As state and local governments begin a new fiscal year, many continue to grapple with financial hardships and budget shortfalls brought on by the Covid-19 pandemic. This fiscal year, states and localities will need to make difficult decisions and think about how they will recover from yet another fiscal crisis, and determine how to potentially leverage federal funding. In this town hall, originally broadcast in May 2021, we will offer a current outlook on state and local budgets, explore how budget officers are making difficult decisions and examine innovative budgeting practices.