(The Center Square) – Fallout from the COVID-19 pandemic may cost Louisiana local government entities between $404 million and $1.1 billion by the end of the next fiscal year, the Louisiana Legislative Auditor estimates.
The pandemic, and the deliberate economic slowdown meant to contain the pandemic, are leading to lower tax and royalty collections for municipalities, parishes, school boards and sheriff’s offices.
The federal government has allocated $1.8 billion to help Louisiana governments, and 45 percent of that money is supposed to go to local entities, while the state can spend 55 percent. However, officials say the money must pay for efforts to fight the disease and cannot be used to plug budget holes.