Money for towns and states

Right now stimulus talks are hung up for a couple of reasons. One of them is that Democrats want aid for cities and states, which are said to be hurting because of revenues crimped by the drop in tax revenues due to the coronavirus (actually, a note from Nuveen says that state revenues are down much less than they were projected to be in March-April, though I can't find aggregate numbers for cities).

But they're planning to send out more stimulus checks to everybody, which to my mind is just silly. I don't need the money, nor does anyone else who has participated in the updraft of the markets and the burgeoning work from home economy. There is tons of money in bank accounts and brokerage accounts belonging to individuals and corporations. 

Municipal bond issuance is up, but the total amount of outstanding munis hasn't moved much because cities and downs have been calling bonds issued at higher rates and refunding. There is demand for more munis, but the issuance cycle is a little slow. 

Really, in principle municipalities should be getting creative in funding their needs. Why not arrange lines of credit where necessary (banks are hungry to lend) and then go out to their communities and ask for money to maintain services? Set up 501c3s and hoover up $ to fund needs. That way they get the money but taxable income is reduced and the federal and state governments don't. Is it because elected officials weary of always asking for money? It's one of the things that keeps them connected to constituents?

There are probably good reasons that they don't, but I don't know them.