State collects $1.9B less than forecast

Pandemic forces businesses to shut down, scale back as customers stay home

TALLAHASSEE — State tax revenues continued to take a hit in June as Gov. Ron DeSantis expanded economic-recovery efforts amid the coronavirus pandemic, a new report shows.

The report released Monday by the Legislature’s Office of Economic & Demographic Research said Florida’s general-revenue collections in June were $427.8 million below a forecast amount.

That followed even larger losses in April and May as businesses shut down or dramatically scaled back and as consumers stayed home because of the pandemic.

“A large part of the loss over the quarter is attributed to declines in the tourism and hospitality-related industries, but the impact was widespread as all categories other than building-related industries were affected,” the state economists’ report said.

In all, the state collected about $2.1 billion less than forecast during April, May and June, the final three months of the 2019-20 fiscal year.

The state finished the year collecting about $1.88 billion below projections, as it brought in more than expected early in the year to partially offset the later losses.

Still, the report isn’t expected to result in lawmakers rushing back to Tallahassee to address the state budget, as Democrats have requested.

Republican leaders have not shown any indication lawmakers will return to Tallahassee until they hold an organization session after the November elections.

Senate President Bill Galvano, R-Bradenton, reminded senators in a memo that economists from the Senate, House, governor’s office, and the Office of Economic & Demographic Research must develop a long-range financial outlook, which would be used in making future budget decisions. That outlook will go to the Joint Legislative Budget Commission, a panel made up of House and Senate members, for review and issuance by Sept. 15.

Galvano and other Republican leaders have previously expressed cautious optimism about the state’s finances because of issues such as $4 billion in state reserves, federal stimulus money and $1 billion in cash-conserving budget vetoes issued by Gov. Ron DeSantis.

In Monday’s memo, Galvano noted revenue and employment at hotels and attractions have suffered because of coronavirus social-distancing requirements, and a return to “typical levels” in the hospitality industry may not occur until 2022.

Also, Galvano pointed out that 30-day delinquencies in home loans have risen sharply, employers are indicating they will be forced to lay off workers if business remains weak as support from the federal Paycheck Protection Program winds down, and demand for single-family homes could be affected this fall if high unemployment persists.

Democrats have urged Republican leaders to call lawmakers back into session before the November elections to address the economic situation and overall impacts of the pandemic.