Jeff Williams, the mayor of Arlington, Texas, presented his bleak economic plight at a conference with Treasury Secretary Janet Yellen last month: Heavy expenditure on the research and delivery of coronavirus vaccines had reduced tax revenues, which forced the city to envisage painful changes in facilities and employment. Although some of the responsibility for lenient sales and tourism, Mr Williams said the major concern are empty houses.
According to officials of government finance, these dormant offices, mores and restaurants that made cities all over the world ghosts are a fiscal time bomb for municipal budgets that rely heavily on property taxes and face property losses of 10% in 2021.
While several states will have higher than anticipated revenues in 2020, there will be a dramatic fall in the valuation of industrial assets, as the vacant buildings are taxed in the coming months, to a large extent from their community budgets. For Counties, the taxes on land represent just about 1% of the income, but may represent 30% or more of the taxes that communities take and use to support municipal colleges, police and other public resources.
Washington lawmakers are debating a spending plan that will provide states and communities with up to US$350 billion. After a year of confrontation between Democrats and Republicans, the support will arrive as to what relief is warranted for municipal municipalities.
On Saturday, the House approved a bill of $1.9 trillion to help cities and states, which did not get any Republican sponsorship. The Senate is set to adopt the bill this week by voting along common lines in the party.
Republicans tended to object to considerable State funding, claiming that much of the statistics they collect is good in financial form and cherry-taking to justify their case, such as updated revenue figures showing progress due to recent rounds of federal stimulus, including generous unemployment insurance.
Senator Patrick J. Toomey said at a Senate Banking Committee meeting in February “Overall, State and municipal governments are not in fiscal trouble.
However, aid cannot arrive early enough for city authorities from all sides and the Treasury representatives and representatives of Congress have expressed their fears.
Mr. Williams, a Republican said: “The pandemic is raging, and the economic consequences are very real.
The pandemic has boosted the commercial property industry in America. Skyscrappers are dark in the cities in the world, shopping malls are closed and restaurants are disconnected. Social distancing has redefined offices and speeded up telecommuting trends. In areas that have not been seen since the 2008 Great Recession, the US$16 trillion trade property market has been squeezed.