Coronavirus Latest: Maryland Expected To See $2.8 Billion Shortfall In FY2020, Comptroller Says
ANNAPOLIS, Md. (WJZ) -- Maryland Comptroller Peter Franchot said the state could see a shortfall of nearly $3 billion during the final quarter of fiscal year 2020 amid the coronavirus pandemic.
Franchot made the remarks during a Facebook live press conference Friday morning. The loss -- around $2.8 billion by the end of the fiscal year on June 30 -- would work out to around 15 percent of the state's annual general fund, he said.
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In addition, unemployment claims jumped nearly 5,200 percent from 2,090 on the week ending March 6 to more than 108,000 last week, he said.
"Those numbers, as unfathomable as they are, do not reflect those who have been unable to file for unemployment, despite their repeated attempts to do so, simply because the system – like those across the entire country – is simply overwhelmed," Franchot said. "They also do not take into account those who are still technically employed, but have had their hours, wages and salaries reduced substantially."
Bureau of Revenue Estimates Director Andrew Schaufele called the estimate a "worst-case scenario" based on Maryland being under a stay-at-home order through the end of June.
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If that were to happen, the state would lose out on almost $250 million in sales tax each month, nearly 60 percent of the normal monthly amount.
At a news conference Friday afternoon, Gov. Larry Hogan announced an immediate state budget freeze due to the projected shortfall.
Hogan said he expects COVID-19 to become a multi-year budgetary issue.
For the latest information on coronavirus go to the Maryland Health Department's website or call 211. You can find all of WJZ's coverage on coronavirus in Maryland here.
