Counties to Receive $25 million in CARES Funding for COVID-19 Costs and Impacts

North Dakota lawmakers approved sending $25.4 million in COVID-19 relief funds to North Dakota counties. The North Dakota Legislative Budget Section made the final approval August 13th as part of a package that is the third tranche of federal funding to support the state’s COVID-19 response and recovery efforts. Cities and counties will receive $59 million, on top of the $20 million for public health units.

“This is very important for county government which has experienced the double impact of increased costs related to coronavirus response and decreasing revenues caused by the related economic downturn,” said North Dakota Association of Counties Executive Director Terry Traynor. 

Counties are on the front lines of the coronavirus pandemic response. During this unprecedented public health emergency, counties are committed to mitigate COVID-19 and its impacts on citizens. Public health employees have been directly involved in COVID-19 testing and contact tracing, but counties have also seen dramatic COVID-19 impacts affecting elections, jails and law enforcement along with the investments in making county facilities safe environments to work and do business. 

“As local governments experience declining revenues during the COVID-19 pandemic, this substantial support will help cities and counties limit property tax increases by delivering the relief to them before their 2021 budgets are finalized,” said Governor Doug Burgum. “We’re grateful for the partnership of our legislative leaders and local political subdivisions in developing this consistent approach.”

The $59 million will be paid out as a reimbursement for law enforcement payroll based on each jurisdiction’s number of law enforcement officers and actual payroll costs from March through September. Public safety payroll is considered an allowable expense to distribution of Coronavirus Relief Fund dollars.

NDACo, working with the ND League of Cities (NDLC) and state leaders, reached this agreement as the mechanism to get much-needed funds to local governments for COVID-19 impacts. These funds will be immediately available to the city and county general funds for calendar year 2020 costs, or to address calendar year 2021 budget issues.

Office of Management and Budget (OMB) Director Joe Morrissette explained to lawmakers how these funds will be a welcome form of tax relief to jurisdictions struggling with the loss of revenue.

“These funds will provide meaningful support for local government at a time when they are building their budgets around a declining revenue from the state through the state aid allocations and highway tax distribution fund allocations, as well as significant reductions in their local revenues in sales tax and hotel and lodging taxes,” explained Morrissette.

Traynor says it is clear there is an expectation these funds will be used in a way that will benefit property taxpayers and keep property tax mill rates as low as possible.

NDACo and NDLC have been working with OMB on the documentation needed from cities and counties to certify the expenditures to each city and county. Morrissette expects that the payments to cities and counties should be made in a matter of weeks.

“The simple, straightforward mechanism to deliver this fiscal relief to local taxpayers is the result of North Dakota’s exceptional state and local partnership. County officials thank Governor Burgum, his staff and our legislative leadership for making this possible,” said Traynor.

North Dakota received $1.25 billion from the Coronavirus Relief Fund as part of the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $319.7 million approved in August is what remained of the state’s Coronavirus Relief Fund dollars.