NC looks for more federal coronavirus money, could prompt legislature’s return

The legislature isn’t scheduled to return to Raleigh until after Labor Day, but the actions of Congress might change those plans — and perhaps interrupt some summer vacations to address urgent state budget shortfalls.

A spokeswoman for Gov. Roy Cooper confirmed that he might call a special session if there’s a need to allocate new federal coronavirus relief money or make budget adjustments before Sept. 2.

“If Congress passes new federal funding or we receive a new revenue forecast well before Sept. 2, it may be important to call the legislature into to session to provide relief sooner,” Cooper spokeswoman Dory MacMillan said in an email. “The governor’s office will continue to work with the General Assembly to find consensus on the budget and COVID-19 relief.”

According to The Hill, Senate Majority Leader Mitch McConnell said last week that it’s “likely” Congress will approve another coronavirus relief package when lawmakers return to Washington on July 20. Divisions between the Republican-controlled Senate and Democratic-majority House could complicate the process.

North Carolina leaders are hoping Congress will help fill a multibillion-dollar budget shortfall. So far, federal coronavirus money can only be used for government functions related to the pandemic.

The state will learn just how much revenue has been lost in the weeks following the July 15 income tax filing deadline.

Rep. Chuck McGrady, R-Henderson and a top House budget writer, said in a blog post that he anticipates that could happen “probably in late July or early August.”

“The governor recognizes, as do legislative leaders, the easiest way to balance the budget, which is required under the North Carolina constitution, is to allocate the federal funds to cover the state budget deficit,” McGrady wrote. “It is also possible that when tax revenues become clear after the July 15 tax filing deadline that the budget picture will become clearer.”

Local governments in North Carolina are also looking to Washington for help. The mayors of eight Triangle cities and towns are asking their congressional delegations for more federal assistance as they confront huge budget shortfalls.

“Cities and towns did not cause the situation that they now find themselves in; a global pandemic did,” says the letter, which was signed by the mayors of Raleigh, Chapel Hill, Cary, Knightdale, Hillsborough, Carrboro, Morrisville and Garner. “On behalf of our residents and businesses, we ask that you help North Carolina move beyond this crisis to a better day and support legislation that will address local revenue shortfalls and ensure a strong economic future.”

The letter notes that COVID-19’s effects are costing Cary “$11 million and counting,” and Hillsborough’s water system has lost $1.5 million because unpaid accounts aren’t cut off.

“The greatest challenges moving forward for city governments are lost revenues due to the economic effects created by this crisis,” the mayors wrote to U.S. Rep. David Price and U.S. Sens. Richard Burr and Thom Tillis. “These include declines in sales taxes and occupancy taxes, as well as water and sewer utility revenue due to industry slowdowns and because residents cannot pay their bills.”

This story was originally published July 12, 2020 at 12:23 PM with the headline "NC looks for more federal coronavirus money, could prompt legislature’s return."