Skip to content

Thursday, Jun. 23, 2022

Did state and local governments have severe budget shortfalls during the pandemic?


no

Significant shortfalls in the budgets of state and local governments were projected at the pandemic’s outset. Remarkably, a fall 2022 report from the National Association of State Budget Officers found that combining the 2020 and 2021 fiscal years, total general fund revenue ultimately came in 2.2% higher than pre-pandemic forecasts. Importantly, this estimate does not include the revenues states receive as transfers from the federal government. An unexpected increase in revenues and nearly $900 billion in federal fiscal assistance have left state and local governments with considerable surpluses, even after factoring in increases in expenditures.

See a full discussion of this at EconoFact

This fact brief is responsive to conversations such as this one.

Sources

About fact briefs

Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.

See all fact briefs

EconoFact is a non-partisan publication designed to bring key facts and incisive analysis to the national debate on economic and social policies. Launched in January 2017, it is written by leading academic economists from across the country who belong to the EconoFact Network. It is published by the Edward R. Murrow Center for a Digital World at The Fletcher School at Tufts University.

Learn More

Be a Friend of facts

Help us fund more great fact briefs like this one.