The Coronavirus Disease 2019 (COVID-19) continues to have a significant financial impact on state and local governments (Issuers). Issuers have not only had to defer the deadlines for taxes owed to them by their taxpayers, but they also still face lower tax and other revenues and increased expenses, possibly for years to come. In an April 2020 GT Alert (Prior Alert), we discussed how Issuers could use tax and revenue anticipation notes (TRANs) to address mismatches in revenues and expenses generally within a single fiscal year, such as mismatches arising from granting their taxpayers a several-month deferral of taxes. Issuers facing reduced tax and other revenue and increased expenses due to COVID-19 could require a much longer-term working capital borrowing. This GT Alert supplements our Prior Alert, discussing special considerations for long-term working capital tax-exempt bonds.

Read the full GT Alert, “Tax-Exempt Bond Tools for Governments Facing Cash Flow and Revenue Challenges – Part II.”