Framework for COVID-19 Recovery Strategies for States Facing Historic Budget Shortfalls
States plan for unanticipated events in the development of state budgets, but nothing could have prepared states for the shock the COVID-19 pandemic is inflicting on revenue and expenditures in such a short period of time. Based on the latest state-by-state estimates, states face an estimated $169-253 billion shortfall for the combined fiscal years ending in 2020 and 2021.
The Council of State Governments (CSG), with research and analysis support from accounting firm KPMG LLP, examined near-term budget impacts, the economic risk of ongoing pandemic effects and shutdowns, the resiliency of states to respond and strategies for fiscal recovery. CSG released its findings in the report, “COVID-19: Fiscal Impact to States and Strategies for Recovery.