CARES Act funding won’t be enough for some cities

By:  Steve Metzer The Journal RecordJuly 13, 2020

The city of McAlester will be able to gradually bring back furloughed employees and reinstate employee benefits that had to be reduced as the COVID-19 pandemic set in.

In Ponca City, federal funding to reimburse cities and counties for expenses related to the pandemic will be used, among other things, to cover costs of personal protective equipment and other supplies purchased for the town’s ambulance service.

Gov. Kevin Stitt announced recently the first disbursements of funds made available to city and county governments in the state through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. Some $4.2 million distributed to 18 local governments will no doubt help in their recovery, but there are still concerns in places like McAlester, where Mayor John Browne said fiscal year 2021 is still shaping up to be a very lean year.

With the oil and gas industry hurting and resulting in local layoffs, sales tax revenues down and other revenues like hotel and motel taxes also down due to the pandemic, Browne said McAlester’s overall budget hit for FY21 was estimated at about $4 million. The city of about 18,300 in Pittsburg County received a little more than $1.25 million after turning in a detailed application to the state highlighting expenses incurred related to the pandemic.

Between jobs left unfilled and city employees furloughed during the pandemic, McAlester has been down about 50 workers, Browne said. Benefits for all workers have been trimmed. The city also has been burdened with expenses of buying extra equipment and supplies to help departments keep functioning while also managing the pandemic.

“(The $1.25 million) by no means gets us back to where we were, but it certainly helps,” Browne said.

The mayor said he would like to see additional funding made available to help city and county governments make up for sales tax revenues lost because of people not being able to shop as much in local stores.

In Ponca City, City Manager Craig Stephenson agreed that the federal coronavirus relief funding made available so far will help, but towns and counties in Oklahoma still face a lot of financial uncertainty. Lost tax revenues and COVID expenses may not begin to be fully felt until later this year.

“At the end of the day, we don’t believe we’re out of this,” Stephenson said. “(The CARES Act funding) just gives us a little bit more time as we move through the process.”

Ponca City received a little more than $2.33 million to help cover costs of equipment and supplies and wages associated with COVID-19 response.

“Anything we’ve had to use related to our response has all been categorized since March. As a staff we’ve been pretty aggressive to track everything,” the city manager said. “We’ve done everything we can to try to get everything we can back for our residents.”

Both Browne and Stephenson said their communities will continue to pursue CARES Act funding. Both said the process of applying was not especially difficult.

During the first 10 days of each remaining month in 2020, cities and counties may submit requests for reimbursement on expenses directly related to COVID-19 response, such as wages paid to help safeguard public health, heightened sanitation services, personal protective equipment, or modification to public services to increase safety.

In Tonkawa, City Clerk Nancy Skipper said the nearly $28,000 her town of 3,200 received will help to offset losses in a budget for FY2021 significantly impacted by the pandemic.

“The COVID-19 crisis has caused many businesses in our small community to shut down,” she said, “and this year’s new city budget was cut by 30% to prepare for the future, if the crisis continues.”

Mike Mazzei, budget secretary for the governor, said he expects that requests for reimbursements from cities and counties will increase in coming months.

“(We) completed a successful first month of reimbursements thanks to the partnership of cities and counties with submitting thorough documentation and explanations of expenses,” he said. “Every city and county that filed reimbursement requests in June is receiving CRF funds after a thorough vetting process.”

Other cities and counties to receive funding, with their funding amounts, included: Anadarko, $38,654.62; Eakly, $2,401.19; Edmond, $1,705.03; El Reno, $17,954.84; Eufaula, $4,489.98; Guthrie, $40,987.96; Marlow, $1,399.00; Owasso, $48,738.43; Comanche County, $161,369.81; Okfuskee County, $1,020.87; Payne County, $57,309.33; Pittsburg County, $48,996.84; Pontotoc County, $35,773.29; and Wagoner County, $156,546.52.

In announcing the first disbursements, Stitt said the funding should help Oklahoma to adjust to a “new normal” as the pandemic continues.

“Until there is a cure for COVID-19, Oklahoma is adjusting to a new normal, which includes our local government services that are on the front lines of keeping us safe and assisting our must vulnerable populations,” he said. “Congress entrusted the state with this critical emergency federal aid, and I appreciate the partnership of local leaders who are participating in our thorough process to ensure we are delivering the dollars on target.”

If a city or county has not yet registered with the state to apply for funds, a designated employee or elected official may enter contact information at governor.ok.gov/crfgrants to begin the process.