County giving $30M to communities
Funds to be distributed to areas affected by pandemic
Oakland County will distribute $30 million to cities, villages, and townships impacted by the coronavirus pandemic.
The county received $219 million in federal Coronavirus Aid, Relief, and Economic Security (CARES) Act dollars to cover COVID-19-related
expenses. The CARES Act, passed by Congress on March 27, totaled $2.2 trillion and provided billions of dollars in direct aid for local governments with populations of at least 500,000 residents.
On Tuesday, Oakland County Executive David Coulter announced that a portion of the county’s CARES Act allocation will be distributed to communities. The money can only be used to cover COVID-19-related expenses made after March 27, 2020, but prior to Dec. 31, 2020, and cannot be used to replace lost revenue or to address other fiscal impacts resulting from the pandemic.
Coulter said the effects of the pandemic run deep in Oakland County, which is anticipating $4 million loss in revenue for Fiscal Year 2021 due to the COVID-19 pandemic.
“As the former mayor of Ferndale, I understand how quickly an emergency can eat up limited resources,” he said. “We have come together to fight the pandemic, and together we will move forward.”
The amount each community receives will be dependent on population. Once the county board of commissioners approves the $30 million appropriation, the county will ask each municipality to verify that its expenses meet the eligibility guidelines set by the U.S. Department of Treasury. The money will be dispersed over the course
of three funding rounds in late June, August and September.
Examples of eligible expenditures include: public safety and health, economic support, actions to facilitate compliance with COVID-19-related public health measures, virus testing supplies, and payroll expenses for employees whose services are substantially dedicated to responding to the pandemic.
Each municipality will be required to keep sufficient records of these eligible expenses and be prepared for a compliance audit
by the U.S. Department of Treasury next year. The department is not giving advance approval to these expenses, so local governments are responsible for ensuring funds are being used in compliance with federal law.
Rochester Hills Mayor Bryan Barnett said this is welcome news for local governments across Oakland County. He, along with many others, have been pushing for the federal government to provide direct financial relief for municipalities with populations under 500,000.
“This pandemic knows no political boundaries, so states, counties, and municipalities have all been incurring significant costs
and experiencing massive revenue shortages,” he said. “Obviously, I think I speak for all the municipalities that we’re pleased that some of the money from the federal government will get to cities. It’s helpful and we appreciate the support.”
Last week, the State of Michigan held its annual consensus revenue estimating conference in Lansing. State budget officials are anticipating combined general fund and school aid fund revenue losses to total $2.7 billion to $3.3 billion for the current fiscal year, $2.7 billion to $3.3 billion for Fiscal Year 2021, and $1.8 billion to $2.1 billion in Fiscal Year 2022.
Last week, the U.S. House approved the HEROES
Act, which totals over $3 trillion and included $375 billion in direct federal aid for local government of all sizes to address budget shortfalls and other fiscal impacts resulting from the pandemic. The bill, which includes an estimated $14.2 billion in coronavirus relief for Michigan communities, has been sent to the Senate.
The state of Michigan received $3 billion from the CARES Act, while the state’s four largest counties and the City of Detroit shared another $800 million-Detroit ($117 million), Macomb County ($152 million), Oakland County ($219 million), Wayne County ($197 million), and Kent County ($115 million).