Senate Majority Leader Mitch McConnell sparked an uproar after he suggested that state and local governments go the bankruptcy route instead of asking for more federal assistance -- comments that many saw as a critique of Democratic-led states. But according to Bloomberg's Fola Akinnibi and Amanda Albright, McConnell's own home state of Kentucky is in dire need of a bailout.
"Louisville, which McConnell calls home, and Lexington face massive budget deficits, with few options other than dipping into savings and cutting services and jobs, which will only add to the economic turmoil," Akinnibi and Albright write. "Already, a fourth of Kentucky workers have lost their jobs in the last five weeks, according to U.S. Labor Department data."
According to Louisville Mayor Greg Fischer, the city has a projected $115 million budget shortfall over the next 14 months. Without federal aid, Louisville will have to lay off a fifth of its workforce.
"About half of Louisville’s budget comes from payroll taxes, making the budget especially sensitive to the job losses driven by the virus," Bloomberg reports. "The city would consider short-term borrowing for cash-flow needs, according to a spokesperson for Fischer, though that’s not a sustainable solution long-term."
Read more at Bloomberg.com.