Tracking how public dollars are spent and the effectiveness of those choices is especially important for state governments now as federal budgets include substantial reductions in federal transfer dollars. Funding cuts extend to agencies such as FEMA, which is particularly significant as hurricane, drought and wild fire seasons are approaching. What states learned from the COVID pandemic and their uses of federal stimulus dollars can provide insights into how they might best allocate scarce resources or reallocate spending priorities . These reports for IBM illustrate the value of performance measures in preparing for and addressing transformational events.
Congress allocated more federal funds to the pandemic recovery than any other national emergency. Government officials of both parties and at all levels were both unsure of the extent of the pandemic impacts and very concerned about a potential economic collapse. ARPA, passed in 2021, allocated money to state, local, and tribal governments to mitigate the significant medical and economic impacts of the pandemic. Within that Act, the CSLFRF allocated $195 billion to be divided among states and the District of Columbia. In addition, counties and municipalities shared $100.7 billion; tribal governments were eligible for a total of $20 billion; and territories and non-entitlement units of local government split $24 billion.
States used these federal recovery funds to replenish lost revenue, address negative economic impacts, and improve program outcomes in the wake of this transformational event. These allocations came with strings attached but did not include substantive enforcement mechanisms. Consequently, despite the provisions, in large part states could spend the money as they choose. They were required, however, to develop and report performance metrics for spending to measured increased jobs and meet other limited criteria.
This report examines the ways in which a shock to the system of this magnitude—a once in one lifetime global pandemic—impacted state governments’ ability to use emergency dollars for public services, and the extent of their success in managing the impacts of this extraordinary experience.
kunz consulting 