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Posts on State Budget And Tax
May 28, 2020

The CARES Act includes a $150 billion Coronavirus Relief Fund (CRF) to help states, populous cities and counties, tribal governments, and U.S. territories cover unanticipated costs from the COVID-19 pandemic and its economic effects. Working from Treasury Department...

Beds in field hospital
May 27, 2020

Whenever our kids return to school, a severely diminished learning experience awaits them unless the federal government learns an important lesson from the past and significantly boosts state aid — and soon.

The last time that states faced a budget crisis, in the wake of the Great Recession of a decade ago, emergency federal aid closed only about one-quarter of state budget shortfalls....

Empty classroom
May 20, 2020

As economic projections worsen, so do the likely state budget shortfalls from COVID-19’s economic fallout. We now project shortfalls of $765 billion over three years, based on the new projections from the Congressional Budget Office (CBO) of yesterday and Goldman Sachs of last...

In Focus: COVID-19 State Budget Shortfalls Could Be Largest on Record
May 15, 2020

The “wait and see” approach that Senator John Thune and some other Republicans recommend for providing more state and local fiscal relief is highly unwise. States and localities furloughed or laid off nearly a million workers last month, new...

In Focus: April’s 1 Million Furloughs, Layoffs Put Total State and Local Employment Lower Than After Great Recession
May 15, 2020

Sixty-six years after the Supreme Court’s Brown v. Board of Education decision found racial segregation in schools unconstitutional, COVID-19 is presenting new challenges to families and education advocates who are still fighting to ensure that states uphold their education funding obligations. The state budget crisis could prompt states to lean heavily on K-12 funding cuts, likely...

School Funding Increases Lead to Big Gains for Poor Kids
May 6, 2020

South Dakota’s Governor Kristi Noem says her state doesn’t need more federal fiscal relief; it just needs the Treasury Department to let it use previously provided relief funds to cover revenue shortfalls. The argument apparently has gained traction among some...

Flag and Money
May 5, 2020

As states’ revenues plummet and they shift resources to fight the public health crisis, state officials will be looking for ways to fill their budget shortfalls and meet their balanced-budget requirements. In the face of extreme and growing hardship created by the COVID-19 pandemic and deep economic downturn, states shouldn’t use Temporary Assistance for Needy Families (TANF) funds to help...

TANF at Weakest Point Amid Fiscal Crisis and Growing Need
May 4, 2020

States will need more fiscal relief to avoid having to make deep budget cuts to meet their balanced-budget requirements, which would hurt families and communities while worsening the recession.

Michigan Senate Chamber
April 30, 2020

Some Administration officials are arguing that states don’t urgently need more direct federal relief because they can borrow from the new Federal Reserve program to buy public and private debt, but that argument makes no sense.

Loans are no substitute for the...

Texas State Capitol Dome
April 29, 2020

May 21, 2020: We have updated our estimate of projected state shortfalls. Please see this post for our new estimate.

State budget shortfalls from COVID-19’s economic fallout could total $650 billion over three years, we estimate based on new...

In Focus: COVID-19 State Budget Shortfalls Could Be Largest on Record