New Jersey may make 'draconian cuts' without federal COVID-19 relief

New Jersey Gov. Phil Murphy called on Congress to provide direct cash assistance to help states weather the effects of the coronavirus pandemic, saying state programs otherwise face severe spending cuts. 

Lawmakers are working on a nearly $500 billion relief package to benefit small businesses and hospitals adversely impacted by the public health crisis. The bill also will provide funding to expand COVID-19 testing. 

Murphy expressed his gratitude for these benefits during his daily briefing Wednesday. But he said the bill lacks any direct financial assistance for state governments – a void he found problematic. 

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"I will not let up in advocating forcefully, often directly, for [direct cash assistance to New Jersey] until we see that bill on the president’s desk and in fact signed by the president," Murphy said.

Murphy warned that difficult financial decisions would be necessary to prevent New Jersey from going bankrupt if the state does not receive monetary help from the federal government. 

“I also cannot be clearer that the choices we will have to make – absent federal assistance – are dire for our state and our recovery,” Murphy said. “We are dealing with an unprecedented public health crisis that will be followed by an unprecedented fiscal crisis. Without substantial and direct financial assistance from the federal government, the programs we care deeply about and which we will lean on will be at risk.”

Congress previously passed the $2.2 trillion CARES Act to benefit businesses, workers and health systems affected by the coronavirus. 

“We cannot do this alone,” Murphy continued. “We are fighting COVID-19 everyday on the front lines and have taken unprecedented action to slow its spread. We cannot have this fight lead to an inevitable set of draconian cuts that will hurt our ability to help people get back up off the mat. We need the federal government’s help to avoid this fate.”

Though the New Jersey Department of the Treasury reported last Wednesday that the state’s revenue rose by 3.6% year-over-year in March, it warned that the economic impact of the coronavirus pandemic will begin to be felt in April.

New Jersey reported an additional 3,551 confirmed coronavirus cases on Wednesday  bringing the state’s total  to 95,865. There have been 5,063 deaths due to COVID-19.

The vast majority of COVID-19 cases have been in North Jersey, but the virus has caused 6,510 confirmed infections and 242 deaths in South Jersey.

Only 361 new patients were admitted to hospitals on Tuesday due to the virus – the fewest number of new hospitalization in April, another indication that the state's rate of COVID-19 infections is flattening. Another 745 individuals who had COVID-19 were discharged from hospitals. 

There were still 7,210 residents hospitalized due to COVID-19 as of Wednesday afternoon, including 1,983 who were either in critical or intensive care.

HOSPITALS REQUIRED TO REPORT RACIAL DATA

Murphy signed legislation requiring hospitals to report demographic data of COVID-19 patients, including fatalities, to the New Jersey Department of Health. They also must provide information on people who unsuccessfully attempted to get tested for COVID-19.

The bipartisan measure, which passed unanimously in both the General Assembly and State Senate last week, mandates health systems report the age, ethnicity, gender and race of COVID-19 patients.

“Understanding the impact of COVID-19 by demographic group is critical to ensure equity in our response to this virus,” Murphy said. “We must do everything we can to protect the most vulnerable groups in our state during this unprecedented crisis. This data will inform our efforts and allow us to make sure that no one is left behind.”

A disproportionate number of black Americans are dying of coronavirus-related complications – and that appears to be no different in New Jersey. According to numbers released last week, they represent 22% of New Jersey's COVID-19 fatalities, but make up just 15% of the state's population.