What is State and Local Aid?
According to polling, huge majorities of Americans support federal aid to close state and local budget shortfalls, a key piece of the next COVID-19 response legislation. Without it, states and localities, which are not allowed to run deficits, would have to lay off hundreds of thousands of front-line public service workers.
Taxpayers in large and small communities across America would see services such as health care, emergency response, public safety, education, corrections, home and child care, sanitation, water treatment and other essential services gutted unless Congress and the president act.
“Does anyone’s idea of a reopened America mean permanently overwhelmed hospitals, overcrowded classrooms, trash in the streets and dirty water coming out of the tap?” Saunders asked. “The public service cuts communities made after the Great Recession are one reason we are in the mess we are in today in fighting this pandemic. We must learn the mistakes of austerity and not repeat them.”
Growing Bipartisan Calls for State and Local Aid
Bipartisan calls for investing in public services are reaching a fevered pitch – from mayors to governors to senators. The National Governors Association (NGA), led by Gov. Larry Hogan (R-Md.) and Gov. Andrew Cuomo (D-N.Y.), have aggressively called for state and local aid.
In addition, the NGA has joined the bipartisan Council of State Governments, National Conference of State Legislatures, National Association of Counties, National league of Cities, the U.S. Conference of Mayors, and the International City/County Management Association – the so-called “Big 7” – in issuing a joint statement. It said that “a full recovery from the crisis is dependent on ‘robust, flexible assistance’ directly to states and local governments of all sizes.”
Moreover, a March letter signed by 21 Republican governors – including Govs. Doug Ducey (R-Ariz.), Mike Parson (R-Mo.), Mike DeWine (R-Ohio), Gary Herbert (R-Utah), and Bill Lee (R-Tenn.) – also called for “direct assistance from Congress.” “Injecting states with resources would give governors the ability to respond to the unique needs of each state with the speed and flexibility that is required to respond to this monumental challenge,” they wrote.
And the Ohio Mayors Alliance, a bipartisan group of 26 mayors from the Buckeye State, is just one example of state-specific local officials joining the request for state and local aid from Congress and the president. “[Our] economic recovery will be slower than molasses if Ohio cities have to spend the next five years cutting services and increasing taxes to make up for this sharp drop in revenues,” said Lancaster Mayor David Scheffler, a Republican. “By providing fiscal relief now for state and local governments, we will have a quicker economic recovery when the public health crisis subsides.”