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The Latest Federal COVID Money Pot

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by

Dick Hall-Sizemore
in

Illustration credit: YouTube

By Dick Hall-Sizemore

The federal COVID money keeps rolling into the Commonwealth.

According to the Secretary of Finance, as of January 13, it was estimated that the state would receive $2.4 billion from the stimulus bill passed by Congress in late December (the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA)).

Unlike the earlier COVID stimulus money (CRF from the CARES Act), the December federal legislation provided less flexibility with this pot of money, directing it to specific agencies and purposes.

K-12 education gets the biggest share. The estimates for Virginia are:

  • Governor’s Emergency Education Relief (GEER) Fund—Flexible—$30.0 million
  • GEER Fund—Private Schools–$46.6 million
  • K-12 Fund–$939.3 million.

The purposes for which the remaining funding can be used are as follows:

  • Testing–$491.3 million
  • Vaccine preparedness–$77.1 million
  • Rental assistance–$569.7 million
  • Urban transportation–$222.1 million
  • Enhanced mobility for seniors and persons with disabilities–$0.5 million
  • Extension implementation grants (labor)–$0.65 million

Bear in mind that this $2.4 billion is in addition to the $1.8 billion that the state got under the CRF. However, not all that funding was made available to state agencies. To see what state agencies got to work with, I need to slice the numbers a little bit more:

CRF allocation (dollars in millions)

  • Total allocation– $3,109
  • Distributed to localities–$1,289
  • Available for state distribution–$1,820
  • Interest earned–$11.9
  • Earmarked for K-12–$220.8
  • Net available for other uses by state agencies–$1,611.1

CRRSA allocation (dollars in millions)

  • Total–$2,377
  • Earmarked for K-12–$969.2
  • Earmarked for private schools–$46.6
  • Net available for other specified uses by state agencies–$1,361.2

In conclusion, state agencies will have an additional $1.4 billion on top of the $1.6 billion they got from CRF. And how quickly are state agencies spending the money from the first pot? According to the Secretary’s report, as of 1/14/2021, there was a balance of $456.7 million unspent. Add that to the $1.4 billion from CRRSA and state agencies now have almost $1.9 billion in federal COVID money. Luckily, CRRSA extended the deadline for spending the money by one year, to Dec. 30, 2021.

There is one more interesting tidbit in the Secretary’s presentation. As one would expect, the agencies for which the largest amounts obligated are the ones with the largest unspent amounts, as shown below:

Unspent obligations, as of 1/14/2021 (dollars in millions)

                            DMAS

  • Total obligation:  $238.0
  • Unspent:  $129.9
  • Percent unspent:   55

                              VDH

  • Total obligation:  $ 166.7
  • Unspent:  $100.4
  • Percent unspent:  60

                            VDEM

  • Total obligation:  $236.5
  • Unspent:  $93.1
  • Percent unspent:  39

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51 responses to “The Latest Federal COVID Money Pot”

  1. James A. Bacon Avatar
    James A. Bacon

    WOW, when the federal government is shoveling money into Virginia faster than the government can spend it, that’s A LOT of money!

    And, predictably, a lot of waste.

    1. Nancy_Naive Avatar
      Nancy_Naive

      Youse Republicans is always wanting tax refunds… here it is. You’ve only got to figure how to snag some.

      1. sherlockj Avatar
        sherlockj

        We’uns just want it spent wisely and with some modicum of oversight.

        1. Nancy_Naive Avatar
          Nancy_Naive

          Fiscally responsible stock buy-backs.

  2. James A. Bacon Avatar
    James A. Bacon

    WOW, when the federal government is shoveling money into Virginia faster than the government can spend it, that’s A LOT of money!

    And, predictably, a lot of waste.

    1. Nancy_Naive Avatar
      Nancy_Naive

      Youse Republicans is always wanting tax refunds… here it is. You’ve only got to figure how to snag some.

      1. sherlockj Avatar
        sherlockj

        We’uns just want it spent wisely and with some modicum of oversight.

        1. Nancy_Naive Avatar
          Nancy_Naive

          Fiscally responsible stock buy-backs.

  3. Nancy_Naive Avatar
    Nancy_Naive

    Speaking of blowing big bucks…

    Dick, Steve, it includes distilleries…
    https://wmalumni.com/benefits-services/travel/trips/undiscovered-ireland/wmtrav_ireno21.pdf?utm_source=alumni_journeys&utm_medium=email&utm_campaign=february_2021

    1. Nancy_Naive Avatar
      Nancy_Naive

      Special Price $4,595 per person. Minus $1,200 Trump stimulus, and minus ($600+$1,400) Biden stimulus means you only need to “cough up” $1,395 of your own money!

