COLOMBIA – Nearly $ 2 billion in federal money has flowed into South Carolina’s coffers to reimburse state and local governments for coronavirus-related expenses.
Where it is going, nobody knows yet. But under federal law, everything is technically under the authority of Governor Henry McMaster, giving him unprecedented control over the state’s purse strings in a state where power is concentrated in the legislature.
Lawmakers will still have a role, although the size is not yet known.
“All of that money has to go to different things in the state. Much of it will be restricted by the federal rules under which it is sent to us, but there will be some flexibility, ”said McMaster on Thursday. “Some decisions will have to be made. We want advice from all sources, including, of course, the General Assembly.”
This money is expected to reimburse state agencies and local governments for COVID-19 expenses incurred between March 1 and December 30. It cannot be used to plug holes in the budget. Permitted expenses include testing supplies, expanding telemedicine programs, technology improvements and expanding public hospitals, said Brian Gaines, director of the executive budget office.
The $ 1.9 billion is South Carolina’s share of the $ 150 billion distributed across the country in direct government aid for COVID-19 costs – just one of the many pockets of money being dispersed under the Act. $ 2 trillion federal CARES, sanctioned a month ago.
Other aids that federal law offers to the South Carolinians include $ 600 in weekly federal supplements for unemployment benefits, small business loans, childcare assistance for first responders and health professionals, law enforcement grants, support for farmers and reimbursement for National Guard expenses.
The State Department of Administration is creating a website with the aim of being a one-stop shop for residents who want information about available services and want to know where the money is going. It is not clear when it will be online.
The idea is to connect “the people of this state with the information they need, whether it’s about applying for unemployment, what we’re doing to restart business, or just understanding what their government is doing,” said Márcia Adams, director of the Department administration.
“We also want to provide transparency … how we are spending the money, what a difference it makes in their lives, because it certainly does,” she said.
As for the $ 1.9 billion in state coffers, the state received $ 998 million on April 16, 24 hours after submitting its application to the United States Treasury. The other $ 906 million arrived Friday, according to the Administration Department.
“I’ve never seen the federal government move so fast,” said Gaines during Thursday’s inaugural meeting of the “AccelerateSC” committee that advises McMaster on the state’s recovery.
The 35-member team includes six legislators appointed by chamber leaders, as requested by McMaster.
When the money will be distributed – and how – is far from being decided. Gaines said the federal government is still adjusting the rules on how it can be spent.
McMaster will also have criteria over $ 48 million specifically for colleges and other education agencies. The state is still in the process of requesting this money.
State Sen. Gerald Malloy, appointed to the advisory team, called Thursday’s meeting a “healthy start”.
“He has the power of emergency,” said the Hartsville Democrat of the governor’s unique authority. “Now he has to be responsible. I think he is trying to be responsible.”
The legislature has not yet drafted a state budget for the fiscal year beginning July 1. Although the House approved a $ 10 billion plan in March, it became debatable in a few days when the coronavirus pandemic began to paralyze the economy. This plan depended on a previously forecasted $ 1.8 billion surplus.
State tax experts provisionally predict that the free-falling economy could reduce that surplus to $ 750 million, but with so many unknowns, lawmakers plan to wait until the end of this year to work out a budget. In the meantime, they must pass an ongoing resolution that will keep the government running at current spending levels after July 1.
That resolution, which has not yet been passed, instructs McMaster to seek approval from a legislative panel before distributing federal coronavirus aid money – or, if that is not feasible, at least notify the panel where the money is going.
“We just need to be ready to act, to be nimble to do our part,” said House Speaker Pro Tem Tommy Pope, another member of the advisory team, on the role of lawmakers in spending the money. “My hope is that when that happens, we will work with the governor to ensure that it is done in the right way and in the most convenient way for the state.”
Other pockets of federal aid ignore McMaster and lawmakers.
That includes $ 216 million that is expected to flow to the state Department of Education, which can receive the money as early as next week. The vast majority will be distributed by school districts.
How they can spend it is quite open, including operations – keeping employees paid – summer camps, technology improvements and emotional health support for students, said state superintendent Molly Spearman.
South Carolina colleges, also banned from teaching face-to-face classes since mid-March, are expected to share $ 185 million. These grants will go directly to each school and half should be used to provide emergency financial aid to students.
