Issue Brief: California's Use of Federal Pandemic Aid

Issue Brief: California’s Use of Federal Pandemic Aid May 2021 Executive Summary This Issue Brief outlines the state’s use of the $9.5 billion in CARES Act money that was received last year, and highlights potential differences between eligible uses of that funding and the expected $26 billion in American Rescue Plan funding the state will receive this year. These differences include: ◊ A longer time frame to use funding. ◊ The impact of additional federal coronavirus-related funding packages. ◊ The amount of funding congressionally appropriated to local and tribal governments. ◊ Budgetary shortfalls facing local governments, due to both increased program costs and reduce revenues. ◊ The explicit allowance to transfer appropriated funds to separate entities, such as special districts and tribal organizations. We hope this Brief will serve as a resource for state policymakers as they determine how to distribute American Rescue Plan funding to best serve all Californians. funding the state will receive this year. The goal of Background this Brief is to provide policymakers with background In 2020, the State of California received $9.5 billion in on last year’s use of federal relief, and on the federal pandemic relief as a result of the Coronavirus potential uses of this year’s relief. Aid, Relief, and Economic Security Act (the CARES It is important to note that there are many other Act), signed into law by President Trump in 2020. The kinds of federal relief related to the pandemic, Legislature and Governor divided this funding among such as sector-specific funding of education, the state’s General Fund, education programs, transportation, and other programs; cash aid to housing programs, and cities and counties. individuals; homeowner and renter assistance; In 2021, the State is expected to receive small business credit programs; and unemployment approximately $26 billion as a result of the American insurance. Some of this funding benefits state and Rescue Plan. This federal legislation was signed local government. However, this Brief focuses on into law by President Biden earlier this year, and the general state and local government aid from details of the appropriation and its use are still being each of the two primary relief packages – the CARES developed. Act in 2020 and the American Rescue Plan in 2021 – because that is where state policymakers have the This Issue Brief outlines the state’s use of the CARES greatest discretion. Specifically, this Brief focuses Act money that was received last year, and highlights on the Coronavirus Relief Fund under the CARES Act potential differences between eligible uses of that and the Coronavirus Fiscal Recovery Fund under the funding and the expected American Rescue Plan American Rescue Plan. Issue Brief: California’s Use of Federal Pandemic Aid May 2021 CARES Act Funding The CARES Act included $150 billion in Coronavirus Relief Funds to compensate state and local governments for pandemic-related expenditures. Approximately $9.5 billion came to state government for allocation by the Legislature and the Governor. (Additionally, Congress directly appropriated $5.8 billion to California cities and counties with populations over 500,000, but the Legislature and Governor did not have discretion over the allocation of that money.) The $9.5 billion in aid to state government was allocated by the Legislature and Governor as follows: CARES Act: California Distribution of the Coronavirus Relief Fund K-14 Education $4.5 billion (47%) Cities $500 million (5%) Housing for the homeless $550 million (6%) Counties $1.3 billion (14%) State General Fund (vulnerable populations and public safety) $2.7 billion (28%) Source: Governor Gavin Newsom. “California State Budget 2020-21.” http://www.ebudget.ca.gov/2020-21/pdf/Enacted/ BudgetSummary/FullBudgetSummary.pdf. Page 15. American Rescue Plan Funding The American Rescue Plan includes $360 billion in emergency funding for state, local, territorial and tribal governments, which is intended, like the Coronavirus Relief Funds in 2020, to compensate government entities for pandemic-related expenditures. California is expected to receive approximately $26 billion for allocation by the Legislature and Governor. (As with the 2020 funding, Congress also made direct appropriations to cities and counties. Those appropriations total $16 billion, over which the Legislature and Governor lack discretion.)1 CARES Act vs. American Rescue Plan As policymakers consider spending options for the $26 billion the state is expected to receive this year from the American Rescue Plan, they will confront similar though different federal requirements than those included in the CARES Act last year. See Appendix A and Appendix B for a breakdown of much funding California’s counties and municipalities have received from the CARES Act and are estimated to receive from Congress from the American Rescue Plan. LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 2 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 CARES Act American Rescue of 2020 Plan of 2021 CORONAVIRUS RELIEF STATE FISCAL AND LOCAL FUND: $150 BILLION RECOVERY FUNDS: $360 BILLION California was allocated approximately:2 California is estimated to receive approximately:3 ◊ $9.5 billion for the Governor and Legislature ◊ $26 billion for the Governor and Legislature to allocate. to allocate. ◊ $5.8 billion for local governments. Cities and ◊ $16 billion for local governments. Cities counties with a population > 500,000 received and