Despite no federal aid, states and local governments have cash aplenty
Managing state and local budgets has changed dramatically in the last two years and with 5.7 trillion dollars in federal cash.
Public health responses to the COVID-19 outbreak caused cascading costs in spring 2020, which resulted in spikes in unemployment and steep revenue declines as business disruption and restrictions worsened.
As legislators convene in 40 states in 2020, Congress has approved five COVD-19 assistance packages, which will add at least $5.7 trillion to the federal government's economic output, including $900 billion for state and local government.
As much as $800 billion of those $5.7 trillion remain on the table across federal, state, local, and public-private entities, as well as in statehouses, county seats, and city council chambers, according to the Washington, D.C.-based Committee for a Responsible Federal Budget.
During that second quarter, with April-June as the reporting period, the U.S Government Accounting Office (GAO) reported a decline of $61 billion in state and local government revenues from the previous year.
According to estimates of 2020 pandemic-related revenue losses filed with the U.S. Treasury, state and local governments reported a decline in revenues of $117 billion in 2020, due mostly to a decline in revenues during the second quarter.
3 Feb 2022