Local Leaders Join Congressman Pappas in Calling for Robust Local Funding in Next COVID-19 Response Package
Today, Representatives Chris Pappas (NH-01) and Annie Kuster (NH-02) continued their call for House leadership to include robust funding for local governments in the next COVID-19 response package. The representatives joined with mayors, county commissioners, and town officials from across the state to send a letter to House leadership urging them to ensure local governments have access to federal aid moving forward.
The sharp economic downturn brought on by the COVID-19 pandemic is expected to produce a significant reduction in state and local tax revenue across New Hampshire. Currently, a provision of the CARES Act bars communities with populations below 500,000 from accessing direct federal aid. No unit of local government in New Hampshire state currently exceeds this threshold. Because of this unfair and unnecessary limitation, all of New Hampshire has effectively been cut off from direct federal support for local communities.
"New Hampshire has experienced widespread economic hardship due to the COVID-19 pandemic and our cities and towns have been severely impacted. Unfortunately, without assistance some local governments across our state may be forced to cut back on essential services and lay off workers who are needed to respond to this crisis and help with recovery," said Congressman Pappas. "For these reasons, I urge Congress to provide robust funding for local governments in the next COVID-19 response package in order to ensure that small to mid-sized municipalities and counties can access direct federal assistance."
"The CARES Act provision prohibiting small and medium-sized cities from accessing aid means communities like Manchester are unable to directly receive federal funding during this crisis. The COVID-19 pandemic has placed a large strain on our city budget, and with no sales or income tax revenue in New Hampshire, we're relying solely on diminished city revenues to provide essential services to our community at this time," said Joyce Craig, Mayor of Manchester. "Gaining access to additional federal funding would provide massive relief to our community and our taxpayers, and I'm grateful for Congressman Pappas's leadership in calling on Congress to include robust support for local governments in future federal legislation."
"Our government has tried to cover many areas impacted by this unprecedented ordeal, but this specific ask is just as important, maybe more so," said Rick Becksted, Mayor of Portsmouth. "If the States and municipalities don't receive the necessary funding to fill in these gaps created by Covid-19 we will have to choose to reduce or cut the very resources we are relying on such as schools, police and fire. Now more than ever we need their help."
"Tourism in the summer months is a key economic driver in our community. As we face the reality of decreased revenues coming in this season – it's more critical than ever that we be able to access federal funding that we've been shut out of," said Andrew Hosmer, Mayor of Laconia. "I'm thankful Congressman Pappas recognizes the challenge this poses to New Hampshire's local governments and is advocating for a fairer federal funding system that won't shut out New Hampshire's hardest hit communities."
"Federal assistance needs to be available to every community that needs it - without arbitrary exceptions," said Robert Carrier, Mayor of Dover. "Congressman Pappas understands that our city is facing unique challenges in confronting this crisis without access to additional federal support, and I'm grateful he is leading the way to change this."
"This arbitrary provision excludes every community in New Hampshire from accessing federal funding, including ours," said Dana Hilliard, Mayor of Somersworth. "In order to continue to support our local schools, firefighters, and police force we need assistance. Congress should change this provision, and I'm thankful Congressman Pappas is pushing for just that."
"This provision in the CARES Act has left communities like ours without access to much needed federal funding," said Caroline McCarley, Mayor of Rochester. "Our cities and local governments provide essential services to our residents every day – but we will need support to continue doing so as we seek to recover from this crisis. Congressman Pappas understands the challenges we are facing right now, and I'm glad to see him push for this change in support of our communities."
"Our communities are facing many unforeseen expenses as we confront this pandemic," said Kevin Smith, Londonderry Town Manager. "Bringing federal funding directly to New Hampshire's towns and cities is essential to both keeping our budgets on track and so we can continue to provide essential services. I'm glad to see Congressman Pappas advocate for our communities to get the support they need in this crisis."
The full letter can be read here:
Dear Speaker Pelosi and Republican Leader McCarthy:
Thank you for your hard work on the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. New Hampshire has experienced widespread economic hardship due to the COVID-19 pandemic and our cities and towns have been severely impacted. Unfortunately, without assistance some local governments across our state may be forced to cut back on essential services and lay off workers who are needed to respond to this crisis and help with recovery. For these reasons, we urge you to provide robust funding for local governments in the next COVID-19 response package in order to ensure that small to mid-sized municipalities and counties can access direct federal assistance.
Currently, the ability of these towns and cities to receive federal aid is hindered by a provision in the CARES Act which bars communities with populations below 500,000 from receiving aid. This provision effectively leaves all of New Hampshire's local communities without direct federal support. It is now up to Congress, under your leadership, to assist these communities as they attempt to weather this unprecedented storm.
Attached is a letter signed by local and county officials from New Hampshire who urge you to take action in order to help them fight the indirect consequences of this pandemic. Going forward, we will continue to work with these communities to ensure that their needs are met during these uncertain times, and we hope you will join us in securing funding from small to mid-sized municipalities in New Hampshire and all over the United States.
