By Susan Jagers, Director, Ohio Poverty Law Center

The CARES Act was the third in a series of federal relief packages approved by Congress in response to the COVID-19 pandemic. Passed on March 27, 2020, the CARES ACT included the $1,200 stimulus payments, the $600 Pandemic Unemployment Compensation benefit, and other funding streams to support education, childcare, and state and local governments.

Some money was distributed directly and with specific purposes. For example, institutions of higher education in Ohio received $388 million with half of the money to offset costs to the institutions and half to assist students with expenses brought on by the spread of COVID-19.  K-12 schools received money to help pay for remote learning. Childcare providers received money to stay open to care for children of first responders and health care workers.

In addition, Ohio received $4.5 billion in Coronavirus Relief Funds. State and local governments can use these dollars for COVID-19 related expenses that were not previously budgeted for and were incurred between March 1, 2020, and December 30, 2020. Of the $4.5 billion, $2.5 billion is for the state to use and $2 billion is designated for local governments.

How has Ohio spent its share?

To date, Ohio has allocated about $1.5 billion of the Coronavirus Relief Funds (CRF). The bulk of the money went to support health care providers including long-term care facilities, rural hospitals, behavior health providers, and other providers who experienced revenue losses and increased costs. The state has spent money on testing, lab costs, contract tracing, and epidemiologists and has provided additional funding for higher education, K-12 education, and childcare providers. The state’s largest investments include:

• Health Care Providers:                 $471 million

• Ohio Dept. of Health:                   $276 million

• Higher Education:                         $200 million

• K-12 Education:                             $150 million

• Dept. of Public Safety:                  $123 million

• Dept. of Admin Services:              $87 million

• Office of Budget & Mgt:               $97 million

• ODRC:                                             $75 million

• Childcare:                                       $31 million

Although discussions with legislative leaders are in progress, Ohio still needs to decide how to allocate $1 billion in CRF dollars. It is important to note that these dollars must be spent by the end of the year.

Local governments including counties, cities, villages, and townships all are receiving CRF dollars too. Counties and cities with a population of 500,000 or more received a direct allocation from the federal government. Ohio’s jurisdictions that met that threshold include:

• Cuyahoga County            $215.5 million

• Franklin County               $76.3 million

• City of Columbus            $156.8 million

• Hamilton County             $142.6 million

• Montgomery County      $92.8 million

• Summit County               $94.4 million.

Money for all other local government jurisdictions has been allocated through legislation or Ohio’s controlling board. During the summer, $525 million was distributed based on the local government formula used in Ohio’s state budget. Another $650 million was included in House Bill 614, which was signed on October 1, 2020. The $650 million will be distributed to local government jurisdictions using a per capita formula. Jurisdictions that received a direct allocation did not get additional money through the legislation.

Through two separate allocations, the Governor allocated about $48 million to local health departments from the local government share of CARES Act Corona Virus Relief Fund money. With the final allocation of $650 million included in House Bill 614, there is no CRF money for local governments left to be distributed.

Guidance from both the United States Department of the Treasury and Ohio’s Office of Budget and Management allows these funds to be used to support struggling Ohioans and communities. We encourage Governor Mike DeWine and legislative leaders to invest some of the remaining CRF dollars into rental and utility assistance. We encourage local elected officials and administrators to assess the needs of the communities they serve and allocate the money to support those who are experiencing income and job loss due to the pandemic.

The Ohio Poverty Law Center is hosting a webinar to provide guidance on programs and projects eligible for CARES Act funding at the local level. Join on Wednesday Oct. 14 at 1:30pm to learn how these funds can be used in local communities to help with rent, mortgage payments, utility bills, and other supporting services.

Click here to register for the webinar.