CARES Act Funds Distribution Committee
A few weeks ago, CGFOA was asked to have two representatives be part of a DoLA Review Committee.
Purpose of the Review Committee:
- Analyze short and long term COVID fiscal impact and funding needs;
- Determine and review COVID related direct and indirect state and federal funding resources to support local governments fiscal recovery needs;
- Recommend a funding formula or process for possible distribution of CARES Act funds to other local governments including special districts; and
- Provide feedback and input to OSPB on the state’s fiscal and budget reduction plans which will have impact on local governments
Review Committee Membership:
- Two members from each of the local government associations: CML, CCI, SDA and CCAT. Two members from CCCMA and CGFOA
- Co-Chairs: DOLA, Rick Garcia, Governor's Office Cary Kennedy
- Review Committee may establish topical subcommittees for further due diligence
Special thanks to CGFOA Board Members Mike Varnet, Pikes Peak Library District, and Glenda Aragon West Metro Fire Protection District who stepped up to be part of that committee! After being part of the committee meeting, Mike and Glenda drafted a letter to DoLA recommending an approach to the distribution allocation methodology for the funds available through the CARES Act. It looks like that letter has had a positive affect and we wanted to share it with all friends of CGFOA.
Here is the letter:
May 28, 2020
Rick Garcia, Executive Director
Cary Kennedy, Sr Advisor
Division of Local Government
1313 Sheman St. Rm 521
Denver, CO 80203
Dear Mr. Garcia & Ms. Kennedy,
Thank you for giving the Colorado Government Finance Officers Association (CGFOA) the opportunity to participate in the discussions regarding distribution allocation methodology for the funds available through the CARES Act. The CGFOA Board has discussed possible distribution allocation methods and would like the State of Colorado Division of Local Affairs (DOLA) team to consider the following methodology:
Subject to ~$400MM Distribution
- DOLA directly administers the funding distribution.
- Distribution of funds would be based on direct expenses related to COVID-19, and not be based on population. Population would only be a method of pooled funding availability by county.
- Consider Municipalities and Special Districts to receive funds directly from DOLA that are in the “Big five” boundaries that received little or no funding from their respective counties.
The recommendations above were developed by taking into consideration the smaller local governments with a transient population and those with operations that would be more heavily impacted, like police, fire, and ambulance services. We also considered those municipalities, counties and special districts that have been impacted with little to no recovery from county, state, and federal funding resources.
The Board wants to reiterate the importance of an immediate disbursement with no political restrictions as initially proposed by the DOLA committee. A simple distribution based on need/impact throughout the entire state would be in the best interest for the citizens we serve.
Thank you for your consideration.
Colorado Government Finance Officers Association
Glenda Aragon, CGFOA Board Member
Finance Director, West Metro Fire Rescue
Michael Varnet, CGFOA Board Member
CFO, Pikes Peak Library District