The state has updated its municipalities on the distribution of Covid-19 relief funds.
In a letter delivered to all municipal chief elected officials in Connecticut, the Lamont administration said it will be increasing the levels of financial aid being sent to towns and cities to supplement their response to the ongoing pandemic.
The funding comes from the state”™s Coronavirus Relief Fund, which utilizes federal funding made available through the CARES Act. The changes will reimburse municipalities for their reported and audited costs, establish a grant program for the municipalities, and assist municipalities by offsetting costs related to Covid testing.
To date, the Connecticut Office of Policy and Management (OPM) has reimbursed municipalities for all reported claims through June 30, for a total of approximately $14.5 million from the Connecticut Municipal Coronavirus Relief Fund Program. The administration noted that actual incurred expenses through June 30 were significantly lower than municipalities originally estimated.
The program originally was structured to provide funds on a reimbursement basis after the processing of Federal Emergency Management Agency (FEMA) claims. Due to the time delays in FEMA claims processing, and to maximize support to municipalities, OPM will be immediately providing a direct $45.5 million allocation of the program”™s funds to support municipalities with their costs for the period between July 1 and Dec. 30.
“We have been and remain committed to assisting our municipalities as they confront the challenges of the Covid-19 pandemic,” said Gov. Ned Lamont. “Federal law has prevented us from being able to make up for their revenue losses, and our reimbursement program was simply moving too slowly for the cities and towns to be able to benefit from the amount we set aside earlier this year to help with the costs we know they are experiencing.
“The CARES Act requires the Coronavirus Relief Fund amounts are committed by Dec. 30, and to allow municipalities the ability to benefit from the $75 million allocated this summer, changes were required,” he added. “We remain hopeful there will be additional federal support to help our local governments through this difficult time.”
Congressional leaders have indicated they are making progress on a $900 billion Covid-19 stimulus bill, though work on finalizing that legislation is likely to continue through the weekend.
As a result of FEMA”™s slow processing time, “We are establishing a new allocation program with expanded allowable uses to get this essential money into our localities,” said OPM Secretary Melissa McCaw, “and expanding the scope of the state”™s testing program to include local educators and school staff to help offset those costs that the municipalities may incur. I know how valuable this level of assistance is to maintaining operations for our cities and towns, and it was incumbent upon us to make the necessary changes to get these federal dollars out.”
The Connecticut Municipal Coronavirus Relief Fund Program funds of $75 million will be distributed as follows:
- Reimbursed claims through June 30: $14.5 million
- Final allocation with expanded usage: $45.5 million
- Regional testing opportunities for municipal teachers and staff: $15 million
The Municipal Coronavirus Relief Fund grants of $45,498,170 will be allotted based on the following population formula:
- 33% population density
- 33% population / Adjusted Equalized Net Grand List per capita
- 34% population
For a town-by-town allotment, click here.
