House Speaker Nancy Pelosi said Thursday state and local governments are seeking up to $1 trillion for coronavirus costs, a stunning benchmark for the next aid package that’s certain to run into opposition from Senate Republicans.
Pelosi acknowledged the federal government may not be able to provide that much. But she said a “heroes” fund is needed to prevent layoffs as governors and mayors stare down red ink in their budgets. Many jurisdictions are facing rising costs from the health pandemic and plummeting revenues in the economic shut down. The best way Americans can support local nurses, bus drivers and other front-line community workers, Pelosi said, is to make sure they don’t lose their jobs to budget cuts.
“This is something of the highest priority, it honors our heroes,” Pelosi said.
The $1 trillion request comes after Senate Majority Leader Mitch McConnell shifted his tone suggesting he is “open” to considering additional funds in the next coronavirus relief bill.
But the eye-popping figure would be on top of nearly $3 trillion Congress has already approved over the past month to salvage the economy and confront the health crisis.
McConnell said Thursday on Fox he’s willing to consider money for the states, but isn’t about to send federal dollars to bail out overspending.
“We’re not interested in borrowing money from future generations to send down to states to help them with bad decisions they made in the past unrelated to the coronavirus epidemic,” the GOP leader said.
McConnell insists any fresh funding must be tied to liability reforms to prevent what he calls “an epidemic of lawsuits” against doctors, hospitals and businesses reopening in the pandemic.
IT’S NOT “BAD DECISIONS” THAT HAS CAUSED THIS FINANCIAL CRISIS FOR LOCAL GOVERNMENTS, IT’S THE “COVID-19 DOMINO EFFECT” – LOCAL BUSINESSES SHUT DOWN DUE TO COVID-19, WHICH CAUSED MASSIVE UNEMPLOYMENT, WHICH IS CAUSING MASSIVE LOSSES IN TAX REVENUE.
The PA Department of Community & Economic Development estimates that small townships with a population of 3,000 will collect 6% less in Act 15 taxes – mostly Earned Income Tax on employee income – by year end. For Newtown Township, that is an estimated loss of at LEAST $440,000 - perhaps much more - and this does not include an estimated 25% reduction in revenue from fines, licenses, and other fees.
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