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Few things get me more fired up than bad policy and morally bankrupt policymakers.
THREAD ALERT: The latest coronavirus relief package signed yesterday failed to include much needed additional aid to state and local govts. 1/”
THREAD ALERT: The latest coronavirus relief package signed yesterday failed to include much needed additional aid to state and local govts. 1/”
And, we got bad news this week on the fate of the first $150b in aid. Despite a strong push from policymakers and advocates, it can’t be used to plug growing and likely historic revenue shortfalls. https://twitter.com/NickCBPP/status/1253373762134818821?s=20 2/
Congress must include $500b for state & local governments in its next relief package b/c as @AmyHanauer points out, community recovery, access to education, preparation for future threats & collective wellbeing relies on a robust response from fed. gov. 3/ https://itep.org/itep-congress-must-provide-more-relief-to-states/
But Sen. Mitch McConnell would have states face COVID-19 fallout on their own, specifically calling blue states to task. States cannot just claim bankruptcy as he suggested & it would do more harm than good even if it were possible. This is bonkers at best, dangerous at worst. 4/
As @leachma2 points out, states couldn't have predicted such an extraordinary crisis as this, but most were generally well prepared for a recession. Total rainy day funds and state reserves are higher today than they were ahead of the Great Recession. 5/ https://www.cbpp.org/blog/mcconnell-argument-against-state-fiscal-relief-doesnt-stand-up
Yet, the magnitude of the revenue crisis exacerbated by the need for more, not less, state & local govt spending to tackle the pandemic will quickly erode any savings. Without more federal aid, they will have to cut spending, raise revenue, or both in dramatic fashion. 6/
Forcing states to deeply cut budgets will deepen the economic slump, @PaulKrugman points out. That’s because cutting state and local spending means taking away jobs or reducing pay for teachers and public servants among other negative consequences. https://www.nytimes.com/2020/04/23/opinion/mcconnell-coronavirus-states.html 7/
Let me step back to note, as many others have this week: Sen. McConnell hasn’t made the same demands of corporations seeking federal help. There’s been no suggestion they should simply “claim bankruptcy” or that they created this mess and should be left to deal with it alone. 8/
Blue state/red state politics is shameful. ALL states face substantial revenue hits, ALL states have new budget needs specific to COVID-19. In fact, many red states may face the toughest blow since they over-rely on consumption taxes that are being hit particularly hard. 9/
I'll say it again: Elected officials who pick winners and losers are defying democracy, being derelict in their duty to serve all constituents & revealing a warped vision of what economic recovery should look like and for whom government should work./end https://itep.org/itep-making-decisions-on-federal-relief-based-on-blue-v-red-states-is-morally-bankrupt/
