The briefing was attended by two reasons: They want to understand the state’s economic outlook and how the economy will impact state revenue collection. Legislators want to know the extent of the cuts that they will have to make. Hosemann predicted that revenue collection could fall below the $6 billion estimate to build the budget. This could be as high as $400 million in the current fiscal year and as low as $800 million in the next fiscal year. Hosemann’s prediction is correct. This could lead to legislators having to cut the state budget by double digits in the next fiscal year. However, there are reserve funds that could be used for offset. However, lawmakers were informed that the economy will recover over time due to the coronavirus. Darrin Webb, State Economist, briefed Senators and Hosemann Tuesday. They were resuming the 2020 session with the intention of finishing a budget in June. Webb stated that such a rapid decline in economic growth was unprecedented. He also said that it would take at least 2022 to return to the pre-COVID-19 levels of economic growth, but not before 2023 in Mississippi. Webb stated that Mississippi is often behind the rest of the country in recovering from economic downturns. Webb noted that Mississippi’s Gross Domestic Product (total value for goods and services produced) was slightly lower than the peak of 2008, and that Mississippi had just recently reached its 2008 peak. The economy collapsed due to the COVID-19 pandemic in the first quarter 2020. Webb stated that the economy of both the state and the nation would begin to grow in the third quarter 2020. However, the growth will be so slow that it may take a while for recovery to complete. Webb stated that although it will be a brief recession, the recovery will not be rapid. Webb stated that the country’s GDP fell by 36.5 percent in the first quarter and that the state’s GDP plunged at an annualized rate of 43.6 percent. Webb stated that projections show the economy will start rebounding and that the country’s GDP will fall by 7.3 percent over the year. The state’s GDP is expected to drop 7.6 percent. The decline in GDP during the Great Recession was at the state and national levels, respectively, of 2.3 percent and 4.7%. The GDP would see the largest drop since World War 11, when economic production was stopped abruptly. Webb stated that the growth of jobs will be slower than the GDP increase. The U.S. lost over 21 million jobs between March and April, while the state lost 117,000. The state lost 78,000 jobs during the Great Recession, which began in 2008. The first decision legislators must make when crafting a budget is how they will deal with approximately $350 million in personal income taxes collections for the current fiscal year. However, this tax will not be collected until July in the next fiscal year. This issue developed after state leaders decided to allow taxpayers to delay filing taxes from April 15 to July 15 of the next fiscal year. It would be more difficult for legislators to balance the budget next fiscal year if they decide to use these funds. Herb Frierson, Revenue Commissioner, stated that it was a “shell game” regardless of how you play it. In the year when the collection is not used, the budget strain will increase. It appears that legislators don’t have easy answers._x000D