LANSING, MI -- The chairman of the Michigan Senate Appropriations Committee is encouraging Gov. Gretchen Whitmer to lay off “non-essential” state employees over concerns related to the state’s budget and effects of the coronavirus crisis.

On Monday, April 13, Chairman Jim Stamas, R-Midland, said in a press release he is “extremely worried about the state’s budget as a result of the COVID-19 public health emergency and the excessively restrictive ‘Stay Home, Stay Safe’ lockdown order extended by Gov. Whitmer."

The Michigan Department of Treasury has estimated there will be a $1 billion to $3 billion impact on the current 2020 state budget, and another $1 billion to $4 billion hole in next year’s budget, according to Stamas.

Instead of hiring hundreds more workers to help take calls at the Michigan Unemployment Insurance Agency, as previously announced by the state, Stamas proposed that non-essential state employees transition to being call-takers for unemployment claims or be laid off if they can’t assist in that capacity.

The state’s unemployment system has been strained by the more than 828,000 unemployment claims filed in Michigan since March 8. Last week, the state announced it had hired more than 150 call-takers, with plans to add more through a third-party contractor.

“We are facing a serious financial challenge, and we need to consider all options to adjust our spending — such as cuts to popular programs and laying off nonessential state employees, including those in the Legislature,” Stamas said in a press release. “The state is doing everything it can to address the global COVID-19 pandemic, but we also must soon make the hard decisions to address its tremendous impact to our economy and state budget. The longer we wait to act, the deeper the cuts will need to be."

Kurt Weiss, a spokesperson for the state budget office, responded to Stamas’ comments Monday morning. He said the state has already taken action to implement a hiring freeze and a freeze on discretionary spending, and will know more after its next revenue estimating conference in mid-May.

The state is also awaiting further guidance from the federal government regarding how federal funds can be used to address revenue shortfalls, “which will be critical to how we address the state budget moving forward,” Weiss said in an email to MLive.

“We know that we have other tough decisions in front of us when it comes to the impact of COVID-19 on state revenues and ultimately the state budget,” he said.

This year’s budget, which runs from Oct. 1, 2019 to Sept. 30, 2020, clocks in at $59.6 billion. But the spending is based on revenue projections, which didn’t take a global pandemic into account. The state last updated those projections in January, before the virus was in Michigan.

In March, the Senate Fiscal Agency noted declines in state revenue from gas tax (down 22.6% from March 2019), diesel tax (down 21.6%) and casino revenue (down 59%). Revenue came into the state’s general fund above expected levels but below expected levels to the state’s School Aid Fund.

“Like every state in the nation right now, it’s difficult to project or predict the ultimate impact of COVID-19 on our state revenues and the subsequent impact to the state budget,” Weiss said. “We know there will be an impact. What we don’t know is how large it will be or whether federal dollars will be allowed for the replacement of any lost revenue.”

The Legislature is required to send the governor the Fiscal Year 2021 budget by July 1. The FY 2021 budget begins Oct. 1, 2020.

Gov. Whitmer issued a stay-at-home order take effect on March 24 in an effort to keep residents home to slow the spread of COVID-19. The order was extended April 9, which will keep it in effect through at least April 30.

The order will continue to prohibit public and private gatherings among people outside a single household, and orders individuals to stay home unless their work or activity is deemed essential.

As of Sunday, Michigan had nearly 25,000 confirmed cases of coronavirus and nearly 1,500 deaths associated with the virus.

CORONAVIRUS PREVENTION TIPS

In addition to washing hands regularly and not touching your face, officials recommend practicing social distancing, assuming anyone may be carrying the virus. Health officials say you should be staying at least 6 feet away from others and working from home, if possible. Carry hand sanitizer with you, and use disinfecting wipes or disinfecting spray cleaners on frequently-touched surfaces in your home ( door handles, faucets, countertops) and when you go into places like stores.

More from MLive:

Michigan cites possible testing lag as coronavirus cases drop

Kroger, Meijer report deaths of grocery store workers in Michigan from coronavirus

Michigan begins sending $600 payments, sets date for expanded unemployment eligibility

Monday, April 13: Latest developments on coronavirus in Michigan