President Joe Biden signed on March 11 the American Rescue Plan Act. The $1.9 trillion bill includes $360 billion for state and local government relief. While special districts are explicitly named in the legislation as eligible to receive funding, they did not receive direct access and must now request a funding transfer to address COVID-19 impacts.
California is expected to receive an estimated $42.63 billion from the newly-established Coronavirus State Fiscal Recovery Fund, with $26.6 billion reserved for state programming and the remainder directed to cities, counties, and tribal governments.. CSDA will implement an advocacy campaign engaging special districts, state legislators, and other stakeholders to urge the state to utilize to the fullest extent its authority to transfer funding to special districts.
In addition to taking action, special districts are encouraged to be proactive and prepare to demonstrate COVID-19 impacts and needs. This will include, but is not limited to:
- Expenditures made in response to the COVID-19 pandemic (personal protective equipment, sanitization, non-reimbursed state unemployment charges, paid leave due to COVID-19, telecommuting capabilities, and any other costs incurred in response to public health orders)
- Utility arrearages
- Revenue loss contributed to COVID-19 (consider calculating the difference between March 2019-March 2020 revenues and March 2020-2021)
The American Rescue Plan also allows states and local governments to use funds to make "necessary investments" to water, sewer and broadband infrastructure. Projects and investments considered eligible for incoming relief is subject to U.S. Treasury guidance expected in the coming weeks.
Under the law, the U.S. Treasury has a May 10 deadline to distribute relief funds directly to states, counties, and cities with a population of 50,000 or more. States will allocate funds to cities with populations less than 50,000 within 30 days of receiving funds.
Contact Cole Karr, CSDA Federal Advocacy Coordinator, for questions at colek@csda.net.
#COVID-19
#COVID-19Relief
#AdvocacyNews
#FeatureNews