Agenda - Council - 09/13/2022 - Laserfiche WebLink

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uncertainty as the COVID-19 pandemic continues to impact commuting patterns, hospitality and tourism, and other drivers of jurisdictions' economies. Thirty-five percent of cities still report being less able to meet financial needs than in fiscal year 2020,276 and over half of surveyed Tribal governments and Tribal enterprises reported losing at least 40 percent of their revenue since the start of the pandemic.277 Budget challenges persist as governments work to mitigate and contain COVID-19 and help citizens weather the economic downturn. State, local, and Tribal government budgets affect the broader economic recovery. During the period following the 2007-2009 recession, state and local government budget pressures led to fiscal austerity that was a significant drag on the overall economic recovery.278 Inflation -adjusted state and local government revenue did not return to the previous peak until 2013,279 while employment in the sector returned to the previous peak in August 2019, nearly a decade later.28° Just months after recouping losses from the previous downturn, the COVID-19 pandemic caused state and local government employment to contract again, but this time more sharply: by May 2020, state and local government payrolls fell 7.7 percent compared to February 2020. Despite 276 National League of Cities, City Fiscal Conditions (2021), available at https://www.nlc.org/wp- content/uploads/2021 /10/2021-City-Fiscal-Conditions-Report-2021.pdf 277 Center for Indian Country Development and Federal Reserve Bank of Minneapolis, One Year Into COVID-19, Pandemic's Negative Effects Persist in Indian Country (May 2021), available at https://www.minneapolisfed.org/article/2021 /one-year-into-covid-l9-pandemics-negative-effects-persist-in-indian- country 278 See, e.g., Nora Fitzpatrick et al., Fiscal Drag from the State and Local Sector?, Liberty Street Economics Blog, Federal Reserve Bank of New York (June 27, 2012), https:// libertystreeteconomics.newyorkfed.org/2012/06/fiscal- drag-from-the-state-and-local-sector.html; Jiri Jonas, Great Recession and Fiscal Squeeze at U.S. Subnational Government Level, IMF Working Paper 12/184, (July 2012), available at https://www.imf.org/external/pubs/ft/wp/2012/wp12184.pdf; Gordon, supra note 13. 279 State and local government general revenue from own sources, adjusted for inflation using the Bureau of Economic Analysis' implicit price deflator for GDP. U.S. Census Bureau, Annual Survey of State Government Finances and U.S. Bureau of Economic Analysis, National Income and Product Accounts, https://www.census.gov/programs-surveys/gov-finances.html. 280 U.S. Bureau of Labor Statistics, All Employees, State Government [CES9092000001] and All Employees, Local Government [CES9093000001 ], retrieved from FRED, Federal Reserve Bank of St. Louis, https://fred.stlouisfed.org/series/CES9092000001 and https://fred.stlouisfed.org/series/CES9093000001. 235