How the COVID-19 Pandemic is Transforming State Budgets

Last updated February 26, 2021

The COVID-19 pandemic and resulting recession have dramatically reshaped state economies and budgets. But the severity of the pandemic and economic downturn varies significantly across states, creating unique economic and political pressures. We collected health, economic, and fiscal data for all 50 states and the District of Columbia to show how each individual state has changed during this crisis and suggest what might be needed for recovery.

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Additional Resources

  • The State and Local Finance Initiative Backgrounders provide more detail on the tax and spending issues mentioned in these briefs.
  • The State Fiscal Briefs break down each state’s budget, political makeup, and ongoing fiscal debates, providing context for the effects of the COVID-19 pandemic.
  • The State Economic Monitor shows updated data and customized visualizations of state economic indicators.
  • The State Tax and Economic Review is the preeminent source of data and analysis on state tax collections.
  • The Leisure and Hospitality Sector Has an Employment Crisis – and It Might Be Getting Worse (Urban Wire)
  • State GDP Data Confirm We’re in a Different Kind of Recession (Urban Wire)
  • COVID-19 Pandemic Could Slash 2020–21 State Revenues by $200 Billion (TaxVox)
  • The COVID-19 Effect: State Sales Tax Receipts Shrank $6 Billion in May (TaxVox)
  • Congress Must Do More to Help States and Localities Respond to COVID-19 (TaxVox)
  • Three Ways Congress Should Design COVID-19 Relief for State and Local Governments (TaxVox)

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