SEVERE WX : Flood Warning View Alerts

Indiana finances take a big blow from coronavirus crisis

Indiana's finances are taking a major hit from the coronavirus crisis, and it just remains to be seen how big of a hit it will be.

Posted: Mar 30, 2020 5:25 PM

INDIANAPOLIS (AP) — Indiana's finances are taking a major hit from the coronavirus crisis, and it just remains to be seen how big of a hit it will be.

The virus continued to spread Monday, with the state's tally of cases rising by 273, to 1,786, including 35 people who have died, health officials said.

Unemployment claims have skyrocketed with business and factory closings in the past couple weeks, along with less retail spending expected to mean a sizeable hit to sales tax revenue and a three-month delay in the normal April tax filing deadline will mean less income at a time of heightened public health spending.

Perhaps $1 billion will have to be spent from the state’s $2.3 billion in cash reserves to get through the budget year that ends June 30, Gov. Eric Holcomb said Friday.

The federal coronavirus economic relief package approved by Congress last week dedicated $150 billion for state and local governments, with at least $1.25 billion for the smallest states. Indiana officials haven’t yet said how much they anticipate the state will receive.

“The federal stimulus is going to help us get through this health crisis, this financial adverse impact that is coming from the virus,” Holcomb said. “We’re going to have to deal with it. We have to deliver services on a month in, month out basis. That surplus is going to help us to that.”

Officials had projected that the state would collect nearly $2.2 billion in April, as the biggest revenue month of its anticipated $16.8 billion in revenue for the year.

Office of Management and Budget Director Cristopher Johnston, Holcomb's top fiscal adviser, said income tax collections in April could be down 50% with the tax filing deadline delayed until July.

Some $50 million a month in gambling taxes won’t be coming in with the state’s casinos shut down. Officials have said they don’t know how much of a decline they’ll see in the roughly $700 million a month the state collects in sales taxes, which is the state government’s largest revenue source.

Indiana’s new unemployment claims skyrocketed to 62,777 during the week that ended March 21, compared to 3,400 claims a week earlier. The state’s jobless numbers will certainly grow when updated figures for last week are released.

Indiana’s unemployment rate was 3.1% for February, but Ball State University economists estimate that the rate could jump to 10% with a 45-day period of social distancing and to 14.5% if virus restrictions last for 90 days.

Either scenario could strain Indiana’s unemployment insurance fund, which stood at nearly $900 million last year. That was far below the $1.8 billion that was recommended by the federal government, according to a legislative report.

The state has been paying out less than $300 million a year in jobless benefits during recent years of low unemployment, while its payments peaked at $1.8 billion for 2009 during the last recession, when state unemployment topped 10% most of the year.

Holcomb has already put on hold plans for spending nearly $300 million from the state’s cash reserves on college campus construction projects, but no other spending cuts have yet been specified.

“We’re digging a hole right now,” Holcomb said. “The whole world is.”

Lafayette
Clear
30° wxIcon
Hi: 55° Lo: 25°
Feels Like: 30°
Kokomo
Clear
25° wxIcon
Hi: 50° Lo: 24°
Feels Like: 25°
Rensselaer
Clear
23° wxIcon
Hi: 48° Lo: 22°
Feels Like: 23°
Lafayette
Clear
30° wxIcon
Hi: 54° Lo: 24°
Feels Like: 30°
Danville
Clear
31° wxIcon
Hi: 55° Lo: 25°
Feels Like: 31°
Frankfort
Clear
25° wxIcon
Hi: 55° Lo: 23°
Feels Like: 25°
Frankfort
Partly Cloudy
25° wxIcon
Hi: 51° Lo: 23°
Feels Like: 25°
Monticello
Clear
22° wxIcon
Hi: 52° Lo: 23°
Feels Like: 22°
Monticello
Clear
22° wxIcon
Hi: 52° Lo: 22°
Feels Like: 22°
Logansport
Clear
25° wxIcon
Hi: 50° Lo: 24°
Feels Like: 25°
Dry, mild conditions continue.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 665285

Reported Deaths: 12697
CountyCasesDeaths
Marion910581653
Lake48637887
Allen36050641
Hamilton32231398
St. Joseph30243514
Elkhart25484420
Vanderburgh21315382
Tippecanoe20185205
Johnson16425361
Porter16053276
Hendricks15899301
Clark12032182
Madison11779321
Vigo11672231
Monroe10394164
Delaware9879179
LaPorte9821198
Howard9095199
Kosciusko8588111
Bartholomew7504147
Warrick7445153
Hancock7439134
Floyd7255172
Wayne6654192
Grant6453157
Boone611991
Morgan6118126
Dubois5933112
Dearborn550669
Cass5477100
Marshall5446105
Henry542695
Noble510978
Jackson465567
Shelby462591
Lawrence4193113
Gibson404985
Harrison402764
Clinton397053
Montgomery390584
DeKalb387178
Knox357885
Miami357863
Whitley350638
Huntington348377
Steuben339855
Wabash333076
Putnam331960
Ripley327862
Adams325149
Jasper318443
White298052
Jefferson295974
Daviess285696
Fayette272656
Decatur271388
Greene262280
Posey261432
Wells258975
Scott251450
LaGrange242170
Clay241444
Randolph225877
Spencer219330
Jennings216344
Washington213027
Sullivan203639
Fountain202542
Starke189251
Owen183453
Fulton179637
Jay178528
Carroll176919
Perry173836
Orange171351
Rush165422
Vermillion161542
Franklin159735
Tipton149241
Parke140116
Pike128433
Blackford120627
Pulaski107544
Newton96732
Brown95240
Benton92413
Crawford92113
Martin80314
Warren75914
Switzerland7558
Union67510
Ohio54111
Unassigned0434

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events