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 5 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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

The TikTok Effect: Viral Videos Create the Next Travel Hotspots

DON'T MISS

‘The Studio’ Knows the Real Reason Movies Are Bad

DON'T MISS

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

DON'T MISS

Has America Given Up on Children’s Learning?

DON'T MISS

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

DON'T MISS

Two Teens Charged in Shooting Death of Caleb Quick

DON'T MISS

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

DON'T MISS

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

DON'T MISS

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

DON'T MISS

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

UP NEXT

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

UP NEXT

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

UP NEXT

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

UP NEXT

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

UP NEXT

Summer Movie Guide 2025: Here’s What’s Coming to Theaters and Streaming From May to August

UP NEXT

First At-Home Test Kit for Cervical Cancer Approved by the FDA, Company Says

UP NEXT

Leo XIV’s Service to Poor Propelled Him to Papacy, Cardinals Say

UP NEXT

The State Law Taking a Financial Toll on California Budgets

UP NEXT

‘Luigi Mangione Act’ Seeks to Block Health Insurance Denials, Sparks Outrage Over Name

UP NEXT

Floods Exposed Weaknesses in California Prisons’ Emergency Plans. They Still Aren’t Ready

Has America Given Up on Children’s Learning?

1 day ago

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

1 day ago

Two Teens Charged in Shooting Death of Caleb Quick

1 day ago

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

1 day ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

1 day ago

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

1 day ago

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

1 day ago

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

1 day ago

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

1 day ago

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

1 day ago

The TikTok Effect: Viral Videos Create the Next Travel Hotspots

A recent study from TripIt and Edelman Data & Intelligence discovered 69% of millennials and Gen Z use social media to find inspiration ...

8 hours ago

8 hours ago

The TikTok Effect: Viral Videos Create the Next Travel Hotspots

8 hours ago

‘The Studio’ Knows the Real Reason Movies Are Bad

22 hours ago

US-China Tariff Talks to Continue Sunday, an Official Tells The Associated Press

1 day ago

Has America Given Up on Children’s Learning?

1 day ago

Could Trump Team Suspend Habeas Corpus to Expedite Deportations?

The Clovis Police Department identified two suspects they have arrested in connection with the murder of Caleb Quick, 18, at a Saturday, May 10, 2025, news conference. (GV Wire Composite)
1 day ago

Two Teens Charged in Shooting Death of Caleb Quick

1 day ago

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

1 day ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

Help continue the work that gets you the news that matters most.

Search

Send this to a friend