Central Coast cities and counties to combine forces for federal COVID-19 funding

SALINAS, Calif. (KION)

The federal government's $2 trillion COVID-19 stimulus package, CARES Act, includes billions for local governments, but the Central Coast could be on the outside looking in when it comes to a major source of funding.

 The $150 billion Coronavirus Relief Fund distributes money to not just states, but direct payment to counties, municipalities, towns, etc. However, there is a population threshold - a minimum of 500,000 people. Monterey, San Benito and Santa Cruz counties, on their own, all fall below that number.

Local political leaders are looking for a loophole, of sorts. Salinas City Councilman Steve McShane tells KION the counties are coming together to apply through the Association of Monterey Bay Area Governments (AMBAG).

"There is still some interpretation whether a JPA, whether what we call an MPO, which is a planning agency on behalf of the region, can qualify. We believe we will. That funding will be allocated to AMBAG and then re-allocated to the three counties in the jurisdiction," McShane said.

Congressman Jimmy Panetta (D-Carmel Valley) sent a letter to U.S. Treasury Secretary Steven Mnuchin asking that he allow these sorts of groups to qualify for the Relief Fund.

"They are facing sharply declining general tax and hospitality industry-related revenues, and little flexibility to take on debt. A direct allocation to a regional JPA or MPO assures that the funding designated for local governments gets most quickly to where it can do the most good," Panetta writes.

The impact on local businesses has hit cities hard. McShane says Salinas is staring down a 10 percent shortfall in the budget due to the decline in sales tax revenue.

"The federal dollars will go to back-fill that hole in local government funding and keep the county and our cities running."

California's Legislative Analyst's Office reports that the state is expected to bring in more than $15 billion through the Coronavirus Relief Fund - $6.9 billion specifically for local governments. Los Angeles County is estimated to receive $1.7 billion, while Central Coast neighbor Santa Clara County is expected $325 million.

Panetta's office tells KION that this doesn't mean Central Coast cities and counties will come up empty handed. In an email Monday, a spokesperson writes that "California is receiving $9.5 billion from the CARES Act from which it then can distribute to localities throughout the state, including those with a population under 500,000." Panetta is also sponsoring legislation that increases funding and includes local governments under 500,000 people.

Money from the CARES Act has already been allocated to Central Coast schools, housing programs and health care facilities.

Higher education funding:

Cabrillo College:  $4,027,260

Hartnell Community College: $3,615,339

Monterey Peninsula College    $2,415,633

California State University, Monterey Bay: $8,459,727

University Of California, Santa Cruz: $19,327,201

Community Development Block Grants (CDBG) and Emergency Solutions Grants (ESG):

Monterey: $152,845

(CDBG) Salinas : $1,190,782

Santa Cruz: $353,464

Seaside: $199,874

Watsonville: $443,984

Monterey County: $816,541

(ESG) Salinas: $617,245 

Community Health Centers:

San Benito Health Foundation: $699,095

Salud Para La Gente: $1,026,020

Clinica De Salud Del Valle De Salinas: $1,356,320

Monterey County: $603,410

Santa Cruz County: $847,760