I estimate that state and local governments have lost $141 billion of revenue from all sources in fiscal year 2020 (FY20) due to the COVID-19 mitigation shutdowns. Under three scenarios of increasing severity, I estimate that state and local governments will need to cut expenditures by between $59 billion and $350 billion in fiscal year 2021 (FY21) to offset impending loses of revenue. Some of the revenue losses can be offset by the rainy day funds that state and local governments have set aside during the expansion, but jurisdictions that lack a fiscal buffer may face painfully deep service cuts. This data brief updates and improves upon the estimates in the District Data Brief published on May 13, 2020. In these new estimates, I include all revenue sources that are likely to decline; the original brief covered only income and sales taxes.

To create these estimates, I took the following steps:

As the Federal Reserve has become more transparent about its decisions on the federal funds target rate, the general public has begun to regard the rate as not only a benchmark interest rate, but also as a signal about the state of the economy. However, the specific information considered by the public to be revealed is not clearly understood. We investigate this question and find that the information revealed by monetary policy decisions is regarding future output growth, not inflation, and that such an information effect is theoretically optimal and does not make interest-rate policies self-defeating.

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Research Analyst

Kristen Tauber is a research analyst in the Research Department of the Federal Reserve Bank of Cleveland. Her primary interests include applied microeconomics, labor economics, and the economics of education.

Adequate testing and selective containment measures can be effective against the pandemic, researchers recently found; in the absence of adequate testing capabilities, interventions such as social distancing and lockdown measures should be employed.

I estimate that state and local governments have lost $141 billion of revenue from all sources in fiscal year 2020 (FY20) due to the COVID-19 mitigation shutdowns. Under three scenarios of increasing severity, I estimate that state and local governments will need to cut expenditures by between $59 billion and $350 billion in fiscal year 2021 (FY21) to offset impending loses of revenue. Some of the revenue losses can be offset by the rainy day funds that state and local governments have set aside during the expansion, but jurisdictions that lack a fiscal buffer may face painfully deep service cuts. This data brief updates and improves upon the estimates in the District Data Brief published on May 13, 2020. In these new estimates, I include all revenue sources that are likely to decline; the original brief covered only income and sales taxes.

To create these estimates, I took the following steps:

Anything can happen between the bells of the trading day. But what happens during the last hour could be what matters most. CNBC's "Closing Bell" guides you through the most important hour of the trading day. The show takes a close-up look at how the markets are moving, what's driving them and how investors are reacting.

Live coverage includes reports from the Chicago Board of Trade, New York Mercantile Exchange, NASDAQ and the NYSE. Analysts, money managers and CEOs explain their strategies, share opinions, and provide an inside perspective on breaking news stories.

In addition, "Closing Bell" provides instant analysis of corporate profit reports, as soon as they break, during the quarterly earning seasons. Features include interviews with entrepreneurs, plus an inside-look at how executives and high-net-worth individuals spend their time and money.

Want to engage your kids during the summer? Join our #CLEFedSummerFun challenge with hands-on activities that we’ve created to teach important financial literacy concepts, while providing fun for the whole family!

To participate in this at-home, virtual fun, at the beginning of each challenge, download the activity sheet to get started. The activity sheet for each challenge will be posted on the start dates seen below.

I estimate that state and local governments have lost $141 billion of revenue from all sources in fiscal year 2020 (FY20) due to the COVID-19 mitigation shutdowns. Under three scenarios of increasing severity, I estimate that state and local governments will need to cut expenditures by between $59 billion and $350 billion in fiscal year 2021 (FY21) to offset impending loses of revenue. Some of the revenue losses can be offset by the rainy day funds that state and local governments have set aside during the expansion, but jurisdictions that lack a fiscal buffer may face painfully deep service cuts. This data brief updates and improves upon the estimates in the District Data Brief published on May 13, 2020. In these new estimates, I include all revenue sources that are likely to decline; the original brief covered only income and sales taxes.

To create these estimates, I took the following steps:

Senior Policy Analyst

Kyle Fee conducts applied research and outreach related to economic development, workforce development, neighborhood development, and economic geography in the Fourth District.

Research Analyst

Kristen Tauber is a research analyst in the Research Department of the Federal Reserve Bank of Cleveland. Her primary interests include applied microeconomics, labor economics, and the economics of education.

As the Federal Reserve has become more transparent about its decisions on the federal funds target rate, the general public has begun to regard the rate as not only a benchmark interest rate, but also as a signal about the state of the economy. However, the specific information considered by the public to be revealed is not clearly understood. We investigate this question and find that the information revealed by monetary policy decisions is regarding future output growth, not inflation, and that such an information effect is theoretically optimal and does not make interest-rate policies self-defeating.

