Counties seek federal help for estimated $202B in budget shortfalls due to COVID-19

County leaders and Gov. Andrew Cuomo are calling for the federal government to step in and help with budget shortfalls created by the COVID-19 pandemic.

News 12 Staff

Jul 23, 2020, 10:04 PM

Updated 1,402 days ago

Share:

County leaders and Gov. Andrew Cuomo are calling for the federal government to step in and help with budget shortfalls created by the COVID-19 pandemic.
"It's a critical time. We need the federal government to step in, politics aside, and get something done," says Orange County Executive Steve Neuhaus.
The pandemic could create an estimated $202 billion budget hole for counties through next year because of lost revenue, additional expenses and state funding cuts.
"If they want to get this economy back running, you have to fund state and local governments," says Gov. Cuomo.
Financial experts say federal help isn't the answer.
"We're actually not giving away money we actually have. We are borrowing from future generations and printing them," says Joel Griffith, an economy expert with the Heritage Foundation. "This is not a way to foster a long-term healthy economy."
State and local governments aren't the only ones looking for help. The MTA says it needs another $4 billion and airlines are seeking $32 billion.
"If they would just roll back their spending to inflation terms just a fews years ago, most of this crisis would be alleviated," says Griffith.
County leaders like Dutchess County Executive Marc Molinaro disagree and say federal help is necessary.
"My county, we're facing as much as a $6 million loss in direct revenue," says Molinaro. "Millions of dollars in assistance we have to provide towns villages and cities that's in jeopardy. We're having to grapple with the loss of state aid."
So far, the federal government has spent $2 trillion on three coronavirus relief packages, and there's another $1 trillion deal on the table.


More from News 12