counties with a population > 50,000 will a direct congressional appropriation. receive a direct congressional appropriation. ◊ $776 million for tribal governments. ◊ Tribal governments’ estimated allocations not yet available. HOW CAN THIS FUNDING BE USED?4 Necessary expenditures incurred due to Replace revenue losses that have occurred the public health emergency with respect to during the pandemic. COVID–19. Expenses must have incurred between Water, sewer, and broadband infrastructure. March 1, 2020 and December 31, 2021. Premium pay for essential workers. Must NOT be accounted for in the budget most recently approved as of March 27, 2020. May NOT be used to offset a tax reduction or put into a pension fund. AUTHORITY TO TRANSFER FUNDS TO ANOTHER ENTITY? The Coronavirus Relief Fund is silent on transfers, Transfers are explicitly allowed to:6 although guidance released by the Treasury explicitly allows transfers to a local government or unit of local ◊ Private nonprofit organizations government.5 ◊ Tribal organizations ◊ Public-benefit transportation corporations ◊ Special districts LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 3 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 Critical Differences Here we outline some of the key differences policymakers may wish to consider as they contemplate use of this year’s federal funds: LONGER TIME FRAME The CARES Act specified that all Coronavirus Relief Funds had to be spent by Dec. 30, 2020, or they would revert to the federal government. Although late in 2020 this deadline was extended to Dec. 31, 2021, most state and local governments had not been able to plan on such an extension, and thus had retained little if any funding. By contrast, the American Rescue Plan specifies that the money must be spent by Dec. 31, 2024, almost four years after the bill was signed. This creates the potential for policymakers to spread out the use of the funds over several years, should they wish to do so. ADDITIONAL PANDEMIC-RELATED FEDERAL RELIEF In addition to the CARES Act and the American Rescue Plan, Congress has passed a series of pandemic-related funding packages. Some of these funding packages were passed after the CARES Act – including aid for schools, transportation, and hospitals – and thus might impact how the state chooses to distribute its American Rescue Plan allocation:7 ◊ Coronavirus Preparedness and Response Supplemental Appropriations Act (March 2020): Provided $8.3 billion emergency funding for public health agencies and coronavirus vaccine research. The bill also appropriated $7.8 billion in discretionary funding to federal, state, and local health agencies and authorized $500 million in mandatory spending through a change in Medicare. ◊ Families First Coronavirus Response Act (March 2020): Totaling $192 billion this legislation included several key components including: enhancing unemployment insurance benefits, increasing federal Medicaid and food security spending, requiring certain employers to provide paid sick leave and family medical leave, providing employers tax credits to offset the cost of providing leave, and providing free coverage for coronavirus testing under government health programs. ◊ Paycheck Protection Program and Health Care Enhancement Act (April 2020): Provided an additional $383 billion in economic support for small businesses, another $75 billion in funding for hospitals, and roughly $25 billion to fund more testing for the pandemic. ◊ Consolidated Appropriations Act (December 2020): Includes aid to small businesses ($302 billion), direct payments to individuals ($164 billion), increased unemployment benefits ($119 billion), aid for schools ($82 billion), health-specific measures ($78 billion). The bill also includes $123 billion for other measures including funding for transportation, rental assistance, additional childcare assistance, and other programs. LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 4 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 SPECIAL DISTRICTS Coronavirus Relief Fund for Special Districts play an important role in Special Districts California’s governance, providing services to many residents. California has more than 2,000 Both Colorado and Oregon included their respective special districts, providing services such as water special districts associations in their negotiations service, sewer service, parks, or fire protection. The processes when deciding how to distribute their CARES Act was silent regarding the ability to use Coronavirus Relief Fund allocations: Coronavirus Relief Funds for Special Districts, and most states chose not to allocate any of the money COLORADO to Special Districts. (Colorado and Oregon did so, In mid-May, Colorado Governor Jared Polis but they were exceptions to the general practice.) issued an Executive Order regarding the state’s The American Rescue Plan, by contrast, explicitly expenditure of its Coronavirus Relief Fund.8 allows for transfer of State Fiscal Recovery Fund In the order, he directed $275 million to local revenue to Special Districts. governments, allocating approximately $27 million – or roughly 10 percent – to special CITIES AND COUNTIES districts. Governor Polis also noted that the The CARES Act and the American Rescue Plan distribution of these funds would be informed differed in their approach to cities and counties. by recommendations from a consortium of local The CARES Act provided direct Congressional government officials – later identified as members appropriation of funding only to cities and counties representing