States plan for cuts as Congress deadlocks on more virus aid

States plan for cuts as Congress deadlocks on more virus aid
Coronavirus stimulus (Source: MGN Online)

(AP) - State budget cuts are mounting and reserve funds are dwindling as governors and lawmakers address declining tax revenue and increased costs caused by the coronavirus pandemic.

Many states and local governments had hoped Congress would pass another round of aid after receiving $150 billion from a relief bill this spring.

But Congress has deadlocked for months over the size, scope, and necessity of more help.

With the U.S. Senate returning to session this week, some states are renewing their push for aid. Without it, additional cuts are likely. The House of Representatives returns from the August recess next week.

Some governors also have begun proposing tax and fee increases.

New York Gov. Andrew Cuomo has said repeatedly that schools and local governments can expect a 20 percent cut in state aid if there’s no more held from the federal government.

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