How To Make The Most Of Our Federal Relief Funds

Last August while we were in the middle of a second closure due to an increase in COVID-19 cases, I wrote about our state’s urgency to spend more than $ 1 billion on CARES Act Coronavirus Relief Funds by the end of 2020 and how much of Hawaii’s money had received in response to the epidemic.

Through CARES law and other government regulations and awards, Hawaii has now received about $ 18 billion, and this number continues to rise as shares and prizes are released. With that in mind, the total provincial budget for the next financial year is $ 15.9 billion.

About $ 7 billion of that organization's money goes directly to certain Hawaiian citizens, mainly through the means of paying the impact of "economic incentives" (our $ 1,400 checks) and "government" unemployment benefits (adding to the number of unemployment benefits).

Small businesses and large industries have received $ 4 billion, most of which comes through the Wage Protection Plan, Economic Injury Loans and other payment plans for workers and industry.

Of the $ 18 billion and accounting, more than $ 5 billion comes from the US Reconstruction Act, which includes $ 2.2 billion in state and domestic aid to address the budget deficit and respond to the effects of COVID.

Hawaii has received more than $ 7 billion under the CARES Act, with $ 1.25 billion coming in the form of state and domestic aid to cover costs related to COVID and the implications that should have been spent by the end of 2020 or the risk returned to the state government.

It is often said that our values ​​are reflected in what we do with our budget, what we spend our money on. The COVID-19 epidemic was the last test of that popular expression. With so much need in all parts of our communities and in each sector of our economy, there was no shortage of what we had to fund - but in a very short time, the challenge was how to get the money out quickly for those who needed it most.
What We Funded With Our CRF Funds

An estimated $ 350 million of our CRF funds have been allocated to address the urgent health crisis. COVID testing, contact tracking and public health costs cost more than $ 1 for every $ 4 CRF.

Just over 20% of CRF funding, or $ 260 million, is allocated to small business support and staff programs. Another $ 153 million went to economic support for families, businesses and non-profit organizations.

Housing and nutrition programs have received more than $ 162 million, or 13% of CRF dollars, and child care and education in excess of $ 74 million. More than $ 80 million has been allocated for the purchase and distribution of protective equipment, and approximately $ 100 million goes to the work of health and public safety workers and administrative costs. Broadband and connectivity programs are allocated approximately 1% of CRF over $ 12 million.
What’s Remaining for Our CRF Funds

Of these program allocations 84.5%, or approximately $ 1.06 billion, was overspent or held at the end of last year.

Like many homes in Hawaii, the state has used the rest of the money or CRF funds that have not been allocated - just under $ 60 million - to pay off debts and reduce its debt. The state has spent $ 101 million to recoup the legal costs of the general fund and $ 48 million to repay the unemployment insurance fund loan to the provincial government.

These combined costs mean 91.5% of the approximately $ 863 million received by the government, and approximately 89% of the $ 387 million received by the City and County of Honolulu, has already been spent.

The provincial government has extended the CRF budget by 31 December. Although most of the remaining funds have been calculated, the government has indicated that plans are in place to use the remaining funds for the Safe Travels program and other COVID-related expenses by the end of the year.
What Did We Learn?

Last summer Hawaii was in survival mode, trying to alleviate the many obstacles created by COVID-19. A year later, we are in a very different place. This is not to say that major challenges do not exist, but that the current focus is on long-term sustainability and sustainability.

Attempts to transfer $ 1.25 billion in the CARES Act to government and district funding over six months have highlighted areas of interest and opportunities, as well as areas for improvement.

We have an opportunity for the next pile of funds and future actions taken by Congress as goals and objectives and to prepare now for better use. That is not to say that what we have spent on government grants was not good, but rather how and where we spend those funds should be strategic if we are to move beyond the interim budget from government action to consensus is a place for resilience and sustainability.

In contrast to the urgency of spending around CRF funds, the American Recovery Plan Act overlooked the lessons learned last year that free financial support in times of uncertainty did not work. ARPA state and domestic funds do not need to be spent until 2024.

More than $ 243 million, or about a third of government-sponsored prizes, is made up of non-profit and private partners who can deliver these services to the needy.

As identified in the "COVID & CARES Act: Studies of the Hawaii Nonprofit Sector Report, this discovery and distribution of such a large state fund for nonprofits in Hawaii was unprecedented." effectively with community organizations.

Building on what we have learned and anticipating these new investments, it is important that we take advantage of the opportunity to make a viable pipeline.