcements I thought would be helpful based on the questions that I have been receiving from folks. If you have more questions, here are some free website that contain very helpful timelines and updates about the Coronavirus in Colorado:
Rachel Zenzinger won election to the Colorado State Senate, representing District 19, in November 2016. She also served as Senator for SD19 in 2014. Sen. Zenzinger is a member of the Joint Budget Committee, the Chair of the Senate Appropriations Committee, and Vice Chair of the Statutory Revision Committee.
COVID-19 Resource Guide
It is hard to say how long "social distancing" and self-imposed isolation will continue beyond April 17. Some families are experiencing mild inconveniences, whereas others are experiencing a full on crisis.
Here are some links to some resources that may be helpful during this time:
Since we cannot meet in-person for awhile, please mark your calendar for Thursday, March 26 for a Tele-Town Hall meeting. We are still formulating details, but the tele-town hall will likely be in the evening. For updates on how to participate, visit my Facebook page or my website.
US Census kicks off
If you are self-isolating at home and looking for something to do, now would be the perfect time to fill out your U.S. Census forms!
2020 Census: What is the Census?
The census provides critical data that we use to provide daily services, products, and supports. Every year, billions of dollars in federal funding go to hospitals, fire departments, schools, roads, and other resources based on census data.
I am pleased to announce that I am running for re-election for a second term as your state senator for Senate District 19. I would be honored to have your support! Can you help by making a contribution?
