The budgetary impact of the COVID pandemic is hitting the city of Fargo, ND hard. Last month, the city cut nearly $10 million, including $7 million from capital improvement projects. Such projects included investment in “street, flood control, pavement preservation, and sidewalk projects” which are core building blocks in the city’s transportation and disaster resiliency systems.
Cities, towns and villages across the nation are preparing for significant budget cuts and the difficult decisions that accompany them. The fiscal impacts of the economic downturn caused by COVID-19 are not just numbers on a page. They include massive layoffs, furloughs and pay cuts that affect the lives of thousands of municipal employees, their
COVID-19 has changed our world. The landscape, lives and livelihoods of our communities throughout the United States will forever be impacted. As America’s cities, towns and villages face falling revenues, strapped budgets and challenges to health and well-being, one thing is abundantly clear: To chart a path back to normalcy, we must come together as a nation. Right now, local governments are doing what we do best – care for
Social distancing has caused businesses to close or curtail their services to slow the spread of COVID-19. Employees of non-essential services, such as restaurants and retail stores, in turn are losing their jobs or experiencing a drastic reduction in pay. These employees are already straining to make ends meet because they are more likely to earn hourly wages and lack benefits such as healthcare or paid sick leave. Before this pandemic,
In August, Congress approved a bipartisan two-year budget deal for fiscal years 2020 and 2021. The agreement raises overall spending caps for defense and non-defense discretionary programs by $321 billion over two years. Funding for domestic programs will increase by 4.5%, or $27 billion, over the FY19 level. NLC’s Fiscal Year 2020 budget tracker tracks specific FY20 spending
The Cost of Crisis-Driven Fiscal Policy, a study conducted by Macroeconomic Advisers on behalf of the Peter G. Peterson Foundation, finds that the uncertainty created by the on-going short-term spending bills and perpetual brinksmanship around the debt ceiling has pushed the unemployment rate 0.6 percentage points higher than it would otherwise have been this year.
NLC is receiving a lot of media inquiries about the prospect of cities filing for Chapter 9 bankruptcy. It’s not surprising that the chattering classes are agog about cities going under. It’s a grabber of a headline: “City X Files Ch. 9!” The problem with this story is that the numbers just aren’t there to