As $677 million in federal relief hits, Justice promises strategic plan and legislative buy-in

More than $677 million in federal relief funds flowed to West Virginia’s state government today, and Gov. Jim Justice says planning has begun for how to spend it.

“We just got the money in this morning. We’ve done a lot of research into how the money can be used,” Justice said during a briefing today.

The governor didn’t yet have many specifics on that, though, except to say that members of the state Legislature will be involved in allocating the money.

State government received $677,774,994 today from the American Rescue Plan Act. Overall, West Virginia is receiving $1.355 billion with the second allotment coming in about a year.

Guidance from the U.S. Treasury says the money may be used to support public health expenditures, address negative economic effects of the covid-19 pandemic, replace lost public sector revenue, provide premium pay for essential workers and invest in water, sewer and broadband infrastructure.

“Within these overall categories, recipients have broad flexibility to decide how best to use this funding to meet the needs of their communities,” Treasury wrote in its guidance.

Justice agreed that the flexibility will be helpful for states.

“The regulations on how you can dispense and use the money have been relaxed a little more,” Justice said. “These are stimulus dollars and they’re there to do that, to stimulate our economy and bring our economy back to life.”

Justice said his staff has been reviewing needs for the money to form a strategic plan.

“Next week, we’ll begin reaching out to all of our Legislature leadership and working together to get this money out to West Virginians who need it,” the governor said.

“We’ll be working hand-in-hand with the Legislature. I’m happy to do that and everything. Tickled to death to be completely transparent and get their approval, whatever it may be.”

Legislators passed a bill this past session to clarify their responsibility to allocate unanticipated revenue in excess of $150 million.

Justice alluded to that bill, which he signed into law.

“It will be formal on how the money will be appropriated. We’re continuing to work with the leadership of the House and the Senate,” he said.

West Virginia still has $602,544,125 remaining in federal CARES Act funds, according to the state Auditor’s transparency site. 

Justice and other state officials have said they plan to use that money to pay for unemployment insurance. Right now, the state has been using a zero-interest federal loan to pay for that. When the loan comes due next September, the plan is for the state to use then pay off the loan on the strength of the remaining CARES Act money.

A lack of legislative appropriation of that money drew criticism for months from delegates and prompted passage of the new law requiring legislative participation.

On the American Rescue Plan money, local governments around the state also began receiving millions of dollars.

Kent Carper

Kanawha County, the state’s largest, received a deposit today of $17,299,249.50.

“From day one, we have been absolutely committed to complete and total transparency,” Kanawha County Commission President Kent Carper stated.

“All American Rescue Plan funding will be discussed and voted on in a public meeting; we will be scheduling ARP specific public meetings and workshops in the very near future.”

U.S. Senator Joe Manchin and state Auditor J.B. McCuskey had information sessions late last week about the funding last week in Fairmont and Martinsburg.

J.B. McCuskey

“As our state and country reopen after a year-long pandemic, the state Auditor’s Office is excited to use the experience and tools we have built over the last four years to ensure every taxpayer dollar that is sent to our local governments is spent effectively, legally, and transparently.” McCuskey stated.

“We are proud of the relationships we have built with our amazing city and county leaders and look forward to being a channel for them as they rebuild the infrastructure that has been neglected for decades. We believe the best way to hold government officials accountable is to provide taxpayers with real-time transparent data about their spending.”





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