NWA projected to lose more than $200m in sales during COVID-19 outbreak, economist says

KNWA

FAYETTEVILLE, Ark. (KNWA/KFTA) – The federal government’s huge stimulus package will stabilize local economies, said a University of Arkansas professor, but further action may be needed in the future to keep services and staff afloat.

Economist Mervin Jebaraj and a team of UA researchers crunched the numbers, and they calculated that there’ll be an expected decline in four major industries that’ll result in $200 million in lost revenue.

Sales tax collections in leisure and hospitality, recreation and personal care services will drop by about $4 million, as well, Jebaraj said. The negative impacts of such losses will be seen if the federal government doesn’t intervene with aid to municipalities.

“Police, fire, all of those are funded largely through sales tax,” Jebaraj said. “All the city employees that operate utilities, all of that, is funded through the sales tax.”

The country is likely already in a recession, Jebaraj said. Last time that happened, the federal government sent money to local governments, which should be done within the next four months to keep cities from cutting services or staff, he said.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Coronavirus Resources from the CDC

Latest Announcements
About Coronavirus
Human Coronavirus Types
References and Links
Latest Announcements
About Coronavirus
Human Coronavirus Types
References and Links

Latest Video

Local News Video

FOX24 Video

DON'T MISS

More Don't Miss

Mega Millions & Powerball Numbers