The real problem is the lack of business activity and revenue that comes in from sales taxes (in most states) and then business taxes. These will be budget killers for communities. See this Seattle Times article about the current situation in Seattle, Coronavirus crisis could knock $210-million to $300-million hole in Seattle’s budget, city says.
I know that there was an initial message to city departments to be prepared to take a 10% cut in their budgets. In government, the majority of cost is associated with personnel. If there is a vacancy, that is a pretty easy decision not to fill that hole. I heard on the news that a city in Ohio has already directed all departments to plan on a 18% budget reduction.
For the city of Seattle, I'd like to see the City Council also take a significant cut. In recent years, they have boosted their own budget by hundreds of thousands of dollars. Maybe it is time to become more frugal on the legislative side of the equation.