"House lawmakers, many of whom watched on computer screens miles from the State House, took an historic and unanimous vote on Wednesday to authorize the Treasury to borrow billions of dollars as needed through June to meet the state’s financial obligations during the ongoing fight against the spread of the deadly coronavirus.Continue reading the article online (subscription may be required)
House Ways and Means Chairman Aaron Michlewitz, speaking from the House chamber with a mask covering his nose and mouth, said Treasurer Deb Goldberg may need to borrow as soon as this month to balance the state’s outflow of cash, which is not being replenished as fast as it otherwise might.
State revenue officials reported Tuesday that April tax collections had fallen off 54% compared to the same month in 2019, and missed budgeted estimates for the month by nearly $2.2 billion.
April is the state’s largest tax revenue month of the year, and Michlewitz called the losses a “staggering number.” He and other experts have said a “large portion” of the drop in revenues could be because of the extended income tax filing deadline. If that assumption is correct, it would allow the state to quickly recoup some of the losses in July to begin repaying a large short-term debt by the end of fiscal 2021."