01221nam a22001577a 4500 517713 517713 210727b ||||| |||| 00| 0 eng d Douglas, James W. and Raudla, Ringa 27977 What is the remedy for state and local fiscal squeeze during the covid-19 recession? More debt, and that is okay American Review of Public Administration 50(6-7), Aug-Oct, 2020: p.584-589 The COVID-19 crisis is placing a tremendous fiscal squeeze on state and local governments in the United States. We argue that the federal government should increase its deficit to fill in the fiscal gap. In the absence of sufficient federal assistance, we recommend that states suspend their balanced budget rules and norms and run deficits in their operating budgets to maintain services and meet additional obligations due to the pandemic. A comparison with Eurozone countries shows that states have more than enough debt capacity to run short-term deficits to respond to the crisis. – Reproduced Public debt, Public deficits, Balanced budget norms, Fiscal crisis 25728 American Review of Public Administration PUBLIC DEBT AR 0 0 ddc 0 0 391781 IIPA IIPA 2021-07-27 50(6-7), Aug-Oct, 2020: p.584-589 AR124974 2021-07-27 AR