Governor Releases His Proposed COVID-19 Spending Plan

Governor Roy Cooper released his $1.4 billion spending proposal for North Carolina to address COVID-19  through July 30, 2020.  In the proposal, the Governor recommends using every federal dollar available, starting with the CARES Act funding, before using State dollars.  There are similarities in the categories the Governor identifies and the work group recommendations of the House Select Committee on COVID-19.  The Governor’s proposal is more expansive with notable additions.   

The proposal totals $313 million for public health and safety.  While the House Work Group provided $12.4 million just for mental health services and another $12.6 million for ICF-IDD services, the Governor provides $20 million for all of public health and safety.  Somewhat similar to the House Work Group proposal, he proposes funding to support increases in Medicaid enrollment and other costs to the program, directed funding for enhanced personal safety equipment and sanitation supplies, food/safety/shelter/child care, and targeted support for rural and underserved communities, and continued funding for school nutrition programs.  In addition, he proposes funding to expand COVID-19 testing, contact tracing, and trends tracking and analysis.   

Governor Cooper proposes $243 million to fund public schools.  That includes funding for the Department of Public Instruction requests for summer programming for Exceptional Children and disadvantaged children.   

The two largest single items in his proposal are each $300 million.  The first is to support the Department of Transportation continued road projects since their revenue sources have dropped dramatically with the stay-at-home order.  The second $300 million would go to local governments to assist in their COVID-19 responses.  He also proposes $80 million in continuity of State operations needs such as enhancing telepresence services in public safety facilities and the court system.   

Finally, the Governor proposes funding go to the Golden LEAF for small business relief. While the House Work Group has proposed up to a $50,000 loan for small businesses with low interest rates and repayment before repaying federal assistance, the Governor proposes that loans (also up to $50,000) be zero interest and no payments for six months.   

NC General Assembly leaders have said that they will only focus on the State’s COVID-19 response at the start of the short session.