Adequate testing and selective containment measures can be effective against the pandemic, researchers recently found; in the absence of adequate testing capabilities, interventions such as social distancing and lockdown measures should be employed.

The event will feature a conversation between Federal Reserve Bank of Cleveland President and CEO Loretta J. Mester, Chair of the Board of Governors of the Federal Reserve System Jerome Powell, and Youngstown-area community leaders, business owners, and local stakeholders:

Our mission is founded in public service—strengthening the economic performance of the nation and our region and making a difference in the communities we serve. At our Bank, you’ll get the benefits you need and have the work–life balance you want. Your health, finances, and professional achievement matter to us. And our culture is one of inclusion, in which diversity of thought is encouraged and uniqueness embraced.

Be part of something big. Be part of our future. Make the Federal Reserve Bank of Cleveland your next career move.

As the Federal Reserve has become more transparent about its decisions on the federal funds target rate, the general public has begun to regard the rate as not only a benchmark interest rate, but also as a signal about the state of the economy. However, the specific information considered by the public to be revealed is not clearly understood. We investigate this question and find that the information revealed by monetary policy decisions is regarding future output growth, not inflation, and that such an information effect is theoretically optimal and does not make interest-rate policies self-defeating.

Senior Policy Analyst

Kyle Fee conducts applied research and outreach related to economic development, workforce development, neighborhood development, and economic geography in the Fourth District.

We’re accountable for our actions, we deliver on our commitments, and we have the highest quality standards. We embrace diversity and inclusion in all of their forms. We innovate and strive for continuous improvement. We’re honest, respectful, and ethical in everything we do, and we serve the public and strive to earn its trust and confidence every day. The Cleveland Fed is recognized as a great place to work by our employees and as an employer of choice by organizations such as NorthCoast 99, DiversityInc, and the Human Rights Campaign Foundation.

America needs a bridge—a bridge that will get households, communities, and businesses over the unanticipated challenges created by the COVID-19 shutdown. In helping to build that bridge, the Federal Reserve, with authorization from Congress, has created and revived a number of rare lending programs, each providing targeted assistance to the needs of those impacted.

The challenge: Business for many companies has slowed or halted, driving up their need for loans. At the same time, funding such as loans is less available for small and medium-sized businesses.

The response: Through its Main Street Lending Program, the Federal Reserve will buy up to $600 billion in loans that lenders, such as banks and credit unions, make to small and midsize businesses. When lenders sell their loans to the Fed, they can use the money they receive to make more loans.

The details: Only loans made to businesses that were financially sound before the crisis are eligible to be sold...

Robyn Brandow has joined the Federal Reserve Bank of Cleveland as senior vice president and chief operating officer within the Treasury Services (eGov) Department effective July 1, 2020. She will lead and oversee operations for all eGov business lines. Brandow will also play a vital role in the design, buildout, and implementation of the enterprise operational needs for the Transforming Tax Collections (T2C) service that the Bank will be providing to the US Treasury.

Before joining the Cleveland Fed, Brandow served at the Federal Reserve Bank of New York, where she most recently was senior vice president and chief operating officer for the Financial Services Group. She joined the New York Fed in 2004 in Wholesale Services focused on risk management, administration, and finance. In 2011, she joined the Wholesale Product Office and was named chief operating officer for the national business line in 2012.

Brandow holds a BA in History from Rutgers University and...

Robyn Brandow has joined the Federal Reserve Bank of Cleveland as senior vice president and chief operating officer within the Treasury Services (eGov) Department effective July 1, 2020. She will lead and oversee operations for all eGov business lines. Brandow will also play a vital role in the design, buildout, and implementation of the enterprise operational needs for the Transforming Tax Collections (T2C) service that the Bank will be providing to the US Treasury.

Before joining the Cleveland Fed, Brandow served at the Federal Reserve Bank of New York, where she most recently was senior vice president and chief operating officer for the Financial Services Group. She joined the New York Fed in 2004 in Wholesale Services focused on risk management, administration, and finance. In 2011, she joined the Wholesale Product Office and was named chief operating officer for the national business line in 2012.

Brandow holds a BA in History from Rutgers University and...

Where are the communities across the nation that are at greatest health and economic risk because of COVID-19’s spread? These four maps examine where Americans have lower incomes, are 65 years and older, are working part time, and don’t have health insurance.

Our mission is founded in public service—strengthening the economic performance of the nation and our region and making a difference in the communities we serve. At our Bank, you’ll get the benefits you need and have the work–life balance you want. Your health, finances, and professional achievement matter to us. And our culture is one of inclusion, in which diversity of thought is encouraged and uniqueness embraced.

Be part of something big. Be part of our future. Make the Federal Reserve Bank of Cleveland your next career move.