As you listen to the debate about $500 billion — a half-trillion dollars, yes — in help for states and local governments, keep a few things in mind. https://time.com/5826016/states-budget-crisis-coronavirus/ First: This isn't just more faceless bureaucrats, needlessly wonks and nettlesome folks at the DMV. 1/

The proposed $500 billion is (maybe) enough to cover the shortfalls. That's right. States had projected spending this money AND (probably) running surpluses when they wrote their budgets last year. Coronavirus upended all of their spending plans bc revenue suddenly vanished. 2/

There's plenty to hate in state and local budgets, sure. But they also pay for teachers, social workers, highway crews, the guy who got you your marriage license and corrected your water bill. These are the folks who we are talking about when we discuss state and local aid. 3/

A discovery for me in reporting this story: There are 10 times as many people who work in state and local governments as work for the federal workforce. That's right: 20 million people. Plus millions more in the nonprofit sector. 4/

Nonprofit, you say? Yes. Nonprofits — the third largest segment of the economy, behind only retail and manufacturing — rely on state and local budgets. Studies peg about one-third of nonprofits' revenue on grants and contracts with states and local governments. 5/

As United Way chief Brian Gallagher put it: “If the federal government doesn’t provide significant relief to the state government, then you’re going to see a significant drop in funding for non-profits." He predicts that even with help, many nonprofits aren't going to make it. 6/

During the Great Recession, state and local governments shed about 600,000 jobs. According to analysts, we still hadn't climbed back to pre-2008 payrolls when coronavirus hit. And now mayors, commissioners and governors are looking at cutting even more. 7/

As AFSCME President Lee Saunders told me: “The people who have been risking their lives actually will get pink slips. The American people will not put up with that." We'll see. But it sure wasn't enough to get it included in today's vote. 8/

The House is voting today on a spending package that restocks the cupboard for the popular Paycheck Protection Program for small businesses, adds funding for hospitals and testing. But state and local governments were blocked from inclusion in this round. 9/

I've heard many a critic say it's not Washington's job to bail out irresponsible states. Well, states were heading into CY2020 in some the best shapes ever. Their rainy-day funds were never bigger. But they also were set to cover just 8% of their budget. 10/

And it's not like it's in Washington's interest to see states fail at their core missions. Unemployment, food stamps, schools and most roads aren't federally run — they are administered by the states. You think government runs badly now? Picture it with fewer resources. 11/

If a state goes completely belly-up, that will prompt the agencies to adjust its credit rating and raise interest rates. So that $60 billion plan will now only pay for about $40 billion worth of work because the interest eats into the public works possible. 12/

Senate Majority Leader Mitch McConnell has floated the idea of just letting the states go bankrupt and start afresh. That idea is getting little traction on either side of the aisle, so we'll assume the idea isn't going to be around for a while. Still, it's out there. 13/

Thank you for coming to my TED Talk on state budgets in a time of coronavirus. For all of the details, read the story: https://time.com/5826016/states-budget-crisis-coronavirus/ And h/t to @kristamahr for another terrific edit. 14/