There are many different things being considered by various states in the U.S. as they face the tough decision of making budget cuts. From new taxes on legalized marijuana to cigarettes and even the affluent to budget cuts to job-training programs and schools, there are a lot of sectors that will suffer financially as a result of the downturn in the economy caused by the pandemic.

Congress is currently deadlocked on whether to provide more financial relief for the country or not and has been for months now. Unfortunately, though, many states haven’t been able to afford to sit around and wait to see what happens – and the cuts have started.

U.S. Senate Delaying Appropriate Action

The U.S. Senate has another session on Tuesday, and with it comes pressure from state lawmakers and governors who are pleading for Congress to act on promises to provide billions of additional help to both local and state governments.

Businesses in California are suffering, both big and small. They are suffering everywhere around the nation, and as California’s cost of living and rent rates continue to stay high, more and more people find themselves out of options. There are alternative ways to get financial help right now, without waiting for the government. Search ‘title loans near me‘ for your local list of vendors.

Assemblyman Phil Ting says that the stakes are high with the next federal stimulus package. He continues by explaining that if it’s executed wrong, this could spell catastrophe for states like California that are already on the precipice.

California Governor Approved Budget Cuts

Governor Gavin Newsom signed off a budget back in June that allowed for up to $11 billion in spending deferrals and cuts. These are set to kick in on Oct. 15 – that it unless Congress provides the hard-hit state with more aid – $14 billion more aid, to be exact. Those sectors that stand to be hit the hardest by this are colleges, state workers, universities, and public schools.

For example, in Michigan, public schools are trying to figure out how to plan the year ahead as classes are set to begin because there is no sign of a sure budget for the coming fiscal year.

Eastpointe school district superintendent Ryan McLeod says that the costs of reopening the schools again that foster a safe environment for the students is tremendous. He says that the only way they can feasibly open the schools while keeping them safe and sanitized is through federal help.

Congress Aid Has Already Run Out

Congress processed and approved $150 billion for local and state governments back in March. This money was intended to cover business costs related to COVID, not to try and offset any loss of revenue as a result of the pandemic.

Greater flexibility is being pushed for in the money that’s being sent out, as different industries require different forms of help. Within municipalities that already have strained budgets, the future isn’t looking too bright.

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