Fort Worth, Arlington, nearly 100 Texas mayors say more COVID aid needed to avoid cuts
Four months ago Congress passed a $150 billion program to help states and local governments weather the costs of the coronavirus pandemic, and now nearly 100 Texas mayors say it’s time for additional funding.
In a July 15 letter to Texas’ Congressional delegation, mayors across the state, including Fort Worth Mayor Betsy Price and Arlington Mayor Jeff Williams, doubled down on their request for direct and flexible assistance to all cities nationwide.
Without such aid, “we will be forced to cut our workforce and reduce services, exacerbating the economic and public health crises created by this pandemic,” read the letter signed by 97 Texas mayors, including Houston Mayor Sylvester Turner, Austin Mayor Steve Adler, San Antonio Mayor Ron Nirenberg and Dallas Mayor Eric Johnson.
Federal lawmakers from both parties have said an additional aid package is needed, but will likely clash over the provisions included as discussions get underway.
The request for direct aid is one Texas mayors have been raising since April, when over 110 mayors raised concerns with the population requirements under the $150 billion Coronavirus Relief Fund included in the “CARES Act.”
Cities with populations less than 500,000 aren’t eligible to receive the federal funds directly — meaning only Texas’ six largest cities can do so, while the rest have to request money from Gov. Greg Abbott.
That puts Arlington — Texas’ seventh largest city with a population of nearly 400,000 — in a difficult position.
Williams said the city has implemented hiring freezes, furloughed some staff and reduced spending across departments as Arlington is expected to suffer a $20 million deficit between March and September. Although Williams said he’s hopeful the city will not have to lay off employees, he lamented the cuts made thus far.
“Our citizens need our services more than ever,” Williams said. “Cutting services is the worst thing you can do right now.”
Texas itself is likely to be staring down the face of an estimated $4.58 billion shortfall in general revenue for its two-year budget — a stark change from October when it was estimated the state would end the biennium with nearly $2.9 billion in surplus.
Turning to federal aid remains the most viable option, Williams added, as it would in the aftermath of a natural disaster.
“Naturally, the federal government comes in to help,” he said.
Direct federal assistance would aid cities like Denton, according to city spokesman Ryan Adams, that have not had to lay off or furlough employees but are searching for direct avenues to help residents.
“What I believe most of the mayors who signed onto the letter really want is that ability to receive the funding and have that higher level of funding to address community-specific needs,” he said.
In addition to direct aid, Texas’ mayors are also requesting that both Congress and Abbott support greater flexibility toward what the federal funds can be used toward. Under the current federal guidelines, local governments may use the CARES Act funds to cover costs incurred due to responding directly to the pandemic — but not to fill revenue shortfalls.
In May, Texas’ sales tax revenue — one of local governments’ major funding sources — saw the steepest year-over-year decline in a decade, totaling $2.61 billion. Fort Worth anticipated the city’s general fund would take in $40 million less from sales tax alone.
Fort Worth Mayor Betsy Price said while the pandemic hit the city’s sales tax revenue the hardest, it’s not as bad as the city originally estimated, attributing this to residents making an effort to support local businesses.
The public events budget, which generated more than $43 million last year, is expected to go down 32%. The decline is largely attributed to a reduction in hotel tax revenue.
To save as much as possible, Fort Worth implemented a hiring freeze and furloughed employees.
With the city’s tourism and revenue going down, Price said losses could continue for the next two to three years as the economy recovers, but plans to deliver a conservative and balanced budget for 2021.
“We’re hurt, but we’re in pretty good shape,” she said.
As for the next COVID-19 relief bill, Price said if cities don’t have flexibility with the money she at least hopes it will go toward creating jobs.
The losses are felt across the board, with many smaller cities and towns in Tarrant County also predicting major financial losses due to the pandemic. Hurst has already had to furlough employees, pause capital projects, close its aquatics center and cancel its Fourth of July festival to cut costs. And it’s eyeing which fall activities will have to be cut as well, Hurst Mayor Henry Wilson said.
“If there’s going to be a second wave (of the virus), well then things could really get bad again, so we’re a little hesitant to plan anything right now,” Wilson said. “The main thing we’re planning on is uncertainty.”
Dalworthington Gardens Mayor Laurie Bianco said her city is better off than others because it draws revenue mainly from property taxes. However, the city, which houses less than 2,500 residents by census estimates, is still feeling the hurt from stunted sales tax dollars.
“Even though we haven’t suffered as much as other cities, we have still felt the impact,” Bianco said.
Of the $11.2 billion Texas received, state leaders announced in May that $5.06 billion would be made available to local governments. The U.S. Department of Treasury distributed over $3.2 billion to the six cities and 12 counties with over 500,000 residents, while the remaining $1.85 billion is available to smaller cities and counties to apply for through the state.
But Tarrant County Judge Glen Whitley and 10 other county judges had asked the state to provide additional federal aid than what was already allocated. At the time in May, they noted that nearly 70% of coronavirus cases had occurred in their counties, while their funding only represented close to 30% of the state’s federal funds.
But state leaders rejected Whitley and other county judges’ request, stressing that counties are expected to equitably distribute the allocated funds to cities within their area.
Hurst has worked with the county to receive a portion of the federal funds, and Wilson said it’s necessary for cities — who are facing immediate shortfalls — to get aid directly so there’s no delay.
Williams praised the response from county and state leaders including Abbott, who he said has supported Arlington from its first reported cases at the Arlington Masonic Retirement Center.
“I don’t want to second guess the governor because, remember, we’re in uncharted waters right now,” he said.
However, direct federal aid in the coming months would help cities as many draft budgets for the next fiscal year, he said, possibly saving jobs and keeping vital services operational.
“The CARES Act has the opportunity to save a lot of jobs,” he said.