  4. Nancy_Naive Avatar
    Nancy_Naive

    Speaking of blowing big bucks…

    Dick, Steve, it includes distilleries…
    https://wmalumni.com/benefits-services/travel/trips/undiscovered-ireland/wmtrav_ireno21.pdf?utm_source=alumni_journeys&utm_medium=email&utm_campaign=february_2021

    1. Nancy_Naive Avatar
      Nancy_Naive

      Special Price $4,595 per person. Minus $1,200 Trump stimulus, and minus ($600+$1,400) Biden stimulus means you only need to “cough up” $1,395 of your own money!

  5. LarrytheG Avatar
    LarrytheG

    Wow – ” Earmarked for private schools–$46.6 million”

    any idea what it is for?

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      Here is the link to the information that will tell you about the program: https://oese.ed.gov/offices/education-stabilization-fund/emergency-assistance-non-public-schools/

      1. LarrytheG Avatar
        LarrytheG

        thanks:

        ” CC-10.What factors might an SEA consider in prioritizing non-public schools to receive services or assistance under the EANS program? An SEA must prioritize EANS services or assistance to non-public schools that enroll low-income students and are most impacted by COVID-19. An SEA generally has flexibility with regard to how it considers these criteria. An SEA might, for example, target non-public schools that enroll significant numbers of low-income students or meet a minimum threshold of low-income students. Factors that an SEA might consider in determining non-public schools that are most impacted by COVID-19 include but are not limited to: (1) loss of tuition revenue; (2) decrease in enrollment; (3) lack of capacity to provide remote learning due to insufficient technological support, and (4) data documenting the extent of learning loss attributable to the disruption of instruction caused by COVID-19. An SEA has the flexibility to consider other factors in prioritizing non-public schools. For example, an SEA might consider the extent to which a non-public school serves low-income children with unmet needs and did not receive equitable services under a CARES Act program. “

      2. James Wyatt Whitehead V Avatar
        James Wyatt Whitehead V

        That was a great link Mr. Dick. I sent this to my friends at Randolph Macon Academy. I don’t think they were aware of their eligibility. It is grant money right? That doesn’t have to be repaid? Is it tied into Title IX compliance?

        1. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          It is my understanding that it is grant money. I don’t know enough about it to comment on whether it is tied into Title IX compliance.

          1. James Wyatt Whitehead V Avatar
            James Wyatt Whitehead V

            Thanks for answering that question. One more. Is the money available now or soon to be available?

          2. Dick Hall-Sizemore Avatar
            Dick Hall-Sizemore

            The latest information I can find is that VDOE is still waiting guidance from the feds about the grants for non-public schools. See Memo 012-21 on this link. https://www.doe.virginia.gov/administrators/superintendents_memos/2021/index.shtml

        2. sherlockj Avatar
          sherlockj

          It is grant money.

  6. LarrytheG Avatar
    LarrytheG

    Wow – ” Earmarked for private schools–$46.6 million”

    any idea what it is for?

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      Here is the link to the information that will tell you about the program: https://oese.ed.gov/offices/education-stabilization-fund/emergency-assistance-non-public-schools/

      1. LarrytheG Avatar
        LarrytheG

        thanks:

        ” CC-10.What factors might an SEA consider in prioritizing non-public schools to receive services or assistance under the EANS program? An SEA must prioritize EANS services or assistance to non-public schools that enroll low-income students and are most impacted by COVID-19. An SEA generally has flexibility with regard to how it considers these criteria. An SEA might, for example, target non-public schools that enroll significant numbers of low-income students or meet a minimum threshold of low-income students. Factors that an SEA might consider in determining non-public schools that are most impacted by COVID-19 include but are not limited to: (1) loss of tuition revenue; (2) decrease in enrollment; (3) lack of capacity to provide remote learning due to insufficient technological support, and (4) data documenting the extent of learning loss attributable to the disruption of instruction caused by COVID-19. An SEA has the flexibility to consider other factors in prioritizing non-public schools. For example, an SEA might consider the extent to which a non-public school serves low-income children with unmet needs and did not receive equitable services under a CARES Act program. “

      2. James Wyatt Whitehead V Avatar
        James Wyatt Whitehead V

        That was a great link Mr. Dick. I sent this to my friends at Randolph Macon Academy. I don’t think they were aware of their eligibility. It is grant money right? That doesn’t have to be repaid? Is it tied into Title IX compliance?

        1. sherlockj Avatar
          sherlockj

          It is grant money.

