COVID-19: What Texas Local Governments and Borrowers Need to Know About Dealing with Anticipated Tax and Revenue Shortfalls

As a result of the COVID-19 virus and declining oil prices, local governments in Texas are facing sudden, unexpected, unprecedented, dramatic shortfalls or delays in a number of their core revenue streams, in some cases combined with significantly increased expenses. To assist in addressing these issues, Orrick has published a brochure COVID-19: What Texas Local Governments and Borrowers Need to Know About Dealing with Anticipated Tax and Revenue Shortfalls, that identifies potentially relevant financing tools available in Texas. Some address budget relief, some cash optimization, some structural deficit financing and some cash-flow financing. Some are based on techniques used in the 2008 financial crisis, which also disrupted the municipal bond market. Some are new. Some are also relevant to private nonprofit and other borrowers from state and local government issuers. The discussion in the brochure is intended to offer options, stimulate thinking and invite interested parties to contact any member of Orrick’s public finance or tax group to discuss further.

The brochure is available for download here.