MONTGOMERY, Ala. (WIAT) — Millions of dollars are headed to Alabama cities and counties to cover COVID-19 related costs. This comes after the Legislature and Gov. Kay Ivey approved the spending of federal CARES Act dollars.
Auburn Mayor Ron Anders said April and May have been financially tough months for his city due to coronavirus.
“We have certainly been impacted like everyone else, maybe even impacted more because some much of our population, I would say a third, are gone and that’s because the students went home,” said Mayor Anders.
Anders says they hope to make up the losses in the fall with football. But if not, this could be devastating for the city.
“I’m not saying it’s going to be of biblical proportions, but it’s gonna be of significant proportions. It will take us a long time to recover if we were to not have home football games,” said Anders.
Anders said the city hasn’t had any lay-offs, but they’re not hiring.
Greg Cochran with Alabama League of Municipalities says this is a problem most cities in Alabama are facing.
“We are noticing drops in those revenue streams which affect the city’s budget and their ability to hire and provide services to our communities,” Cochran said.
The CARES Act provides $250 million to be divided up among cities and counties to help with COVID-19 related costs. Cochran explains how this money will be used by local governments.
“PPE to protect the employees and citizens, extended cost in hazard pay and paying for officers to work overtime,” said Cochran.
The League of Municipalities said they are asking Congress to provide more federal funds for local governments.