IFO To Issue First Estimates Of COVID-19 Impact On State Revenues April 8

On April 1, the Independent Fiscal Office reported as much as $200 million in state revenue declines during March were the result of actions taken to control the spread of the COVID-19 virus.

The roughly $200 million reduction came as a result of-- $50 million in lost revenue due to reduced economic activity; $90 million in processing delays (expected to resolve in the current fiscal year) and $60 million that will shift to fiscal year FY 2020-21 as a result of extended tax due dates.

The Department of Revenue said state revenues were down $294.6 million below estimates for March.  Read more here.

The IFO said, “The actual magnitude of virus-related revenue losses, processing delays and due date extensions may not be known for many months and the estimated impacts included in this release are only preliminary. 

“The status of the outbreak and the government response change rapidly and will have a significant impact on FY 2019-20 and FY 2020-21 revenue collections.” 

April 8 Virus Impact Report

The IFO said it plans to release a preliminary estimate of the virus impact with updated estimates for this fiscal year and guidance for next fiscal year  and will include the revenue outlook under two potential scenarios that are based on the duration of business closures in Pennsylvania. 

Click Here to read the IFO report.

For more information visit the Independent Fiscal Office website. Click Here to sign up for updates on new studies and reports issued by the Office.

NewsClips:

Stephen Caruso: PA Tax Revenues Down In March, Officials Brace For Bigger Future Hit

Spotlight PA: First Look At How COVID-19 Is Gutting PA State Finances, And It’s Not Pretty
Related Articles:

March State Revenues $294.6 Million Less Than Estimate; $45.6 Million Less For Fiscal Year 

Senate, House, Governor Will Face Unprecedented Challenges In Putting Together The Next State Budget

[Posted: April 2, 2020]  PA Environment Digest