Carper: “The longer we wait to get much-needed assistance to our state and local governments, the more our communities suffer and the more at risk we put our entire economy”

WASHINGTON, D.C. – U.S. Senator Tom Carper (D-Del.), a senior Democratic member of the Senate Finance Committee and former Governor, delivered remarks on the Senate floor urging Majority Leader Mitch McConnell and the Trump Administration to provide state and local governments across the country with much-needed and long overdue funding in the next COVID-19 relief package. Senator Carper was joined by Senators Maggie Hassan (D-N.H.), Sherrod Brown (D-Ohio), Jacky Rosen (D-Nev.), Catherine Cortez Masto (D-Nev.), Jeanne Shaheen (D-N.H.), Brian Schatz (D-Hawaii) and Jack Reed (D-R.I.).

“Let’s be very clear: this is not a red state or a blue state problem. It’s not a consequence of poor management either. Over the past weeks and months, I’ve had conversations with dozens of my colleagues on both sides of the aisle to learn about what states and local communities across the country are facing as a result of COVID-19. Time and time again, I’ve heard a familiar refrain: the pandemic has caused state and local government revenues to plummet in a way that none of us have ever experienced or could have foreseen.” said Senator Carper.

Specifically, Senator Carper highlighted potential budget cuts state and local governments are being forced to make in order to balance their annual budgets which would hinder economic recovery for years to come.

Senator Carper continued, “Cuts to education budgets mean larger class sizes, fewer bus drivers, and fewer custodians at a time when schools are struggling to figure out how they will re-open safely in the fall. Cuts to first responder budgets mean people must wait longer for EMTs and firefighters to arrive during emergency situations. Cuts to transportation budgets mean cancelled or delayed infrastructure projects and fewer construction jobs just as we’re entering the summer construction season. These cuts impact all of us and create a ripple effect across the broader economy.

“We know that this is impacting every part of the country. And, the longer we wait to get much-needed assistance to our state and local governments, the more our communities suffer and the more at risk we put our entire economy. There’s no more time to waste. Let’s pass long overdue assistance so that our hometowns don’t take an even bigger and avoidable hit,” concluded Senator Carper.

You can watch Senator Carper’s full remarks here.

Senator Carper’s full remarks as prepared for delivery are available below:

“I rise today, along with several of my colleagues, to urge this body provide long overdue funding to our state and local governments that are under enormous and unprecedented strain right now. Too often, this question of additional state and local funding pits blue states against red states or blames the problem on a state’s poor management.

“As a former State Treasurer and Governor, I’m here to tell you that that’s just plain wrong. When I was elected as Delaware’s State Treasurer in 1976, our state had the worst credit rating in the nation. By 2000, when I had finished serving my two terms as Governor, we had worked to boost Delaware’s credit rating to ‘AAA’ for the first time in state history – a rating that Delaware continues to hold today. We also created a “rainy day fund” that has never before been touched, and, today, totals $252 million.

“Even fiscally-responsible, well-managed states like Delaware are finding themselves in a situation that one could not have predicted or planned for. That’s especially true when we have an Administration that is simultaneously asking state and local governments to shoulder the burden of responding to the coronavirus.

“Leader McConnell and Secretary Mnuchin say that states don’t need more money because they haven’t used the Coronavirus Relief Funds that Congress provided in the CARES Act. That’s also simply not true. A survey conducted by the National Association of State Budget Officers shows that states have already allocated nearly 75 percent of these funds to fight the pandemic and help struggling families and small businesses through this crisis.

“And as states across the country see a resurgence in infection rates, the costs of addressing the health and economic crisis are only going up. At the same time that the costs of addressing this pandemic have skyrocketed, businesses have shuttered, and tourism and commerce have come to a stand-still. That means hundreds of billions of dollars in lost revenue for states and local governments. And Delaware is certainly not alone.

“Let’s be very clear: this is not a red state or a blue state problem. It’s not a consequence of poor management either. Over the past weeks and months, I’ve had conversations with dozens of my colleagues on both sides of the aisle to learn about what states and local communities across the country are facing as a result of COVID-19. Time and time again, I’ve heard a familiar refrain: the pandemic has caused state and local government revenues to plummet in a way that none of us have ever experienced or could have foreseen. Income tax revenues have fallen as unemployment numbers reached unprecedented levels over the course of just a few weeks and delaying federal tax deadlines – while it was the right thing to do – has wreaked havoc on the ability of states to balance their budgets. Sales tax collections and revenue from tourism, gas taxes and tolls have dried up as the virus has forced people to stay home. And states highly dependent on oil and gas revenues have been doubly hit by the pandemic and turmoil in global energy markets.

“Unlike the federal government, states and local governments have to balance their budgets. This means that governors, state legislatures and local officials have had no choice but to make deep cuts that will inevitably hurt the ability of their communities to recover. Since the pandemic hit our country, state and local governments have lost 1.5 million jobs. This staggering statistic is bad enough on its own, but what does it mean if you aren’t one of the one in every eight American workers who is employed by a state or local government?

“Cuts to education budgets mean larger class sizes, fewer bus drivers, and fewer custodians at a time when schools are struggling to figure out how they will re-open safely in the fall. Cuts to first responder budgets mean people must wait longer for EMTs and firefighters to arrive during emergency situations. Cuts to transportation budgets mean cancelled or delayed infrastructure projects and fewer construction jobs just as we’re entering the summer construction season. These cuts impact all of us and create a ripple effect across the broader economy.

“That is why economists across the political spectrum, including Federal Reserve Chairman Jerome Powell, agree that state and local budget cuts will weigh down our path to economic recovery for many years to come. In fact, based on evidence from the last recession, one Harvard economist found that every dollar in cuts costs the overall economy one dollar and fifty cents to two dollars. That’s why the U.S. Chamber of Commerce has also called for additional federal aid for states and cities. The Chamber recognizes that this lost revenue will force officials at the state and local level to either miss payments or raise taxes in order to make up the shortfall. We know that this is impacting every part of the country. And, the longer we wait to get much-needed assistance to our state and local governments, the more our communities suffer and the more at risk we put our entire economy.

“There’s no more time to waste. Let’s pass long overdue assistance so that our hometowns don’t take an even bigger and avoidable hit. And with that, I yield the floor.”