WASHINGTON, D.C. — When I reached Lancaster, Ohio Mayor David Scheffler, on the phone on Wednesday, he was blunt in his assessment of how Congress is helping communities like his as they respond to the coronavirus pandemic.
- Mayors of smaller cities say they feel “overlooked”
- Local governments of 500,000+ people to receive the bulk of relief money
- Ohio lawmakers divided over how quickly to increase funding
“I think we were overlooked,” he said. “I think they passed legislation not understanding the impact it was going to have.”
Scheffler said he felt this way because when lawmakers passed the $2.2. trillion CARES Act last month, it dedicated $150 billion to state and local governments — but his 40,000-person city will likely see almost none of it.
The Tax Foundation, a nonprofit in Washington, helps explain why.
It’s all based off population, so Ohio is receiving about $4.5 billion of the $150 billion.
Of that, about $1.7 billion will go to local governments with a population of 500,000 or more — meaning the city of Columbus and five counties (Franklin, Cuyahoga, Hamilton, Summit, and Montgomery).
Local officials in those areas will get 45-percent of the money directly, while state officials will oversee the other 55-percent.
So, that leaves about $2.8 billion for Ohio communities with under 500,000 people. But the difference here is the state government will decide how all of this money is spent, not local officials — meaning smaller Ohio towns and cities are left wondering what they’ll get.
The main reason this matters so much is because of something very unique to Ohio. It’s one of only a few states that rely heavily on income tax to fund most of its local government operations — instead of something like property tax.
Because so many people are losing their jobs right now, the amount of income tax revenue coming in is quickly dropping.
Other mayors I spoke with said if they don’t get financial relief from Washington, they will have to start figuring out how to cut costs without losing local government workers who are essential.
“Your police, your fire, your EMS, your utility, your utility billing, your clerical support to the streets, your clerical support to sanitation, all those things continue in this crisis, so therefore, you can’t just tell people to go home,” Zanesville Mayor Donald Mason said in a phone interview on Wednesday.
And fellow Mayor Luke Feeney, of Chillicothe, said local government employees not only keep communities running, they keep contributing financially as long as they are working and getting paid.
“We are significant players in the local economy, and I just want to make sure that Congress hears that,” Feeney said in a separate phone interview on Wednesday.
Senator Rob Portman (R-Ohio) said in a call with reporters on Tuesday that more money specifically for smaller communities may be needed, but he first wants to see how Governor Mike DeWine and his team approach giving out the money that’s already been approved.
“I’m sure he’ll do a good job in determining how to allocate this appropriately,” Portman said. “Then, let’s see what the additional needs are.”
But some Ohio Democrats want immediate action.
Representatives Joyce Beatty (D, 3rd Congressional District) and Tim Ryan (D, 13th Congressional District) have co-sponsored a bill that would dedicate $250 billion directly to communities with populations under 500,000.
“If this [pandemic] continues, we will have to do more and make sure that the provision allows for all of our cities to be able to get the allocation,” Beatty said in a recent interview over Zoom.
“They need help!” Ryan added in a recent FaceTime interview. “The economy shutdown. There’s no other entity left other than the federal government to be able to plug this hole.”
Congress is currently negotiating whether more money for state and local governments should be added at the same time that the coronavirus small business loan program is increased.
Democrats support the idea, but Republicans only want the loan program expanded right now.