As much as we may not want to deal with the reality of the situation, recent news from the state of California suggests it and many other states may be reaching the fiscal boundaries of the COVID-19 economic contraction. The reality of the economic situation is that when consumers are restricted from normal activities, taxes, sales and revenues decrease for the state exponentially. States that depend on consumers and business activity with very large budgets are at greater risk of experiencing immediate fiscal issues the longer the COVID-19 virus event continues. A recent Moody's (NYSE:MCO) Analytics article suggested Nevada, Hawaii, New York, Washington, Florida, DC and Connecticut would be hit the hardest by the COVID-19 virus.
STATE FINANCES A MESS
One has to use their imagination to attempt to understand the true scope of the issues ahead for states that experience what we are calling the “COVID Fiscal Cliff.” See the Yahoo! (NASDAQ:AABA) Finance graph below for a view of states that have the most economic exposure to COVID.
State Economies Amid Coronavirus