NYSAC Summary of the American Rescue Plan
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® FEDERAL COVID RELIEF: FUNDING FOR NY COUNTIES Since NYSAC Summary of the American Rescue Plan MAY 2021 HON. JOHN F. MARREN Counties Working For You President 515 Broadway, Suite 402 HON. MARCUS MOLINARO Albany, NY 12207 NYSCEA President www.nysac.org STEPHEN J. ACQUARIO 518-465-1473 Executive Director
® Since Executive Summary On March 11th 2021, President Joseph R. Biden, Jr. leaders throughout this pandemic, and recognized the signed the American Rescue Plan. This $1.9 trillion unique challenges and the vital role that county leaders, COVID-19 relief bill makes unprecedented investments local health officials, local social service departments in the programs critical to ending the pandemic and and all essential county workers played in fighting the aiding a nationwide recovery. pandemic, reducing its impact and helping to restore local economies. On May 10, 2021, the U.S. Treasury released guidance for the State and Local Recovery Fund. This summary includes details from the guidance and is designed Key Components of the to help county leaders better understand how this federal funding can be used to support local recovery. American Rescue Plan This coronavirus stimulus package includes funding The American Rescue Plan is over 600 pages long, and for a national COVID-19 vaccination program, food includes assistance, emergency childcare, small businesses, $1.9 trillion dollars of appropriations impacting dozens unemployment benefits, rental assistance, public of state and federal agencies. The central focus for transit funding to help schools re-open safely. counties is the $350 billion included for state and local Most notably, the American Rescue Plan provides assistance. The bill includes $65 billion in direct aid to counties – $2.28 billion • $200 billion for states & territories – allocated based for New York’s 57 counties based on population and on unemployment levels $1.6 billion for New York City – out of $350 billion in emergency funding for state, local and territorial • $130 billion for counties and all other municipalities governments. New York City will receive another $4.2 • $65B for counties – allocated based on billion through CDBG formula funding. population, $65B for all other municipalities – Funding from the American Rescue Plan can be used allocated on a modified CDBG formula to respond to the public health emergency caused • $20 billion for Native American tribes by the coronavirus as well as address the economic The U.S. Treasury has created a dedicated website to devastation that came with it, including assistance assist local governments with administering the “State to households, small businesses and nonprofits, aid and Local Fiscal Recovery Fund.” This main landing to impacted industries such as tourism, travel and page can be accessed here: https://home.treasury.gov/ hospitality. policy-issues/coronavirus/assistance-for-state-local-and-tribal- The funding may also be used to assist governments governments/state-and-local-fiscal-recovery-funds in providing services and making investment in water, The website provides the ability to register to receive sewer and broadband infrastructure. immediate updates from Treasury on new guidance FAQ The inclusion of this critical local funding would material as it becomes available. Register for updates not have happened without the sustained efforts here: https://public.govdelivery.com/accounts/USTREAS/ of New York Senator Charles Schumer, the Senate subscriber/new?topic_id=USTREAS_1141 Majority Leader. He worked closely with county 2 | NYSAC SPRING 2021
Eligible Uses The American Rescue Plan • Response to the public health emergency with respect to COVID-19 or its negative economic impacts, including assistance to households, small businesses and nonprofits, or aid to impacted provides $2.28 industries such as tourism, travel and hospitality billion for the 57 • Respond to workers performing essential work during the COVID 19 public health emergency by counties of providing premium pay to eligible workers of the county that are performing such essential work, New York State. or by providing grants to eligible employers that have eligible workers who perform essential work. • Provision of government services to the extent • Payroll and covered benefits for public health, of the reduction in revenue of such state/county/ healthcare, human services, and public safety locality staff to the extent that they work on the • Investment in water, sewer or broadband COVID-19 response infrastructure REPLACE PUBLIC SECTOR REVENUE LOSS In addition to the four core spending areas above, • Ensure continuity of vital