How Much Help Do State and Local Governments Need? Updated Estimates of Revenue Losses from Pandemic Mitigation

Abstract

In this data brief, the author estimates that state and local governments have lost $141 billion of revenue from all sources in fiscal year 2020 (FY20) due to the COVID-19 mitigation shutdowns. Under three scenarios of increasing severity, the author estimates that state and local governments will need to cut expenditures by between $59 billion and $350 billion in fiscal year 2021 (FY21) to offset impending loses of revenue.