Covid created an economic crisis for state and local governments, stifling significant revenue streams like fees and tax collection. Though analysts now say the impact was not as devastating as it could’ve been, overall pictures of financial recovery look very different from state to state, with many expecting revenue to be lower than pre-pandemic levels.
The American Rescue Plan, which passed in the spring of this year, was designed to help state and local governments as much as individuals. Aside from the stimulus payments, which could help citizens with any outstanding financial obligations, the bill also included direct aid for local governments and grant programs to offset some of the additional costs accrued due to the pandemic and help keep services afloat during any period of revenue decline.
Like any funding of this nature, there are strict guidelines for both receiving and allocating the funds— and they must be fully utilized by the end of 2024. With cases and new variants on the rise, a number of states are still struggling while others are bracing for a possible return to early pandemic restrictions and the economic downturn that came with them.
But state and local governments cannot rely upon temporary funding solutions.
The most sustainable way to tackle budget shortfalls created by the pandemic is to simply keep cash flow moving. Many government organizations chose to pause collection activity in an effort to ease the economic burden for citizens impacted by COVID-19. Of these, now most are preparing to lift any remaining memorandums in the new year making it the perfect time to evaluate the efficiency of your accounts receivable process.
A comprehensive collection partner not only provides the engagement tools needed to manage collections more efficiently, like self-service portals and electronic payment methods, they also assist citizens in managing their debt despite any challenges they may still be facing due to the ongoing pandemic. A good partner agency knows how to compassionately engage citizens in order to retain a favorable view of your organization— an important factor for maintaining citizen relationships when reintroducing payment obligations.
Professional’s technology-driven approach lightens the burden on in-house teams, freeing staff of time-consuming collection efforts and creating opportunities for organizations like yours to reallocate resources to tasks that support more of your core mission. We have over 80 years of experience with the nuances of government collections. To learn more about how we can ramp up your receivables and revitalize your revenue 2022, visit our government page or contact us for a consultation.