Congresswoman Maloney Emphasizes Need For Additional COVID-19 State Funding For New York at Financial Services Committee Hearing
Washington, DC — At Thursday’s House Financial Services Committee hearing, The Need for Financial Aid to America’s States and Territories During the Pandemic: Supporting First Responders, Assisting Schools in Their Efforts to Safely Educate, and Preventing Mass Layoffs, Congresswoman Carolyn B. Maloney (D-NY), senior member of the committee, emphasized the importance of additional, flexible funding for states in the next stimulus package for the COVID-19 pandemic.
During the hearing, the Congresswoman stated, “New York was one of the first and hardest hit states by COVID-19, taking the lives of more than 25,000 of our friends and neighbors and disrupting our way of life. The pandemic’s toll on New York’s economy has created an insurmountable budget deficit that the state cannot solve by itself.
“From March to May, tax revenue was down 37% compared with last year. The decline in state revenues combined with the staggering costs of responding to the pandemic have created an unprecedented economic crisis for our state: New York needs $30 billion in funding in the current fiscal year AND next year to make itself whole again […]”
When asked, “Would additional funding and flexibility help your state? If so, how would it improve your ability to address the problems the pandemic has caused for your state?,” Kansas Governor Laura Kelly stated, “We were told at the beginning when the money came in that it was to be for COVID-related expenses only. And I can assure you that here in Kansas we are now in Phase 3 of dispersing those funds. So sometime next week we will have expended all of those funds on COVID-related expenses […] It’s imperative for Kansas and I think a lot of other states.”
Additionally, when asked, “Can you speak to the effect that these budget cuts and mass layoffs will have on your state’s ability to recover long-term,” Minnesota Governor Tim Waltz replied, “I’m in total agreement that getting our schools up and running, getting our businesses back operating, and generating the economy – but it’s a chicken or the egg I guess for some of us on this call. None of that’s gonna happen if we don’t manage the pandemic. And that costs us a lot of money, as the state. […] People are not spending the way they should. And I think what Dr. Holt Deacon was saying is true, we’re seeing savings at a high level, which in normal times is a good thing, but not right now because people are nervous. And it’s the state that provides a lot of those services.”
Watch the full exchange here: