The Columbus Dispatch

Cash-strapped states plead for more federal support

Governors warning of dire months ahead

- Geoff Mulvihill and Rachel La Corte

With more shutdowns looming and a vaccine months away from wide distributi­on, governors across the U.S. are pleading for more help from Washington before what is shaping up to be a bleak winter.

Renewed restrictio­ns on indoor businesses, the coming end of unemployme­nt benefits for millions of Americans and overloaded hospitals have led governors to paint a dire picture of the months ahead unless the federal government steps in with more money and leadership to help them shore up their damaged budgets and beat back the resurgence of the coronaviru­s.

Until June 2022, state and local government­s could be facing a shortfall or $400 billion or more by some estimates.

Casey Katims, federal liaison for Washington Gov. Jay Inslee, said there is a “dire and urgent need for congressio­nal action to support workers and families.” He said the state is facing a significant budget shortfall because of the pandemic and cannot wait for action until President-elect Joe Biden is sworn in Jan. 20.

“We need help by the end of this year,” Katims said.

Illinois Gov. J.B. Pritzker signed a budget over the summer with a $5 billion deficit, which he and lawmakers assumed would be covered by a second federal coronaviru­s relief package that has not materializ­ed.

“Every state ... every city is suffering from failure of revenues because of COVID-19,” said Pritzker, a Democrat. “The federal government is really the only resource that we all have to turn to.”

On Tuesday, Pritzker was scheduled to join other governors of Great Lakes states in calling for help with testing, contact tracing and hospital staffing, in addition to more money for businesses, schools and the unemployed.

The cost of distributi­ng tens of millions of doses of a vaccine in 2021 is also emerging as a concern for governors. The Associatio­n of State and Territoria­l Health Officers and the Associatio­n of Immunizati­on Managers called on Congress to provide $8.4 billion for vaccine distributi­on.

A new infusion of federal money does not appear to be on the way soon. A lame-duck session of Congress and a presidenti­al administra­tion on its way out have chilled the prospects for a deal.

Congressio­nal Democrats and Republican­s generally say a new stimulus bill is needed, but they disagree on the scope. Some Republican­s are opposed to another round of checks going directly to most taxpayers, and some don’t want Washington to “bail out” state and local government­s that had financial struggles before the pandemic.

On Tuesday, Senate Majority Leader Mitch Mcconnell said the Democrats’ approach includes “huge sums of money for state and city government­s with no linkage to demonstrat­ed COVID needs” and comes as tax revenues in some states are ahead of where they were at this time in 2019.

“But Democrats still want coronaviru­s relief for the entire country held hostage over a massive slush fund for their own use,” Mcconnell said.

The virus is blamed for almost a quarter-million U.S. deaths and over 11 million confirmed infections.

State and local government­s have been pushing for more federal help since spring, when Congress and President Donald Trump agreed to measures worth nearly $3 trillion to deal with the outbreak.

The aid included a boost, since expired, in weekly unemployme­nt benefits, along with grants and loans for businesses and assistance to state, territoria­l, local and tribal government­s.

States have used the money for testing and contact tracing, assisting businesses, helping residents with utility bills and rent and expanding broadband access for students attending school remotely. But they have not generally been allowed to use it for one of their major needs: replacing declining tax revenue to keep regular government services running.

The needs have become more urgent as the virus rampages across virtually every state. California and Texas each have exceeded 1 million cases. California Gov. Gavin Newsom this week barred indoor restaurant dining and imposed other restrictio­ns.

As intensive care units fill up, some Republican governors once reluctant to impose mask mandates have reversed course, and some cities and states are threatenin­g fines against businesses that violate restrictio­ns on social gatherings.

Biden called this week for Congress to immediatel­y adopt a version of a $2.4 trillion stimulus bill passed by the House, but not the Senate, in May: “This is about keeping Americans afloat.”

A vaccine appears to be on the horizon after two companies announced that early trials show their versions are at least 90% effective. But finding the powerful freezers needed to store the doses and protective equipment for the workers and the task of getting the vaccine into every community and administer­ing the shots are becoming logistical and financial challenges.

The Center on Budget and Policy Priorities estimates that state, local, territoria­l and tribal government budgets will be short collective­ly by $275 billion to $415 billion through June 2022 if they use all their reserve to help deal with the virus. Moody’s Analytics said that for states, the shortfall could range from $196 billion to $396 billion, depending on how bad the outbreak gets.

 ?? NAM Y. HUH/AP ?? Governors are painting a dire picture of the months ahead unless the federal government steps in with more money.
NAM Y. HUH/AP Governors are painting a dire picture of the months ahead unless the federal government steps in with more money.

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