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Estimates of State and Local Government Revenue Losses from Pandemic Mitigation

Abstract: This data brief presents estimates of the impacts of the COVID-19 mitigation shutdowns on US state and local income and sales tax revenue. The author estimates that these revenues will decline by $54 billion in fiscal year 2020 (FY20). Depending on the speed of the recovery over the next fiscal year, another $25 billion to $137 billion of revenue may be lost. If states split their rainy day funds between FY20 and fiscal year 2021 (FY21) to offset these revenue declines, the shortfalls would be reduced to $21 billion in FY20 and $4 billion to $78 billion in FY21.

Keywords: state and local governments; revenue; COVID-19;

https://doi.org/10.26509/frbc-ddb-20200513

Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Source: Cleveland Fed District Data Brief

Publication Date: 2020-05-13