Laserfiche WebLink
4 <br />Background <br />• On June 25, 2020, Governor Tim Walz and Lieutenant Governor Peggy Flanagan <br />announced a plan to distribute $841 million from the state’s allocation of the federal <br />Coronavirus Relief Fund to support local government coronavirus relief efforts. <br />• The funding for counties, cities, and towns can be used to support local government <br />services as well as grants to businesses, hospitals, and individuals who have been <br />impacted by COVID-19. <br />• “Local governments urgently need this funding in order to effectively respond to this <br />unprecedented public health emergency,” said Department of Revenue Commissioner <br />Cynthia Bauerly. “The Department of Revenue has a long track record of distributing aid <br />to local governments. The infrastructure already in place will ensure this aid is <br />distributed quickly and accurately.” <br />• Additional information is available on the Minnesota Department of Revenue website. <br />Expenditure Review Process <br />• Minnesota Management and Budget Commissioner Myron Frans submitted this <br />proposal to the Legislative Advisory Commission for their review on June 25, 2020. All <br />members submitted recommendations, and Commissioner Frans issued the order <br />approving this request on June 26, 2020. The Department of Revenue began distributing <br />the funds on a rolling basis beginning the week of June 29, 2020. Any remaining unspent <br />funding must be returned to the state by December 10, 2020. The state must also <br />recoup money if local governments are found to have spent the aid improperly. <br />Distribution Methodology <br />• The Minnesota Department of Revenue is distributing the funding to local governments. <br />Local governments will receive a direct payment based on the per capita formula <br />developed by the state legislature during special session. <br />• Prior to distributing the aid, local governments must certify their intent to follow federal <br />guidelines for the use of funds received. The CARES Act requires that payments may <br />only be used to cover costs that are necessary expenditures incurred due to the public <br />health emergency; were not accounted for in the budget most recently approved for the <br />state or local government; and were incurred during the period that begins on March 1, <br />2020, and ends on December 30, 2020. Cities and towns must incur costs by November <br />15, 2020 and counties must incur costs by December 1, 2020.