It’s likely that it is too late to cut budgets in the current fiscal year in order to offset the revenue gap that is starting to accumulate as a result the economic slowdown due to the COVID-19 Pandemic. This leaves the rainy-day fund as the best option to offset drop in tax collections. Reeves revealed recently that the state’s Working Cash Stabilization fund, also known as the rainy day fund or rainy day fund is worth $550 million. The governor may spend $50 million without legislative approval under current law. Reeves stated that dipping into the rainy-day fund could be necessary “if that becomes necessary”, “It’s certainly possible.” Lt. Governor. Delbert Hosemann stated earlier that he believed leaders would be able to make it through the current fiscal without having to dip into the fund. The fund will also be available for next year’s slow tax collections. Although revenue was expected to fall in the last months of this fiscal year due to the coronavirus-induced slowdown in the economy, officials believed there was enough financial cushion to avoid having to use the rainy day fund. State revenue collections were moderately strong before the pandemic. Officials decided to change the filing deadline for income tax to July 15. This meant that the money that the state had previously collected during the current fiscal year, due to the April 15 deadline to file tax return, would not be collected until next fiscal year because people delayed filing tax returns. To give people affected by COVID-19, the state moved its filing deadline to July 15. Although revenue collections should increase for the next fiscal, due to record unemployment and many businesses closing in March and April, revenue collections are still expected to be poor at least early in the next fiscal year. This could lead budget cuts in areas such as education, health care, and law enforcement. According to Monday’s report by the Legislative Budget Committee, April revenue collections were $244 million less than the official projection. This was due in large part to the postponement of July 15’s tax filing deadline. The state’s financial cushion for April, which was $244 million, has disappeared with April’s disappointing report. The state now has $26.3 million, or.57% less revenue than what was appropriated during 2019’s session to fund state agencies. It is likely that the state will need to tap the rainy-day fund to fill budget gaps. Revenue was drained by the large amount of personal income tax collections, which were at least partially due to the extension of the filing deadline. The personal income tax collections fell 43.5 percent to $125.8million, or 41.5% below the estimate. However, most of the other revenue sources were also down. Sales tax collections fell $17.6million, or 8.9%, while corporate tax collections, which were also affected by the delay of July 15th to file, dropped 50.8 percent, or $89.9million. The only bright spot was the use tax collection, which is a 7.5% tax collected primarily from internet sales. They increased by 6.3 percent or $1.7million in April. The drop in tax collection will impact the Legislature’s May and June work to pass a budget. Budget cuts are possible. The $78 million cost of a teacher raise is expected to be passed by the legislature. This will be more difficult due to the revenue situation.