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Parson says fallout of coronavirus means tough Missouri budget cuts ahead

Regional News

(Missourinet)– Many Missouri businesses temporarily closing to limit the spread of the coronavirus has left thousands of workers without jobs. Last week, more than 42,000 Missourians filed unemployment claims – up from nearly 4,000 filed the previous week. During an interview with Gov. Mike Parson, he says he does not expect the impacts of the coronavirus to create a normal recession.

“We think the second quarter is going to be definitely pretty tough to say the least,” Parson tells Missourinet. “I do think there’s a possibility in that third or fourth quarter, depending on how long the virus with us and how much of an impact it does have, that hopefully we can climb out of that. I think once we clear the virus – once we kind of get through that – hopefully the economy is going to be able to come right back and pick right back up. And I believe it will. But we’re just going to have to understand this is going to have a huge impact on the state budget and state income. We’re going to have to make some cuts, we’re going to have to do some things across the state that is going to be pretty tough.”

Last week, the governor said his proposed state budget for the fiscal year beginning in July would have to dramatically change. What changes are ahead is unknown at this time. The Missouri House and Senate are both on hiatus until further notice.

St. Louis Federal Reserve President James Bullard expects the nation’s unemployment rate to climb to 30%. Bullard tells CNBC the $2 trillion coronavirus relief package the president signed into law Friday is about the right amount to deal with the impact of temporarily shutting down many businesses.

The plan includes:

*$150 billion in protective equipment to healthcare workers

* Americans who make $75,000 or less a year get a check for $1,200 – $2,400 for married couples – plus $500 per kid

*An expansion of unemployment insurance

* Delays in student loan payments

*Relief for people with federally backed mortgages

*Low-interest loans for small businesses

* Hundreds of millions in food assistance

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