Callender Seeks Clarity and Raises Questions on Local COVID-19 Funding Distribution Process

State Rep. Jamie Callender (R-Concord), co-chair of the House Finance Committee, met with his colleagues yesterday to hear several bills before the committee. In particular, Callender raised several questions and concerns on the process regarding Senate Bill 310, which seeks to distribute federal COVID-19 funding to local subdivisions through county auditors.

Of the $4.5 billion in federal relief from the CARES Act to help Ohio handle the coronavirus, $2 billion was allocated for local governments. The five largest counties plus the City of Columbus, who qualified to receive funding as they have a population of 500,000 or more, received $775 million from this allocation while smaller municipalities across the state have yet to receive funding. The purpose of Senate Bill 310 is to distribute through the Local Government Fund (LGF) the remaining $1.2 billion to aid local municipalities, counties, and townships.

During the meeting, Callender brought attention to and questioned whether certain groups would qualify to receive funding.

“There have been some folks in Northeast Ohio, I think through NOACA or other organizations, that through their cooperative organizations would meet the threshold of half a million people,” said Callender. “Would they be eligible for this funding, in your opinion, and would this bill affect their eligibility to qualify as our five counties and one municipality have?”

State Senator Matt Dolan, the primary sponsor of the bill, responded to Callender’s concerns.

“The last part is no, this bill has nothing to do with that,” said Dolan. “The first part is I do not believe those groups would qualify as a jurisdiction to receive the $775 million, a jurisdiction over 500,000.”

Callender’s concern arises due to the fact that under thepandemic health orders, the NOACA cannot collect water payments or shut off water to individuals, yet, they are not recognized as a municipality to receive funding through the LGF. Additionally, the Northeast Ohio Regional Sewer District (NEORSD) wrote a letter to Callender urging that the NEORSD and the other 6,119 districts that provide critical clean water to communities be included as a political subdivision within the bill that would allow them to receive CARES Act funding through the LGF.

Callender also inquired into whether municipalities can “double-dip” using the appropriations.

“For the five counties that qualify, so that we are avoiding double dipping that those counties cannot use those funds themselves but have to distribute them, is there anything in this to ban them from using the original  $775 million for municipalities as well?” asked Callender. “For example, in Cuyahoga County, when the county council gets the funding, are they able to distribute some of the original $775 million to municipalities, maybe there is a project that would be eligible in the city of Cleveland let’s say…would this be double dipping under your definition?”

Dolan responded by indicating the six municipalities that have received the $775 million would not be allowed to double-dip, that they must use it according to the April 22 guidelines.

“If they determine that a COVID related expense in a city in their jurisdiction is a proper use of those dollars, they can spend their money that way,” Dolan said.

With this issue and on the possibility of E-Check budgetary cuts, Callender understands and made the point that the bill is filled with ambiguity due to the lack of federal guidance as the federal government has not provided enough clarity on the full jurisdiction on these issues within the bill.

“I would encourage all your municipalities to run it by their council because they are all subject to audit, my reading of the guidelines and your description of that program I would say would be outside of the guidelines,” said Dolan.

This was the second hearing in the House Finance Committee for Senate Bill 310 and awaits further action.