COVID-19 CARES Funds Sub Committee House Select Committee on COVID-19 Economic and Financial Preparedness August 31, 2020 1 PURPOSE AND SCOPE PROVIDE OVERSIGHT OVER CARES FUNDS APPROPRIATED TO THE STATE THE APPROPRIATED FUNDS ARE IN ADDITION TO THE $1.25B LUMPSUM APPROPRIATED TO THE STATE (+15 line items ~$125M) TO ENSURE THAT CARES FUNDS ARE TIMELY AND EFFECTIVELY SPENT IN HAWAIʻI WE WILL INCLUDE EFFORTS OF OTHER GOV’T OFFICIALS 2 TASKS 1. IDENTIFY APPROPRIATED FUNDS & PURPOSE 2. IDENTIFY AGENCIES THAT WILL RECEIVE APPROPRIATIONS 4. MONITOR STATUS OF THE EXPENDITURES OF SUCH FUNDS 3. IDENTIFY WHETHER FUNDS CAN BE DISBURSED THROUGH GRANTS 5. ORGANIZE AND COMMUNICATE THIS INFORMATION 3 PROCESS & PRODUCTS HISTORICAL ACCOUNTING/INFO • Primary Data Source • All Federal Funds $9B • Monthly reports of receipts/expenditures by: • Category • Program • Recipient, sub recipient • Federal Dept • Deadline STATUS: • Reconciliation complete • State & National reports identified • Report design is live • CARES funds report is a subset IDENTIFY CURRENT CHALLENGES/SOLUTIONS • For CARES (SB126) plus select other funds • Work with State & County officials to identify challenges early: • Program infrastructure, capacity (people, tech) • Overlap with other programs (or State vs County) • Clarity of federal rules/ compliance (e.g., eligibility, etc) STATUS: • Collaborating with government officials as they build process to engage with program owners • Beginning scan of complementary program types, beneficiaries RAISE FUTURE OPPORTUNITIES • Curated List of Upcoming COVID, non-COVID competitive grants to share with: • Government • Institutions • Nonprofit • Businesses STATUS: • Designed and distributed lists to HCF, HANO • Brainstorming ways to prepare nonprofit community for grant cycles, requirements 4 Today’s Update • Latest Drawdown and Expenditure Report, reconciled with State Federal Awards Management as of 7/31/2020 • Data Visualization as of 7/31/2020 • Synopsis and Concerns. • See Civil Beat Essay: "We-need-to-spend-half-a-billion-dollars-in-123-daysheres-how-to-do-it" submitted by Jill Tokuda on 8/29/2020. 5 DATA VISUALIZATION 6 Synopsis – Drill down, isolate concern Total SBA, IRS, UI, SNAP, etc (>75% spent) non-CRF COVID (avail 4-5/20) CRF (approved by Gov 7/30) Award Amount $9,026,487,509 $6,772,123,659 Expenditure $6,896,994,191 $6,756,124,124 76.41% 99.76% $2,254,363,850 $140,870,068 6.25% $1,004,363,850 $1,250,000,000 $61,685,729 $79,184,339 6.14% 6.33% Non-CRF COVID was received and ready for spending primarily in April/May of 2020 thru various dates. CRF is within the scope of this committee and was received in May 2020 and approved by Governor end of July, to be spent by 12/31/2020. 7 Q: Does the pace & type of our COVID resource flows reflect our Stabilization & Reopening plan & priorities? CDC guidelines? IF Stabilization relies on: • aggressive public health protocols, with a focus on vulnerable communities, spread vectors • continuous learning for our kids, youth AND reopening of schools AS REQUIRED FOR Reopening the economy, THEN • Why are significant related resources (non CRF COVID funds) still unspent? (examples on next slide) • Why are proper use and distribution of PPE, testing & contact tracing for CDC Priority 1 groups still unresolved (essential workforce & congregate settings - incarcerated, houseless, public housing, Micronesians, educational institutions, front line who serve vulnerable) • Why don’t we have data related to breakouts so that related actions on what to close or open can be strategic? Is this capability (human/tech/data science) resourced? • How do we educate and communicate with our citizenry so that they know what to do? Is this resourced? 8 Pace of certain Non CRF COVID (out of committee scope, but relevant) PROGRAM CDC Epidemiology & Lab Capacity AWARD EXPENDITURE ENCUMBERED 60,592, 455 137,218 406,857 6,317,500 981,494 1,026,917 Education (K-12, Higher ed) 96,990,529 10,423,218 14,985,801 Emergency Solutions Grants (DHS, City & County) 34,835,055 ? ? Childcare & Development Block Grant 11,990,147 139,370 0 Headstart 2,530,000 0 0 Public Housing Operating Funds 4,128,858 413,411 0 14,680,713 0 0 CDC Rapid Funding Community Health Centers 9 How do we learn from Non CRF COVID funds as CRF ramps up (in committee scope) FACTS/CURRENT SITUATION: • DIRECT FLOW: The line items that were pushed out rapidly were primarily through SBA/banks/credit unions, direct to businesses & individuals. • CAPACITY: CRF passes through certain State Department agencies that are already stretched with expanded scope due to COVID. • COMPETING OBJECTIVES: CRF relies on government agencies to sub-award to private sector nonprofits who have competing objectives (protect against impropriety vs. expediency/ease for beneficiaries in need) • Contract terms are challenging to finalize, eating into time for execution. • UNALLOCATED FUNDS: $371m that was line-item vetoed is not allocated, tied up until 9/15/2020. 10 CRF (in committee scope) • • • • • QUESTIONS: How do we make sure that what we learned from non CRF COVID will inform what we do with CRF especially with such significant needs (July cliff) and short deadlines to spend? Are we leaning on and protecting private providers with understanding of ‘recipients-inneed’ and strong demonstrated capabilities? How do we insert entrepreneurial mindsets to address competing objectives of government and private intermediaries utilizing new methods, data/technology? How does the allocation of CRF align with or go against non CRF COVID to address our most urgent needs (data informed infection sources/hot-spots, education/health equity issues, etc.)? How can/will the unallocated $371M be allocated in a way to address needs or build new capabilities, have flexibility? See Jill’s article for ideas. 11 appendix 12 Status of ‘CRF’ as of 7/31 Prepared by State of Hawaii Federal Awards Mgmt. Excludes City and County of Honolulu ($387M) and line-item veto ($371M) 13