The COVID-19 pandemic poses unprecedented fiscal challenges. As states and localities struggle to survive, policymakers may want to consider long-term solutions that could put states and localities on a more stable footing:

• Repeal or modify constitutional balanced budget requirements. [Gamage, Shanske]
• Repeal or modify barriers to revenue-raising legislation. [Jurow Kleiman, Scharff, Shanske]
• Consider the proper treatment for federal tax purposes of deductions for state and local taxes (SALT); consider reform of the federal SALT deduction, including redesigning it. [Gamage, Knoll, Shanske]
• Give states more taxing authority. [Scharff]
• Allow states to declare bankruptcy. [Skeel]