- The COVID-19 pandemic and the revenues of state and local governments: An update
This report provides estimates of the revenue shortfalls state and local governments are likely to experience due to the COVID-19 pandemic. Our estimates apply to the 2021 fiscal year, which extends from the third quarter of 2020 through the second quarter of 2021 in most states. Nationally, we estimate that state governments’ sales and income taxes will fall short of January projections by roughly $105 billion. Combined shortfalls in all state and local government revenue streams are likely to be on the order of $240 billion for the current fiscal year.