Multiple factors, many tied to COVID-19 recovery efforts, have put municipal governments on the right track for recovery in fiscal year 2021: a strong rebound of city revenue sources such as income and sales taxes, two years after the start of the pandemic in 2020, coupled with a once-in-a-generation and timely injection of federal monies in the form of American Rescue Plan Act (ARPA). Our cities, towns and villages are in much better fiscal shape today (compared to the onset of the COVID pandemic in early fiscal year 2020). Nine out 10 finance officers surveyed by NLC expressed optimism in their ability to meet fiscal needs in their current fiscal year 2022.

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