Sincerely,
Chris PappasAnn McLane Kuster
Member of CongressMember of Congress
Dear Speaker Pelosi and Minority Leader McCarthy:
The COVID-19 pandemic has caused widespread economic hardship in New Hampshire. In addition to the loss of jobs and shuttering of small businesses, the sharp economic downturn brought on by the virus is expected to produce a significant reduction in state and local tax revenue. Unfortunately, this shortfall could force cities and towns across our state to drastically curtail essential services and lay off workers at the worst possible time for our communities. For the sake of the citizens we serve, we therefore respectfully request that you provide robust funding for local governments in the next COVID-19 response package and take action to ensure that small to mid-sized municipalities and counties can access direct federal assistance.
The increased costs and severe decline in revenue stemming from the pandemic are already forcing local governments in our state to grapple with tough choices. A recent survey of 127 towns and cities in New Hampshire (54%) estimated that COVID-19 related expenses have collectively exceeded $7.6 million over the past five weeks, with that number expected to rise to $27.2 million by the end of this year. These costs cover everything from overtime pay, equipment, and emergency response for police officers and firefighters to increased demand for social services and welfare services. In addition, the estimated financial impact to counties is $13 to $17 million over the next 6 months. Absent a dramatic increase in aid from the federal government, we will be forced to contemplate deep budget cuts that will undermine the safety, security and well-being of the communities we serve.
Unfortunately, our ability to meet the challenges posed by COVID-19 is significantly hindered by a provision of the CARES Act that bars communities with populations below 500,000 from accessing direct federal aid. No unit of local government in our state currently exceeds this arbitrary threshold – Hillsborough County, the largest county in New Hampshire, has a population of only 406,000. Because of this unfair and unnecessary limitation, all of New Hampshire has effectively been cut off from direct federal support for local communities at a time when our budgets have come under unprecedented strain.
But even more troubling is the loss in revenue that towns and cities are experiencing and will continue to experience. Although CARES Act funding and other funds like FEMA can be used for expenses directly related to COVID-19, no current funding source addresses revenue replacement for local governments. According to the survey, 58% are already experiencing revenue declines—and the worst is yet to come, as property tax payment delinquencies are expected to increase significantly, further straining municipal budgets. The effects will be long-term and significant, leading to further cuts in public services and public sector employment in the months to come. Borrowing is an option for some towns and cities, but borrowing brings with it new costs for municipalities and their taxpayers as well. However, even the municipal bond market has been severely impacted by this crisis, and may not even be available to all localities.
For these reasons, we strongly urge you to provide direct relief to struggling local governments of all sizes commensurate with the scale of the dire fiscal, economic, and public health challenges we face. Indeed, without generous assistance from the federal government, counties and municipalities across our state will find it increasingly difficult to provide the services that keep our residents healthy and safe. Simply put, it would be completely unacceptable for the federal government to stand idly by as local governments across our state and our nation are forced to lay off first responders, health care professionals, sanitation workers, educators, and other critical public employees in the midst of a pandemic and a crushing economic downturn.
Thank you for your urgent attention to this request and for your leadership during this difficult time.
Sincerely,
Mayors from across New Hampshire
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Paul Grenier
Mayor of Berlin
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Charlene Lovett
Mayor of Claremont
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Jim Bouley
Mayor of Concord
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Robert Carrier
Mayor of Dover
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Tony Giunta
Mayor of Franklin
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George Hansel
Mayor of Keene
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Andrew Hosmer
Mayor of Laconia
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Timothy McNamara
Mayor of Lebanon
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Joyce Craig
Mayor of Manchester
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Jim Donchess
Mayor of Nashua
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Rick Becksted
Mayor of Portsmouth
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Dana Hilliard
Mayor of Somersworth
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Caroline McCarley
Mayor of Rochester
County Commissioners from across New Hampshire
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Commissioners of Belknap County
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Commissioners of Carroll County
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Commissioners of Cheshire County
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Commissioners of Coos County
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Commissioners of Grafton County
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Commissioners of Hillsborough County
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Commissioners of Merrimack County
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Commissioners of Rockingham County
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Commissioners of Strafford County
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Commissioners of Sullivan County
Town Officials from across New Hampshire
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Rick Hiland
Town of Albany, Board of Selectmen, Chair
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Elizabeth Dionne
Town of Alton, Town Administrator
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Bill Duschatko
Town of Bedford, Town Councilor
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Nik Coates
Town of Bristol, Town Administrator
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Thomas Holmes
Town of Conway, Town Manager
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Jessica L. Hatch (Chair), Lyn H. England, and James D. Phelps
Town of Danbury, Board of Selectmen
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Dave Caron
Town of Derry, Town Administrator
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Ryan Aylesworth
Town of Enfield, Town Manager
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Julia Griffin
Town of Hanover, Town Manager
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Troy Brown
Town of Litchfield, Town Administrator
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Andrew Dorsett
Town of Littleton, Town Manager
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Kevin Smith
Town of Londonderry, Town Manager
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Mark Chamberlain
Town of Lyndeborough, Board of Selectmen, Chair
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Paul Dargie
Town of Milford, Board of Selectman
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Stephen Fournier
Town of Newmarket, Town Manager
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David Jodoin
Town of Pembroke, Town Administrator
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Bob Belmore
City of Somersworth, City Manager
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Bill Hutwelker
Town of Swanzey, Board of Selectman
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Peggy Pschirrer
City of Walpole, Board of Selectmen, Chair
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Leslie Palmer
Town of Webster, Town Administrator