$95M is coming to the County, $24.4M for our bus system, $1.1M in CDBG funds, Small Businesses (including nonprofits) to get forgivable Payroll Protection loans, we’ve been declared a federal disaster area and more on the way? Who decides where that money will go?
We’ve heard the gloom and doom, but here’s the upside! Funding is on its way for some things in our community. The question is, how quickly will the funding be available and who and how will they decide where it goes? More to come as details become clearer I’m certain. However, as a community, we need to be thinking about what we should be advocating for this money to be spent on given the many needs.
BIG PICTURE
The CARES Act has the following funding in it according to the slide from the City of Madison Finance Department that will be presented at Finance Committee this afternoon.
Businesses = $877 billion
- $500 billion – Big Corporations
- $377 billion – Small Businesses
Individuals = $586 billion
- $560 billion for individuals (estimated)
- $26 billion safety net
State and Local Governments = $536.8 billion
- $339.8 billion – State and local governments
- $153.3 billion – Public Health
- $43.7 billion – Education (Wisconsin to get $25.4M)
CITY OF MADISON = $25 Million
So far the City of Madison is slated to get the following according to the slide from the City of Madison Finance Department that will be presented at Finance Committee this afternoon.
- $24.5 Million Federal Transit Aid
- $1.1 Million Community Development Block Grant Funds (could be community services or small business/main street activities)
- $278,128 in Byrne Grants (police department)
Most of this is going to transit, so on top of our wheel tax money, they are getting $24.5 million more.
DANE COUNTY = $95 million + Airport Money
So far Dane County is slated to get the following according to the slide from the City of Madison Finance Department that will be presented at Finance Committee this afternoon.
- $95M “Coronavirus Relief Fund”
- $790,767 CDBG funds
At the Personnel and Finance Committee meeting last Monday the Airport Director reported that they will be getting funding. I don’t believe it is in the “Coronavirus Relief Fund” but comes from additional funding.
Center on Budget and Policy Priorities has more about what the “Coronavirus Relief Fund” can be spent on. Here’s some highlights
- Only local governments with populations over 500,000 are eligible for the funds
- Has to go to meet costs connected to the virus
The National Conference of State Legislatures has this to add:
- Funds can be used for costs that:
- Are necessary expenditures incurred due to COVID-19.
- Were not accounted for in the budget most recently approved as of the date of enactment of this section.
- Were incurred during the period that begins March 1, 2020, and ends Dec. 30, 2020.
OTHER FUNDS CITY/COUNTY/NONPROFITS MAY RECEIVE FROM THE FEDERAL GOVERNMENT TO FIGHT CORONAVIRUS IMPACTS
In the federal funding, this is what I see that may help our community:
FEMA Funding – $45 billion
This funding is typically used for disaster relief.
- Our local governments may be able to be reimbursed for some of their costs through this funding.
- In the nonprofit world I come from the funds come to United Way and they are distributed through a process they control and given to nonprofits for eviction prevention, security deposits, utilities and food assistance. Who knows how much of this funding will become available locally and how it might be prioritized.
Tenant-Based Rental Assistance – $1.25 billion
I’m not sure what, if any, nonprofit is currently using their funds for this program, but they should be!
Public Housing Operating Fund – $685 million
Madison Community Development Authority and the Dane County Housing Authority may qualify for some of this funding
Project Based Housing Assistance – $1 billion
Madison Community Development Authority and the Dane County Housing Authority may qualify for some of this funding
Public Health Response = $4.3 billion
Surely Public Health Madison and Dane County will be eligible for some of this funding.
Childcare development block grant = $51 million
I’m a little out of my league here, but I”m guessing when they say “block grant” its a formula and the City of Madison and Dane County would be eligible for a portion of this funding.
Family Violence Prevention and Runaway and Homeless Youth = $1.3 million
This seems to be potential funding for Briarpatch, DAIS, UNIDOS, etc.
Aging and Disability Service Programs = $15.8 million
Our Dane County Aging and Disability Resource Center will likely be eligible for some of this funding.
Head Start = $11.4 million
Our local head start programs may benefit from this funding.
OTHER FUNDS CITY/COUNTY/NONPROFITS MAY RECEIVE FROM THE STATE TO FIGHT THE CORONAVIRUS IMPACTS
Coronavirus Relief Fund = $2.2 billion for Wisconsin
How will the state choose to spend this money?
Homeless Assistance Grants = $25.4 million for Wisconsin
The National Alliance to End Homelessness says there is another $4 Billion for homeless assistance. Here’s what they have to say:
The bill includes $4 billion for homeless assistance, to be distributed through the Emergency Solutions Grants program (ESG). ESG is a formula grant to states and local governments. It funds a broad range of activities for people who are homeless or who are at risk of homelessness, which in this bill includes anyone with income below 50 percent of area median income. HUD recently released a publication on how to use ESG to fund activities to protect homeless people from the new coronavirus. The bill eliminates requirements for matching funds, local planning, and procurement standards. It eliminates the cap on shelter funding. It eliminates habitability and environmental review standards for temporary emergency shelters. It allows up to ten percent of the funding to be used for administration.
The bill also includes the proviso that “none of the funds provided under this heading in this Act may be used to require people experiencing homelessness to receive treatment or perform any other prerequisite activities as a condition for receiving shelter, housing, or other services.” The HUD Secretary will have authority to waive almost any requirement of the regular ESG program, if the flexibility provided by the bill is not sufficient.
Funding will be released in two waves. The first will use the regular ESG formula, under a 30-day time frame, and will include up to $2 billion of the $4 billion. The remainder will be distributed based on a new formula developed by HUD, taking into account states’ and communities’ needs related to coronavirus response.
From the Finance Committee Slide, it looks like the state will get $25.4 million – and the city is sure to get a portion of that. The nonprofits will have to apply through the city to the state to get these funds that have significant strings attached to them.
FUNDS THAT WILL HELP BUSINESSES
Economic Development Administration
There is $1.5 billion available at the federal level
FUNDS THAT WILL HELP INDIVIDUALS
Low Income Home Energy Assistance Program = $8 million
This money will likely go to Energy Services in our community and people will have to apply for funding to pay their utility bills.
Supplemental Nuitrition Assistance Program (SNAP) = $15 billion + Emergency Food Assistance Program = $450 million
This is the amount at the federal level, but surely that money will be coming to our community in the form of “food stamps” and other food programs.
WHO WILL MAKE THE DECISIONS ON WHERE THE MONEY GOES?
Mayor’s office has all the power right now. The council abdicated their responsibilities.
The County Executive will just announce what he is doing and the county board will rubber stamp it. He usually announces through press releases as if its already a done deal.
I expect much of the money will not be done through typical RFP processes, because “the staff is too busy” and “there isn’t time” so if nonprofits want funding, they should have probably started lobbying over the last few weeks . . .
This is where it gets ugly folks. 🙁
