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California Cities Project 2-Year Losses of $6.7 Billion

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California's 482 cities say they will collectively lose $6.7 billion over the next two years because of the coronavirus pandemic, prompting layoffs and furloughs for public workers and potential cuts to basic services such as sanitation, public safety and housing.

But that estimate, compiled by the League of California Cities, assumes the stay-at-home order lifts by June 1 — an unlikely scenario in a state where Gov. Gavin Newsom and public health officials have said bans on large gatherings and unnecessary travel will likely extend well into summer.

Congress sent $5.8 billion to California local governments as part of a $2.2 trillion aid package, but most of that money went to counties. Only six California cities qualified because they had populations greater than 500,000 people: Fresno, Los Angeles, Sacramento, San Diego, San Francisco and San Jose.

The League of California Cities asked Newsom and the Legislature on Thursday to help cities cover those shortfalls. Newsom plans to unveil a budget proposal next month after scrapping the $222.2 billion spending plan he proposed in January.

— The Associated Press

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