Friday, December 4, 2020

Coronavirus in rural America (Part CI): Impact on state and local governments

The New York Times headline is, "In Blue States and Red, Pandemic Upends Public Services and Jobs," and Patricia Cohen reports.  the subhead is "As a standoff over federal aid persists, state and local governments are making deep budget cuts. “Everything’s going to slow down,” one official said."

What follows are some paragraphs focusing on states popularly thought of as "rural." Long and short of it is that they are suffering mightily, in part b/c of loss of oil and gas extraction, in part because of loss of tourism revenue, and for many other reasons:  
Wyoming, Alaska and North Dakota, Republican-led states that depend on energy-related taxes, have been walloped by the sharp decline in oil prices. Places where tourism provides a large infusion of revenues, like Florida and Nevada, face revenue declines of 10 percent or more, as does Louisiana, which relies on both tourism and energy.

Elsewhere, the steep falloff in sales and personal income taxes — which on average account for roughly two-thirds of a state’s tax revenue, according to the Pew Charitable Trusts — is forcing Republican and Democratic officials to consider laying off police officers, reducing childhood vaccinations and closing libraries, parks and drug treatment centers.

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