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Daily Tax Report: State

U.S. States Beg, Borrow and Cut to Close Massive Budget Gaps

June 30, 2020, 6:02 PM

It’s crunch time for U.S. states as they face their worst fiscal crisis in decades brought on by the Covid-19 pandemic that’s decimated tax collections.

Eleven states have yet to enact a budget for the fiscal year that begins Wednesday. And for those that have, they’ve been forced to slash spending, lay off workers and count on billions of dollars in potential federal aid that remains bogged down in Washington.

“The biggest theme that we are seeing across state budgets is uncertainty,” said Eric Kim, senior director of public finance at Fitch Ratings.

The financial crisis amid the pandemic is...

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