‘Covid’ stimulus nearly erases San Fran’s whopping budget deficit, Schumer touts massive ‘relief’ for NY too!

The federal stimulus package will erase most of San Francisco’s projected $650 million budget deficit for the next two years and will dole out nearly $685 million in financial relief to the Nassau and Suffolk county governments in New York.

The COVID relief bill is full of items that have little or nothing to do with the pandemic. Included are bailouts for specific cities, counties, and states including Nancy Pelosi’s hometown of San Francisco and Senate Majority Leader Chuck Schumer’s home state of New York.

Ostensibly the contrived fiscal rescue amounts will keep San Francisco and New York from having to make painful service cuts and layoff workers. But the relief is only temporary and the Democrats will need to keep infusing Democratic strongholds with new funds or they will still go even more bankrupt than they already are.

Much of that depends on economic recovery which in turn hinges on the pandemic ending and whether businesses can make a recovery in those areas. With high taxation in many of those same places that would seem to be an open question. Many jobs that have gone remote during the pandemic will stay that way and a lot of the businesses that were closed due to mandated restrictions have fled to other more business-friendly areas of the country or have simply gone under.

In San Francisco, for instance, City Controller Ben Rosenfield is warning that if there is not a recovery in hotel revenue, sales, and business taxes, that the budget is very much in peril over the next few years.

“That’s going to be the big uncertainty over the next two years,” Rosenfield said in an interview last week. “How quickly will the economy recover? And, in the short term, that’s largely based upon how quickly health conditions will improve.”

California will see state and local aid from the $1.9 trillion federal stimulus package that President Biden is set to sign this week. Those funds will provide money for vaccine distribution, transit, extended employment benefits, and stimulus checks to those that qualify. If the package passes, approximately $600 million will go into San Francisco’s coffers over the next two years. The city will still have to come up with $50 million to cover the deficit.

New York counties will receive a windfall of approximately $685 million from the relief package. Nassau County will receive $397.7 million. Suffolk County will get $286.38 million, according to Chuck Schumer. Long Island local governments, including towns and school districts, will allegedly also receive some of the funding.

Officials in New York say more federal aid is needed to avoid cuts to staffing, programs, and services.

“The robust basket of aid that we have been able to put together and pass yesterday will affect just about every aspect of New York life where there has been trouble,” Schumer stated at a Manhattan news conference. “I say to beleaguered New Yorkers, help is on the way.”

The COVID relief package will wipe out New York State’s projected budget deficit, Schumer’s office stated.

New York counties could utilize the relief funds to help businesses, households, nonprofits, or flailing industries in the state. It could also be used for providing “premium pay” to front-line workers, as well as investing in areas such as water, sewer, and broadband infrastructure.

The relief package would provide approximately $825 million in funds to New York’s towns, villages, and small cities reported Schumer’s office.


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