Should refunds of the prior year’s expenses be included in revenue loss calculations?

Refunds of a previous year’s expenses should not be included in the Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”) revenue loss calculation.

The U.S. Department of the Treasury’s (“Treasury”) Final Rule defines “general revenue” as follows:

General revenue means money that is received from tax revenue, current charges, and miscellaneous general revenue, excluding refunds and other correcting transactions and proceeds from issuance of debt or the sale of investments, agency or private trust transactions, and intergovernmental transfers from the Federal Government, including transfers made pursuant to section 9901 of the American Rescue Plan Act.[1]