NYSAC Summary of the American Rescue Plan

 
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NYSAC Summary of the American Rescue Plan
®
                                     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
NYSAC Summary of the American Rescue Plan
®
 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

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NYSAC Summary of the American Rescue Plan
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
NYSAC Summary of the American Rescue Plan
®
 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

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NYSAC Summary of the American Rescue Plan
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

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NYSAC Summary of the American Rescue Plan
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   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

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NYSAC Summary of the American Rescue Plan
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
NYSAC Summary of the American Rescue Plan
®
           Since

Represent ▪ Educate ▪ Advocate ▪ Serve

          Counties Working For You
                   515 Broadway, Suite 402
                   Albany, NY 12207

                   www.nysac.org

                   518-465-1473
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