In the midst of a shutdown, state sales tax numbers for March saw a significant drop. Dr. Perryman describes what this means and what can be expected from the coming months.
States have begun to announce major projected budget shortfalls. Some estimates put the national total at $500 billion. The COVID-19 pandemic has not only decreased revenues, but also increased the need for state spending. The result is large gaps and looming calamity. Many states are asking the federal government to include relief in future stimulus packages. Some leaders in Washington have even suggested that states file for bankruptcy, but that has many adverse and disruptive consequences and is likely unconstitutional.