WASHINGTON, D.C. – This week, lawmakers in Washington approved a nearly $500 billion coronavirus aid package, replenishing an emergency small business loan program and extending help to hospitals.

Not part of the final deal: money to help local and state governments grappling with the coronavirus-inspired shutdowns. That funding could be the source of one of the next fights on Capitol Hill.

Across North Carolina, leaders of communities large and small are watching their bottom lines, projecting the potential economic fallout from the stay-at-home orders.

Paul Meyer, the executive director of the North Carolina League of Municipalities, said his organization is advising local governments to expect a 30 to 35 percent reduction in sales tax collections across the state.

Local leaders who spoke with Spectrum News said they are likely going to face a choice as a result of the virus-induced shutdowns: raise taxes to make up for lost revenue or make cuts.

In Winston-Salem, Mayor Allen Joines says that if they were to see a 20 percent reduction in the sales tax, for example, that amounts to roughly $7 million in lost revenue.

“That equates to a little over 3 cents on the property tax rate,” he said. “We honestly do not want to put additional burden on our citizens.”

RELATED: U.S. House Gives Final Approval to Bill Replenishing Emergency Small Business Loan Program 

As part of negotiations on the latest aid deal on Capitol Hill, congressional Democrats advocated for money as a lifeline to local and state governments.

“I’ve heard from Wilson, I’ve heard from Greenville, Rocky Mount, Durham –- all of these cities are telling me that their budgets are underwater,” said Rep. G.K. Butterfield, D-1st District. “Municipalities should not have to cut services.”

However, that push for funding proved unsuccessful. The money was not included in this week’s deal.

In an interview, Rep. Virginia Foxx, R-5th District, joined other Republicans in expressing concern about federal and local spending. She offered this advice to local governments.  

“Everybody’s revenues are going to be down. The federal government revenues are going to be down,” she said. “My suggestion to them is that they do the same thing I suggest the federal government do: look for ways to operate more efficiently.”

Depending on the size of the shortfall in different communities, what could be on the chopping block?

In Winston-Salem, Joines said, “We’d be looking at probably eliminating positions, cutting back on service levels, maybe freezing pay increases.”

In Boone, Town Manager John Ward said they are seeing a drop in sales and hotel taxes.

“We will end up having to do major cuts in vehicle replacement, equipment replacement, as well as delaying or resetting up a schedule for capital improvement projects and possibly a decrease in the amount of paving we can do on local streets,” Ward said.

Both Winston-Salem and Boone are in Foxx’s district.

Meyer argued that if state and local governments are left with budget shortfalls, any recession that results from the coronavirus will only be extended.

“Local governments – we're part of that economy. Both as an employer and as a provider, builder of infrastructure," he said. "We have infrastructure projects all across the state that are either going to slow, stop, or won’t be bid."

With the debate over a potential next aid package already underway on Capitol Hill, battle lines are being drawn.

Earlier this week, Senate Majority Leader Mitch McConnell, R-Ky., suggested states could pursue bankruptcy, expressing weariness about sending money to states.

Meanwhile, Rep. David Price, D-4th District, argued they should step in to “backstop” the states, saying that since the federal government is looking to the states to spearhead the coronavirus response, it is important local governments be given a hand.

“To come in and say no money follows that delegation of responsibility is especially egregious,” Price said.