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Tag: federal stimulus

Northam, GA leaders pledge to invest $4.3B in federal funds in special session

Gov. Ralph Northam on Wednesday issued a statement with General Assembly leaders outlining their priorities for a $4.3 billion windfall from the most recent federal stimulus package passed in March.

Among their plans during a special legislative session this summer will be to allocate money from the $1.9 trillion American Rescue Plan to fully fund the Rebuild Virginia small business recovery program and invest in Virginia Tourism and the Virginia Housing and Community Development’s infrastructure program. Also, they intend to put more money into the state’s Unemployment Trust Fund, which ran out of money last October due to record-breaking unemployment claims and relied on loans from the U.S. Department of Labor.

The leaders further plan to fund more staffing and a computer system upgrade at the Virginia Employment Commission, which has been under heavy criticism for delays in processing unemployment checks and responding to claimants’ calls and complaints. Another priority is to fully deploy broadband across the state, completing in 18 months what was intended as a 10-year project. Other priorities are to improve school buildings and upgrade state and local public health services.

Northam — along with House Speaker Eileen Filler-Corn, Senate President pro-tem Louise Lucas and other Democratic statehouse leaders that signed on to the joint statement — notes that Virginia is in an unusual position, because state revenue has begun to rise again and unemployment is starting to decline. In March, the state recorded 5.1% unemployment, down from the national average of 6%.

“Few states can say this, but it is no accident. This is the result of careful stewardship,” the statement says. “This is a unique opportunity to invest in Virginia’s long-term future. We intend to be good stewards of these taxpayer dollars, in full compliance with fiduciary guidelines. We reject calls to refuse these federal dollars, and we support the law’s prohibition on cutting state taxes to substitute federal dollars.”

Virginia received $3.2 billion last spring from the CARES Act, the first federal stimulus package, and through the American Rescue Plan, local governments will receive a total of $2.7 billion directly from the federal government, in addition to $4.3 billion received by the state.

Metro committee approves $4.7B budget for FY2022

With an injection of federal funding, Metro will be able to maintain current service and accelerate repairs on the public transportation system. On Thursday, the Metro Board of Directors’ Finance and Capital Committee approved a $4.7 billion operating and capital budget for fiscal year 2022, which begins July 1.

The full board is expected to approve the budget on April 22, the Washington Metropolitan Area Transit Authority announced in a news release. Under the $2.07 billion operating budget, Metro will keep service at 80% to 85% of pre-pandemic levels, supported by $722.9 million in federal relief funding, which includes $193.4 million allocated last month through the American Rescue Plan Act. Before the $1.9 trillion act was passed, Metro anticipated cuts to bus and rail service, station closures and layoffs.

“The impact of the pandemic on ridership and revenue forced us to consider drastic cuts that would have been necessary absent federal relief funding. Thankfully, the American Rescue Plan Act has provided a lifeline for Metro to serve customers and support the region’s economic recovery,” Metro Board Chair Paul C. Smedberg said in a statement. “We heard from more than 25,000 people how important affordable and frequent transit is to them, and we will consider those comments carefully as we determine how to allocate the remaining federal support to meet the region’s mobility needs in the coming year and beyond.”

Meanwhile, the system expects to start service for the second phase of the Silver Line and the new Potomac Yard Station in Alexandria, as well as five Metrobus routes transferred to Fairfax Connector, which will start in July. Metro’s $12.3 billion, six-year capital rebuilding campaign will continue in the next fiscal year, including rehab work on platforms and the purchase of new 8000-series railcars. Many of the updates address safety recommendations by the National Transportation Safety Board and the Washington Metrorail Safety Commission. For fiscal year 2022, $2.6 billion is allocated to capital work.

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