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Opinion column
by Murrel Bland
The only certain about politics is that it is uncertain.
Simply stated, that is the situation with local, state and federal tax funding. The main reason this year, as opposed to other years, is the coronavirus pandemic.
The pandemic has hit government spending at all levels. Congress and President Donald Trump recently approved paying a substantial number of U.S. citizens $1,200 each. Small businesses received funds that would keep personnel employed. State unemployment agencies are paying out billions for those who have lost jobs.
The national unemployment rate is nearly 15 percent, rivaling levels not seen since the Great Depression in the 1930s. A 15 percent hit in Wyandotte County could mean a loss of more than 10,000 jobs, although no official reports have been made. Before the coronavirus pandemic, about 95,000 persons were employed in Wyandotte County. And it is uncertain how many businesses that were shut down will reopen.
Although the job loss has been severe, many of the jobs lost have been in the service industries such as restaurants and entertainment. A more significant statistic would be how many of these jobs were held by heads-of-households.
It is uncertain just how soon the world might return to a normal status. The problem is that there is no approved vaccine to ward off the coronavirus. Although the Unified and state governments are relaxing restrictions on businesses, it is uncertain if it will be safe.
The state of Kansas government could be short as much as $1.3 billion. The hope is that the federal government will help state governments. That issue is being debated in Washington. Liberal Democrats, such as U.S. Rep. Nancy Pelosi, the speaker of the House, favors a trillion dollar proposal to aid states and cities; U.S. Sen. Mitch McConnell, a conservative Republican who is Senate majority leader, would let states go bankrupt. Those watching legislation closely have speculated that a compromise may be reached that would provide $500 billion in federal money to help state and local governments.
The Kansas Legislature is scheduled to meet for its final day Thursday, May 21; this is traditionally a ceremonial closing of the session.
The Unified Government estimates that its budget could suffer as much as $35 million this year and as much as $22 million in 2021. A reduction in sales tax is one of the main reasons for these losses. The Unified Government’s annual budget is about $400 million.
It is uncertain how long it will take for the economy to rebound to what would be “normal times.” That is certain.
Murrel Bland is the former editor of The Wyandotte West and The Piper Press. He is executive director of Business West.