With states continuing to lose massive amounts of tax revenue while still having to support their residents during the COVID-19 pandemic, a new study on Monday ranked which states were struggling the most financially.
In compiling its list for States That Need the Most Financial Help Due to COVID-19, a study conducted by WalletHub ranked Florida No. 3.
Without question, the coronavirus has consumed states’ resources at an unprecedented rate, with many struggling to provide both medical and financial support to their residents, despite taking in far less tax revenue than usual.
For example, New York, the state hit hardest by COVID-19, has a staggering $13.3 billion budget shortfall.
With some states beginning to loosen restrictions and reopen businesses, many continue to struggle to rebound and restart their economies. And while all states have struggled during the crisis, some have months of economic damage and millions of job losses to overcome.
To identify which states may need the most financial help due to the coronavirus crisis, the personal-finance website compared the 50 states across 18 key metrics. Their data set ranges from the state’s rainy-day funds and debt per capita to the share of the workforce in highly-affected industries.
— WalletHub (@wallethub) June 1, 2020
Below, you can see highlights from the report, along with factors that contributed to the Sunshine State’s ranking.
Financial Need in Florida (1=Most, 25=Avg.):
- 7th – State Rainy-Day Funds per Capita
- 4th – Unemployment Claims Increase Since the Beginning of the COVID-19 Pandemic
- 2nd – GDP Generated by Highly Affected Industries as Share of Total State GDP
- 8th – State Preparedness for Severe Recession
- 14th – Small Business Loan Amount Approved in Response to COVID-19 as Share of Eligible Payroll
For the full report, click HERE.