Please ensure Javascript is enabled for purposes of website accessibility
California Cities Project 2-Year Losses of $6.7 Billion
gvw_ap_news
By Associated Press
Published 4 years ago on
April 24, 2020

Share

SACRAMENTO — California’s 482 cities say they will collectively lose $6.7 billion over the next two years because of the coronavirus pandemic, prompting layoffs and furloughs for public workers and potential cuts to basic services such as sanitation, public safety and housing.

Cities large and small say they are feeling the pain of an abrupt economic halt as most businesses and restaurants have closed and people aren’t traveling because of the mandatory stay-at-home order.

But that estimate, compiled by the League of California Cities, assumes the stay-at-home order lifts by June 1 — an unlikely scenario in a state where Gov. Gavin Newsom and public health officials have said bans on large gatherings and unnecessary travel will likely extend well into summer.

“Obviously, the longer the stay-at-home orders are in place, the longer businesses are closed, the greater the revenue shortfalls will be,” said Carolyn Coleman, the league’s executive director.

Cities large and small say they are feeling the pain of an abrupt economic halt as most businesses and restaurants have closed and people aren’t traveling because of the mandatory stay-at-home order.

In Yountville, a city of nearly 3,000 in California’s famed wine country where 74% of its annual budget comes from taxes on sales and hotel rooms, Mayor John Dunbar says a 60% loss in revenue is expected in the upcoming budget.

Rancho Cucamonga, a city of about 178,000 people east of Los Angeles, laid off its 289 part time workers. In San Jose, the 10th largest city in the country, leaders expect revenues to drop 8.6% — far larger than the 2.9% revenue loss during the Great Recession.

And in Grass Valley, a city of fewer than 13,000 people in the Sierra Nevada foothills, leaders have laid off four employees — and police and fire departments could be next.

Photo of Gov. Gavin Newsom
California Gov. Gavin Newsom announced California saw its first daily decrease in intensive care hospitalizations during the coronavirus outbreak, during his daily news briefing at the Governor’s Office of Emergency Services in Rancho Cordova, Calif. Thursday, April 9, 2020. Newsom announced that California saw its first daily decrease in intensive care hospitalizations during the coronavirus outbreak, a key indicator of how many health care workers and medical supplies are needed. He went on to say the state’s hospitals have thousands of ventilators available should the number of the sickest patients suddenly surge. (AP Photo/Rich Pedroncelli, Pool)

Congress Sent $5.8 Billion to California Local Governments as Part of a $2.2 Trillion Aid Package

“We are bare bones as it is,” Grass Valley Councilwoman Jan Arbuckle said. “If things continue down this path, we have no other choice other than to start looking at reducing our public safety, which is not what we want to do especially going into our fire season.”

Congress sent $5.8 billion to California local governments as part of a $2.2 trillion aid package, but most of that money went to counties. Only six California cities qualified because they had populations greater than 500,000 people: Fresno, Los Angeles, Sacramento, San Diego, San Francisco and San Jose.

But the federal government says cities can’t use that money to cover revenue shortfalls and can only use it for coronavirus-related expenses.

“It was nice to get a $92 million check,” Fresno Mayor Lee Brand said. “We have to go forward with our budget with the presumption it is not going to be there.”

The League of California Cities asked Newsom and the Legislature on Thursday to help cities cover those shortfalls. Newsom plans to unveil a budget proposal next month after scrapping the $222.2 billion spending plan he proposed in January.

For most people, the virus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness and death.

California Has More Than 39,000 Coronavirus Cases and More Than 1,500 Deaths

California has more than 39,000 coronavirus cases and more than 1,500 deaths, according to data compiled by Johns Hopkins University. The number of infections is thought to be far higher because many people have not been tested, and studies suggest people can be infected with the virus without feeling sick.

The virus’ spread has been far less devastating in California than public health officials had feared. Wednesday, the state saw declines in the both the number of confirmed and suspected coronavirus hospitalizations for the first time.

But the virus’ spread has been far less devastating in California than public health officials had feared. Wednesday, the state saw declines in the both the number of confirmed and suspected coronavirus hospitalizations for the first time.

