The pandemic has blown huge holes in most state budgets. Now, with the advent of the Biden Administration and a Democratic Congress, there is a reasonable chance that substantial federal aid is coming – finally.
Given this turn of events, states may conclude that it no longer makes sense to borrow to handle budget shortfalls. This would be a mistake. The new round of relief has not yet passed, and it is unclear whether it will be sufficient either in general or as to particular states. It is also unclear whether it will be enough as the crisis unfolds… Read more