LAFAYETTE, La. — The economic impact of the coronavirus is becoming more clear with the first estimates of how much it will cost the Hub City in tax dollars.

The Lafayette Economic Development Authority (LEDA) estimates a 35% reduction in sales tax revenue for the rest of the year and millions less in a time that’s already hard enough to fund Lafayette’s government.

“We understand that the cost of this virus combined with this worldwide oil glut is going to cost us dearly,” stated Gregg Gothreaux, president and CEO of LEDA.

The group said Lafayette is expected to bring in $10M less in city sales tax this year.

Gothreaux said It’s a perfect storm for the city’s most impactful industries, “We have a great base with energy, technology, medical, and entertainment. Obviously, all of those are being slammed in one way or another.”

Lafayette Mayor-President Josh Guillory admitted, “I’m seriously concerned about our city fund right now.”

On top of a $10M hit, Lafayette’s 2019-2020 budget goes $18M over budget which together would deplete over half of the city’s $50M reserve funds. That’s why officials are already exploring solutions.

“We can’t put all our eggs in one basket,” explained Guillory. He said one key is diversifying the economy with industries like IT and manufacturing, but he also said everything is on the table to balance the city’s budget without raising taxes.

“I am committed to protecting the finances of the city of Lafayette,” concluded Guillory.

LEDA’s predictions for this quarter look even bleaker with a 50% reduction in sales tax revenue, but Gothreaux admitted some rating agencies project a 50% reduction for the full year.