Help states, cities and towns
One of the hardest-hit segments of the economy affected by the coronavirus pandemic was state and local government employment, which had job losses of more than 1.5 million since mid-March. While cynics might brush it off as overdue cuts to bloated government, the fact is those job losses will have an impact on public services.
As Congress debates another round of coronavirus financial aid packages, the focus should include help for state and local governments that will struggle from millions of dollars in lost revenue caused by the pandemic.
With revenue losses in virtually every category — sales tax, local income tax, gasoline tax, etc. — government agencies at all levels had little choice but to lay off or furlough workers. What is unknown is when, or if, many of those workers will be recalled as the economy rebounds.
That could mean delays for government services that many have come to expect, everything from maintenance of public parks to paving local roads to processing of licenses and applications.
Bringing back furloughed workers will depend in large part on how quickly the economy rebounds and tax revenue returns to or near prepandemic levels. Pennsylvania laid off nearly 2,500 part-time and seasonal employees in late March and followed that up with furloughs of some 9,000 state workers in early April, although many of those have since returned to work. More recently, the state Turnpike Commission, in a cost-cutting move, permanently laid off 500 toll collectors as it pushed up its target date for making the road system cashless.
Local governments face similar situations on a smaller, but perhaps more visible, scale. Layoffs among a smaller workforce can cause an immediate need to curtail or at least delay services. And for many communities, the cuts could mean fewer police or maintenance workers.
While many local municipal leaders say they’ll get through this year, the real challenge lies in planning for next year with so much uncertainty as to how the coronavirus will impact the economy in coming months and how businesses will rebound while still facing some limitations.
While the Democratic-controlled U.S. House passed an additional $3 trillion coronavirus aid package that includes $1 trillion for governments, the bill — and any talk of more financial aid — has stalled in the Senate where Republicans are taking a waitand-see approach. If nothing else, lawmakers should acknowledge the plight of state and local governments and deliver some measure of financial relief.