The economic contraction caused by the COVID-19 pandemic is having a significant impact on US state and local government finances. The federal government’s fiscal support for state and local governments so far has been tempered. While state and local government leaders continue to press Congress for greater fiscal support, they are confronting significant deficits on top of existing debt levels, new borrowings from the Federal Reserve, and in some cases, significant long-term pension liabilities. Some – particularly special government districts funded by economically-sensitive tax revenues, as well as distressed municipalities – may now consider restructuring, which historically has been rare.
Please join Mayer Brown partners Joe Seliga, John Schmidt, David Narefsky, Sean Scott, Stephanie Wagner and Mitch Holzrichter as they discuss the fiscal realities now facing US state and local governments. The panel will explore:
- Which governmental entities are most likely to be impacted by the current economic contraction
- What resources have been provided by and are expected from the federal government
- What restructuring options may be available to governmental entities under state and federal law, including Chapter 9 of the United States Bankruptcy Code
- How risks have changed for government vendors, lenders and bondholders
For more information on Mayer Brown’s extensive resources in relation to COVID-19, please visit covid19.mayerbrown.com.
Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.