Fiscal Responses toCOVID‐19: Evidence from Local Governments and Nonprofits

Abstract

The rate of expansion and the breadth of COVID‐19 caught the world by surprise. From the perspective of nonprofit and public entities responsible for service provision, this pandemic is also unprecedented. The authors offer a RISE framework for navigating the fiscal effects of COVID‐19 and rely on recent surveys to assess the response strategies of local governments and nonprofit organizations. They find that many nonprofits were hit fastest and hardest by the pandemic and that local governments are, essentially, trying to figure out their financial condition moving into the next budget cycle.

Disaster Resiliency of U.S. Local Governments: Insights to Strengthen Local Response and Recovery from the COVID‐19 Pandemic

“…Early revenue collection data and revenue loss estimates illustrate the depth of fiscal shock that is possible from COVID‐19. A survey of local governments conducted in early April 2020 showed uncertainty around the fiscal effects of COVID‐19 but widespread expectations of budget shortfalls (Maher, Hoang, and Hindery 2020). The depth of fiscal shock became more apparent with each passing month.…”

Collective action during the Covid-19 pandemic: The case of Germany’s fragmented authority

“…For instance, closing national borders reduces international trade and travel (Garrett, 2020), certain ethnic groups have been stigmatized as alleged carriers of the disease (Roberto, Johnson, & Rauhaus, 2020), closing schools and universities has complicated the provision of education (Blankenberger & Williams, 2020), and crime control has become more difficult, especially in financially and institutionally constrained settings (Alcadipani et al, 2020). Moreover, the repercussions of lockdown on the economy (Goodell, 2020) and, consequently, on public budgeting (Maher, Hoang, & Hindery, 2020) are manifold and serious. Solving these intertwined problems will require substantial collective action, which implies that there will be more challenges and possibly more dilemmas to tackle in the future.…”

Global Reflection, Conceptual Exploration, and Evidentiary Assimilation: COVID‐19 Viewpoint Symposium Introduction

“…Similarly, Maher, Hoang, and Hindery (2020) argue that, from a financial perspective, the pandemic is adversely affecting smaller nonprofit organizations and local governments that might not qualify for federal relief funding. The authors suggest innovations in the sectors to protect fiscal integrity and reserves, and more research will be needed based on their findings to examine innovation and change in nonprofit organization, fundraising, and networking.…”