Local governments in Maryland are bracing for losses in revenue as businesses shut down and people lose their jobs in the wake of the coronavirus pandemic.
The Baltimore Sun reported Friday that the virus is spreading at a time when local governments are preparing budgets for the coming fiscal year. The next fiscal year starts in July.
Kevin Kinnally, associate director of the Maryland Association of Counties, said the virus outbreak “is going to have a massive impact on state and local economies.”
Kinnally added that it’s hard for governments to predict the length of business closures and the loss of revenue.
Andrew Schaufele, director of the state’s Bureau of Revenue Estimates, said Maryland’s workforce may be somewhat protected relative to other parts of the country because it has a higher population of government employees and other types of workers who can work from home. But he still expects a significant loss in tax revenues.