Whitmer: State revenues could drop $7B in next 18 months

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LANSING, Mich. (AP) — Michigan Gov. Gretchen Whitmer said the state’s revenues could drop by $7 billion over the next 18 months, as she urged President Donald Trump to work quickly with Congress to send more federal aid to states and municipalities.

In a letter announced late Wednesday, written with other Democratic governors in Pennsylvania and Wisconsin, she said revenues could drop by $3 billion this fiscal year and $4 billion the next budget year.

State and local governments are being hit with a double-whammy: reduced revenues caused by the coronavirus pandemic’s economic havoc and additional costs of fighting it. They received a total of $150 billion in a federal rescue law, along with added federal payments for state Medicaid budgets, but advocates for states and cities have said it will not be sufficient.

Without additional aid, the governors wrote, “the damage to our state economies will be exacerbated by the cuts we know we will be forced to make.”

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