Aid to states and cities likely to be cut out of stimulus deal, leaving governors and mayors on the ropes
By Tony Romm and Jeff Stein The Washington Post,Updated December 19, 2020, 8:41 a.m.
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House Speaker Nancy Pelosi (D-Calif.) walks to an FBI briefing at the Capitol in Washington on Friday.ANNA MONEYMAKER/NYT
WASHINGTON â Congressional negotiators largely have slashed significant new budget aid for cash-strapped cities and states as they rush to assemble a $900 billion coronavirus relief bill, a decision that has left mayors and governors nationwide bracing for another major economic blow.
The critical omission arrived as mayors in New Orleans and San Francisco, and governors in states including New York and Illinois, have sounded fresh alarms in recent weeks about the perils of sustained inaction by Washington - warning that they may face no choice but to raise taxes, lay off public-sector workers or cut spending on critical government programs to break
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Why Some States Are Seeing Higher Revenue Than Expected Amid Job Losses
As the pandemic batters the poor, the rich prop up state budgets.
Cumulative tax revenue from January to October
California
As Congress has spent the last few weeks debating aid to state and local governments, a number of states have announced surprising news: Their finances no longer look quite as bad as they had feared in the uncertain early days of the pandemic.
This good news reflects in part the dire economic expectations of six months ago; even modest numbers look good now compared with the worst fears written into state budgets in the spring. And state officials say they’ll still need federal help, as they expect the pandemic’s effects to drag on for years and to batter local governments. Federal help, after all, is part of what has buoyed them so far.