Help for stricken Whatcom cities lies in future of second federal stimulus package
Ferndale Mayor Greg Hansen pressed U.S. Sen. Patty Murray on Monday, Aug. 10, for more federal aid to cities struggling with the economic effects of the new coronavirus pandemic.
Hansen spoke with Murray, a Democrat, in an online press conference that included the mayors of Twisp and Vancouver, Wash.
“We need more flexibility in how we can use CARES funding and we need the CARES Act timeline extended,” Hansen told Murray during the call.
“Some border communities in Whatcom County like Blaine and Lynden have seen up to 30% decreases in their sales tax revenues and we’ve seen 50% decreases in our gas tax revenues, our hotel-motel tax revenues. These represent substantial portions of our city budgets. Cities are spending through their reserves just to maintain basic services,” Hansen said.
CARES is the $2.2 trillion economic stimulus package called the Coronavirus Aid, Relief and Economic Security Act that Congress passed in March.
It gave Whatcom County and its seven cities more than $16 million to help businesses and bolster social programs.
Hansen said Ferndale partnered with Whatcom County to distribute grants to local businesses.
But Ferndale wasn’t able to offer Ferndale residents a break on their water bills as the city had hoped, because CARES Act funds can’t be used for that, he said.
He said as much as 40% of Ferndale’s CARES money could be left on the table.
“We really want to get the relief money from CARES into the hands of those who can use it most,” Hansen said. “CARES funding is a lifeline, but we’re going to hit a brick wall on Oct. 31 when CARES ends and the effects of this pandemic continue.”
Murray said that a second trillion-dollar stimulus package, the Health and Economic Recovery Omnibus Emergency Solutions Act or HEROES, would provide aid directly to cities like Ferndale.
It passed the House in May but stalled in the Senate.
“It’s really important that we get negotiators back together at the federal level to get a COVID-relief package that addresses our communities that are — you just heard — are so in need,” Murray said. “Otherwise, we’re going to see layoffs for critical personnel, we’re going to see cutbacks at a time when people need housing and support that many of our cities are provide and they just don’t have the capacity in their own systems to do it.”
She said that House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer are talking with the Trump administration in an attempt to forge a deal.
Meanwhile, small cities are facing severe budget shortfalls, Hansen said.
“Small cities like Ferndale are rapidly spending down their cash reserves and we are all writing very lean budgets for 2021 and but we are going into 2021 with very little reserves left in the bank. And so with very little fat left to cut from our budget, for small cities like ours, every budget cut means one less police officer on the road, another two weeks to process a business license or a building permit,” he said.
“And with the severe economic crisis that we’re facing, we need to support our service organizations as well. These service organizations are a vital lifeline for those suddenly facing hard times,” he said.