government services NYSAC has also included a list developed by U.S. by filling budget shortfalls Treasury to help you navigate some of the other • Revenue loss is calculated relative to a eligible and ineligible uses of funds. counterfactual trend beginning with the last full fiscal year pre-pandemic and adjusted annually SUPPORT PUBLIC HEALTH RESPONSE for growth • Services to contain and mitigate the spread • Recipients may re-calculate Revenue loss at of COVID-19, including vaccination, medical multiple points during the program, supporting expenses, testing, contact tracing, quarantine those entities that experience revenue loss with costs, capacity enhancements, and many related a lag activities • Behavioral Healthcare Services including mental WATER & SEWER INFRASTRUCTURE health or substance misuse treatment, crisis • Includes improvements to infrastructure intervention, and related services such as building or upgrading facilities and transmission, distribution, and storage systems • Eligible uses aligned to Environmental Protection Agency project categories for the Clean Water State Revolving Fund and Drinking Water State Revolving Fund NYSAC SPRING 2021 | 3
® Since EQUITY-FOCUSED SERVICES BROADBAND INFRASTRUCTURE • Additional flexibility for the hardest-hit • Focus on household and businesses without communities and families to address health access to broadband and those with connections disparities, invest in housing, address educational that do not provide minimally acceptable speeds disparities, and promote healthy childhood • Fund projects that deliver reliable service with environment minimum 100 Mbps download / 100 Mbps • Broadly applicable to Qualified Census Tracts, upload speeds unless impracticable other disproportionately impacted areas, and • Compliment broadband investments made when provided by tribal governments through the Capital Projects Fund ADDRESS NEGATIVE ECONOMIC IMPACTS INELIGIBLE USES • Deliver assistance to workers and families, • Changes that reduce net tax revenue must not including support for unemployed workers, aid to be offset with American Rescue plan funds households, and survivors’ benefits for families of COVID-19 victims • Extraordinary payments into a pension fund are apprehended use of this funding • Support small businesses with loans, grants, in- kind assistance, and counseling programs • Other restrictions apply to eligible users • Speed the recovery of impacted industries The examples listed above are not exhaustive all including the tourism, travel, and hospitality terms, and conditions associated with the use of this sectors funding and do not describe all the restrictions on use that may apply. • Rebuild public sector capacity by rehiring staff replenishing state unemployment insurance funds and implementing economic relief programs Requesting Funding PREMIUM PAY FOR ESSENTIAL WORKERS For counties to receive direct funding from U.S. • Provide premium pay to essential workers Treasury, the county must submit your request via both directly and through grants to third-party the following portal here: https://home.treasury.gov/ employers policy-issues/coronavirus/assistance-for-state-local-and- tribal-governments/state-and-local-fiscal-recovery-fund/ • Prioritize low-and moderate-income workers who request-funding face the greatest mismatch between employment- related health risks and compensation For questions about the Treasury Submission Portal or for technical support, please e-mail • Key sectors include healthcare, grocery and food covidreliefitsupport@treasury.gov services, education, childcare, sanitation, and transit For general questions about the program, please e-mail SLFRP@treasury.gov. • Must be fully additive to a workers wages 4 | NYSAC SPRING 2021
Additional Public Health ($96B) Components of the • $92 billion, testing and tracing, research, etc. Includes $7.7 billion for state and local public health American Rescue departments. Plan • $4 billion for mental health and substance abuse. Payments to Individuals The bill includes $790 billion in payments to Medicaid ($10B) individuals, including: • $9.3 billion – increase FMAP by 7.35% for 4 quarters • $242 billion for unemployment benefits – for home and community-based services (Funds extends multiple unemployment compensation can be sued to supplement, but not supplant state programs through September 6, 2021 (Pandemic funds). Unemployment Assistance (PUA), regular UI benefits, extended UI benefits, etc.) +$300 above the state insured amount to be paid during the Housing ($39B) March 15th through September 6th period. In • $19 billion for rental assistance addition, the first $10,200 would be exempt from • $10 billion for mortgage assistance federal taxation