Wikimedia Commons
Wikimedia Commons
With the ongoing economic downturn, Arizonans are bracing for more bad news as the budget is expected to take a huge hit.
The coronavirus pandemic has had an affect on revenue streams, which has seen a decline as sales tax has continued to take a dive, according to KJZZ.
Compared to other states, Arizona gets the majority of revenue from fuel and sales taxes. Research director, Carl Davis, has warned that Arizona might find itself vulnerable during this period.
Davis said people who have reduced their spending are the ones who have lost their jobs or are cautious over their finances, while those with better finances haven’t reduced their spending habits. He added that social distancing has made it impossible to predict consumer behavior since everyone is not comfortable going out during this period.
The fuel tax that has been known to fund the Arizona infrastructure has taken a hit since a handful of people are driving with the majority staying at home. This might lead to a reduction in construction jobs across the state, David said.
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