Budget Section Approves CARES Act Funding

It was an unusual sight in the Senate Chambers this week. The Budget Section met virtually with legislative members joining via phone and only a handful of state agency representatives physically being in the chamber. 

The meeting needed to be held to get the Legislature's approval for state agencies to accept federal funding. This is in response to the $2.2 trillion CARES Act federal economic rescue package, to respond to the coronavirus pandemic. North Dakota will be receiving $133.5 million to support rural transportation, K-12 education, child care, Medicaid and other assistance to provide services to North Dakota citizens. The Budget Section approved the following transactions: 

• Department of Transportation - $18 million
• Federal Transit Administration to support the Formula Grants for Rural Areas Program. 
• ND would receive a 280% increase in these funds through the CARES Act. 
• Program is one of the major funding sources that enable North Dakota rural communities to maintain a viable network of public transportation between those communities and larger communities which is essential for rural residents to get access to health services and shopping.  
• There is no state or local match required.
• Department of Public Instruction - $36.6 million
• Grants to assist school districts in providing services and continue educating students during the COVID-19 pandemic. 
• Funds will be distributed to school districts in proportion to what they receive in Title 1 funds.
• Department of Human Services - $42.7 million
• Grants to support increases to Medicaid FMAP, LIHEAP, Child Care Existing programs including grants for medical assistance including Medicaid and home and community based services. 
• DHS reports they are experiencing an increase in requests for Medicaid assistance with the COVID-19 pandemic.
• Nutritional services (Senior Centers & Meals on Wheels)
• Department of Human Services - $36 million
• Childcare Emergency Operation Grant to childcare providers as a result of the COVID-19 pandemic.  
• State Library - $200,000 

In addition, Office of Management and Budget Director Joe Morrissette, provided limited information related to revenues and the budget. "We are continually monitoring this fluid situation with the drop in oil prices and the evolving situation; that none of us have been through before with business closures," said Morrissette. He told lawmakers that it is difficult to summarize the impacts at this point as there is very little data collected and the duration of the pandemic is unknown. 

"We are working with Moody’s Analytics to use their best estimates and incorporate their estimates into models for North Dakota." Morrissette explained how the data from sales tax collections that will illustrate the impacts of business closures won't be collected until the end of April.  Morrissette also said the move to shift the income tax deadline to July 15th shouldn't have a negative impact on the state's budget. 

You can view the meeting video here: http://video.legis.nd.gov/en/PowerBrowser/PowerBrowserV2/20200409/-1/15203