West Virginia: “State revenue officials have described a possible $500 million deficit because of the economic slowdown that has resulted from coronavirus response. A recent Moody’s Analytics report of the financial stress that states are facing concludes West Virginia’s financial situation could wind up much worse than that. Moody’s ran two economic shock scenarios on every state in the country based on travel restrictions and business closures. Under the baseline scenario, West Virginia is forecast to experience a general revenue shortfall of $1.3 billion. In a severe scenario, West Virginia could suffer a general revenue of $1.9 billion. The state’s general revenue budget is $4.6 billion. On bright spot is the State of West Virginia has increased nursing home reimbursement rates by $20 a day retroactive to 2/1/2020 for those using Medicaid.” (WV Metro News)
Kentucky: “A new forecast from Gov. Andy Beshear’s state budget director projects a dramatic decline in tax revenue and massive shortfalls through the end of this year, as the COVID-19 pandemic continues to wreck economies across the globe. The report by State Budget Director John Hicks released Thursday projects a potential General Fund revenue shortfall of $318.7 million to $495.7 million through the current fiscal year ending June 30.” (Courier-Journal)
Ohio: We are still learning the full details of Governor DeWine’s budget cuts, particularly to what extent federal emergency funding will be able to replace some of these funds. However, we are concerned that out of $775 million in total cuts for Ohio’s budget over the next two months, $465 million is being cut from K-12 education and higher education, and $210 million is being cut from Medicaid.
Additional information will be shared as we learn more.