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Sen. Rick Scott misrepresents COVID-19's toll on state finances


PolitiFact s ruling: Mostly False
Here s why: A fundamental disagreement over the latest COVID-19 relief plan centers on aid to states, cities and counties. Democrats plan to include about $350 billion in aid, and Republicans argue that not only is the money unnecessary, it’s just a way to reward to liberal states.
Sen. Rick Scott, R-Fla., said Democrats are lying about the need.
States across the country are seeing increases in revenue in some cases, well above projections, Scott said in a Feb. 1 statement. Now, we are learning that 47 states show an average decline of just 0.12% compared to 2019, and 21 of the 47 states show positive year over year growth of tax receipts. Over half of states reported positive growth, including California, New York, and Illinois. ....

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State general revenue spending to decline for first time since Great Recession


(The Center Square) – In fiscal 2021, general revenue spending by U.S. is expected to decline for the first time since the Great Recession based on the most current estimates by the National Association of State Budget Offices.
After nine consecutive years of spending growth in the states, weaker revenue projections from the COVID-19 pandemic and subsequent restrictions on economic activity is causing states’ general revenue spending to decline by 1.1% from projected 2020 spending and by 5.5% when compared to governors’ pre-pandemic budget proposals, according to currently enacted budgets.
“States this year have faced tremendous uncertainty in their revenue forecasts and budget outlooks,” NASBO President Kate Ness said in a statement. “Revenue estimates continue to be below pre-pandemic projections, while an uneven recovery is contributing to rising spending pressures at the same time.” ....

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