Local Finance Bulletin #55
Budgeting Strategies Being Employed by County and Municipal Governments for FY 2021 During the COVID-19 Pandemic
The COVID-19 pandemic has thrown all businesses, households, nonprofits, and governments into unchartered territory. At this point, the question is not whether the pandemic will cause a recession but when the recession will start and how bad it will be. In fact, some economists have said that the likelihood of a recession is 100 percent and that this economic downturn will be the worst in generations. Like other states, North Carolina is feeling the effects of the pandemic. Unemployment is at an all-time high, the governor has issued a stay-at-home order, schools are closed, and, of course, we are in the midst of a public health crisis. While the situation is dire, we are also confronted with a somewhat unique opportunity: the ability to budget for a recession before it begins.
