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State budget balancing strategies: COVID‐19 and the Great Recession

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  • Marilyn M. Rubin
  • Katherine Willoughby

Abstract

This research compares state budget balancing strategies taken during the COVID‐19 pandemic and the Great Recession of 2007–2009. Distinguishing features of the two crises, as well as differences among the states, lead them to engage such strategies in similar and dissimilar ways. Federal aid during both fiscal disasters is also distinctive. During the Great Recession, federal stimulus funds to states supported budget balancing efforts. In contrast, until the COVID‐19 relief bill of March 2021, federal assistance was primarily funneled directly to individuals and businesses and for pandemic‐specific spending. This left states on their own to close budget gaps fueled by COVID‐19.

Suggested Citation

  • Marilyn M. Rubin & Katherine Willoughby, 2021. "State budget balancing strategies: COVID‐19 and the Great Recession," Public Budgeting & Finance, Wiley Blackwell, vol. 41(3), pages 22-41, September.
    • Handle: RePEc:bla:pbudge:v:41:y:2021:i:3:p:22-41
    DOI: 10.1111/pbaf.12299
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    References listed on IDEAS

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    1. Poterba, James M, 1994. "State Responses to Fiscal Crises: The Effects of Budgetary Institutions and Politics," Journal of Political Economy, University of Chicago Press, vol. 102(4), pages 799-821, August.
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