counties, municipalities and special with populations of more than 500,000. By districts9 – and best practices from other states. contrast, the American Rescue Plan provides direct Congressional appropriation to cities and counties OREGON with populations greater than 50,000, meaning that In late April 2020, the Special Districts Association far more local governments have received direct of Oregon10 as well as the Association of Oregon Congressional appropriations. Thus, in deciding Counties, League of Oregon Cities, and the Oregon how much, if any, state funding to share with cities Mayors Association11 sent letters to Oregon and counties, policymakers may wish to take into Governor Kate Brown requesting that the state account the direct Congressional appropriations, share a portion of the CARES Act funding with their and how they differed in the CARES Act and the respective local governments. In May, Governor American Rescue Plan. Brown and legislative leadership sent a letter to the Oregon county, city, and special district associations COSTS TO LOCAL GOVERNMENTS requesting that they engage in a collaborative Local governments have experienced severe process to develop a framework for distributing budgetary shortfalls in the past year, due to both Coronavirus Relief Funds to local governments.12 increased program costs and reduced revenues. The local government leaders responded in June The full extent of the pandemic’s fiscal impact on with framework recommendations, advocating that local government – counties, cities, and special special districts retain $20 million – approximately districts – was not as clear when policymakers 10 percent of the funding for local governments allocated the CARES Act funding. The League of - for future reimbursement.13 Governor Brown’s California Cities, for example, estimates that cities office responded with a letter agreeing to the $20 have lost $5 billion in revenue due to business million allocation for special districts.14 closures, with another $1 billion in losses expected LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 5 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 this year.15 The California Special Districts Association projects that the state’s special districts will have an unmet financial need of $2.4 billion by the end of 2021.16 Additionally, the state’s fiscal condition has changed markedly in the past year. A year ago policymakers faced projections of a massive state shortfall, whereas today the state fiscal condition, at least in the short run, is relatively bright. Analysts predict a multibillion dollar surplus for the state in the coming budget year. TRIBAL GOVERNMENTS Across the United States there are 574 federally recognized American Indian and Alaska Native tribes and villages.17 California is home to nearly one-fifth (109) of those tribes as well as several non-federally recognized tribes that are petitioning for federal recognition.18 Through the Coronavirus Relief Fund, the CARES Act provided $8 billion for tribal governments.19 The federal government distributed tribal government funding in two rounds. Allocations made in the first round were based on tribal population data and allocations in the second round were based on tribal employment and expenditure data. California tribes received a total of $776 million, approximately 10 percent of the total Coronavirus Relief Fund payments set aside for tribal governments.20 Some states have also chosen to allocate a portion of their Coronavirus Relief Funds to tribal governments. For instance, Idaho directed $633,900 to tribal governments,21 New Mexico made $28 million available for tribal government grants,22 and Maine dedicated $35 million to help local and tribal governments with COVID-19 related costs23 as well as an additional $13 million to incentivize municipalities and tribal governments to develop and implement their own COVID-19 prevention, education and protection plans.24 Through the State and Local Fiscal Recovery Fund, the American Rescue Plan provides $20 billion for tribal governments.25 $1 billion of the identified funds will be allocated equally among each of the tribal governments and the remaining $19 billion will be allocated by the Treasury Secretary.26 In March and April 2021, the Department held four separate consultation sessions to hear from tribal leaders and representatives regarding the distribution of those funds.27 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 6 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 Appendix A: County Federal Pandemic Aid: CARES Act vs. American Rescue Plan American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated County Allocation Allocation County Allocation Allocation Alameda $330,083,999 $324,143,968 Orange $627,643,157 $615,905,908 Alpine $116,437 $218,963 Placer $41,162,055 $77,253,457 Amador $3,841,415 $7,709,656 Plumas $1,861,775 $3,647,502 Butte $21,441,104 $42,509,775 Riverside $487,294,615 $479,147,183 Calaveras $4,590,510 $8,902,992 Sacramento $206,181,697 $301,012,092 Colusa $2,233,111 $4,178,908 San Benito $6,357,463 $12,181,225 Contra Costa $227,827,652 $223,719,264 San Bernardino $430,587,511 $422,814,061 Del Norte $2,783,283 $5,393,966 San Diego $387,764,294 $647,448,546 El Dorado $19,701,272 $37,400,712 San Francisco $174,484,215 $635,951,918 Fresno $98,017,144 $193,769,486 San Joaquin $150,792,114 $147,813,911 Glenn $2,997,601 $5,506,648 San Luis Obispo $28,269,109 $54,907,635 Humboldt $13,591,367 $26,290,639 San Mateo $151,555,313 $148,672,113 Imperial $19,247,554 $35,145,533 Santa Barbara $46,069,250 $86,595,732 Inyo $1,894,810 $3,498,553 Santa Clara $189,613,989 $373,895,024 Kern $178,193,446 $174,588,634 Santa Cruz $27,654,703 $52,987,979 Kings $15,661,750 $29,661,771 Shasta $18,153,328 $34,925,407 Lake $6,529,468 $12,487,268 Sierra $326,371 $582,801 Lassen $2,939,790 $5,929,445 Siskiyou $4,533,208 $8,444,121 Los Angeles $1,220,743,947 $1,947,022,982 Solano $44,884,892 $86,817,603 Madera $16,124,543 $30,512,603 Sonoma $50,263,852 $95,873,423 Marin $26,594,123 $50,197,709 Stanislaus $108,920,172 $106,797,116 Mariposa $1,842,097 $3,336,416 Sutter $10,272,390 $18,806,928 Mendocino $8,966,905 $16,824,434 Tehama $6,640,501 $12,622,641 Merced $28,907,577 $53,854,326 Trinity $1,381,343 $2,382,600 Modoc $975,750 $1,714,658 Tulare $48,938,076 $90,415,649 Mono $1,372,779 $2,801,325 Tuolumne $5,599,294 $10,565,673 Monterey $44,978,592 $84,183,458 Ventura $167,018,391 $164,077,654 Napa $14,181,303 $26,714,601 Yolo $22,604,867 $42,764,617 Nevada $10,003,626 $19,346,868 Yuba $8,043,256 $15,257,174 Sources: State of California Department of Finance. “Coronavirus Relief Fund Allocations for Cities and Counties.” https://dof.ca.gov/budget/ COVID-19/CRF_Allocations/ and U.S. Department of Treasury. “Payments to States and Eligible Units of Local Government.” https://home.treasury. gov/system/files/136/Payments-to-States-and-Units-of-Local-Government.pdf and The House Committee on Oversight and Reform, “State and Local Allocation Estimates, 03.08.21.” https://oversight.house.gov/sites/democrats.oversight.house.gov/files/State%20and%20Local%20 Allocation%20Output%2003.08.21.xlsx. Notes: The CARES Act allocations include both the direct congressional allocations as well as the allocations made by the State of California. For the American Rescue Plan estimated allocations, the CDBG urban county adjustments use FY2020 HUD data to identify populations eligible for assistance, and may not include localities that relinquished their CDBG allocation in that year. County funding would be slightly altered to the extent that such cities apply for and receive funding as a metro city under this proposal. For the CARES Act and the American Rescue Plan, San Francisco includes allocations for both the City of San Francisco and San Francisco County. LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 7 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 Appendix B: Municipality Federal Pandemic Aid: CARES Act vs. American Rescue Plan American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Adelanto $440,336 $6,408,979 Biggs $50,000 $353,681 Agoura Hills $253,931 $3,806,349 Bishop $50,000 $705,291 Alameda $1,003,970 $28,948,364 Blue Lake $50,000 $234,344 Albany $233,818 $3,707,341 Blythe $237,744 $3,704,705 Alhambra $1,071,632 $25,279,586 Bradbury $50,000 $201,404 Aliso Viejo $617,900 $5,481,131 Brawley $337,682 $4,936,658 Alturas $50,000 $482,429 Brea $563,387 $8,141,807 Amador City $50,000 $35,763 Brentwood $804,021 $12,135,819 American Canyon $257,277 $3,853,970 Brisbane $57,204 $879,213 Anaheim $30,480,113 $107,511,359 Buellton $67,465 $960,340 Anderson $131,756 $2,000,865 Buena Park $1,012,440 $21,819,005 Angels City $50,907 $744,630 Burbank $1,307,080 $26,051,750 Antioch $1,389,299 $21,579,748 Burlingame $371,871 $5,814,178 Apple Valley $918,553 $14,875,333 Calabasas $298,714 $4,489,805 Arcadia $706,404 $10,905,748 Calexico $504,948 $7,496,184 Arcata $221,792 $3,469,232 California City $174,848 $2,672,463 Arroyo Grande $218,384 $3,383,588 Calimesa $115,186 $1,724,169 Artesia $203,604 $3,124,775 Calipatria $84,491 $1,339,055 Arvin $267,649 $4,112,972 Calistoga $66,032 $987,633 Atascadero $371,118 $5,660,960 Camarillo $867,522 $8,150,702 Atherton $86,813 $1,343,384 Campbell $522,136 $7,866,617 Atwater $387,428 $5,563,834 Canyon Lake $135,818 $2,123,213 Auburn $180,194 $2,671,898 Capitola $124,805 $1,884,163 Avalon $50,000 $692,868 Carlsbad $1,413,290 $13,376,373 Avenal $162,846 $2,540,326 Carmel-by-the-Sea $50,000 $717,337 Azusa $613,134 $9,406,511 Carpinteria $164,649 $2,519,433 Bakersfield $33,502,406 $96,290,745 Carson $1,149,617 $20,038,759 Baldwin Park $941,494 $23,933,333 Cathedral City $661,559 $15,287,939 Banning $384,304 $5,876,670 Ceres $597,972 $9,167,838 Barstow $299,640 $4,501,475 Cerritos $617,283 $5,641,731 Beaumont $635,569 $9,611,492 Chico $1,362,210 $21,713,610 Bell $451,053 $6,686,050 Chino $1,100,241 $14,003,707 Bell Gardens $524,123 $7,907,839 Chino Hills $1,017,515 $10,392,935 Bellflower $964,435 $22,805,374 Chowchilla $224,668 $3,446,457 Belmont $331,064 $5,071,053 Chula Vista $3,360,914 $60,836,741 Belvedere $50,000 $396,032 Citrus Heights $1,084,214 $15,934,193 Benicia $335,533 $5,315,562 Claremont $442,114 $6,826,280 Berkeley $1,513,511 $68,258,828 Clayton $139,979 $2,308,618 Beverly Hills $417,024 $6,360,604 Clearlake $176,527 $2,873,678 Big Bear Lake $64,279 $993,656 Cloverdale $113,754 $1,629,302 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 8 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Clovis $1,471,470 $18,696,470 El Centro $563,733 $14,126,775 Coachella $582,612 $8,610,118 El Cerrito $308,098 $4,801,322 Coalinga $212,358 $3,233,571 El Monte $1,440,602 $43,621,208 Colfax $50,000 $376,833 El Paso de Robles $385,490 $6,052,098 Colma $50,000 $280,272 El Segundo $207,148 $3,126,469 Colton $668,202 $10,319,417 Elk Grove $2,174,997 $23,028,079 Colusa $76,244 $1,140,662 Emeryville $151,845 $2,274,925 Commerce $158,883 $2,383,156 Encinitas $767,782 $8,878,420 Compton $1,210,414 $37,682,876 Escalon $92,332 $1,425,640 Concord $1,606,893 $26,419,735 Escondido $1,889,210 $45,342,276 Corcoran $263,019 $4,133,489 Etna $50,000 $135,148 Corning $94,085 $1,451,239 Eureka $329,656 $5,027,573 Corona $2,077,380 $31,140,767 Exeter $136,189 $1,973,572 Coronado $263,994 $4,466,841 Fairfax $91,356 $1,415,852 Corte Madera $124,879 $1,835,412 Fairfield $1,444,380 $21,487,689 Costa Mesa $1,417,179 $28,334,392 Farmersville $140,745 $2,014,605 Cotati $93,011 $1,394,770 Ferndale $50,000 $254,484 Covina $603,108 $8,931,423 Fillmore $192,195 $2,987,180 Crescent City $82,392 $1,277,504 Firebaugh $98,542 $1,561,540 Cudahy $298,455 $4,436,348 Folsom $1,007,649 $15,308,215 Culver City $490,243 $7,375,718 Fontana $2,629,939 $52,337,523 Cupertino $735,259 $9,704,603 Fort Bragg $91,702 $1,372,371 Cypress $608,368 $9,224,306 Fort Jones $50,000 $130,254 Daly City $1,347,591 $26,793,054 Fortuna $149,684 $2,307,488 Dana Point $409,258 $6,320,135 Foster City $407,863 $6,381,121 Danville $541,743 $8,378,033 Fountain Valley $689,933 $8,974,542 Davis $854,212 $18,545,956 Fowler $79,688 $1,278,069 Del Mar $52,698 $812,957 Fremont $2,891,945 $42,166,620 Del Rey Oaks $50,000 $311,329 Fresno $92,755,913 $177,302,650 Delano $654,793 $14,198,941 Fullerton $1,751,601 $34,725,762 Desert Hot Springs $366,216 $5,435,651 Galt $319,161 $4,994,821 Diamond Bar $705,972 $10,488,070 Garden Grove $2,158,291 $50,608,953 Dinuba $320,951 $4,604,248 Gardena $752,397 $15,698,450 Dixon $246,597 $3,895,945 Gilroy $704,824 $11,673,702 Dorris $50,000 $168,841 Glendale $2,535,249 $49,792,741 Dos Palos $68,477 $1,040,337 Glendora $642,878 $7,593,765 Downey $1,401,758 $27,286,002 Goleta $397,862 $5,622,148 Duarte $267,599 $4,003,800 Gonzales $105,025 $1,563,423 Dublin $811,404 $12,202,075 Grand Terrace $153,425 $2,368,662 Dunsmuir $50,000 $294,389 Grass Valley $158,846 $2,412,520 East Palo Alto $380,218 $5,517,719 Greenfield $225,755 $3,297,003 Eastvale $820,010 $12,076,150 Gridley $79,046 $1,363,901 El Cajon $1,288,954 $34,012,527 Grover Beach $163,155 $2,533,362 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 9 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Guadalupe $99,777 $1,464,979 La Quinta $502,034 $7,858,147 Gustine $72,539 $1,107,158 La Verne $411,160 $6,018,405 Half Moon Bay $153,487 $2,434,166 Lafayette $316,136 $5,014,020 Hanford $732,790 $13,784,915 Laguna Beach $275,872 $4,296,683 Hawaiian Gardens $180,873 $2,665,122 Laguna Hills $389,033 $5,874,034 Hawthorne $1,073,003 $32,692,100 Laguna Niguel $806,465 $8,240,916 Hayward $1,979,381 $38,232,335 Laguna Woods $200,554 $2,983,415 Healdsburg $149,264 $2,229,562 Lake Elsinore $783,463 $13,041,008 Hemet $1,051,667 $22,989,666 Lake Forest $1,045,938 $12,809,140 Hercules $315,222 $4,945,882 Lake Forest city $16,099,338 Hermosa Beach $242,177 $3,636,567 Lakeport $57,748 $942,270 Hesperia $1,190,177 $25,475,469 Lakewood $986,770 $12,286,079 Hidden Hills $50,000 $355,751 Lancaster $1,996,519 $37,048,587 Highland $683,080 $10,431,037 Larkspur $151,289 $2,306,547 Hillsborough $140,980 $2,143,353 Lathrop $331,311 $4,608,389 Hollister $501,862 $7,668,413 Lawndale $404,974 $6,096,520 Holtville $78,515 $1,246,258 Lemon Grove $327,520 $5,046,584 Hughson $90,109 $1,423,946 Lemoore $327,310 $5,030,396 Huntington Beach $2,485,243 $30,841,309 Lincoln $608,924 $9,086,712 Huntington Park $734,840 $31,811,001 Lindsay $162,414 $2,534,115 Huron $90,122 $1,370,489 Live Oak $113,594 $1,677,489 Imperial $245,794 $5,164,979 Livermore $1,134,220 $10,884,811 Imperial Beach $346,399 $3,410,693 Livingston $185,849 $2,803,846 Indian Wells $66,712 $1,029,608 Lodi $838,741 $16,135,211 Indio $1,120,515 $21,711,566 Loma Linda $302,937 $4,608,200 Industry $50,000 $38,022 Lomita $253,721 $3,824,795 Inglewood $1,382,521 $35,065,579 Lompoc $540,632 $13,190,935 Ione $98,876 $1,612,738 Long Beach $40,280,494 $153,347,954 Irvine $3,478,274 $53,184,022 Loomis $85,047 $1,292,374 Irwindale $50,000 $272,178 Los Alamitos $142,819 $2,145,612 Isleton $50,000 $158,865 Los Altos $381,230 $5,663,595 Jackson $60,007 $911,024 Los Altos Hills $103,876 $1,585,445 Jurupa Valley $1,322,168 $29,786,612 Los Angeles $694,405,324 $1,354,448,317 Kerman $196,937 $2,876,502 Los Banos $517,629 $7,724,128 King City $182,701 $2,649,687 Los Gatos $388,181 $5,688,630 Kingsburg $159,068 $2,279,066 Loyalton $50,000 $132,136 La Cañada Flintridge $252,635 $3,766,256 Lynwood $879,968 $28,263,248 La Habra $782,450 $16,957,954 Madera $807,688 $22,727,325 La Habra Heights $67,428 $1,221,977 Malibu $144,708 $2,224,856 La Mesa $740,408 $11,119,906 Mammoth Lakes $97,036 $1,550,058 La Mirada $603,491 $9,069,395 Manhattan Beach $435,236 $6,622,429 La Palma $191,282 $2,903,983 Manteca $1,047,037 $15,628,203 La Puente $500,898 $7,456,468 Maricopa $50,000 $224,368 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 10 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Marina $275,600 $4,288,024 Ojai $93,307 $1,406,064 Martinez $458,153 $7,208,572 Ontario $2,257,932 $46,480,231 Marysville $153,401 $2,348,334 Orange $1,729,401 $29,914,866 Maywood $344,534 $5,077,077 Orange Cove $116,754 $1,933,667 McFarland $177,651 $2,918,665 Orinda $234,707 $3,750,633 Mendota $154,512 $2,166,694 Orland $102,765 $1,473,261 Menifee $1,198,820 $13,018,983 Oroville $240,028 $3,903,286 Menlo Park $435,286 $6,531,139 Oxnard $2,547,855 $64,173,904 Merced $1,088,029 $28,020,276 Pacific Grove $188,479 $2,901,160 Mill Valley $181,182 $2,683,944 Pacifica $473,278 $7,255,440 Millbrae $281,910 $4,215,180 Palm Desert $654,225 $10,218,491 Milpitas $962,595 $16,861,508 Palm Springs $585,587 $11,193,842 Mission Viejo $1,163,927 $9,522,954 