Indiana to use surplus cash to help unemployed
INDIANAPOLIS (WISH) — Coming into the coronavirus crisis, Indiana government revenues and employment numbers were both trending up.
Gov. Eric Holcomb says the state has more than $2 billion in reserve and was in better position than many surrounding states.
Now, the governor is dipping into reserve funds to help people affected by the pandemic. Plus, first-time unemployment claims across the state were up 2,900%; that is 53,000 people. By comparison, in the last week of February, 2,100 people in Indiana had filed their initial claims for unemployment assistance.
Last week, Marion County unemployment claims were up 3,200%, Johnson County, up 6100%; and Clark County in southern Indiana, up 9,900%.
The loss of jobs is adding pressure to incoming state government revenues. Further pressure is coming from moving the income-tax filing deadline from April 15 to July 15.
The state collects just over $2 billion in sales tax every year. That revenue supports public safety and education.
Cris Johnston, the director of the state’s Office of Management and Budget, said he expects state revenue to decline sharply for several weeks and possibly months.
Johnston said, “We will be using our reserves to maintain our priority services and those required by this public emergency. Some of those include fronting payments for PPE, the personal protective equipment, helping front some of the cost until reimbursement on UI staffing and resources.”
The governor has waived the one-week waiting period for unemployment claims. New claimants can expect to receive their first checks 21 days after their initial filling.