Last spring, Capital Economics predicted the economic devastation wrought by the coronavirus would mean a plunge in the tax receipts of state and local governments, causing budget shortfalls of $300 billion to $400 billion over two years. But deficits in the year ended June 30 were only about $30 billion above pre-pandemic projections, and deficits in the current year are likely to be in the same range, according to a Dec. 14 report by Capital Economics Senior U.S. Economist Andrew Hunter.