Franchot: COVID-19 Crisis Will Lead To At Least $2.8B In Lost Revenue For State

Some of Maryland's largest jurisdictions are mulling or instituting hiring freezes and planning for massive revenue drops. Comptroller Peter Franchot said Friday the state is in the same boat.

In a virtual press briefing on Friday, Franchot said the state stands to lose $2.8 billion in tax revenues should Gov. Larry Hogan's stay-at-home order remain in place through June, the end of the current fiscal year.

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Nearly 240,000 Marylanders have filed for unemployment in the last three weeks. During the Great Recession, it took 32 weeks to reach that point.

"Each and every one one of these unemployed Marylanders are snapshots of a terrible moment in time," Franchot said.

Franchot said 22% of the state's wages have been lost and the state will have to make major budget cuts.

Comptroller Peter Franchot talks about his findings with WBAL's Robert Lang on Friday night's WBAL News Now Extra.

Democrats in the General Assembly have said they are set on funding the costly education reforms recommended by the Kirwan Commission. Franchot said that would be a bad move.

Franchot, the first Democrat to declare his candidacy for governor in 2022, said it will take years got the economy to recover and anybody who says the economy can bounce back after the restrictions forced by COVID-19 are lifted is being "delusional."