When the Chamber of Commerce and Unions Agree on Job-Saving Measures, Congress Should Get it DoneBy Lee Saunders
July 07, 2020
Senator Murkowski and her colleagues won’t get a vacation from voters who are anxious about cuts to essential services we need to fight the pandemic and get our economy moving. As senators return home for a two-week recess in July, public service workers and community allies are turning up the volume on advocacy. We are placing ads, calling, and emailing Senate offices regarding the urgent need for $1 trillion in federal aid to states, cities and towns. The message is: #FundTheFrontLine. Every day that the Senate delays on delivering at least $1 trillion in aid to states, cities and towns, public service workers continue to receive pink slips. The public services these everyday heroes provide to our communities are needed now more than ever, as another wave of the virus threatens more lives and the prospect of economic recovery. A new Kaiser Health News report lays out in stark detail what AFSCME has been saying for months: Cuts to health care and public services since the Great Recession are preventing us from beating this virus. Now, as the Senate fails to deliver aid, health systems that were already short-staffed and under-resourced are seeing layoffs, just when cases around the country are spiking. No senator has an excuse for ignoring the facts. Here’s how bad the economic situation is for Alaska, as well as what needs to get done to keep essential services going: Research compiled by the Center for American Progress, Economic Policy Institute, AFSCME, NEA, SEIU, and AFT paint the dire economic situation in Alaska. Here’s an excerpt from a state fact sheet. Since the pandemic started, the state has lost 8,300 public sector jobs. The economic gravity of the shortfall cannot be stressed enough; without further federal aid to state and local governments, Alaska is projected to lose 16,500 private and public jobs by the end of 2021. The recent resurgence of the virus only compounds the urgency and should dispel all complacency. The coronavirus pandemic has decimated Alaska’s economy:
Alaska’s tax revenues are plummeting—creating a severe funding crisis for schools, health care, and other critical services. The Alaska state government has projected a budget shortfall of $612 million in FY 2020 and $815 million in FY 2021, representing declines of 11 percent and 15 percent, respectively Cities in Alaska are facing serious revenue shortfalls as well. Juneau alone has recently projected a budget shortfall of $34.5 million, according to local sources. The National League of Cities estimates that cities will experience $360 billion in revenue loss through fiscal year 2022, which will force them to significantly cut spending on crucial services or raise taxes on already recession-battered residents. Studies on the Great Recession have found that forcing states to deal with severe budget constraints through austerity dampen long-term gross domestic product (GDP), prolong spells of high unemployment, and extend recessions The time for waiting is over. The Senate must deliver this aid in July. There will be consequences in November. The spikes in cases and hospitalizations in Arizona, North Carolina, South Carolina, Texas, Missouri, Florida and other states should worry McConnell and spur him to action this month. Demand for public services are already high, and will increase as the virus spreads. Yet, because of massive budget shortfalls, there are harmful cuts to public services that we need to beat the virus and safely reopen the economy. Dedicated public service workers – the everyday heroes who continue to risk their lives to keep our communities safe – are still getting pink slips. Many of the states experiencing spikes are where senators are up for reelection in 2020. When trash piles up in the streets, there are longer 911 response times, and schools are not able to open safely, voters will know why – and who to blame. Voters support aid and are more likely to vote for candidates who support it Recent public opinion research survey shows:
Since the message isn’t getting through, AFSCME is on the air in Kentucky AFSCME went up on the air in the Louisville and Lexington media markets with an ad calling on Senator McConnell to deliver federal funding for Kentucky’s cities, towns and schools.The six-figure buy, which will air for several weeks,warns Kentuckians that without aid there will be continued cuts to essential public services like trash pickup as well as layoffs for teachers, nurses and other essential public service workers who are needed to beat the pandemic and reopen the economy. The new ads are part of an ongoing AFSCME ad buy in multiple states. A recent poll shows that 77% of Kentucky voters support aid for states, cities, towns and schools, and that 66% oppose Senator McConnell’s suggestion that states should deal with the budget crises by going bankrupt. Republican and Democratic elected leaders have repeatedly called for urgent aid Thisincludes a host of mayors and 21 Republican governors who wrote a letter back in March calling for such aid. Maryland’s Republican governor, Larry Hogan, who also serves as chair of the National Governor’s Association, tweeted this week: “On today’s White House call with the nation’s governors, I continued to stress the urgent need for federal action to help states address budgetary shortfalls caused by #COVID19. Congress should not take any kind of August recess without providing this urgent fiscal relief.” Top economists say this aid is a critical investment and will stave off a prolonged recession In an op-ed in The Washington Post earlier this month, Jason Furman, Timothy Geithner, Glenn Hubbard and Melissa S. Kearney, preeminent economists across the political spectrum, predict that each dollar invested in public services will yield a return of $1.70 in economic activity: The op-ed reads: “Finally, this is a critical time to provide help for state and local governments now facing massive revenue shortfalls. Such funding also provides effective bang for the buck, adding at least $1.70 in additional GDP per dollar spent while protecting vital services.” The U.S. Chamber of Commerce is lobbying Republicans for aid to states, cities and towns POLITICO reported that the U.S. Chamber of Commerce is lobbying for aid to states, cities and towns. Here’s an excerpt: The Chamber, whose primary job is to look out for big businesses, says if help doesn’t come, states and cities will likely lay off more workers, cut services and raise taxes, deepening the economic crisis. Businesses are concerned, especially about taxes. As state and local governments struggle with how to plug pandemic-induced budget holes, businesses see a play in helping them get aid from Congress to avoid shouldering more of the burden. “Part of our conversation with Republicans on Capitol Hill is that ironically, if your concern is big state government, then the last thing you want to do is force states to replace one-time lost revenue with permanent tax increases,” said Neil Bradley, the U.S. Chamber’s chief policy officer, in an interview. Elected officials on both sides of the aisle, voters, and business interest groups agree: We need federal aid, and we need it now. The ball is in the Senate’s court. There must be a sufficient state and local aid package put on the table in July. Lives and livelihoods in every community across the country are on the line.
Editor's Note:
Received July 02, 2020 - Published July 07, 2020 Related Viewpoint:
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