Mountain to climb
Standing at the base of a mountain, the top appears nearly invisible when stormy conditions gather higher up. That's the situation now when it comes to state finances throughout the country, at a time when tax revenue-generation from businesses and households has plummeted.
When states face budget shortfalls deep into the six figures, federal aid becomes critical. Vermont is facing a $430 million revenue gap for the upcoming fiscal year, and the state’s U.S. Rep. Peter Welch is one of many members of Congress pushing for more federal aid for states, and more flexibility on how to use the money. Up until now, states have not been permitted to use coronavirus-related federal aid to cover revenue shortfalls. That's a key part of the debate in Washington today.
The daunting situation before state legislatures is clear. On Sunday, State Rep. Tim Briglin, of Thetford, said Vermont will face some "draconian" budget cuts without federal assistance.
"Many, many programs and many, many needs are really going to be constrained in terms of what can be allocated to them," Briglin said.
If the federal aid does come to the states with more flexibility, that whole eventuality changes — or at least shifts in a more positive direction. It would help all the states sustain the essential programs which help those most in need, food assistance and health care being among the major ones.
Tough decisions, on some level, will be inescapable. But lingering budget shortfalls require assistance soon to prevent the most extreme impacts. Meanwhile, those gaps will be front and center in the next few weeks. The first step in Vermont will be a budget adjustment for the current fiscal year which ends June 30, Briglin said, followed by decisions on next year's budget.
States everywhere are certainly at the base of a huge mountain to climb; New York's budget shortfall is projected to be over $13 billion. It's unclear how the federal aid situation will play out in Congress, which is even more distressing. One thing is clear: It is up to all of us to stay united in the face of adversity. So far, heroic efforts have been made to that end, and we have the resolve to continue to serve one another, whatever the road ahead may bring.
— Gareth Henderson
