With the onslaught of negative economic news related to the ongoing coronavirus crisis, many municipalities are scrambling to determine the impact of the pandemic on, among other things, their finances. Many may be staring down unbudgeted expenses related to this public health emergency, while at the same time anticipating substantial deficits due to drop-offs in real estate and income tax collections.
It is anticipated that federal emergency funds will be available to reimburse municipalities for certain eligible expenses under the major disaster declaration recently approved by President Trump for Pennsylvania on March 30, 2020. Additionally, the recently passed federal CARES Act, H.R. 748, provides $150 Billion of federal emergency funds to state, local and tribal governments for certain unbudgeted public health emergency expenditures related to COVID-19 that occur during the period beginning on March 1, 2020 and ending on December 30, 2020.