Direct aid for local governments in New York that are reeling from the pandemic has won bipartisan support from Republican Rep. Tom Reed and Democratic Rep. Tom Suozzi. 

Providing the aid would not just preserve support for police and firefighters, but could also stem property tax increases on the local level. 

 

What You Need To Know


  • Local governments will need support or spending cuts are possible.

  • Republicans and Democrats are backing direct aid to local governments who have lost revenue and spent heavily during the pandemic.

  • The state may also cut local government spending by 20 percent.

  • Small businesses that have comprised an area's tax base may not come back.

"Counties across the country are bearing the brunt of COVID’s economic devastation while their firefighters, police officers, first responders, and other essential workers continue to provide their neighbors with critical services," Reed said. "We believe the federal government must step up to ensure localities are fully supported during this crisis by passing bipartisan legislation like the SMART Act, which will provide direct aid to our local governments." 

Suozzi and Reed were brought together with the New York State Association of Counties, which has been pushing for the aid. 

Gov. Andrew Cuomo has raised the possibility of a 20 percent cut in funding to local governments if the state fails to receive funding from the federal government as well. 

Sales tax revenue in April was sharply down by more than 25 percent, and some local governments are in the process of layoffs in order to keep up cash flow. Occupancy tax revenue is also down as people reduce travel and stay out of lodgings like hotels and motels.

Local governments have also had to contend with higher spending due to the response to the pandemic and a long-term loss in small business that have comprised an area's tax base.