  7. rjordan Avatar
    rjordan

    Dick, the House Appropriations Committee published its usual spreadsheets showing K-12 distributions based on the House budget. They also included the amount of federal relief money that each division has received. The numbers are pretty amazing and definitely under the radar.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      So good to hear from you, Ron. For those of you interested in what he is talking about, see the link below. A word of explanation: There are two pots of money for K-12. The first one is ESSER. This is the money that Congress carved out for K-12 in the CARES legislation. It is distributed in the same manner that Title I funds are distributed and passed through state departments of education. The second is CRF. This is the amount of money that Governor Northam designated for K-12 from the general pot that CARES provided for states. The Governor directed that each school division get $175 per child enrolled. There is an ESSER II pot that was part of the December legislation (CRRSA) that will be in addition to the two distributions shown in this link.
      http://hac.virginia.gov/Documents/2021/Pre-Session/CH%2056/Appendix%20C%20-%20CARES%20Act%20Distributions%20for%20K12.pdf

      1. LarrytheG Avatar
        LarrytheG

        So maybe another dumb question. Is the premise of this money to help school to re-open or what?

        1. Steve Haner Avatar
          Steve Haner

          Not in the least contingent on that.

        2. Dick Hall-Sizemore Avatar
          Dick Hall-Sizemore

          That is a good question and I am not sure if I know the answer. It is the purpose stated in the Secretary’s handout. According to the Superintendent’s memo to local school divisions it is “distributed to school divisions to assist with costs associated with the COVID-19 emergency, including but not limited to costs associated with implementing social distancing measures, providing distance learning, and providing computer equipment and internet access to students.” I will let you decide.

          1. LarrytheG Avatar
            LarrytheG

            I’m still a little fixated on what the money is actually spend on – between durable equipment like HVACs, busses, additional classrooms and essentially salaries – direct or “trickle down” through purchased/temporary services and supplies/non-durable equipment.

            One could make an argument that in order for schools to re-open in COVID, they need upgrades to HVAC, more buses (and drivers?) and more classrooms (for adequate social distancing?.

            So it’s those types of questions that seem to be not explicitly understood (disclosed?) that I would think the public might better understand – as opposed to it looking like just a shower of money to spend for “good things to help”.

            I note at least one paragraph talking about it going to private schools who enroll more “low income” kids. That sounds like salaries – but then again, it’s one-time money, not really permanent new staff… so the idea is for the private schools to take on some low-income “underserved” kids – for the short term -and then back to the public schools later?

            What you’ve provided is excellent but it does lead to MORE questions! 😉

          2. Dick Hall-Sizemore Avatar
            Dick Hall-Sizemore

            You are right; this type of information leads to more questions. As for how the money is actually spent by the schools, that is up to each school division. I don’t mean to be short, but, if you want to know, you will have to ask the Spotsylvania school division how it is spending the money.

          3. LarrytheG Avatar
            LarrytheG

            Dick, you’ve been very patient and it’s appreciated.

            One more thing. If not mistaken, the BOS actually has to approve the allocations of money and as usual in Spotsylvania there is a back and forth between the SB and BOS – with the BOS wanting veto power over spending they do not approve of.

            But again, thank you for your patience.

          4. Dick Hall-Sizemore Avatar
            Dick Hall-Sizemore

            It has been a while since I have dealt with local government finances and I am embarrassed to say that I don’t know the extent to which a BOS can control what a School Board does with federal grant funds.

          5. LarrytheG Avatar
            LarrytheG

            I don’t know either. I’m not sure what control the BOS has over money from external sources to the county but I have seen back and forths between the BOS and the SB on these issues and I also notice that when law enforcement and Fire apply for grants, they have to get BOS endorsement to receive them and use them and I’ve seen them turn down some grants that have strings attached.

  8. rjordan Avatar
    rjordan

    Dick, the House Appropriations Committee published its usual spreadsheets showing K-12 distributions based on the House budget. They also included the amount of federal relief money that each division has received. The numbers are pretty amazing and definitely under the radar.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      So good to hear from you, Ron. For those of you interested in what he is talking about, see the link below. A word of explanation: There are two pots of money for K-12. The first one is ESSER. This is the money that Congress carved out for K-12 in the CARES legislation. It is distributed in the same manner that Title I funds are distributed and passed through state departments of education. The second is CRF. This is the amount of money that Governor Northam designated for K-12 from the general pot that CARES provided for states. The Governor directed that each school division get $175 per child enrolled. There is an ESSER II pot that was part of the December legislation (CRRSA) that will be in addition to the two distributions shown in this link.
      http://hac.virginia.gov/Documents/2021/Pre-Session/CH%2056/Appendix%20C%20-%20CARES%20Act%20Distributions%20for%20K12.pdf

      1. LarrytheG Avatar
        LarrytheG

        So maybe another dumb question. Is the premise of this money to help school to re-open or what?

        1. Steve Haner Avatar
          Steve Haner

          Not in the least contingent on that.

  9. LarrytheG Avatar
    LarrytheG

    My take on this is that the vast majority of this money is destined to pay salaries and then be spent and thence into the economy.

