by the Pew Charitable Trusts published last year, the slowness of the recovery meant that state tax revenues didn’t return to their pre-recession levels until 2013, adjusting for inflation — much longer than in the previous two recessions. Over this period, states lost an estimated $283 billion in tax revenue. “It was kind of like falling off a cliff and then walking up a ramp,” said, co-director of the Project on State and Local Government Finance at the University of Albany.
This meant that even by the time state revenues had recovered, it took longer for dollars to start flowing toward education or infrastructure. States didinto their rainy day funds, which they can draw on during emergencies, in case another recession hit. But that prudent instinct left them with even less cash to spend on other things. By 2018, according to Pew, nearly half of the states were still spending less money than they were a decade earlier.
And now, states are facing an even more devastating budget crisis. There is, of course, a huge amount of uncertainty about how long the COVID-19 pandemic will last, andthe process of reopening, which could bring lost tax money back into their coffers. But the long-term outlook still looks bleak.
That’s because in addition to a huge decline in tax revenue, states are facing new, unexpected costs.did provide money, including $150 billion from the CARES Act, for the states to use to offset spending in response to the coronavirus, as well as some additional money for Medicaid.
States are already facing hard choices about how to manage the giant holes in their budgets. California, for instance, is
we should put it up for sale ! Bezos would buy it if he likes it!
States--specifically blue states ruled by petty dictators getting in touch with their inner Mussolini--could end the recession if they opened up.
The states caused this themselves to begin with.
What a dumb headline As if Congress is responsible for their profligacy as well
hahahahha no.
That’s not the pandemics fault but the blue states mismanagement of money. No bail out for states.
They want red state taxpayers to bail out blue states? Interesting
Or states could reopen.
The ones going broke are liberal fascist run states! And hell no, no bailout for bad leadership and ineptness!
They support many of the Red States I believe?
The Blue States would take their share of tax dollars with them!
The only ones extending the recession are the states that are still closed and not allowing businesses to reopen.
You don’t want your state to go broke? Try running it better. They should not receive a dime.
Let them why should other states that stayed in their budget have to pay for the freaking idiot bs agenda debt states that just keep spending spending and not budgeting the government won't bail me out if I don't stay in my budget so why bail them out
Maybe because the states need to repair financial damage done by Covid, should they be given a federal tax holiday? Say for 6 months, let the feds trim their budget while states recover? This administration only wants to help the states, right?
If the states are stupid enough to give $$ to illegals they deserve no federal bailout.
Why do you call it Congress and not mitch!
The states caused the recession with their knee-jerk lockdowns. Let businesses reopen, and of course any business that was forced to close should have a 1-year state and local tax holiday. Governments will have to tighten budgets, trim payroll, so it's a win-win.
Oh, B.S. NY, IL, CA, etc. dug their own financial graves. Let them lie in them.
the states are too big to fail.
Wow...Mitch has a mask on. I am shocked. I didn't think Trumpian's wore them, it isn't cool, the virus is a hoax so they don't need to wear one
Oh great...I can’t wait to bail out Illinois, California, and NY/NJ.
Neighbor spends money like a drunken sailor, maxes out credit cards, takes out massive loans he can’t repay, buys mansion & lots of expensive cars/boats/jewelry/designer clothes but the guy next door who lives on strict budget & saves money is supposed to bail him out? H*ll No!
Forgot about the states going broke. No one cares. Americans are going broke so where in the heck is our other stimulus checks?
I doubt the states will get money, this administration doesn’t care, if fact , likes the idea of weak states, This administration wants states boot licking for money.
Doctors say... COVIDー19
BlueStateBailout
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