LOC News
Agreement Reached on CRF Distribution Framework
The LOC, the Association of Oregon Counties (AOC), and the Special Districts Association of Oregon (SDAO) reached an agreement this week on a recommendation to Governor Brown, Senate President Peter Courtney and House Speaker Tina Kotek on a framework for distributing CARES Act relief funds (CRF). This agreement also involved collaboration with legislative members of a local government work group, including Senator Jeff Golden, Senator Bill Hansell, Representative Rick Lewis and Representative Karin Power. The LOC would like to thank each of these legislators for their work, particularly under a very accelerated schedule.
Cities – your advocacy is needed to help advance this distribution framework. The LOC needs every city to contact their legislative members, the Governor’s office, the Senate President and the Speaker of the House and let them know you support this agreement going forward. It's important you do this quickly to build support. The next phase of our effort will focus on adding additional resources.
Like any negotiation process, this one as not without debate. The group was hoping to get additional funds identified during this process, but a fast-track timeline for completion made it more critical to reach agreement on the framework for funds distribution. This allows for continued advocacy for a full share (45%) of the state’s $1.65 billion provided by the CARES Act. There is a wide range of how other states have distributed funds: some have started with the full 45% share, others have done less, and there are still several states that have not shared any CARES Act funds as well.
Key elements of the recommendations include the following:
- The funds available for distribution will be roughly $120-$130 million;
- Special districts will draw down from a fund of $20 million using a reimbursement model for their 1,000 plus members;
- Counties and cities will split the remaining balance on a 60-40 ratio in which counties have the higher percentage due to their significant role in the public health response;
- Eligible expenses will include all expenses outlined in Treasury guidance, including costs associated with economic assistance; and
- Distribution to cities and counties will be based on a per-capita formula that sets a minimum distribution of $250,000 for counties and $25,000 for cities with a population less than 750 and $50,000 for cities with a population of 750 or more.
There are other elements of the agreement that will need additional clarity, such as the structure of the distribution, but the LOC is committed to agreement on a system by which a city will have access to the funds and does not have to front the money in advance to get a reimbursement.
Finally, there is one more important step still required. These recommendations are now being sent to Governor Brown and legislative leadership today. We are hopeful they agree with the product, so we can move to the next stage.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 6/5/20
Related Articles & Resources
- Local Government Coalition Working on CRF Distribution Framework LOC Bulletin (5/29/20)
- Coronavirus City Resource Center