Hit to State and Local Revenues Smaller Than Feared

“State and local governments in early 2020 expected the pandemic-induced downturn to decimate their budgets, as millions of business closures and layoffs wiped out tax revenue,” the Wall Street Journal reports.

“In many places, the fiscal picture hasn’t been nearly as dire as feared.”

“A flood of federal aid for businesses and households helped prop up incomes and consumer spending. Unemployment fell and economic activity picked up much faster than expected. Unlike in previous recessions, equity and housing markets have done well.”