GovWin SLED Coronavirus Recon

Published: June 10, 2020

Coronavirus (COVID-19) PandemicRecon

GovWin's SLED Coronavirus Recon, produced by Deltek's SLED Market Research team, is designed to support awareness and understanding of the response to coronavirus (COVID-19) pandemic by state, local, and educational (SLED) entities and the contractors that support them.

General

Funding & Economic Impact

  •  (Washington) State reaches 24,041 cases on Monday; more CARES funding allocated
    • Another round of federal CARES Act funding has been allocated by Pierce County. As a result, nearly one-third of the $158 million total CARES funding has been allocated to date.
  • How Federal Funding Failed to Match Each State's COVID Outbreak
    • The relief and recovery packages have provided relatively timely support to Americans and will certainly help stave off longer-term economic damage. The legislation has also been widely criticized for flaws such as prioritizing industries over workers, inadequate funding for health care, and potentially hindering people who do not typically file tax returns from applying for one-time payments.
    • More generally, the distribution of the funds to states has appeared especially crude — as many of the hardest hit states have not received federal funding commensurate to the severity of their public health or economic crises.
  • Partial reopening of Indiana's economy helps boost state tax revenue in May
    • According to the State Budget Agency, Indiana's General Fund collected a total of $952.4 million from all revenue sources in May.
    • That was $233.3 million, or 19.7%, less than predicted by the December 2019 revenue forecast, and $187.4 million, or 16.4%, below state tax collections for May 2019.
  • ‘We need help’: Small cities face fiscal calamity from virus
    • The federal CARES Act sent $150 billion to states and the nation’s most populous cities and counties to help them pay for expenses related to the virus outbreak. But only 36 cities met the population threshold of 500,000 or more to qualify for the money. With the next round of aid stalled in Congress — and no guarantee of a federal bailout anytime soon — Allentown and other local governments are facing tough choices about what to cut and what to keep.
  • (Michigan) Detroit council signs off on $31M spending plan for federal COVID aid
    • Detroit's City Council unanimously signed off Tuesday on the Duggan administration's spending plan for pandemic relief dollars awarded under the Coronavirus Aid, Relief and Economic Security Act, or CARES.
  • (Nevada) Nevada governor's plan addresses $812M budget shortfall through cuts, spending reversals
    • The plan includes $67 million in reductions in state agency operating expenses and $49 million in reversals of one-shot appropriations from the 2019 legislative session
  • (Illinois) Pritzker signs pandemic budget, approves Medicaid for undocumented seniors
    • The budget spends $8.9 billion on K-12 education,  $1.9 billion on higher education, $7 billion on social services, $8 billion on Medicaid and $2 billion on criminal justice and public safety
  •  (Delaware) State refunds $33 million of debt
    • The transaction will save the state $5.2 million in debt service on a net present value basis over the next decade and is structured to further help the state address the fiscal year 2021 budget challenges brought on by the COVID-19 emergency  
  • Fed to keep providing aid and sees no rate hike through 2022
    • The Federal Reserve stated that it will keep supplying all the help it can by buying bonds to maintain low borrowing rates and forecasting no rate hike through 2022.
  • Iowa legislators laying groundwork on $7.85 billion general fund budget
    • Republicans began work on a $7.85 billion state budget proposal for next fiscal year that they called a “status quo” spending plan for much of state government while providing more state money to K-12 school and Medicaid.
  • (Illinois) Gov. Pritzker Signs $42.9 Billion Illinois Budget
    • Governor Pritzker has signed the Illinois operating budget for Fiscal Year 2021 into law. $5 million of the $42.9 billion budget directs federal aid from the CARES Act and other federal aid packages to public health, social services, small businesses, local governments and households, including funding targeted to communities disproportionately impacted by COVID-19. The budget will go into effect July 1, 2020.
  • Nevada Anticipating $812 Million Shortfall After COVID-19 Pandemic
    • The State is anticipating an $812 million shortfall for the fiscal year 2020, which includes approximately $265 million in General Funds necessary to address the projected shortfall in the Distributive School Account. The Governor’s Finance Office is proposing $67 million in reductions in state agency operating expenses, as well as $49 million through the reversal of one-time appropriations from the 2019 session that had not yet been expended.
  • (New Mexico) Legislative Finance Committee To Discuss General Fund Revenue, Public School Response To COVID-19
    • The New Mexico Legislative Finance Committee will be holding a virtual meeting discussing the outlook of the general fund revenue today, June 10. The reports expected to be released form the meeting include Public School Response to COVID-19 and Opportunities to Mitigate Lost Learning; Prekindergarten Quality and Educational Outcomes; and the Fiscal Analysis of New Mexico’s Health Security Plan.

Higher Education

  • Amid COVID-19 Pandemic, Kaine Introduces Bill To Help Higher Education Institutions Access Federal Funding To Support Students
    • Senator Tim Kaine introduced the Coronavirus Relief Flexibility for Students and Institutions Act to fix several implementation issues with the higher education emergency relief fund in the CARES Act by providing institutions of higher education and students with the increased flexibility Congress intended.
    • This bill would make an additional 7.5 million students eligible for emergency financial aid and allow institutions of higher education to use CARES Act funds to cover revenue losses incurred as a result of COVID-19. It would also ensure that colleges hardest hit by COVID-19 are receiving the support they need.

K-12 Education

Health Care

Social Services 

  • California budget cuts could end adult day care
    • This week, state legislators and California Gov. Gavin Newsom are in the final stage of negotiating the new state budget, set to be ratified by Monday, June 15. As part of the haggling, the $95.2 million California would spend on the Adult Day Services program, which Estelle Sherman describes as “a lifeline,” is on the red line
  • (Washington) Up to $399 per Child to be Added to Washington EBT Cards in July
    • The P-EBT benefits – a one-time amount up to $399 per eligible child in each household – automatically will be deposited onto existing EBT cards in early July

Justice/Public Safety

  • Protecting Correctional Officers during the Pandemic
    • The virus has taken an enormous toll on correctional officers and staff within the nation’s prisons and jails. As of June 9, 50 correctional officers have died in the line of duty from COVID-19. More than 7,500 county, state, and federal officers have tested positive for the virus and require quarantine.

Transportation

Community Development/Housing

  • HUD Allocates Nearly $3 Billion In Funding To Aid Homeless Amid Coronavirus Recovery Efforts
    • HUD announced that it will provide $2.96 billion in the remaining Emergency Solutions Grants funding to aid homeless Americans and people at risk of becoming homeless because of hardships such as job loss, wage reduction or illness due to COVID-19. The funding is in addition to $1 billion of ESG grants announced within a week of President Trump signing the CARES Act.

Natural Resources/Environment