Legislative Auditor Report on the Effect of COVID-19 on Local Government Revenues

https://cdn.ymaws.com/www.lpgov.org/resource/resmgr/effect_of_coivd-19_on_local_.pdf

Link to the US Treasury CARES page  https://home.treasury.gov/policy-issues/cares/state-and-local-governments.  

May 4, 2020 FAQ from US Treasury is attached (link was updated and only shows May 28, 2020 guidance)

PPP report also attached 

Other Federal Links

• Data sources and the distribution methodology for units of local government. 
• Listing of eligible units of local government. 
• Coronavirus Relief Fund Guidance for State, Territorial, Local, and Tribal Governments
• Coronavirus Relief Fund Frequently Asked Questions (5/28/2020)
• Guidance on Treatment of Alaska Native Corporations
• Coronavirus Relief Fund Tribal Allocation Methodology 
• Payments to States and Eligible Units of Local Government (5/11/2020)
• Tribal Employment and Expenditure Submission Instructions (5/14/2020)
• Frequently Asked Questions on Tribal Population  (6/4/2020)
• Tribal Allocation Methodology for Second Distribution 

Coronavirus Emergency Supplemental Funding Program

https://bja.ojp.gov/sites/g/files/xyckuh186/files/media/document/bja-2020-18553.pdf

Overview - 

The Coronavirus Aid, Relief, and Economic Security Act (CARES) provides an estimated $2 trillion stimulus package to battle the harmful effects of the COVID-19 pandemic. A few highlights of what's included in the package: 

• Creates a $150 billion Coronavirus Relief Fund for state, local and tribal governments. See estimated state allocations courtesy of Federal Funds Information for States.
• $30 billion for an Education Stabilization Fund for states, school districts and institutions of higher education for costs related to the coronavirus. 
• $45 billion for the Disaster Relief Fund for the immediate needs of state, local, tribal and territorial governments to protect citizens and help them respond and recover from the overwhelming effects of COVID-19.
• $1.4 billion for deployments of the National Guard. This level of funding will sustain up to 20,000 members of the National Guard, under the direction of the governors of each state, for the next six months in order to support state and local response efforts.
• An additional $4.3 billion, thorough the Centers for Disease Control and Prevention, to support federal, state and local public health agencies to prevent, prepare for, and respond to the coronavirus.
• Requires the Department of Homeland Security to extend the Real ID deadline for full implementation by states from Oct. 1, 2020, to no earlier than Sept. 30, 2021. DHS subsequently announced that the new deadline would be Oct. 1, 2021.
• $25 billion for transit systems. Click here for specific funding amounts determined by the Federal Transit Administration which are now available for use. These funds are being distributed through existing formulas including the Urbanized Area Formula Grants, Formula Grants for Rural Areas, State of Good Repair Formula Grants and Growing and High-Density States Formula Grants using fiscal year 2020 apportionment formulas.
• $400 million in election security grants to prevent, prepare for, and respond to coronavirus in the 2020 federal election cycle. States must provide an accounting to the Election Assistance Commission of how the funds were spent within 20 days of any 2020 election.
• Expands unemployment insurance from three to four months, and provides temporary unemployment compensation of $600 per week, which is in addition to and the same time as regular state and federal UI benefits.
• Establishes a $500 billion lending fund for businesses, cities and states.
• Provides a $1,200 direct payment to many Americans and $500 for each dependent child.

• Provides $150 billion to states, territories, local and tribal governments to use for expenditures incurred due to the public health emergency with respect to COVID-19 in the face of revenue declines, allocated by population proportions.
  • Distribution is based on population. No state shall receive a payment for fiscal year 2020 that is less than $1.25 billion.
  • 45% of a state’s funds are set aside for local governments, with populations that exceed 500,000, with certified requests to the U.S. secretary of Treasury. Certification requires a signature by the chief executive of the local government that the uses are consistent with certain requirements.

• NCSL believes the funds remaining from the 45% set aside for localities revert back to the state. 

• $3 billion set aside for District of Columbia, Puerto Rico, Virgin Islands, Guam, Northern Mariana Islands and American Samoa.
• $8 billion for tribal governments.

• Funds can be used for costs that:
  • Are necessary expenditures incurred due to COVID-19.
  • Were not accounted for in the budget most recently approved as of the date of enactment of this section.
  • Were incurred during the period that begins March 1, 2020, and ends Dec. 30, 2020.