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Posts on State Budget And Tax
July 1, 2020

Unless federal policymakers provide enough aid to states, localities, territories, and tribal governments to offset all or nearly all of their massive revenue losses due to the pandemic, the longstanding inequities from historic and ongoing racism and discrimination — which have left Black and brown communities most harmed by COVID-19 and the economic crisis — will only worsen from the deep...

Postal Worker Making Deliveries
June 25, 2020

As COVID-19’s health and economic impacts intensify, creating huge state budget shortfalls, states and local governments are laying off workers and slashing support for schools and other services, harming working families — especially in communities of color — and delaying the...

Empty playground behind school building
June 25, 2020

Some wrongly argue that federal policymakers should “wait and see” before giving states more fiscal aid to help address their huge, recession-driven revenue shortfalls, in part because they haven’t spent all the aid they’ve received so far. States, however, have good reasons not to spend all of that aid just yet. And, in any case, they’ll need far more to address their extraordinary shortfalls...

Healthcare worker helping another put on their personal protective equipment
June 17, 2020

The grim outlook for state economies over the next year will be even grimmer if states don’t fully use an important tool: their rainy day funds. Doing so can help lessen COVID-19’s health and economic harm and help states focus their responses on the hardest-hit...

In Focus: Most States Using Rainy Day Funds in Great Recession Kept or Boosted Their Credit Rating
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

June 15, 2020: We have updated our estimate of projected state shortfalls. Please see this paper for our new estimate.

As economic projections worsen, so do the likely state budget shortfalls from COVID-19’s economic...

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...

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