The revenue failure is in part due to falling gasoline prices, COVID-19 and pushing the deadline to pay taxes into July, said House Appropriations and Budget Chairman Kevin Wallace, R-Wellston.

Many businesses are closed due to the COVID-19 pandemic. The closures impact a variety of tax revenue streams, including sales taxes. In addition, the state is seeing a rise in those who are unemployed.

Officials are still negotiating the fiscal year 2021 budget, Wallace said.

Wallace said he expects a flat budget for fiscal year 2021, which begins July 1.

“With over $1.1 billion in savings, we are definitely in pretty good shape to weather the storm, but we need to be looking at 2022 as well,” Wallace said.

The state is expecting to receive $180 million in Federal Medical Assistance Percentage enhancement dollars that will go to seven or eight health care agencies, Wallace said.

The state is set to receive $1.54 billion in federal stimulus dollars of which $844 million will go directly to the Legislature for appropriation, he said.

Officials are evaluating where the $844 million can be used in the fiscal year 2021 budget, Wallace said.