Moody’s Analytics Cuts Forecast of Fiscal Hit to States, Cities

Moody’s Analytics said on Monday that states and local governments face combined shortfalls of $450 billion through fiscal 2022, less than a prior estimate of a $500 billion hit.

• Moody’s Analytics said in the report that $200 billion to $400 billion in aid would be more “practicable” for Congress than the $1 trillion included in House Democrats’ stimulus plan
  • In June, Moody’s Analytics called for $500 billion in aid for states and cities “to avoid major damage to the economy”
• Moody’s Analytics said that it changed its forecast in light of an improving economy and clarity around the aid that ...