Revenue losses coming into focus for cities, states, transit systems

State and local governments that rely on sales tax to maintain services are beginning to get a clearer picture of how deeply they must cut after the two worst months of revenue losses in 2020.
“As the coronavirus outbreak slows the national economy, local governments that depend on income and sales taxes are seeing immediate revenue losses,” said Moody’s Investors Service analyst Frank Mamo. “Cash will be critical in managing budget gaps over the next year, while localities with weak reserves will likely need to cut their budgets or rely on external support.” Kroll Bond Ratings Agency anticipates losses of $690 billion for state and local governments and agencies through June 30, 2021. States are expected to lose $370 billion, while cities see $117 billion of losses. Counties will miss out on $114 billion while transit agencies lose $24 billion.
(Read more: The Bond Buyer)