Sweeping pay cuts and layoffs are likely to hit state and local governments around the country who are getting stiffed on funding in the latest federal coronavirus stimulus bill that is expected to pass this week, according to CNBC.
For example, Los Angeles expects to have a $600M shortfall for the next fiscal years which will force the city to furlough its workers for 26 days. Meanwhile, workers in Hamilton County, Ohio will take a 10% pay cut.
“The people who are on the front lines, they should get extra money, and at the top of the list is a robust state and local plan,” Sen. Chuck Schumer, D-NY, told CNBC. “We’re going to fight for that and many more things [in the next stimulus package]."
The $2.2 trillion stimulus bill that President Donald Trump signed into law in March set aside $150 billion in direct aid for state and local governments.
However, the bill just passed by the Senate on Tuesday will only include aid for small businesses. The House is expected to vote on that bill on Thursday.
“With respect to our federal leaders, local governments were the first to respond with extraordinary measures to the COVID-19 pandemic by reallocating funds to support first responders,” Irma Esparza Diggs, director of federal advocacy for the National League of Cities, told CNBC. “But as a result of historic losses of revenue at the local level, most local governments will not be able to sustain these efforts, or maintain uninterrupted operation of core functions, without dedicated emergency funding for state and local aid.”
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