States all reeling
Relief bill stalled over aid but all places are suffering
While many congressional Republicans rally against a “blue state bailout” amid attempts to provide a second coronavirus relief package, plenty of red states are feeling the pain, too.
Just this past week, five GOP governors made a joint statement calling for Congress to pass a relief package to help their states deal with the fallout from the fastspreading pandemic.
“The people in our states continue to pay a high price for Congress’ inaction,” said the statement from the Republican governors of Arkansas, Maryland, Massachusetts, New Hampshire and Vermont. “There is no more room for partisan positioning and political gamesmanship.”
Sending tens of billions in unrestricted aid to state and local governments has been a key sticking point for congressional Republicans, including Senate Majority Leader Mitch McConnell.
The Democratic-controlled House passed a relief bill late last spring that included about $900 billion in direct aid to governments. One of the latest compromise proposals has that amount down to $160 billion, but even that appears too much for many Republican lawmakers.
“Under no circumstance should American taxpayers be responsible for the excesses of wasteful states like New York and California,”
said Republican Sen. Rick Scott of Florida.
But Shelby Kerns, executive director of the National Association of State Budget Officers, said the coronavirus outbreak has affected the economy of virtually every state, no matter which party is in control.
“We have not seen it be a red state-blue state problem,” Kerns said.
In Mississippi, lawmakers this week proposed a budget for the coming fiscal year that would include cuts for universities, community colleges, prisons, mental health and child protection services.
Texas went from projecting a $3 billion surplus in late 2019 to expecting a $4.6 billion shortfall by summer.
In Alaska , Gov. Mike Dunleavy is proposing $5,000 in direct payments to residents from the state’s oilwealth fund and an infrastructure plan to create jobs.
The state’s economy has been battered by the COVID-19 pandemic, which has depressed demand for oil and led to a steep drop in tourism.
In Kansas, where Republicans control the Legislature, Democratic Gov. Laura Kelly told legislative leaders Friday that the state will have to pay for its own expanded coronavirus testing program at a cost of $120 million for just eight weeks if it doesn’t get more federal aid.
Even if Congress delivers some help to state and local governments, some governors said they will consider it only a down payment.
“It’s like a 90-day Bandaid,” said Maryland Gov. Larry Hogan, a Republican. “We’re going to have to come back to get the major relief package that we’ve been pushing since April.”