The Center for Budget and Policy Priorities, a research and policy institute, recently published a snapshot of the hit the coronavirus crisis has dealt state governments, based on preliminary numbers from every state.
The center estimates that state revenues collectively will fall short by $765 billion in the three fiscal years 2020 through 2022. That’s not including any losses among local governments, territories or tribes.
It’s not that states as a whole were not unprepared. With $75 billion in reserves, states’ rainy day funds were historically well stocked. And yet, the center says:
“Even if states use all of it to cover their shortfalls, that still leaves them about $600 billion short.”
States must balance their budgets, emergency or not. In April alone, state and local governments laid off or furloughed almost a million workers. Even counting assistance currently approved by Congress, without more aid, states will have to cut deeply into health care and education, lay off teachers and other workers and cancel contracts with businesses, with effects reverberating through communities, the center predicts.
Following is a look at the states that face an estimated revenue decline of at least $1 billion for the 2020 fiscal year, according to the Center for Budget and Policy Priorities report. We start with the state that faces a $1 billion shortfall this year and end with the worst-off state, which is facing a $9.7 billion revenue shortfall this year.