for joint filers under $150,000; • $4.5 billion for LIHEAP • $400 billion in recovery rebates – $1,400 checks per person, plus $1,400 per child Income • $5 billion for homelessness services and supports completely phaseout at $80k for an individual filer ($160K join filers). Also expands child tax credit from $2,000 to $3,000 with similar income Agriculture ($16 billion) thresholds; • For a variety of existing agricultural programs • $21 billion for an expansion of EITC – Expands FEMA, Transportation and the earned income tax credit eligibility in 2021 Infrastructure ($90 billion) and makes other minor adjustments on a permanent basis; • $50 billion for FEMA • $43 billion for health insurance subsidies – • $30 billion for transit aid COBRA (100% federal subsidy on premiums); and • $8 billion for airports • $83 billion to support multiple employer pension plans experiencing fiscal shortfalls. Small Business ($50 billion) • $25 billion for restaurants Support for Education ($220B) • $15 billion for Economic Injury Disaster Loans • $129 billion K-12 (est. of $9.6 billion for NYS). • $7.25 billion – expanding PPP to certain nonprofits and digital media companies • $40 billion higher education (est. $2.8 billion for NYS). • $1.25 billion for live performance venue operators NYSAC SPRING 2021 | 5
® Since County-Level Breakdown of Funding The 57 counties of New York State and New York City received a total of $8.08 billion in funding from the American Rescue Plan Albany County $59,340,959 Orleans County $7,837,903 Allegany County $8,952,636 Oswego County $22,749,964 Broome County $37,000,061 Otsego County $11,555,818 Cattaraugus County $14,784,835 Putnam County $19,097,507 Cayuga County $14,873,990 Rensselaer County $30,828,334 Chautauqua County $24,649,420 Rockland County $63,280,694 Chemung County $16,210,350 Saratoga County $44,648,193 Chenango County $9,169,406 Schenectady County $30,165,010 Clinton County $15,633,268 Schoharie County $6,021,192 Columbia County $11,549,602 Schuyler County $3,458,801 Cortland County $9,242,051 Seneca County $6,607,209 Delaware County $8,572,706 St. Lawrence County $20,927,232 Dutchess County $57,148,397 Steuben County $18,526,253 Erie County $178,447,094 Suffolk County $286,812,434 Essex County $7,164,479 Sullivan County $14,651,782 Franklin County $9,716,187 Tioga County $9,362,868 Fulton County $10,369,022 Tompkins County $19,847,267 Genesee County $11,125,969 Ulster County $34,491,474 Greene County $9,165,716 Warren County $12,420,372 Hamilton County $857,756 Washington County $11,888,160 Herkimer County $11,910,497 Wayne County $17,465,517 Jefferson County $21,333,967 Westchester County $187,926,698 Lewis County $5,107,690 Wyoming County $7,742,143 Livingston County $12,220,307 Yates County $4,839,058 Madison County $13,779,458 New York City $5,878,895,712 Monroe County $144,080,127 Montgomery County $9,560,602 * NYC Receives funding based on population as Nassau County $385,003,440 well as the CDBG formula funding. Niagara County $40,650,387 Oneida County $44,416,661 Onondaga County $89,452,165 Ontario County $21,322,895 Orange County $74,770,082 6 | NYSAC SPRING 2021
Conclusion For more than a year, counties have been on the front lines of the fight against the COVID-19 pandemic, standing up testing, operating tracing and quarantining operations, providing PPE to first responders; working with businesses to help the economy reopen safely; and distributing vaccines to essential workers and vulnerable populations. Counties accomplished this while simultaneously facing an economic quadruple threat of: 1. Declining local revenues, especially sales tax, but also hotel occupancy taxes, mortgage recording taxes, gaming revenues, among other local fees; 2. Higher spending necessary to respond to the health emergency; 3. The loss of state reimbursement; and 4. The potential of significant losses for small businesses on our main streets that threatened jobs and the property tax base over the short to mid- term. In response to this unprecedented economic threat, counties have been consistent in their call for direct federal aid. The American Rescue Plan is a massive step forward in addressing the challenges that face counties as they work to eliminate the pandemic and get their local economies moving again. By investing $65 billion in local governments nationwide, and over $8 billion for the counties of New York, the American Rescue Plan invests in the local leaders, local health workers, emergency responders and local essential employees who put their lives on the line to keep our communities safe and who will lead our communities to a brighter and stronger future. NYSAC SPRING 2021 | 7
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