Palmdale $1,935,252 $39,632,332 Modesto $2,745,200 $47,386,657 Palmdale city $29,190,226 Monrovia $468,388 $6,838,515 Palo Alto $854,743 $12,497,692 Montague $50,000 $263,143 Palos Verdes Estates $162,859 $2,498,352 Montclair $487,588 $7,544,747 Paradise $57,180 $4,231,250 Monte Sereno $50,000 $645,058 Paradise town $842,509 Montebello $784,586 $16,585,631 Paramount $684,784 $19,786,091 Monterey $347,819 $6,477,123 Parlier $196,196 $2,939,746 Monterey Park $749,891 $16,558,360 Pasadena $1,788,383 $52,231,754 Moorpark $447,929 $6,846,797 Patterson $284,898 $4,239,650 Moraga $209,235 $3,347,260 Perris $990,252 $22,754,821 Moreno Valley $2,578,550 $50,743,712 Petaluma $763,954 $8,752,335 Morgan Hill $573,574 $8,649,458 Pico Rivera $782,487 $15,534,051 Morro Bay $125,793 $1,984,489 Piedmont $141,412 $2,095,920 Mount Shasta $50,000 $616,259 Pinole $240,831 $3,623,391 Mountain View $1,015,823 $14,776,245 Pismo Beach $100,493 $1,537,447 Murrieta $1,426,847 $21,876,435 Pittsburg $917,651 $15,183,840 Napa $978,856 $14,718,537 Placentia $635,803 $9,643,490 National City $766,745 $19,662,748 Placerville $135,572 $2,103,449 Needles $64,798 $936,623 Pleasant Hill $423,099 $6,557,679 Nevada City $50,000 $592,542 Pleasanton $981,153 $8,530,652 Newark $604,590 $9,251,223 Plymouth $50,000 $202,533 Newman $147,079 $2,218,080 Point Arena $50,000 $84,514 Newport Beach $1,059,137 $9,293,868 Pomona $1,911,546 $51,777,669 Norco $340,336 $5,007,620 Port Hueneme $291,479 $4,127,089 Norwalk $1,305,302 $31,678,360 Porterville $736,568 $20,725,496 Novato $663,066 $10,449,671 Portola $50,000 $363,280 Oakdale $283,947 $4,441,430 Portola Valley $56,883 $859,826 Oakland $36,994,706 $192,084,105 Poway $609,183 $9,283,975 Oakley $524,272 $8,007,788 Rancho Cordova $967,781 $15,821,942 Oceanside $2,189,579 $33,412,041 Rancho Cucamonga $2,167,193 $25,629,074 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 11 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Rancho Mirage $236,003 $3,487,490 San Luis Obispo $566,980 $8,933,117 Rancho Palos Verdes $515,258 $7,817,113 San Marcos $1,200,252 $18,072,352 Rancho Santa Margarita $602,454 $5,174,369 San Marino $161,587 $2,456,000 Red Bluff $175,885 $2,736,648 San Mateo $1,272,829 $18,642,352 Redding $1,132,763 $18,960,705 San Pablo $387,860 $5,833,189 Redlands $876,054 $13,460,756 San Rafael $738,445 $11,000,050 Redondo Beach $827,184 $7,135,641 San Ramon $1,026,269 $14,304,395 Redwood City $1,071,163 $18,985,683 Sand City $50,000 $75,103 Reedley $320,001 $4,829,557 Sanger $335,657 $4,769,512 Rialto $1,290,930 $30,269,489 Santa Ana $28,580,208 $142,974,013 Richmond $1,373,211 $20,811,816 Santa Barbara $1,154,593 $22,491,583 Ridgecrest $362,388 $5,453,533 Santa Clara $1,594,064 $25,921,801 Rio Dell $50,000 $630,376 Santa Clarita $2,740,224 $36,262,812 Rio Vista $123,311 $1,829,201 Santa Cruz $795,452 $14,978,036 Ripon $196,690 $3,084,306 Santa Fe Springs $225,891 $3,318,461 Riverbank $309,049 $4,683,303 Santa Maria $1,326,168 $40,606,786 Riverside $27,991,888 $79,279,247 Santa Monica $1,140,344 $29,301,492 Rocklin $868,621 $6,957,507 Santa Paula $375,217 $5,610,327 Rohnert Park $531,779 $8,148,583 Santa Rosa $2,143,808 $36,425,915 Rolling Hills $50,000 $347,281 Santee $716,121 $6,869,138 Rolling Hills Estates $99,592 $1,516,742 Saratoga $383,132 $5,675,642 Rosemead $671,227 $18,801,042 Sausalito $89,541 $1,330,396 Roseville $1,792,347 $17,687,840 Scotts Valley $144,375 $2,212,998 Ross $50,000 $461,347 Seal Beach $308,580 $4,497,899 Sacramento $89,623,427 $121,613,431 Seaside $414,086 $8,469,654 Salinas $2,002,977 $50,459,386 Sebastopol $95,629 $1,444,462 San Anselmo $157,512 $2,348,334 Selma $301,715 $4,672,763 San Bernardino $2,691,008 $84,899,600 Shafter $252,388 $3,840,041 San Bruno $561,227 $8,057,480 Shasta Lake $131,583 $1,960,019 San Buenaventura $1,312,204 $19,224,816 Sierra Madre $133,547 $2,031,546 San Carlos $372,204 $5,681,665 Signal Hill $144,610 $2,149,753 San Clemente $797,390 $8,876,999 Simi Valley $1,544,811 $15,493,244 San Diego $248,451,020 $306,114,516 Solana Beach $170,860 $2,502,681 San Dimas $419,123 $6,328,417 Soledad $312,395 $4,893,742 San Fernando $311,234 $4,578,084 Solvang $68,675 $1,098,876 San Francisco $174,484,215 $635,951,918 Sonoma $136,436 $2,075,027 San Gabriel $495,169 $7,510,113 Sonora $58,241 $915,541 San Jacinto $630,049 $9,263,646 South El Monte $261,809 $3,872,605 San Joaquin $51,142 $756,865 South Gate $1,197,709 $37,071,421 San Jose $178,295,348 $223,037,240 South Lake Tahoe $278,119 $4,178,099 San Juan Bautista $50,000 $396,032 South Pasadena $314,333 $4,767,630 San Juan Capistrano $448,423 $6,759,459 South San Francisco $838,111 $12,303,703 San Leandro $1,085,683 $19,152,300 St. Helena $74,984 $1,148,568 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 12 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 American Rescue American Rescue CARES Act Plan Estimated CARES Act Plan Estimated Municipality Allocation Allocation Municipality Allocation Allocation Stanton $482,489 $7,178,832 Vista $1,270,866 $26,675,619 Stockton $27,170,185 $85,461,323 Walnut $369,537 $5,587,551 Suisun City $359,536 $5,583,410 Walnut Creek $874,918 $8,533,220 Sunnyvale $1,932,363 $29,534,318 Wasco $356,635 $5,404,029 Susanville $169,366 $2,825,304 Waterford $109,815 $1,686,900 Sutter Creek $50,000 $493,534 Watsonville $636,063 $18,813,830 Taft $107,173 $1,745,251 Weed $50,000 $512,922 Tehachapi $157,525 $2,449,036 West Covina $1,308,784 $20,077,447 Tehama $50,000 $70,209 West Hollywood $447,003 $6,865,620 Temecula $1,382,508 $13,947,843 West Sacramento $670,795 $11,649,124 Temple City $446,349 $6,740,637 Westlake Village $101,395 $1,546,670 Thousand Oaks $1,561,715 $14,408,161 Westminster $1,141,134 $24,907,513 Tiburon $117,792 $1,709,864 Westmorland $50,000 $424,266 Torrance $1,797,076 $22,955,475 Wheatland $50,000 $729,007 Tracy $1,184,473 $17,832,730 Whittier $1,071,743 $18,768,811 Trinidad $50,000 $66,821 Wildomar $459,103 $7,007,544 Truckee $200,369 $3,149,997 Williams $66,996 $1,017,938 Tulare $837,555 $17,781,021 Willits $62,625 $920,435 Tulelake $50,000 $184,087 Willows $76,651 $1,142,921 Turlock $917,355 $16,391,892 Windsor $348,782 $5,106,252 Tustin $992,487 $21,139,273 Winters $89,875 $1,376,889 Twentynine Palms $361,252 $4,907,671 Woodlake $95,974 $1,441,451 Ukiah $198,307 $3,010,708 Woodland $749,990 $12,798,994 Union City $909,206 $13,669,200 Woodside $70,082 $1,027,349 Upland $973,127 $15,921,778 Yorba Linda $847,631 $12,732,502 Vacaville $1,220,576 $12,586,634 Yountville $50,000 $558,285 Vallejo $1,470,087 $26,198,102 Yreka $96,135 $1,415,099 Vernon $50,000 $20,705 Yuba City $869,954 $16,623,397 Victorville $1,561,073 $34,346,136 Yucaipa $687,883 $10,149,447 Villa Park $71,194 $1,089,841 Yucca Valley $274,551 $4,099,043 Visalia $1,711,918 $32,543,406 Sources: State of California Department of Finance. “Coronavirus Relief Fund Allocations for Cities and Counties.” https://dof.ca.gov/budget/ COVID-19/CRF_Allocations/ and U.S. Department of Treasury. “Payments to States and Eligible Units of Local Government.” https://home.treasury. gov/system/files/136/Payments-to-States-and-Units-of-Local-Government.pdf and House Committee on Oversight and Reform, “State and Local Allocation Estimates, 03.08.21.” https://oversight.house.gov/sites/democrats.oversight.house.gov/files/State%20and%20Local%20 Allocation%20Output%2003.08.21.xlsx. Notes: The CARES Act allocations include both the direct congressional allocations as well as the allocations made by the State of California. The American Rescue Plan estimates includes the House Committee on Oversight and Reform’s lists for both Metro Cities and Other Non-Counties. Three municipalities appear on both lists (Lake Forest, Palmdale, and Paradise) and are thus included twice in the chart above. For the CARES Act and the American Rescue Plan, San Francisco includes allocations for both the City of San Francisco and San Francisco County. The American Rescue Plan estimates use 2019 Census data to identify populations eligible for assistance, and do not include villages or other sublocal entities that may also qualify for funding. Projected amounts may be distributed to more nonentitlement governments than are listed in the breakdown to the extent that eligible nonentitlement governments have overlapping populations (for example, residents of a village government and town government in New York). What this means is that village AND town governments will be receiving a direct allocation of federal assistance, as intended by the legislation, but village amounts are not included because of the complications of calculating those amounts until a process is put in place to divvy up funds between overlapping governments. Identification of eligible governments and distribution of assistance across units with overlapping populations may reflect decisions made by the Department of Treasury and state governments. LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 13 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 Notes: 1. National Conference of State Legislatures. “State and Local Association of Oregon Counties Executive Gina Nikkel, Allocation Estimates, 03.08.21.” https://www.ncsl.org/Portals/1/ League of Oregon Cities Executive Director Mike Cully, and Documents/cyf/State_and_Local_Allocation_Estimates_The_ Special Districts Association of Oregon Executive Director American_Rescue_Plan_Act_of_2021.pdf Frank Stratton regarding allocation of the Coronavirus Relief 2. Grant A. Driessen. “General State and Local Fiscal Assistance Fund. May 26, 2020. https://www.orcities.org/application/ and COVID-19: Background and Available Data.” Congressional files/7615/9077/2359/Letter_from_Governor_and_Legislative_ Research Service. February 8, 2021. https://crsreports. Leadership_May_26_2020.pdf congress.gov/product/pdf/R/R46298 13. Letter from Association of Oregon Counties Executive Gina 3. Grant A. Driessen. “Summary of Title V, Subtitle A of H.R. Nikkel, League of Oregon Cities Executive Director Mike Cully, 1319, the American Rescue Plan Act of 2021 and CARES Act Special Districts Association of Oregon Executive Director Comparison.” Congressional Research Service. March 8, 2021. Frank Stratton, and Oregon Legislators to Oregon Governor https://governor.kansas.gov/wp-content/uploads/2021/03/ Kate Brown, Senate President Peter Courtney, and House CRS-Summary-of-the-American-Rescue-Plan-Act-of-2021-and- Speaker Tina Kotek regarding allocation of the Coronavirus CARES-Act-Comparison.pdf Relief Fund. June 5, 2020. https://www.orcities.org/application/ files/1615/9138/4874/2020-06-05-CARES-WorkGroup- 4. U.S. Department of Treasury. “Coronavirus Relief Fund.” Framework-FINAL.pdf https://home.treasury.gov/policy-issues/coronavirus/ assistance-for-state-local-and-tribal-governments/coronavirus- 14. Letter from Leah Horner, Regional Solutions Director, to relief-fund. And Government Finance Officers Association. the Association of Oregon Counties Executive Gina Nikkel, “American Rescue Plan Spending: Recommended Guiding League of Oregon Cities Executive Director Mike Cully and Principles.” https://www.gfoa.org/american-rescue-plan- Special