CLEVELAND, OH – Today, U.S. Sen. Sherrod Brown (D-OH) hosted a news conference call as he continues fighting for local governments in Ohio and calling for robust, dedicated and flexible investments in towns, cities and counties strained economically by coronavirus as they provide critical services to keep residents healthy and safe.

According to a study published by the Brookings Institution, four out of the top five cities set to be hurt most financially by the coronavirus pandemic are in Ohio: Columbus, Cincinnati, Toledo and Cleveland.

“Ohio communities have stepped up to meet this challenge and they’re doing it all while watching their tax dollars dry up. We can’t leave Ohio communities behind in the middle of the worst crisis of our lifetime. We won’t stand for it,” said Brown.

Last week, Brown wrote to Senate Leaders calling for robust, dedicated and flexible funding for state and local governments in any future stimulus package – including funds that can be used as lost revenue replacement.  He also pushed for flexibility on how existing CARES Act funding may be spent. Following Brown’s letter, President Trump announced that a future stimulus package will allow state and local governments to replace lost revenue with funding from the CARES Act.

Brown was joined on today’s call by Mayors David Scheffler (R-Lancaster) and Tim DeGeeter (D-Parma) to talk about the importance of local government funding in any future stimulus package.

“The City of Lancaster is expecting a $2 to $4 million revenue shortfall as a result of layoffs and shutdowns due to the Covid-19 virus crisis,” said Mayor Scheffler (R-Lancaster). “This represents 10% to 20% of our General Fund budget, 70% of which is police and fire operations. City Department Heads have submitted revised budgets reflecting a 10% reduction in approved 2020 plans. Personnel costs are 84% of budgeted amounts so layoffs will be a big part of paring costs to make ends meet, including the dismissal of 18 firefighters and 15 police officers.  This would likely mean closing one of our three firehouses, police service reductions and slower response times.  A federal financial rescue package that allows for lost revenue replacement is critical to maintaining safety forces and the well-being of our residents.”

“Like other mayors throughout Ohio and the country, I expect the financial impact to continue into 2021 because 2020 income tax returns also will be reduced,” said Mayor Tim DeGeeter (D-Parma). “Every day, we are making tough decisions. We are trying to provide services, but I am concerned about what our city’s financial outlook will be without federal support. We need direct emergency stabilization funding to survive, and we need it quickly.”

Brown also led a letter with Sen. Rob Portman (R-OH) to Treasury Secretary Steven T. Mnuchin asking the Treasury Department to issue additional guidance on how state and local governments can use funding secured in the CARES Act, including as revenue replacement.

Last week, Brown and Congresswoman Marcy Kaptur (D-OH), joined by Representatives David Joyce (R-OH) and Anthony Gonzalez (R-OH), sent a letter to Secretary Mnuchin urging the certification of the Northeast Ohio Areawide Coordinating Agency’s (NOACA) request for direct federal funding from the Department of the Treasury through the Coronavirus Relief Fund. The counties of Northeast Ohio, with the exception of Cuyahoga County, lack direct access to relief mechanisms enacted by the CARES Act. These counties include Geauga County, Lake County, Lorain County, and Medina County.

Also last week, Brown and Kaptur sent a letter to Mnuchin, urging the certification of the Toledo Metropolitan Area Council of Governments’ (TMACOG) request for direct federal funding from the Department of the Treasury through the Coronavirus Relief Fund. Toledo is without direct access to relief funding enacted by the CARES Act, because it falls short of the 500,000 benchmark by just 70,000 residents under the existing formula. TMACOG represents more than 800,000, including residents of Lucas, Ottawa, Sandusky, Wood, and Fulton counties in Ohio. The letter is available here.

 

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