Posted on July 23, 2020 at 2:52 PM by TML Staff
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Urgent Updates
What’s the latest with regard to federal stimulus funding?
According to the National League of Cities (NLC), Senate
Majority Leader Mitch McConnell is expected to release the senate’s proposal
soon. With regard to state and local government assistance, NLC’s
intelligence shows that no additional funds will be allocated for state and
local governments in that proposal. However, additional funding will be
a negotiating point with the House, and it will likely end up in some form in
the final bill.
With regard to the existing CARES Act funds, the Senate plan
is said to do the following:
-Change current law to allow state and local governments to
use funds for lost revenue purposes.
-Extend the date by which funds must be spent from December 30
to 90 days after the end of the fiscal year.
-Mandate that states give at least 15 percent of funds to
local governments, with guidance that they be given at least 45
percent.
-May not use funds for pensions/retirement benefits or to
replenish state or local “rainy day” funds.
-States must maintain their own budgeted spending levels
(i.e., states can't use the federal dollars to replace state spending)
-States may not impose any restrictions on the use of CARES
Act money by their local governments other than those set in the CARES Act
and associated Treasury Department guidance. [Editor’s
note: Texas has imposed restrictions on cities that receive the funds
from TDEM.]
NLC plans to release a statement calling for new funding given
that flexibility will not be enough to help cities through this
pandemic. NLC believes this is a multi-year problem given unemployment
is so high and cities continue to see revenue losses. The need is
greater than when CARES Act was passed given overall state and local
shortfalls.
Further Updates
Where can I find archived issues of the TML Coronavirus
Updates?
TML Coronavirus Updates are archived by date here and by subject here.
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