Towns need help with dire budget outlook

The depths of the economic pain that will result from the coronavirus pandemic are in many ways yet to be felt. While millions of people have lost their jobs and many businesses have been forced to close, the relief packages approved by the federal government have had at least some impact in bridging those gaps. The problems that will arise from a loss in revenue to local municipalities could bring even deeper struggles, unless Washington does much more to help those in need.

The Connecticut Conference of Municipalities estimates at least $470 million is needed to balance local budgets that have been stretched thin during the past four months. With a full reopening put off, and little indication that certain businesses such as bars can reopen in the foreseeable future, there will without question be additional loss of revenue to come.

Available aid from the federal government has for the most part already been spoken for. Gov. Ned Lamont said many groups have requested a portion of the state’s $1.4 billion CARES funding from earlier congressional action. “One thing the CARES Act did not do was provide for the loss of revenue,” he said. “We’ve lost probably $2 billion to $3 billion in revenue in this next fiscal year.”

Combined revenue losses at the state and local levels will mean cuts, and they will have a serious impact. That will include the loss of jobs in an economy already overloaded with people looking for work, as well as services. U.S. Sen. Richard Blumenthal said that without added support, more than 80 percent of state day care centers will have to shut down by early 2021. With uncertainty over whether children will be able to return to school full time, we are headed toward a child-care crisis the likes of which we’ve never seen, all of which affects the economy as parents are pulled in multiple directions.

The only answer can come from the federal government; it is beyond the means of states and municipalities to bridge these gaps alone. And while Washington, too, has many priorities, only the federal government has the resources to help people who have lost their jobs, ensure businesses that have been forced to shutter for safety reasons don’t close forever, and keep state and local governments afloat.

But action is not guaranteed. The tenor of the debate, which for a time focused on whether government benefits to people who had lost their jobs was too generous, is not encouraging. Far from being too much, the extreme uncertainty of our current moment means more help is needed, not less.

The U.S. House of Representatives has approved a recovery bill that would at least start to help towns and cities make up for their lost revenue, but it awaits action in the Senate. That debate is expected to start soon, with an added sense of urgency as COVID-19 cases continue to grow in the South and West.

Without help, the outlook is dire. But even if an aid package passes, local municipalities will be facing the unknown. It will be some time before we all can breathe easy again.