The states face an unprecedented budget crisis, with (1) the deep economic downturn that will severely shrink their revenues and force them to make deep budget cuts (or raise taxes) to meet their balanced-budget requirements, and (2) a more immediate revenue shortfall because the vast majority of states followed Washington’s lead and postponed their tax filing deadline until July 15 (or thereabouts). How big will the shortfalls be? While cutting their budgets, will states also raise taxes? Where will they look for more tax revenue? What will Washington give the states by way of fiscal relief?
STIMULUS MEASURES AND THE ECONOMIC CRISIS: A Status Report