    What it is actually spent for in terms of categories – is down a notch in priorities – as long as it does flow from the govt to an agency to a paid-person, staff or temporary and then into the economy.

    The bean-counting is necessary to make it look like there is a particular plan but in reality – it’s just a conduit to get it into the economy.

    And apparently, there are those who think we need even more….much more.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      It is a little more complex than paying salaries. Most of the money is to be used to buy stuff–PPEs, cleaning supplies, etc. (I am working on a future post that will show more details on what the money was spent on.) Another major use was for financial assistance, such as mortgage and rent relief and grants to small businesses. I agree with you that, ultimately, the purpose was to get the money into the economy. Indirectly, a lot was used to pay salaries in the sense that the money was used to sustain demand for certain goods and services an people were needed to produce, process, transport, and deliver those goods and services. But, if the sole purpose was to get money into the economy, a much easier and efficient way would have been to give each individual a big chunk of cash (more than the $1,200). However, not all of that would have gone into the economy; for middle to upper classes, a lot would have gone into savings or the stock market.

      My intent was not to disparage the federal assistance. This funding is needed to help state and local governments deliver the additional services needed or to meet the additional challenges posed by COVID. At the same time, it is helpful for the public and public officials to know how much federal money is flowing to the state government and for what purposes. And it is important that government agencies be held accountable for spending the money for the purposes intended and as efficiently as possible. After all, it is the public’s money. In summary, it goes beyond bean counting.

      1. Steve Haner Avatar
        Steve Haner

        Just getting started….way more coming in Round Three or whatever this one is pending in Congress. All part of the plan to transform us into a European style political economy, even more dependent on the central government.

        1. sherlockj Avatar
          sherlockj

          Bingo. Beware of “one-time” money.

        2. LarrytheG Avatar
          LarrytheG

          Well to this point, it’s “stimulus” , not permanently embedded in the budget.

          There is, as usual, not really disagreement on the “need” for stimulus but how much and for how long with some economists warning that the real danger is not enough stimulus, rather than too much but even those guys seem to say that it should be short-term, (but large) , not drawn out and always the boogeyman of “central government socialism” and what not.

  10. LarrytheG Avatar
    LarrytheG

    My take on this is that the vast majority of this money is destined to pay salaries and then be spent and thence into the economy.

    What it is actually spent for in terms of categories – is down a notch in priorities – as long as it does flow from the govt to an agency to a paid-person, staff or temporary and then into the economy.

    The bean-counting is necessary to make it look like there is a particular plan but in reality – it’s just a conduit to get it into the economy.

    And apparently, there are those who think we need even more….much more.

    1. Dick Hall-Sizemore Avatar
      Dick Hall-Sizemore

      It is a little more complex than paying salaries. Most of the money is to be used to buy stuff–PPEs, cleaning supplies, etc. (I am working on a future post that will show more details on what the money was spent on.) Another major use was for financial assistance, such as mortgage and rent relief and grants to small businesses. I agree with you that, ultimately, the purpose was to get the money into the economy. Indirectly, a lot was used to pay salaries in the sense that the money was used to sustain demand for certain goods and services an people were needed to produce, process, transport, and deliver those goods and services. But, if the sole purpose was to get money into the economy, a much easier and efficient way would have been to give each individual a big chunk of cash (more than the $1,200). However, not all of that would have gone into the economy; for middle to upper classes, a lot would have gone into savings or the stock market.

      My intent was not to disparage the federal assistance. This funding is needed to help state and local governments deliver the additional services needed or to meet the additional challenges posed by COVID. At the same time, it is helpful for the public and public officials to know how much federal money is flowing to the state government and for what purposes. And it is important that government agencies be held accountable for spending the money for the purposes intended and as efficiently as possible. After all, it is the public’s money. In summary, it goes beyond bean counting.

      1. Steve Haner Avatar
        Steve Haner

        Just getting started….way more coming in Round Three or whatever this one is pending in Congress. All part of the plan to transform us into a European style political economy, even more dependent on the central government.

  11. Nancy_Naive Avatar
    Nancy_Naive

    Why didn’t I buy that house on Amelia Island last February?! Oh well. Maybe a bigger boat.

  12. Nancy_Naive Avatar
    Nancy_Naive

    Why didn’t I buy that house on Amelia Island last February?! Oh well. Maybe a bigger boat.

  13. Nancy_Naive Avatar
    Nancy_Naive

    And for your musical entertainment…

    https://www.youtube.com/watch?v=JkhX5W7JoWI

  14. Nancy_Naive Avatar
    Nancy_Naive

    And for your musical entertainment…

    https://www.youtube.com/watch?v=JkhX5W7JoWI

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