Missourians need help from Washington if we want to lessen the recession’s devastation
Our communities have been hit hard by the COVID-19 pandemic and the resulting economic downturn, the deepest since the Great Depression. The Kansas City area unemployment rate jumped from 3.4% in February to 10.8% in May, closely mirroring what’s happening statewide. Economic conditions have created dire state revenue shortfalls that, without substantial federal assistance in the next federal coronavirus relief package, will force painful cuts to education, health and public safety. These cuts would cause Missouri’s budget crisis to be longer and deeper than necessary, but Missouri’s congressional delegation has the power to mitigate this crisis on behalf of Missourians.
State budget cuts aren’t just numbers on a spreadsheet. They mean that more Missourians lose their jobs, that others struggle without the services their families need, and that our state’s economy sputters even more. Budget cuts mean laying off teachers, child care workers, first responders, aides who assist Missourians with developmental disabilities, contractors working on infrastructure projects, social workers, mental health and health care providers and more.
The loss of these jobs, many of which are provided by behavioral health organization like Cornerstones of Care, the nonprofit I lead, will deeply impact the safety of children and health of families. We are already seeing a significant decrease in hotline calls, as fewer people are involved in the lives of children. At the same time, we know the stress of losing a job or lack of access to health care increases the risk of child abuse.
Like other states, Missouri must balance its budget — even in the middle of a pandemic with unprecedented economic fallout. Only the federal government has the resources to prevent this recession from becoming deeper and longer.
That’s why the bipartisan National Governor’s Association has repeatedly called on Congress to provide direct grants to states, as well as an additional increase to the match it provides states for Medicaid services, which would be tied to state unemployment rates. It noted that “we cannot imperil our economic recovery efforts by slashing state programs that pay our teachers, firefighters, health care and front-line workers.”
Missouri’s revenue shortfall has already caused significant state budget restrictions. Hundreds of staffers from the state Children’s Division have been laid off, putting vulnerable children at risk. What’s more, cuts are happening at a time when more funding is needed, not less. Schools face increased costs for distance learning, cleaning protocols and efforts to social distance. As Missourians are laid off or furloughed, more find themselves in need of nutrition assistance. And the state government itself must provide additional vital services, such as processing spiking unemployment claims and monitoring the pandemic — all on top of the services we all take for granted every day.
Past recessions have taught us that state budget cuts will only worsen our economy and delay its recovery. A broad array of economists note that the U.S. didn’t do enough in 2008 to help working people and state governments, lengthening and deepening that recession. They have also urged the federal government to step in now to prevent further cuts from being made at the state and local levels.
I urge Missouri’s congressional delegation to act quickly to help Missouri families and our economy. By approving additional, substantial and flexible state stabilization funds and an increased federal match for state Medicaid programs tied to economic conditions, Congress can prevent painful budget cuts that will harm the health and economic security of thousands of Missourians and prolong the recession.
Denise Cross is president and CEO of Cornerstones of Care, a 501(c)(3) nonprofit.
This story was originally published July 31, 2020 at 5:00 AM with the headline "Missourians need help from Washington if we want to lessen the recession’s devastation."