FILE - In this Monday, March 23, 2020 file photo, Gov. Gavin Newsom updates the state's response to the coronavirus at the Governor's Office of Emergency Services in Rancho Cordova, Calif. California has a $20 billion reserve but also relies heavily on capital gains, which swell the state budget when the stock market is soaring. In late March, he warned agency heads that a drop in economic activity would put their ambitions for new or expanded programs on hold. (AP Photo/Ric…
March 26, 2020
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Coronavirus deals one-two financial punch to state budgets
The coronavirus is pounding state governments with a financial one-two punch, costing them many millions to try to contain the disease just as businesses are shutting down and tax revenue is collapsing. The sharp drop in revenue could jeopardize some states' ability to provide basic services.