2021 State's Outlook Not Uplifting

Moody's US States 2021 outlook says "overall, state's tax revenue will decline by as much as 5% in fiscal 2021" citing "continued weak revenue performance amid the coronavirus pandemic."

• However, "most states are bridging budget gaps by tapping reserves or undertaking new borrowing" that should "preserve some priorities but make it more difficult to address others."
• Additional fiscal aid was NOT factored into Mood's outlook. The US outlook "could change to stable if a stronger recovery in tax revenue takes hold, Moody's says. Employment levels near or above 95% of pre-pandemic levels in most states, along with reasonably controlled coronavirus infection rates, would signal a return to economic health on the back of improved revenue growth."