As a result of the COVID-19 outbreak, many state and local governments are in dire straits.

With sales, restaurant, and hotel tax revenues collapsing, some localities have had to cut essential services and furlough frontline workers. At the same time, demand for unemployment benefits and Medicaid—which are partially funded by the states—has skyrocketed. To discuss the shortfalls state and local governments are facing and learn about potential solutions, policy analyst Julia Baumel spoke with Tracy Gordon, a senior fellow at the Urban-Brookings Tax Policy Center who specializes in state and local budgets.