With hospitals far from capacity, Newsom announced Wednesday they could resume elective surgeries. And Thursday, Newsom said 16 California-based doctors had volunteered to help in New York City, the center of the outbreak in the U.S.

Still, Newsom reiterated on Thursday it could be some time before he loosens the state’s stay-at-home order. He said if people were to pack beaches, parks, playgrounds and hiking trails this weekend, then “I’ll be announcing in a week or so these numbers going back up.”

“I don’t think anybody wants to hear that,” he said.

In a conference call with reporters on Thursday, Dunbar — who is also the president of the League of California Cities — said cities are anxious for businesses to reopen.

“But we are not going to rush that effort,” he said. “We all agree that public health and our public health officers are rightfully driving the timing as we move forward.”

DON'T MISS

Fresno Oops? Garbage Hike Protest Vote Delayed by Error

DON'T MISS

Trump’s Potential VP Pick Boasts About Executing Puppy

DON'T MISS

Trita Parsi: Blind Support for Israel Erodes Western Democracies

DON'T MISS

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

DON'T MISS

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

DON'T MISS

Nuggets Close to Sweeping Lakers After Game 3 Win

DON'T MISS

Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’

DON'T MISS

‘IDEA’ Is the Latest Career-Oriented Campus on Fresno Unified’s Drawing Board

DON'T MISS

Yoshinobu Yamamoto’s 6 Shutout Innings Help Dodgers Finish Sweep, Defeat Nats 2-1

DON'T MISS

The 49ers Add Florida Receiver Ricky Pearsall With the 30th Draft Pick

UP NEXT

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

UP NEXT

LA Judge Deals a Blow to Law Allowing Duplexes in Single-Family Tracts

UP NEXT

US Growth Slows Sharply Amid High Interest Rates and Inflation

UP NEXT

Hamas Official: We’ll Put Down Arms if an Independent Palestine Is Created

UP NEXT

Ex-State Department Official: Israeli Military Gets Preferential Treatment on Abuses

UP NEXT

Dozens Arrested at USC After Students in Texas Detained as Gaza War Protests Persist

UP NEXT

New California Rule Aims to Limit Health Care Cost Increases to 3% Annually

UP NEXT

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

UP NEXT

Ancestry Website to Catalogue Names of Japanese Americans Incarcerated During World War II

UP NEXT

Sacramento Bee Accused of Mangling the Facts About Fish Caught in Pumps

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

3 hours ago

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

4 hours ago

Nuggets Close to Sweeping Lakers After Game 3 Win

4 hours ago

Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’

4 hours ago

‘IDEA’ Is the Latest Career-Oriented Campus on Fresno Unified’s Drawing Board

Local Education /

5 hours ago

Yoshinobu Yamamoto’s 6 Shutout Innings Help Dodgers Finish Sweep, Defeat Nats 2-1

5 hours ago

The 49ers Add Florida Receiver Ricky Pearsall With the 30th Draft Pick

5 hours ago

Political Stunt, Egg on His Face, Personal Vendetta. Who’s Fresno DA Talking About?

6 hours ago

Blockchain Expert Unravels Misconceptions and Realities of Bitcoin Documentaries

Did Fresno Trustees Violate Brown Act in Superintendent Search Decisions?

Local Education /

7 hours ago

Fresno Oops? Garbage Hike Protest Vote Delayed by Error

A mistake by the city of Fresno in the process to approve residential garbage rates will delay a vote. When a city government proposes rate ...

3 hours ago

3 hours ago

Fresno Oops? Garbage Hike Protest Vote Delayed by Error

3 hours ago

Trump’s Potential VP Pick Boasts About Executing Puppy

3 hours ago

Trita Parsi: Blind Support for Israel Erodes Western Democracies

3 hours ago

Fresno Trash Hauler’s Response to Overpayments: We Followed the City’s Rules

4 hours ago

Which Six QBs Were Selected in the Top 12 of the NFL Draft?

4 hours ago

Nuggets Close to Sweeping Lakers After Game 3 Win

4 hours ago

Jose Ramirez: ‘I Want to Make a Statement and Put on a Show’

Local Education /
5 hours ago

‘IDEA’ Is the Latest Career-Oriented Campus on Fresno Unified’s Drawing Board

MENU

CONNECT WITH US

Search

Send this to a friend