A new forecasting tool shows COVID-19 may have a significant negative impact on municipal finances in the coming years.

The effects of the COVID-19 pandemic across the US have also included falling revenues for cities and municipalities. Using data from counties in Florida, Hai (David) Guo and Can Chen have developed a new forecasting model which predicts municipal revenues. They find that Florida’s municipal governments are likely to see a more than $5 billion fall in their revenues over the next three years.