Gov. Phil Murphy painted a dire outlook for New Jersey public-worker jobs on Saturday afternoon, pleading for more financial aid to lift a state economy that has been cratered by the coronavirus.
“We will have layoffs that will be historic,” Murphy warned, as he called for Congress to send more direct aid to states, and as he urged state lawmakers to help him borrow billions of dollars.
He added that the layoffs would be felt through New Jersey, at the state, county and local levels.
“That’s what’s at stake. I don’t know how many, but it is big, big numbers,” Murphy said during his daily coronavirus press briefing in Trenton.
The governor expressed frustration with federal lawmakers, saying that many of them failed to understand the need for direct aid to states. He said he had “a concerning call” with U.S. Senate Minority Leader Chuck Schumer on Friday night, saying the New York Democrat told him there isn’t momentum in Congress to send states such financial help.
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Murphy, a Democrat, hinted that partisanship was holding up proposals for direct aid to states, saying that there’s “there’s one part of Congress in particular, that doesn’t see the wisdom to direct money into states.”
The governor was more optimistic when discussing the prospect of the state borrowing money from the U.S. Federal Reserve. Murphy said he had spoken with state Assembly Speaker Craig Coughlin, D-Middlesex, and that Coughlin had said “he was looking forward to working towards a responsible plan.” Murphy added that a state borrowing plan was becoming more important with the uncertainty on getting future money from Congress.
On Thursday, Murphy said that New Jersey could borrow as much as $9 billion from the Federal Reserve, to plug holes in state revenue caused by a crashing economy. Faced with tanking tax collections, Murphy had already frozen $920 million in state discretionary spending in March.
“This is not either or. We need both direct financial assistance to states from a bill passed by Congress and signed by the President, and we will need bonding flexibility in either case,” Murphy said Saturday. “I would just plead with folks from both sides of the aisle to please get to that reality sooner than later, and make that happen.”
New Jersey, a state of 9 million residents, has now seen at least 81,420 confirmed cases and 4,070 deaths of COVID-19. Only neighboring New York has more cases and deaths among U.S. states.
But officials have said the Garden State is seeing a “flattening” of the outbreak.
Murphy repeatedly says residents must continue to follow his stay-at-home orders and practice social distancing to make sure the numbers don’t surge.
President Donald Trump on Thursday unveiled guidelines that governors can take to gradually lifting coronavirus restrictions and reopen the U.S. economy in phases. But Trump said the decision is ultimately up to individual states, and New Jersey and New York will not open soon.
Murphy said he’s “not ready" to begin lifting his restrictions on residents and businesses to help stop the virus’ spread and preserve hospital capacity. The governor said New Jersey needs to increase widespread testing — with help from the federal government — before the orders can be peeled back gradually.
This story has been updated to reflect U.S. Sen. Schumer’s correct position as Senate Minority Leader.
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NJ Advance Media staff reporter Samantha Marcus contributed to this report.
Michael Sol Warren may be reached at mwarren@njadvancemedia.com. Follow him on Twitter @MSolDub. Find NJ.com on Facebook.
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