How states can avoid a COVID relief fiscal cliff – Route 50

Twelve states, including California, Illinois, Michigan, New York and Pennsylvania, used state and local relief funds to cover recurring costs that were equivalent to a significant 2.5% or more of their fiscal 2022 general fund expenditures. These 12 states, which are home to about 40% of America’s population and total state general fund spending, thus face a moderate to elevated risk of encountering fiscal cliffs if they don’t find money to replace the federal dollars used to shore up their budgets before those funds expire.