National Governors Association Wants More Funding for States

See the missive below from the National Governors Association. Besides revenues tanking due to no economic activity, the states have been spending money to beef up their state's medical capabilities to respond to the coronavirus. 

 

FOR IMMEDIATE RELEASE  April 11, 2020  Media contacts: Eric Wohlschlegel, 202-257-9506 or ewohlschlegel@nga.org  James Nash, 202-624-3658 or jnash@nga.org   National Governors Association Outlines Need for ‘Additional and Immediate’ Fiscal Assistance to States Calls on Congress to Allocate Additional $500 Billion WASHINGTON – National Governors Association Chair Maryland Governor Larry Hogan and NGA Vice Chair New York Governor Andrew Cuomo issued the following statement: “Governors across the country are leading the on-the-ground response to the national COVID-19 pandemic, implementing a variety of stay-at-home orders and other aggressive measures that are successfully flattening the curve of the spread of the virus. While these public health strategies are working to protect the American people, they result in catastrophic damage to state economies. “Despite this grave challenge, the recently passed federal CARES Act contained zero funding to offset these drastic state revenue shortfalls. To stabilize state budgets and to make sure states have the resources to battle the virus and provide the services the American people rely on, Congress must provide immediate fiscal assistance directly to all states. “We must be allowed to use any state stabilization funds for replacement of lost revenue, and these funds should not be tied to only COVID-19 related expenses. Congress must amend the CARES Act to allow this flexibility for existing federal funding. “Moreover, Congress must appropriate an additional $500 billion specifically for all states and territories to meet the states’ budgetary shortfalls that have resulted from this unprecedented public health crisis. This critical stabilization funding for states must be separate from much-needed fiscal stabilization for local governments. “In the absence of unrestricted fiscal support of at least $500 billion from the federal government, states will have to confront the prospect of significant reductions to critically important services all across this country, hampering public health, the economic recovery, and -- in turn -- our collective effort to get people back to work.” ### Founded in 1908, the National Governors Association (NGA) is the bipartisan organization of the nation’s 55 governors. Through NGA, governors share best practices, address issues of national and state interest and share innovative solutions that improve state government and support the principles of federalism.