Districts Association of Oregon Executive Director spending-guiding-principles Frank Stratton regarding allocation of the Coronavirus Relief Fund. June 18, 2020. https://www.orcities.org/application/ 5. Department of the Treasury. “Coronavirus Relief Fund files/6615/9258/7634/2020.06.18-AOC-LOC-SD-eboardltr.pdf for Sates, Tribal Governments, and Certain Eligible Local Governments. January 15, 2021. https://home.treasury.gov/ 15. Letter from the League of California Cities to Governor Gavin system/files/136/CRF-Guidance-Federal-Register_2021-00827. Newsom on city revenues. March 5, 2021. https://www. pdf cacities.org/Resources-Documents/Policy-Advocacy-Section/ Hot-Issues/Coronavirus-Resources-For-Cities/3-5-21-Letter-to- 6. The American Rescue Plan. Subtitle M – Coronavirus State Gov-Newsom-FINAL.aspx and Local Fiscal Recovery Funds, Sec. 602. Coronavirus State Fiscal Recovery Fund. March 11, 2021. https://www.congress. 16. Vanessa Gonzales. COVID-19 Relief Funding: Join the Large gov/117/bills/hr1319/BILLS-117hr1319enr.xml Coalition to Support Special Districts Access to a Portion of the $26 Billion California Will Receive from the American 7. Peter G. Peterson Foundation. “Here’s Everything the Federal Rescue Plan Act.” California Special Districts Association. Government Has Done to Respond to the Coronavirus So Far.” April 12, 2021. https://www.csda.net/blogs/vanessa- March 15, 2021. https://www.pgpf.org/blog/2021/03/heres- gonzales/2021/04/12/covid-19-relief-funding-join-the-large- everything-congress-has-done-to-respond-to-the-coronavirus- coalition-t so-far 17. U.S. Department of the Interior Indian Affairs. “Frequently 8. Colorado Cover Jared Polis. “Executive Order D 2020 070.” Asked Questions.” https://www.bia.gov/frequently-asked- March 18, 2020. https://www.colorado.gov/governor/sites/ questions default/files/inline-files/D%202020%20070%20CARES%20act. pdf 18. Judicial Council of California. “California Tribal Communities.” https://www.courts.ca.gov/3066.htm 9. Colorado Department of Local Affairs. “Coronavirus Relief Fund (CVRF) Local Government Distribution Executive 19. U.S. Department of the Interior Indian Affairs. “Cares Act Summary.” May 30, 2020. https://drive.google.com/file/ Provides Critical Assistance for Tribal Governments.” March d/17LKypuZzaroK38dXOd_Gnqpmcbie6wGg/view 31, 2020. https://www.bia.gov/as-ia/opa/online-press-release/ cares-act-provides-critical-assistance-tribal-governments 10. Letter from Special Districts Association of Oregon Executive Director Frank Stratton to Oregon Governor Kate Brown 20. Grant A. Driessen. “General State and Local Fiscal Assistance regarding allocation of the Oregon Coronavirus Relief Fund. and COVID-19: Background and Available Data.” Congressional April 23, 2020. https://www.sdao.com/files/82adfb50d/04-23- Research Service. February 8, 2021. https://crsreports. 20-Letter.pdf congress.gov/product/pdf/R/R46298 11. Letter from the Association of Oregon Counties President 21. Letter from Idaho Governor Brad Little to Coronavirus Jim Doherty, League of Oregon Cities President Jake Boone, Financial Advisory Committee Chairman Alex J. Adams and Oregon Mayors Association President Steve Callaway regarding the Committee’s recommendations on funding to Oregon Governor Kate Brown regarding allocation of the allocations. May 4, 2020. https://coronavirus.idaho.gov/ Oregon Coronavirus Relief Fund. April 21, 2020. https://www. wp-content/uploads/2020/05/gov-approval-funding- orcities.org/application/files/2115/8750/0977/BrownltrFinal- recommendations.pdf DirectFunding.pdf 22. New Mexico Legislative Finance Committee. “Local 12. Letter from Oregon Governor Kate Brown, Senate President Government Fiscal Condition and Use of Federal COVID-19 Peter Courtney, and House Speaker Tina Kotek to the Stimulus Funds.” August 26, 2020. https://www.nmlegis. LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 14 Issue Brief: California’s Use of Federal Pandemic Aid May 2021 gov/Handouts/ALFC%20082620%20Item%203%20Local%20 Government%20Fiscal%20Conditions%20and%20Use%20 of%20Federal%20COVID-19%20Stimulus%20Funds%20-%20 BRIEF.pdf 23. State of Maine Office of Governor Janet T. Mills. “Mills Administration Dedicates Coronavirus Relief Funding for State and Local Match on FEMA Public Assistance.” June 24, 2020. https://www.maine.gov/governor/mills/news/mills- administration-dedicates-coronavirus-relief-funding-state-and- local-match-fema-public 24. State of Maine Office of Governor Janet T. Mills. “Mills Administration Approves COVID-19 Prevention and Protection Grant Awards to Municipalities As Part of Keep Maine Healthy Plan.” June 26, 2020. https://www.maine.gov/governor/mills/ news/mills-administration-approves-covid-19-prevention-and- protection-grant-awards-municipalities 25. U.S. Department of the Treasury. “Coronavirus State and Local Fiscal Recovery Fund.” https://home.treasury.gov/ policy-issues/coronavirus/assistance-for-state-local-and-tribal- governments/state-and-local-fiscal-recovery-fund 26. American Rescue Plan Act of 2021, Subtitle M—Coronavirus State And Local Fiscal Recovery Funds, SEC. 602. Coronavirus State Fiscal Recovery Fund. https://www.congress.gov/117/ bills/hr1319/BILLS-117hr1319enr.xml 27. U.S. Department of the Treasury. “Tribal Consultations.” https://home.treasury.gov/policy-issues/tribal-affairs/tribal- consultations Issue Brief: California’s Use of Federal Pandemic Aid May 2021 (916)-445-2125 | LittleHoover@lhc.ca.gov 925 L Street, Suite 805, Sacramento, CA 95814 LITTLE HOOVER COMMISSION WWW.LHC.CA.GOV | 15