Business Leaders Including Bob Iger Ask Congress To Provide $1 Trillion In Relief To Local Governments
Business leaders from some of California’s top companies are urging the US Government to approve $1 million in spending to help budget cuts facing state and local governments due to COVID-19.
According to a recent piece on CNBC.com, members of Governor Gavin Newsom’s reopening task force (which includes Bob Iger) have said that “the worst of the economic impact is likely to still come.”
A letter, signed by nearly 100 business leaders including Iger, Chan Zuckerberg (wife of Facebook’s Mark Zuckerberg) and Ted Sarandos Chief Content Officer at Netflix was sent to Congress.
A portion of the letter reads, “Reopening our economies is a welcome step forward, but the success of our efforts ultimately relies on building greater confidence among consumers that it is safe to shop and greater certainty for workers that the services they rely on to do their jobs will remain in place. Without that, we will be a re-opened economy in name only.”
These captains of industry argue that funds are critical to help programs to ensure customer safety including contact tracing and testing. “Because of the sudden drop in economic activity, many states, including California, will be forced to make deep cuts to programs that help those same individuals,” the letter said.
To further the argument, another point made in the letter (which was addressed to House Speaker Nancy Pelosi, House Minority Leader Keven McCarthy, Senate Majority Leader Mitch McConnell and Minority Leader Chuck Schumer) highlights that without additional assistance child care, job training and small business support will be hit hard.
The message to Congress comes after the White House and Senate pushed back on a COVID-19 relief bill passed by the House the end of last week. This included $1 trillion in funding for state and local governments.
You can read the full letter from the task force below:
Dear Speaker Pelosi, Leader McConnell, Leader McCarthy and Leader Schumer:
Thank you for your leadership during this unprecedented crisis. As members of the California Governor’s Task Force on Business and Jobs Recovery, we are non-political leaders from different sectors of the economy with the same goal: protecting the health of the 40 million Americans who call our state home and laying the foundation for California’s – and America’s – economic recovery. We write to you in our individual capacities and not on behalf of our firms and organizations.
COVID-19 has fundamentally changed how we will manage our businesses and organizations going forward, with the worst of the economic impact likely still to come. Reopening our economies is a welcome step forward, but the success of our efforts ultimately relies on building greater confidence among consumers that it is safe to shop and greater certainty for workers that the services they rely on to do their jobs will remain in place. Without that, we will be a re-opened economy in name only.
State, local and tribal governments are critical to our recovery. In the short-term, they must be able to scale-up necessary programs, like contact tracing and testing. Given budget shortfalls, they are also soon facing impossible decisions – like whether to fund additional safety measures related to COVID-19 that will help businesses reopen more quickly or prevent layoffs of teachers, police officers, firefighters and other first responders. Without additional assistance from the federal government, the very programs that will help people get back to their lives and get back to work – from childcare to job training to small business support – will all be forced up on the chopping block.
We deeply appreciated the quick financial assistance Congress provided workers, businesses and those who have been displaced by this unprecedented crisis. But now, because of the sudden drop in economic activity, many states, including California, will be forced to make deep cuts to programs that help those same individuals. We stand with business leaders throughout the nation, from both sides of the aisle, who have respectfully and urgently requested that Congress direct $1 trillion in direct and flexible relief to states, tribes and local governments. It will protect core government services like public health, public safety, public education and help people get back to work. This funding will help our states and cities – and America’s economy – come out of this crisis stronger and more resilient.
We urge you to have Congress take swift action and thank you once again for your leadership in this national crisis.
Sincerely,
Governor’s Task Force on Business and Jobs Recovery
Last Thursday, Governor Newsom announced that he would need to slash billions from the state budget in order to tackle the $54.3 billion state deficit which he said is directly linked to COVID-19. Governor Newsom also expects the unemployment rate to climb up to 25% as the ripples from the pandemic can continue to be felt.
This is a story that we’ll continue to follow closely here at MickeyBlog. Readers are encouraged to keep checking back for the latest news and updates.
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Source: CNBC