Cooper’s COVID-19 spending proposal calls for $4B in federal funding, $695M in state money
(The Center Square) – Gov. Roy Cooper is calling for teacher bonuses, more unemployment benefits, child care grants and rental assistance for North Carolinians in the state’s next COVID-19 spending package.
Cooper’s relief proposal would set aside more than $300 million for child care and development grants and $546 million for rental assistance, using federal COVID-19 relief funding. It earmarks $468 million in state funds for school staff and teachers and extends the duration and the maximum amount of state unemployment payments.
“This budget proposal provides the steps to not only defeat this pandemic but shape a stronger future for our state,” Cooper said Thursday in announcing his plan on how to spend $4 billion in federal aid and $695 million in state money.
The federal funds were provided through the Consolidated Appropriations Act, which was passed by Congress and signed by former President Donald Trump in December.
State Budget Director Charles Perusse said an updated fiscal forecast for North Carolina is expected to be published next week, but the state has more than $4 billion in its reserves that the governor would like to dip into.
North Carolina’s Unemployment Trust Fund has a balance of more than $2.5 billion. Cooper wants the state to extend payments for new claimants from an average of 16 weeks to 26 weeks and increase the maximum benefit amount from $350 to $500 per week.
“This can be done while accelerating the decrease in the base rate paid by employers while keeping the (Unemployment Insurance) Trust Fund balance above $2.5 million,” Perusse said.
The General Assembly passed a bill this week that allocates $1.6 billion from the Consolidated Appropriations Act funding to help reopen schools, which is included in Cooper’s proposal. The governor also proposed more than $287,000 for colleges and universities.
Cooper said he drafted the proposal after consulting with state Republicans and Democrats, educators, health experts, businesses and workers.
Joseph Kyzer, a spokesperson for House Speaker Tim Moore, said the House would consider state spending proposals through the legislative budget process “with a consensus revenue forecast to inform those decisions.” Moore, R- Cleveland, said Wednesday the Legislature would be working on its next COVID-19 relief bill next week.
Perusse said Thursday he hopes Congress passes another stimulus package, but the federal funding has been offered with limited flexibility, leading to a need for state money, especially for expenses such as bonuses for state educators.
Under Cooper’s proposal, teachers and principals would receive $2,500 one-time bonuses. Other public school employees would receive $1,500 one-time bonuses, and university and community college staff would receive $2,000 one-time bonuses.
The governor also recommended using $50 million in state funds for hazard duty pay for frontline state workers, including law enforcement and corrections employees. Another $64.5 million in the proposal is allocated to the North Carolina State Health Plan to offset COVID-19-related costs.
Cooper also recommends spending $30 million in state funds to expand internet connection and cybersecurity for community colleges and education hotspots. About $37 million in the governor’s proposal would provide loans, marketing and other support tools for small businesses.
Besides education, Cooper would like to spend a significant portion of the federal aid – about $700 million – on COVID-19 vaccines, testing and tracing the transmission of the coronavirus. He wants to use $47 million from the federal government for mental health services and plans to allocate more funding for food assistance and school nutrition programs.
Another $258 million in federal dollars was earmarked in Cooper’s proposal for highway infrastructure, and $65 million was allocated for airport grants.
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