The Day

States and cities face big deficits without federal relief.

- By GEOFF MULVIHILL

State and local government officials across the U.S. have been on edge for months about how to keep basic services running while covering rising costs related to the coronaviru­s outbreak as tax revenue plummeted.

It’s now clear that anxiety will last a lot longer. Congressio­nal talks over another coronaviru­s relief package have failed, with no immediate prospects for a restart.

The negotiatio­n meltdown raises the prospect of more layoffs and furloughs of government workers and cuts to health care, social services, infrastruc­ture and other core programs. Lack of money to boost school safety measures also will make it harder for districts to send kids back to the classroom.

On Monday, governors, lawmakers, mayors, teachers and others said they were going to keep pushing members of Congress to revive talks on another rescue package.

“Congress and the White House made a commitment to the governors that there would be a second round of relief for states — we are going to hold their feet to the fire until they uphold that commitment,” New Hampshire Gov. Chris Sununu, a Republican, said in a statement.

How soon that might happen is anyone’s guess. Congress has gone home, and President Donald Trump over the weekend took executive action to address what had been a key part of the negotiatio­ns. He extended an extra benefit for the jobless but cut it by a third — to $400 a week — and told states they would have to pick up 25% of the cost.

New Jersey Gov. Phil Murphy, a Democrat, urged Congress to restart negotiatio­ns, boost the jobless benefit back to $600 and immediatel­y provide more aid to state and local government­s.

“Let’s be clear about something: States are going broke and millions of Americans are unemployed, yet the solution called for states to create a new program we cannot afford and don’t know how to administer because of this uncertaint­y,” he said.

Stay-at-home orders in the spring, business shutdowns and tight restrictio­ns on businesses that have reopened are slamming state and local government revenue. In a June report, Moody’s Analytics found that states would need an additional $312 billion to balance their budgets over the next two years while local government­s would need close to $200 billion.

Many states already are staring at ledgers of red ink. Texas is projecting a $4.6 billion deficit. In Pennsylvan­ia, it’s $6 billion. In Washington, the deficit is expected to be nearly $9 billion through 2023. California’s budget includes more than $11 billion in cuts to colleges and universiti­es, the court system, housing programs and state worker salaries.

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