How coronavirus is exposing states’ fiscal risks

While an economic and fiscal reversal depends on many unknowns, including the severity of the epidemic and the speed and magnitude of federal assistance to states, municipalities, corporations, and individuals, it is clear that states that used the nearly 11-year-long recovery to build rainy day funds and other cash reserves may withstand the fiscal impact of coronavirus better than those that failed to stash away cash when times were flush.


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