COVID-19 threatens state, local services

A new policy brief by Peter Fisher of the Iowa Policy Project examines the challenges for state and local services that can be expected with the blow to revenues due to the COVID-19 pandemic.

EXCERPT: One thing is clear: The federal assistance provided thus far is limited to helping states meet additional spending necessitated by the health crisis. This does little to offset the coming severe declines in state and local tax revenue. Much more assistance is needed if states are to avoid drastic cuts in funding for education, health care, public safety and other crucial public services as they struggle to balance budgets in the face of increasing need and plummeting revenues. Moreover, as the impending recession could be both deep and long, federal fiscal aid to states and local governments needs to be extended for the duration of the economic crisis.

See the policy brief here. Or a four-page PDF.