July 20, 2020

As New York’s Local Governments Face Billions In Lost Revenue Due To COVID-19 Crisis, Gillibrand Calls For Direct Federal Relief Funding For Local Governments Responding To And Recovering From Coronavirus Pandemic In Glens Falls

Decreasing Revenues Due To The Coronavirus Pandemic Have Left Local Governments Strapped; Dedicated Federal Funding for Local Communities Would Provide Necessary Relief for Lost Revenues, Increased Costs And Will Help Avoid Local Tax & Fee Increases; The Direct Support for Communities Act Will Complement Direct Relief to States

Today, U.S. Senator Kirsten Gillibrand called for legislation to provide local governments with direct federal relief that can be used to pay for essential services and offset lost revenues and increased costs stemming from the COVID-19 crisis. As local governments have faced slashed revenues due to the pandemic, direct assistance is needed to help state and local governments recover from this crisis. 

Concerned about the layoffs of public health care workers, firefighters, police, sanitation workers, teachers, and other vital public servants across New York, Gillibrand is fighting to ensure that all counties, cities, towns, and villages — regardless of size —receive federal funding in order to continue providing these critical services. The direct relief would help local governments avoid local tax and fee increases that would place a heavier burden on already cash-strapped families and businesses in crisis.

“With more than 45 million people out of work and our economy in crisis, we cannot allow critical services provided by our first responders, health care workers, teachers, and public servants to go unfunded,” said Senator Gillibrand. “For months, I have fought for this relief in order to ensure local governments have the resources to address this unprecedented crisis and prevent more hardworking Americans from losing their jobs. Direct federal relief for local governments is absolutely critical for communities across the state to recover and I will continue working to include this critical funding in the next economic relief package.” 

“As the leader of a small city that has been hit hard by the COVID-19 crisis, I am in full support of theDirect Support for Communities Act. We hope that Senator Gillibrand’s colleagues in the Senate realize how this bill will help small communities like ours survive without large tax increases and layoffs,” said Glens Falls Mayor Daniel Hall. 

“As counties across New York are struggling with increased costs from the pandemic and massive drops in revenue, we’re grateful to have an ally like Senator Gillibrand to fight for desperately needed federal aid to state and local governments. Senator Gillibrand’s bi-partisan Direct Support for Communities Act is exactly what counties need to protect local services and must be included in the next round of federal stimulus negotiations. We applaud Senator Gillibrand, as well as Senator Schumer and the entire NY Delegation for their efforts to provide local governments with the resources they need to deliver the essential services that New Yorkers need now more than ever,” said Stephen Acquario, Executive Director of the New York State Association of Counties.

The nation’s economic recovery depends on the survival of state and local governments. However, New York alone is projected to lose more than $240 billion in response to the COVID-19 pandemic. Warren County is facing up to 18.7 million dollars of lost revenue and state funding. Glens Falls is expecting up to $2 million in revenue lost due to the cancellation of summer tourism events like the Adirondack Balloon Festival. Because of these deficits, thousands of New Yorkers working in state and local government have already lost their jobs at a time when many families are struggling to make ends meet. 

Senator Gillibrand previously introduced the Direct Support for Communities Act and is calling for its inclusion in the next coronavirus relief package. The legislation would create a local relief fund to help cities, towns, villages, and counties address costs associated with lost revenues, and would help avoid cuts to essential services or local tax and fee increases. Part of the funding would be administered to localities through the Community Development Block Grant program while additional funding would be sent directly to states to allocate to communities based on population. Senator Gillibrand has repeatedly urged the Senate to include desperately needed state and local funding in the next relief package.