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HomeMy WebLinkAbout20200616_CARES ActCity of San Luis Obispo, Office of the City Council, 990 Palm Street, San Luis Obispo, CA, 93401-3249, 805.781.7114, slocity.org   June 16, 2020 The Honorable Jordan Cunningham Member, California State Assembly State Capitol Sacramento, CA 94249 Via FAX: (916) 319-2135 The Honorable Bill Monning Member, California State Senate State Capitol, Room 4040 Sacramento, CA 95814 VIA FAX: (916) 651 – 4917 RE: Amendment to CARES Act Allocations Dear Assembly Member Cunningham and Senator Monning: The City of San Luis Obispo thanks you for your efforts to protect and support Californians during this unprecedented public health crisis. Since the beginning of the COVID-19 outbreak, cities have been coordinating across jurisdictional lines, enacting emergency measures to slow the spread of the coronavirus pandemic, taking action to protect individuals and small businesses, and incurring significant unplanned expenses to protect public health and the economy. These actions have saved lives and serve as a model for the country. But these actions come at a cost. The City of San Luis Obispo appreciates the May Revision allocation of $450 million of the state’s CARES Act funding to cover COVID-19-related costs by cities. However, under the current formula some cities will receive as little as $3,000. We are calling on the Legislature and the Governor to increase the state’s CARES Act funding allocation to cities to $500 million and establish a floor allocation of $50,000 per city. Cities need additional funding and a minimum allocation to ensure that CARES Act funding is distributed fairly and equitably and is a meaningful amount for all jurisdictions. CARES Act funding will help our city recover from this pandemic faster and reopen our communities without furthering city revenue shortfalls and threatening core city services. Our city will receive $472,487 under the May Revision formula or $ 574,950 under the formula being proposed by the League. While neither of these amounts will be enough to cover all the expenses and lost revenue incurred as a result of the pandemic, it will help - as long as we have the flexibility to put the funds granted to us towards where it is most needed. Since that may be different for every city in the state, we ask the legislature to ensure that funds are not granted only for personal protective equipment or any other specific categories. It is important to note that CARES Act funding is only for COVID-19-related expenses. Our city still needs direct state and federal funding to address the devastating impact stay-at-home orders have had on our budget and local economy. In total, cities around the state are facing a nearly $7 billion revenue shortfall over the next two years, and this shortfall grows by billions of dollars as modified stay-at-home orders extend into the summer months and beyond. The City of San Luis Obispo impacts are in the tens of millions alone including the General Fund and various enterprise funds such as Parking, Wastewater, Water, and Transit. The City of San Luis Obispo appreciates your consideration of our budget requests and looks forward to further discussing how together we can continue to best protect Californians and reopen our economy. Thank you again for your leadership and partnership during these uncertain times. Sincerely, Heidi Harmon Mayor cc: San Luis Obispo City Council State Senator Bill Monning, fax (916) 651 – 4917 State Assembly Member Jordan Cunningham, fax (916) 319-2135 Dave Mullinax, League of California Cities, dmullinax@cacities.org Meg Desmond, League of California Cities, mdesmond@cacities.org