The $484 billion stimulus bill passed through the US Senate on Tuesday and primarily focuses on small businesses that are struggling in the pandemic.
“I think it’s a terrible mistake not to provide funding for the states,” Governor Cuomo said Tuesday ahead of the Senate’s passage of the bill. “I get small businesses. I get airlines. How about police? How about fire? How about health care workers? How about teachers? We’re not going to fund schools? I don’t get it.”
President Donald Trump said that discussions on the next phase of a stimulus bill will include fiscal relief to state and local governments for lost revenues from COVID-19.
“We know we’re facing, based on projections, a $100 million shortfall in our revenues,” Poloncarz said. “While we are going to get additional assistance from the federal government to fight COVID-19, we do not get any assurance that it can be used to address shortfalls…It’s not just Erie County. It’s all governments that are facing shortfalls, especially in Erie County where they rely on sales tax so much. It needs to be addressed because we’re going to have to decimate services or completely use our piggy-bank all in one swoop and still have huge problems in the future.”
“At times it was a little infuriating to think about what we’re being asked to do at the local level and how we’re trying to fulfill all the demand on local government,” the supervisor said. “To be watching revenue pass flipped out any hope of aid was difficult. Our attention turned toward the next stimulus package and, by all accounts, I’ve seen people talking about that they know it needs to include local municipalities. I just want to make sure it includes municipalities smaller than 500,000.”
Kulpa said he hopes municipalities will have a say in how much funding goes towards their town or village.
Kulpa explained that dipping into reserves to offset the lost revenues could create more problems than it solves because using the reserves could have a negative impact on the government’s credit rating and impact future borrowing.
“You still have to replenish your reserves next year,” Kulpa said. “If somebody really wanted to get into mine or any other municipal budget has any fluff in it, I would tell you to take a look at the budget itself. Really go through it line-by-line. You’re not going to find a lot of places to cut.”
“Take a look at how much debt we’ve racked up and not try to wave something through the Senate of that consequence without full participation,” McConnell said.
The Senate is not expected to reconvene until next month.