Raymond Scheppach

The predictions were for a massive downturn in state finances because of COVID-19 … but the predictions were wrong. tang90246/ iStock / Getty Images Plus

Why states didn’t go broke from the pandemic

The headlines were inescapable: States faced a financial disaster of epic proportions because of COVID-19. The predictions were wrong.
Speaker of the House Nancy Pelosi and other top Democrats meet with reporters before the House voted to pass a $1.9 trillion pandemic relief package on Feb. 26, 2021. AP Photo/J. Scott Applewhite

Why using reconciliation to pass Biden’s COVID‑19 stimulus bill violates the original purpose of the process

In 1974, Congress invented the reconciliation process to reduce deficits. More recently, reconciliation has been used in ways that increase the deficit. A public policy scholar explains the process.
Most states struggle to meet pension funding needs – and the pandemic will make it worse. hudiemm/Getty

COVID‑19 will turn the state pension problem into a fiscal crisis

Many of the public employee pension plans run by states don’t have enough money in them to make upcoming pension payments to retired state workers. The pandemic could make that problem much worse.
Good old days: Before the coronavirus hit, governors, like California’s Gavin Newsom, had easier jobs. AP/Rich Pedroncelli, Pool

Plummeting tax revenues will put governors in tough budget situations

As Congress considers further financial help for victims of the coronavirus pandemic, the magnitude of the fiscal crisis that governors and their states will have to face is just starting to emerge.
Washington state Gov. Jay Inslee ordered all bars, restaurants, entertainment and recreation facilities to temporarily close to fight the spread of COVID-19. Getty/Erika Schultz-Pool

Governors take charge of response to the coronavirus

Federal government officials are on television almost every day responding to the coronavirus pandemic. But it’s the nation’s governors who are taking aggressive action in the states.

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