NEWS: Analyst Predicts Florida Budget Will Be Hit Hard Due to Current Health Crisis

Florida is a state that relies heavily on tourism, featuring both an array of beaches that are a vacation hotspot, along with Orlando, which many consider to be the theme park capital of the world.

Due to the current global health crisis’ effect on tourism, Florida’s economy has been hit especially hard due to a lack of visitors during what is usually a peak vacationing season. Because of this, a new analysis predicts that Florida may have to make deep budget cuts due to the rocky economic status that has been brought on by the current crisis.

According to the Daytona Beach News-Journal, a new analysis from Moody’s Analytics had predicted that Florida may have to make deep budget cuts due to the rocky economic status that has been brought on by the current crisis. Moody’s analysis included a conclusion that “a combination of tax revenue losses and increased Medicaid spending will wipe out the reserves of many states, including Florida.”

According to the report, the predicted scenario would include Florida as among one of ten states that will be hit the hardest. In response to the analysis, Florida’s Chief Financial Officer Jimmy Patronis said that, “Moody’s report makes it clear that as more folks lose their jobs, there will be greater demand for public services like Medicaid. The report also points out that the government is going to have to move faster than normal to get families back on their feet.”

Legislative leaders such as Senate President Bill Galvano have a different view, as he wrote in an April 2nd memo that “the state has enough cash to get through the current fiscal year without having to make cuts and pointed to billions of dollars coming to Florida through a federal-stimulus law known as the CARES Act.” Florida’s fiscal year will be coming to an end at the end of June, with the new fiscal year beginning July 1st, 2020.

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