The federal government passed the American Rescue Plan Act (ARP) without dedicated funding for special districts, but with direct allocations to states, cities, and counties. However, CSDA, in partnership with the National Special Districts Coalition, was able to secure transfer authority under the Act wherein states and local governments receiving ARP funds are explicitly empowered with the authority to transfer Coronavirus State Fiscal Recovery monies to the special districts.
In our continued efforts to assist special districts impacted by COVID-19 response, CSDA has now turned our attention to the state and is urging the Governor and State Legislature to use their transfer authority to its fullest extent to distribute a portion of their ARP funding to California’s special districts for the benefit of the millions of Californians they serve statewide.
Early this month, a coalition letter representing broad support from 700+ individual special districts, statewide associations and nonprofits, counties, cities, JPAs, schools, local businesses and community groups, and individual stakeholders was sent to the Governor and legislative leadership urging them to extend special district local governments access to Coronavirus fiscal relief. This coalition continues to grow daily, as does support for special districts’ access to this funding. In fact, Senators Feinstein and Padilla also sent a letter to the Governor and legislative leadership requesting that they use the authority within the ARP to help special districts in dire need of relief.
How Can You Help?
- Join the Coalition here. This coalition letter will be continuously updated and used in advocacy efforts – and we continue to solicit coalition support.
- Ask your community partners and stakeholders to support your effort to receive access to COVID-19 relief funding by joining the coalition. Tools are available at csda.net/take-action/covid to support districts in doing your own coalition building efforts, including talking points, a sample email to stakeholders, and links to the letter and online sign-on form. Those districts who have reached out to their personal networks have experienced overwhelming support from other local government organizations, local businesses, and their constituency. Suggested talking points are additionally included below, for your reference.
Suggested organizations that may have a direct or peripheral investment in the success and fiscal health of your special district could include:
- Other forms of government in your service area, including cities, counties, JPAs, and schools.
- Labor, contractors, vendors, trade associations, service groups (Rotary, Kiwanis, Lyons)
- Agriculture and other major water users
- Environmental groups, fire safe councils, lifeguards and safety organizations (CPR, American Red Cross, etc.), blood banks
- Hiking, biking, and equestrian groups, nature enthusiasts
- Sports leagues, drama programs, chambers of commerce, visitors buraus, hotels and restaurants (benefiting from tournaments and festivals, sponsoring teams, hosting pizza parties), vendors, small business owners teaching classes (yoga, art, etc.), churches/pastors
- Non-profits in the health industry, doctor/medical groups, and mental and physical health groups/organizations
- Fishermen and businesses benefiting from the port facilities, companies doing imports/exports
- Any group that uses your facilities or partners with your district
Talking Points: Background
- To date, the State of California will have received just shy of $58 billion in flexible funding in State and Local Government COVID-19 Relief (collectively between the CARES Act and ARP and those funds directed to the state and to cities and counties).
- None of the Coronavirus Relief Funds from the CARES Act flowed directly to special districts, including from the state’s $9.5 billion share.
- From the ARP alone, California will receive $26 billion to the General Fund – yet no funds have been committed toward assisting special districts hurting from COVID-19 response efforts.
- And, yet, as local government agencies, special districts have also been excluded from private and non-profit sector forms of relief like PPP, tax credits, and grants.
Talking Points: The Impact
Special districts have report $1.92 billion in experienced unmet need as of February 5, 2021 and a projected $2.43 billion in unmet COVID-19 impacts through December 2021. As a result of their lack of access to relief funding and mounting fiscal impacts, in order to balance budgets 33 percent of special districts report reducing workforce and 42 percent report reducing services, with one of the most common responses being to delay, defer, or cancel capital improvement projects.
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