BOSTON (AP) — Massachusetts budget watchers are predicting a steep drop in revenue in the face of the coronavirus economic shutdown.
Democratic House Ways and Means Chairman Aaron Michlewitz said Tuesday the House typically holds its budget debate in April, a timeline he said is no longer feasible.
Massachusetts Taxpayers Foundation President Eileen McAnneny said the state could see a decline of billions of dollars in revenue and massive layoffs as high as 570,000 — nearly half of which could come from lower-income workers in the leisure and hospitality sector. That could push the unemployment rate to nearly 18%.
That’s not even the worst case scenario, McAnneny said.
“Should the size, scope, or duration of this public health crisis grow, the numbers would have to be revised to reflect the deteriorating economic outlook,” she said.
One bright spot is the state’s $3.48 billion rainy day fund, which puts Massachusetts on a better fiscal footing than many states.
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LOTTERY SALES PLUMMET
The Massachusetts State Lottery is taking a big hit as the COVID-19 state of emergency temporarily shutters many stores that sell tickets, Treasurer Deborah Goldberg told lawmakers Tuesday.
More than 1,800 of the state’s 7,500 lottery agents are closed, she said. Many stores that remain open have chosen to limit or eliminate lottery sales as a result of staff shortages.
Total sales last week were down almost 33% from the same week last year. So far for April, sales of Keno, one of the best performing lottery games, have dropped by more than 53% compared with April of last year. Instant ticket sales for April are also down by almost 29% compared with this time last year.
“This pandemic has dramatically exposed the limitations and vulnerabilities of the lottery’s all-cash, in person business model,” Goldberg told lawmakers.
States with online lottery options have instead seen a surge in demand, she said.
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MURDER SUSPECT REMAINS FREE
A man with cancer awaiting trial on a second-degree murder charge can remain free amid the coronavirus pandemic, a judge on the state’s highest court ruled Tuesday.
William James Utley was released from jail after his attorney argued his health condition makes him more susceptible to the virus. He is under home confinement with a GPS monitor.
Utley is accused of stabbing a man during a bar fight in 2018.
Suffolk District Attorney Rachael Rollins had asked the Supreme Judicial Court to order that Utley be returned to jail, calling him a danger to the community.
Justice Elspeth Cypher denied that request, saying Utley faces a “high risk of critical illness or death” if he gets the virus.
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