House Democrats’ plan would give billions to Washington state. How would money be spent?
Washington’s state and local governments’ ailing budgets would get billions of dollars in aid under a massive coronavirus relief package due for a U.S. House vote Friday.
The plan fashioned by House Democrats would provide an estimated $10.8 billion to the state government, roughly half within 30 days of enactment and the rest within the next 12 months.
It would also spread another $7.3 billion around to city and county governments throughout the state. The estimates were provided by the office of Rep. Derek Kilmer, D-Washington, based on data from the House Appropriations Committee.
The bill’s prospects in the Republican-run Senate are dismal, but it’s expected some state and local aid plan will emerge.
The money is badly needed. Gov. Jay Inslee Wednesday told all state agencies to freeze most hiring, personal service contracts and equipment purchases.
The state is expected to need $7 billion through mid-2023 to make up for revenue shortfalls. The state’s Economic and Revenue Forecast Council is expected to release its official quarterly forecast June 17.
Among the uses for the federal money could be paying for services such as public health, firefighters, schools and emergency medical services, said Rep. Suzan DelBene, D-Washington.
“America faces the real risk of a full-scale depression. (Economists) agree that things will get worse without action from the federal government. The Heroes Act will undoubtedly take steps to give our communities the support they desperately are seeking,” Kilmer said.
Cities and counties also would benefit from the bill. Tacoma could receive an estimated $120.9 million quickly and another $60.5 million by next May. Pierce County would get $339.3 million this year and another $169.6 million next year.
Tacoma has estimated a loss of $40 million in general fund revenue since the coronavirus outbreak in March, as well as $24 million in losses from other funds such as the Streets Initiative, mental health and chemical dependency, parking, convention center and permitting funds.
The city has laid off dozens of workers, including 120 on Wednesday. And it’s cancelled several projects, such as revamping Gas Station Park.
Other anticipated amounts from the House bill:
▪ Lakewood, $28.5 million this year, $14.2 million next year.
▪ Olympia, $19.3 million this year, $9.6 million next year.
▪ Bellingham, $40.3 million this year, $20.1 million next year.
▪ Kennewick, $32.6 million this year, $16.3 million next year.
▪ Pasco, $35.3 million this year, $17.6 million next year.
▪ Richland, $14.6 million this year, $7.3 million next year.
▪ Whatcom County, $85.9 million this year, $43 million next year.
▪ Thurston County, $108.9 million this year, $54.5 million next year.
▪ Benton County, $76.6 million this year, $38.3 million next year
The state allotment is based on several factors. Each state would get $2 billion. Other funding is determined by a state’s share of COVID-19 cases, population and unemployment. City and county funding is based largely on population. States would get the smaller cities’ funding and distribute the funds based on population.
The aid is contained in a $3 trillion coronavirus relief package that is likely to go nowhere in the Senate, where Majority Leader Mitch McConnell called it “exactly the wrong approach.”
Some sort of aid package is ultimately expected, though Senate leaders have said they’re in no rush to act. There are believed to be enough Republicans whose states are clamoring for some sort of federal help, and President Donald Trump has been open to the idea of more aid.
In the Senate, as the National Governors Association urged a $500 billion aid package, Sens. Bill Cassidy, a Louisiana Republican, and Bob Menendez, a New Jersey Democrat, offered a plan to provide that money.
Cassidy noted that Louisiana’s Revenue Estimating Committee saw the state suffering revenue and employment losses even worse than it endured from Hurricane Katrina in 2005.
“Even after the economy reopens, there’s no way for Louisiana to regain this revenue,” Cassidy said. “The report shows how important it is for Congress to pass my state and local funding bill.”
McConnell told Fox News Radio recently, “There probably will be another state and local funding bill. We need to make sure that we achieve something that will go beyond simply sending out money.”
The Kentucky Republican has said that a new package has to be tied to legislation that would provide protection for business owners, health care workers and others from what he called frivolous lawsuits that “could follow the actual pandemic and crush our recovery before it begins.”
This story was originally published May 14, 2020 at 4:15 PM with the headline "House Democrats’ plan would give billions to Washington state. How would money be spent?."
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