A man wearing a protective mask reads his cell phone at the entrance to the New York City subway on September 22, 2020.
John Rampulse Ski | Getty Images
The best hope for state and local governments looking for another dose of federal aid is the “blue wave” that Democrats will win in the White House and both Houses in November.
So far, the battle between Democrats in the House of Representatives and Republicans in the Senate has lost requests for further support from the governor and mayor. The House of Representatives has proposed more than $ 2 trillion in major stimulus bills that include local government assistance, and the Senate Republicans will offer a $ 500 billion package that does not include state assistance next week.
States and local governments have seen sharp declines in tax revenues when closed in March, often far from returning to normal. Moody’s Analytics predicts that state and local governments will experience a $ 450 billion “financial shock”, including revenue shortfalls in fiscal years 2021 and 2022.
Blue waves may be the best result for state budgets and municipal bond markets
Source link Blue waves may be the best result for state budgets and municipal bond markets