A Boom is Coming. Are Governments Ready?
Some public finance entities, including state and local governments, are more ready than others for the upcoming boom in economic growth and federal relief. The difference between public finance entities wasting versus maximizing this unique opportunity could be as simple as having a plan with measurable goal markers.
The U.S. Treasury is expected to publish guidance for state and local governments any day now. Treasury had 60 days after the March 11 Rescue Plan Act enactment to provide advice.
Organizations such as GFOA, Brookings, and the California Legislative Analyst’s Office have published recommendations state and local government entities can consider. Common themes: do not use for recurring expenses, do not rush, coordinate, stick to a plan, and measure results.
We will see if allocated federal funds are simply sent, or if they are maximized to their full potential.