Reno leader among US mayors asking Washington for help

Cities are asking Congress and the Trump administration for up to $250 billion in the next relief package to help cities with fewer than 500,000 residents, which were cut out of past aid packages that helped states and larger cities.

According to the Mayors COVID-19 Fiscal Pain Tracker, Reno predicts a $6.5 million budget shortfall in 2020 and a loss of revenue of $20 million in 2021. No layoffs are yet planned.

The mayors of Henderson and other smaller cities are also clamoring for federal assistance as Congress eyes a fourth relief bill that House Speaker Nancy Pelosi, D-Calif., said would probably include money for strapped municipalities that have lost revenue while continuing to provide services.

The tracker includes listings for 150 cities, documenting the financial crises that municipalities face in providing services while tax revenues decrease and mayors are forced to oversee layoffs to comply with state laws.

Reno was the only city in Nevada listed in the tracker, but others are expected to be added as information is forwarded to the U.S. Conference of Mayors.

Cities need help

“Every city, regardless of size, needs help from Congress and the administration in order to protect their neighborhoods and rescue their economies,” said Bryan Barnett, Rochester Hills, Michigan, mayor and president of the U.S. Conference of Mayors.

Tom Cochran, executive director of the U.S. Conference of Mayors, said that unless Congress and the administration come together and provide emergency relief for cities, “more essential workers and first responders will lose their jobs and more critical services will be curtailed.”

Nevada’s senators and the congressional delegation favor assistance for cities as Congress begins writing another relief bill that is expected to cost upward of $2 trillion.

In addition to cities, county and state governments are also seeking federal relief after unplanned expenditures to purchase equipment and prepare for the coronavirus outbreak.

As the pandemic spread, the lack of a uniform federal response plan forced governors and mayors to find and purchase equipment. States and cities were often in competition with one another and the federal government in the scramble to obtain materials to safeguard workers and ventilators to help those inflicted.

Clark County, which has provided help to rural hospitals, clinics and first responders, estimates that providing services with dwindling tax revenues could lead to a $300 million shortfall this year and up to $1 billion over the coming years if the economic recovery is prolonged.

State of emergency

Nevada Gov. Steve Sisolak declared a state of fiscal emergency Monday, saying the state general fund could see a shortfall of up to $911 million by June 30, the end of the fiscal year, because of the coronavirus outbreak.

The loss of revenue from the sales tax and gaming could prompt officials to tap the rainy day fund and possibly hold a special legislative session, Sisolak said.

The state received $1.25 billion in a previous relief bill, but those funds were distributed to states to help purchase equipment and prepare for the pandemic.

The previous bill contained $500 billion in relief for states and larger cities. The National Governors Association is seeking another $500 billion in federal aid in the next relief bill.

Although Pelosi has said she plans to address the needs of states and cities in the next bill, Senate Majority Leader Mitch McConnell, R-Ky., has voiced opposition to a “bailout” for states, some of which have mismanaged or underfunded public pension plans.

McConnell suggested to a conservative radio host that states could declare bankruptcy, a comment that immediately created an uproar with governors in both political parties who have struggled to get assistance from the federal government to fight the coronavirus.

Contact Gary Martin at gmartin@reviewjournal.com or 202-662-7390. Follow @garymartindc on Twitter.