OCTOBER 22, 2020

1:30 PM ET/ 12:30 PM CT / 11:30 AM MT / 10:30 AM PT

FEDERAL STIMULUS: WHAT IT MEANS FOR STATES

The National Conference of State Legislatures is the country’s most trusted bipartisan organization serving legislators and staff. We promote policy innovation, create opportunities for lawmakers to share knowledge and ensure state legislatures have a strong, cohesive voice in the federal system. We do this because we believe in the importance of the legislative institution and know when states are strong, our nation is strong.

Federal Funds Information for States www.ffis.org

A Year Unlike Any Other

NCSLOctober 22, 2020

http://www.ffis.org/

Relief legislationCoronavirus Preparedness and Response ($8.3 B; health)

Families First Coronavirus Response Act ($192 B; FMAP, workers)

CARES Act ($1.7 T; state aid)

PPP and Health Care Enhancement Act ($483 B; businesses, hospitals, testing)

Heroes Act and related (House; $2.4 - $3.5 T)

HEALS Act and related (Senate; $500 B - $1 T)

Enacted COVID-19 grant funding

All Other $4,823

HUD$12,068

USDA$26,085

ED$30,850

DOT$35,000

FEMA$45,400

Treasury$150,000

HHS*$201,260

$ in millions

* Excludes increase in Medicaid matching rate

$505,485

The Heroes Act upped the ante

All Other$12,150

HUD$124,079

USDA$15,100

ED$100,150

DOT$30,750

Treasury$990,755

HHS*$208,679

$ in millions

* Excludes increase in Medicaid matching rate

$1,481,663

The HEALS Act was more modest

Commerce$500

FEMA$930

HUD$3,200

DOL$4,416

DOT$10,000

HHS*$73,108

ED$105,000

$ in millions

$197,154

House v. Senate relief packages• House: $2.4 - $3.3 T• Senate: $500 B - $1 TTotal Cost

• House: $400+ B - $1 T• Senate: CRF flexibilities

State-Local Aid

• House: 14 PP for FY 2021, then current law • Senate: current lawFMAP

• House: $600/week• Senate: $200 - $400/weekFPUC

Public Health Emergency (PHE)Declared 1/31/20 and renewed 4/20/20, 7/23/20, 10/2/20

90 days or duration of emergency

6.2 additional FMAP through end of quarter in which PHE ends (under current renewal, that means March 31, 2021)

Other Medicare, Medicaid, CHIP, and SNAP flexibilities also tied to PHE

Point of reference: opioid PHE dates to October 2017 and has been continually renewed since

What have we learned?State UI systems are not nimble

“Flexible” grants can be inflexible

Mandates have a way of creeping in

The federal-state partnership needs work

One size does not fit all with local aid mandates

Need for statutory fiscal relief with trigger? Based on FMAP?

What’s in the CR?Extends FY 2020 funding through December 11

Extends FAST Act through September 30, 2021

Extends through December 11 TANF and other mandatory HHS programs set to expire November 30

Delays Medicaid DSH cuts through December 11

Extends through September 30, 2021 (and expands) child nutrition pandemic EBT; other nutrition waivers, flexibilities

Minding the calendarOctober 1: ESSA and WIOA expired

October 1: Secure Rural Schools expired

October 1: Full phase-out of extra CHIP match

December 12: CR expires (mandatory funding for HHS programs, DSH cuts)

December 31: CARES Act provisions around UI, Title 32 expire

Questions?

Check for updates: www.ffis.org

mhoward@ffis.org202-624-5848

http://www.ffis.org/mailto:mhoward@ffis.org

EMILY MAHER, POLICY ASSOCIATE, FISCAL AFFAIRS PROGRAM, NCSL

OCTOBER 22, 2020

STATE ACTIONS ON CORONAVIRUS RELIEF FUNDS

CORONAVIRUS RELIEF FUND (CRF)

The CARES Act provided $150 billion to state, local and tribal governments in the Coronavirus Relief Fund. Directly relate to COVID-19 Not accounted for in the budget approved before March 27 Funds must be spent by Dec. 30, 2020.

According to NGA states have allocated nearly 90% and obligated over 60%. All states expected to spend by the deadline.

U.S. TREASURY CORONAVIRUS RELIEF FUND GUIDANCE

Grants and Short-Term

Loans

Payroll Support Programs and

Hazard Pay

Unemployment Insurance Costs

Tech and Broadband

Infrastructure*

Workers Compensation FEMA Match

Revenue Replacement

Long-Term Loans*

Severance Pay Capital

Improvement Projects*

Eligible Expenses Ineligible/Not Recommended Expenses

STATE ACTIONS ON CRF

Where is your state prioritizing funds?

Local Governments

Housing & Homelessness

Public Health &Emergency Response Education

Unemployment and Workforce Development

Small Businesses Human Services

Technology and Broadband

Courts and Corrections

CRF MAJOR ALLOCATION CATEGORIES

SHIFTING TRENDS

CRF ISSUES REMAIN

Guidance and FAQs have been released piecemeal Most recent updates:

Guidance – Sept. 2 FAQ – Oct. 19

Still can not use funds for revenue shortfalls Continuing issues

Ambiguity in guidance and actual implementation Reporting requirements Uncertainty around a fourth package Spending authority and allocation Government Finance Officers Association, Oct. 2020

STATE OVERSIGHT OF FEDERAL CARES ACT FUNDS

Almost all 50 states and territories have created or proposed ways to track, oversee and distribute information relating to federal stimulus funds.

New entities, state agencies are documenting projects, and legislatures are forming commissions or committees to monitor

Control varies – none, advisory, conditional, joint, binding

TRACKING METHODS

Thank you!

Emily Maher | emily.maher@ncsl.org

THANK YOU!

mailto:emily.maher@ncsl.org

PERSPECTIVE FROM MINNESOTA

Eric NaumanLead Fiscal AnalystSenate Counsel, Research and Fiscal AnalysisMinnesota Senate

Katherine SchillFiscal AnalystFiscal Analyst DepartmentMinnesota House of Representatives

Questions and Answers

Please type your questions into the chat box in the lower left-hand corner of your screen.

BUDGET, TAXES, AND PENSIONS, OH MY!

Oct. 29 – Public Pension Management Nov. 12 - Budget and Tax Update Nov. 19 - Emerging Tax issues

Thank you!

Contact:Mandy Rafool | mandy.rafool@ncsl.orgEmily Maher | emily.maher@ncsl.org

mailto:emily.maher@ncsl.orgmailto:emily.maher@ncsl.org

Federal Stimulus: What it means for states Slide Number 2�A Year Unlike Any OtherRelief legislationEnacted COVID-19 grant fundingThe Heroes Act upped the anteThe HEALS Act was more modestHouse v. Senate relief packagesPublic Health Emergency (PHE)What have we learned?What’s in the CR?Minding the calendarQuestions?State Actions on Coronavirus relief fundsCoronavirus Relief fund (CRF)U.S. Treasury Coronavirus Relief Fund Guidance State Actions on CRF CRF Major Allocation Categories Shifting trends CRF issues RemainState Oversight of federal cares act fundstracking Methods Thank You!Perspective from Minnesota Slide Number 25Budget, Taxes, and Pensions, Oh My!Slide Number 27