- Despite dire early forecasts, JP Morgan researchers found that state revenues have largely recovered from the coronavirus pandemic.
- The initial 4% overall drop in state revenues (Spring 2020) quickly recovered by the Summer thanks to the $600-a-week Federal unemployment supplements.
- These supplements helped maintain consumer spending, shielding states’ major revenue source (sales taxes).
- States were bracing for prolonged revenue declines similar to the Great Recession (-8%).
- However, back then Federal unemployment supplements were only $25/week and states can now tax online retail sales.
