The California Special Districts Association is proud to support a bill introduced Monday that would provide special districts across the United States access to federal relief measures to assist state and local governments with unforeseen budgetary hardship resulting from the COVID-19 pandemic.
Congressman John Garamendi, D-Calif., introduced HR 7073, the “Special Districts Provide Essential Services Act,” which would give special districts access to key resources available to local governments under the CARES Act, including the Coronavirus Relief Fund and the Federal Reserve’s Municipal Liquidity Facilities program.
Click here to access text of the bill.
Special districts are local governments created by a community to deliver specialized services – such as critical infrastructure, first response and community enrichment services – that are essential to residents’ health, safety, economy, and well-being. Approximately 30,000 special districts across the country continue to serve millions of Americans and respond to needs within their communities while facing the constraints of the pandemic.
“Special districts in California and across the nation have been financially strained due to COVID-19 and have been excluded from much-needed federal relief,” said Neil McCormick, CEO with the California Special Districts Association (CSDA). “The Special Districts Provide Essential Services Act will help thousands of these specialized local governments to continue to provide important infrastructure, first response and other critical local services for millions of Americans through this pandemic. The aid will help special districts continue to focus on preparing for emergencies we know inevitably are ahead, like wildfires and Public Safety Power Shutoffs. CSDA proudly supports the bill and thanks Congressman Garamendi for spearheading this effort.”
The legislation would require a state to distribute no less than five percent of any future Coronavirus Relief Fund monies received by the state to in each respective state within 60 days of receiving the resources. The bill would also authorize the Federal Reserve to consider special districts as “eligible issuers” for its Municipal Liquidity Facilities program to purchase suitable municipal bond and revenue anticipation notes.
Lastly, the bill establishes a definition of “special district”, which currently does not exist in federal statute: “The term ‘special district’ means a political subdivision, formed pursuant to general law or special act of a state, for the purpose of performing one or more governmental or proprietary functions.”
The bill has earned the endorsement of CSDA and a national coalition of state special districts associations in Colorado, Florida, Oregon and Utah. A coalition of 12 special districts stakeholder organizations in California also endorse the Special Districts Provide Essential Services Act.
CSDA will continue to work with state and national coalition partners to represent the needs of special districts at the state and federal level. CSDA seeks support for this bill and future legislation to that could bring aid to special districts. If you have any questions contact Cole Karr, Public Affairs Field Coordinator at colek@csda.net.