Best Defense Against Virus Proves Crushing to States' Finances

As state and local governments continued to increase the intensity of their responses to the Covid-19 pandemic, this article examined the effect social distancing and business closures could have on state and local budgets. Civic Federation President Laurence Msall noted that the State of Illinois and the City of Chicago were in fiscal distress prior to the pandemic, making them particularly ill-positioned to weather the crisis. He said the only way to prop up governments like Illinois and its municipalities is a massive federal stimulus package.

 

Related Coverage: 

CBS 2: Civic Federation’s Laurence Msall: Staggering Unemployment Claims Will Put Major Strain On Illinois, Chicago Budgets

Crain’s Chicago Business: Here's the next crisis facing state, local leaders

CBS 2: Coronavirus Unemployment: As Claims Explode, Illinois Systems To Process Them Are Stressed

Politico: Governors brace for coronavirus budget cliff as tax dollars evaporate

Chicago Sun-Times: Lightfoot acknowledges coronavirus impact on a city budget that relies heavily on tourism taxes

Chicago Sun-Times: Spreading coronavirus infects city’s economy, mayor’s budget

Crain’s Chicago Business: Coronavirus poses a dire threat to city and state budgets