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Saturday, December 5, 2020

With CARES Act funding set to expire soon, Boulder’s finances uncertain - Boulder Daily Camera

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With the end of the year fast approaching, Boulder is facing uncertainty as the fate of an additional round of federal funding remains in limbo.

President Donald Trump in late March signed into effect the Coronavirus, Aid, Relief and Economic Security Act, a $2.2 trillion federal relief package, which provided stimulus checks to the public and funding to states and municipalities. However, since then, no additional funding has come through. The CARES money allocated earlier this year must be used by Dec. 30 and is specifically earmarked for coronavirus-related expenses.

According to Chief Policy Advisor Carl Castillo, the lack of federal funding is twofold in its impact. It affects Boulder, in its position as an organization and business, but also the community as a whole, where many people are out of work and unable to pay their bills, and businesses of all sorts are struggling to stay afloat.

Without additional funding, the city is likely to continue to provide decreased services, and staff will have to continue taking furlough days, Castillo said.

“Then there, of course, is the impact to the community, which is one that is way beyond what we’ve been able to meet through the CARES Act funds,” he said.

Nevertheless, with its $4.7 million allocation from the state, Boulder opted to provide assistance for community members and businesses and to expand testing, and it’s started dozens of initiatives to do just that.

The city allocated funds for food distribution and access, financial and rental assistance and mental and behavioral health services. It also began the Housing Helpline, which connects community members experiencing financial difficulties because of the coronavirus pandemic to resources for rental assistance, mortgage relief, mediation and legal services.

To assist businesses, the city began a number of programs such as the Restaurant S.O.S. program, wherein the city through the end of 2020 will be fronting restaurants’ portion of the delivery fee when customers use Nosh Boulder to purchase delivery food.

Tangibly, the lack of federal funding means some of those projects will cease to exist.

“We don’t have the funding in our budget outside of CARES Act to be able to support these projects after the funds expire,” Senior Budget Analyst Samantha McQueen said.

One such example is the $700,000 microgrant program for small businesses, according to McQueen.

Likewise, in response to a question from the Boulder City Council in its Dec. 1 meeting, Interim City Manager Chris Meschuk said the city is debating how to proceed with various coronavirus testing sites, including the drive-thru site at Stazio ball fields, where the state pays for the cost of testing and Boulder funds logistics such as storage and traffic control on busy days.

“It’s on our radar as really a financial conversation, and it’s something that we’re wrestling with with the drive-thru sites across the county that are supported with the CARES Act funding,” he said in the meeting. “But it’s something we’re still closely watching.”

Any federal dollars unspent by Dec. 30 must be returned.

“If a municipality doesn’t spend the money, it does have to go back,” McQueen said. “But we’ve set up some plans to make sure we have spent all the money by that time.”

In her role, McQueen has helped coordinate the city’s finances related to spending the CARES Act dollars and is currently working on closeout.

On the other end, Castillo has been working with the city’s lobbyists who are advocating for federal support.

“It’s really just been a question of keeping the pressure on and giving them explanations of why it’s important for us,” he said.

Despite his work with lobbyists, Castillo said he knows no more than the average person about what’s to come. He said he’s hopeful that the federal government will offer a partial appropriation and then continue to address the issue under the new administration.

“What makes it more likely is the urgency, and I think with the numbers just soaring … people are going to feel the pressure over the next couple of weeks to make if not a substantial (then) a significant appropriation of money,” he said.

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December 06, 2020 at 06:01AM
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With CARES Act funding set to expire soon, Boulder’s finances uncertain - Boulder Daily Camera

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