Senator Bill Cassidy and New Jersey Democratic Senator Bob Menedez are pushing for a $500 billion relief package in Congress aimed at aiding local and state governments who are facing coronavirus related fiscal cliffs.
Lafayette is expecting to lose 35 percent of it’s expected revenue for the year, and Monroe and New Orleans are planning for one million and 150 million dollar deficits respectively. Cassidy says that’s a dangerous situation for lives and livelihoods.
“If you cannot provide essential services it doesn’t matter what you do for everybody you are not going to be able to reopen to the degree that you want,” says Cassidy.
The City of Crowley is expecting a $1.3 - $1.6 million shortfall and announced the layoffs of 15 employees and reduction of hours for remaining city employees via a four-day workweek. Monroe’s revenue problems were exacerbated recently by a devastating tornado that did tens of millions of dollars worth of damage to the city and airport.
Cassidy says essential services must be propped up at a local level not just to save lives, but to make sure businesses have reliable foundations to reopen under.
“Small businesses will not come back that if there is a risk that if their building begins to flame up that it will not be able to be controlled,” says Cassidy.
Cassidy says the money would be distributed based on how severely a locality has been hit by both the virus and the economic impacts of virus-related shutdowns.
“Cities and state governments will be given full flexibility in using the funds, including making up the lost revenue,” says Cassidy.
Localities with populations over 50,000 would be given the money directly to manage without having to go through state government.