Local governments like Pierce County need help getting through COVID-19 crisis

Three weeks ago, I was in Washington, D.C. for the National Association of Counties. I serve on the Health Policy Committee and realized late that we didn’t have any guidance in response to the emerging COVID-19 threat.

Working with our staff, we pulled together language on the trip there. My colleagues from around the country were eager to offer support, even though at that time, there were no cases in their home states.

Fortunately, our Washington state congressional delegation was already on top of it. Members and their staff wanted to know how they could help. Before we left, the first bill was coming into full view with many of the requests we had in the legislation.

Even that feels like a different world than the one we live in now.

Since that time health workers, state and local governments, first responders, non-profit partners and individuals have leapt into action. I know the news can seem bleak right now, but it’s inspiring to see people pull together — while practicing social distancing — when we needed it most.

We understand these public health measures are also causing tremendous disruption. Still, they are necessary to buy time and reduce the burden on the health system. If too many people are hospitalized with difficulty breathing at the same time, the system will be overwhelmed. That’s what happened in Italy.

We need a response to the side effects of social distancing in our economy. While many have been able to continue working through the crisis, the damage is extensive.

Some mitigation can be handled at the local and state level, where we’ve been able to take action. But to jumpstart the economy’s engine, we need the federal government.

Lost wages and business income must be replaced as quickly as possible. Expanded unemployment insurance and small business assistance will help, but we need much more. The quickest way to do that is to send out checks to everyone. If we wait for a perfectly tailored response, it will only hurt those who are suffering more.

Some have suggested we go back to a familiar tool and cut payroll taxes. Unfortunately, this tactic is too slow to have an impact and so small that most won’t notice.

Payroll tax cuts only benefit those who are still working. In fact, they’re negatively targeted, reducing the benefit to those who need it most.

State and local budgets are about to take a hit. Unlike the federal government, we can’t easily issue debt to fund operations. That could result in cuts to critical services at a time when they’re needed most.

During the Great Recession, cuts to state and local budgets slowed our recovery. Congress should increase federal support for Medicaid and CHIP. Fill the hole caused by reduced revenue by making the programs 100% federally funded.

In exigent circumstances, the Federal Reserve can lend to non-bank institutions. We saw this on a limited basis during the Great Recession, but it’s time to take another step. Congress should urge the Fed to lend to state and local governments. The rates offered are low, and access to capital is immediate.

The construction industry is a sector where we could keep people working and would stabilize many households. We also know we’re way behind on infrastructure investment. Congress should take advantage of historically low interest rates and pass infrastructure spending bills.

These steps will help us to return to some semblance of normalcy, but we need to start thinking about the way we used to do business that shouldn’t come back. We’ve learned how dangerous it is to encourage people to work when they’re sick or don’t have access to health care.

The lesson of COVID-19 is that we depend on each other more than we once imagined, and that’s where our recovery will begin.

Derek Young, D-Gig Harbor, represents District 7 on the Pierce County Council.