Action Plan: Helping Public Entities Navigate the COVID-19 Financial Crisis

    March 2020

    State and local governments and other public entities are in a period of uncertainty creating unprecedented financial demands. As traditional sources of funding shrink or disappear for an unknown period of time, federal assistance to meet payment obligations is a must.

    Depending on how events unfold in the coming weeks, it is likley that federal assistance will evaporate and fall far short of the demands of America’s cities, counties, municipal agencies, airports, transit authorities, public utilities, hospitals and colleges, all of which will be fighting for a limited pool of federal resources.

    Public agencies should incorporate the following four elements in their economic recovery plans to successfully navigate these difficult times:

    1. Secure Federal and State Funds
    2. Effective Access to Federal Loan Creation
    3. Restructure to Protect Agency Assets
    4. Look at Opportunities to Examine Replacement/New Debt Offerings When Markets Open