Funding formula could cost Georgia more than $1.3B in federal COVID-19 relief
(The Center Square) – Georgia stands to lose more than any other state in the U.S. House Democrats’ $1.9 trillion COVID-19 stimulus package, according to a House Budget Republicans analysis.
At issue is the funding formula used to allocate direct funding to states in the newest package compared with the formula used in previous packages. The new stimulus bill uses a state’s number of unemployed residents rather than overall population.
As a result, Georgia would see nearly $1.3 billion less in aid based on using unemployment as a factor. The House Budget Republicans’ analysis showed 33 states would lose money under the proposal.
Georgia Gov. Brian Kemp was one of 22 governors – 21 Republicans; one Democrat – who issued a joint statement Saturday speaking out against the new formula.
“Unlike all previous federal funding packages, the new stimulus proposal allocates aid based on a state’s unemployed population rather than its actual population, which punishes states that took a measured approach to the pandemic and entered the crisis with healthy state budgets and strong economies,” the statement said.
“A state’s ability to keep businesses open and people employed should not be a penalizing factor when distributing funds. If Congress is going to provide aid to states, it should be on an equitable population basis.”
Kemp called out Democrats who represent Georgia in Congress in his own statement, calling it “disappointing” House Democrats voted to send $1.3 billion less to Georgia.
“Those additional funds could be utilized to get every student back in the classroom five days a week, expand internet access to rural and underserved communities, increase support for Historically Black Colleges and Universities, provide aid to families who adapted to virtual learning, and strengthen community and local government responses to the pandemic,” Kemp’s statement said.
The governor urged Georgia’s two new U.S. senators, Democrats Raphael Warnock and Jon Ossoff, “to use their considerable influence in an evenly divided Senate to level the playing field for hardworking Georgians and put the people of our state ahead of Chuck Schumer and Nancy Pelosi’s pandemic politics.”
Florida ($1.2 billion less), Virginia ($1.1 billion less) and South Carolina ($1 billion less) are the other states poised to lose more than $1 billion in the new funding formula based on the House Budget Republicans’ analysis.
California ($5.4 billion more), New York ($2.2 billion more), New Jersey ($1.4 billion more) and Texas ($1.4 billion more) are the states poised to gain the most.
Besides Kemp, the other 21 governors who issued the joint statement opposing the funding formula included Alabama’s Kay Ivey, Alaska’s Mike Dunleavy, Arizona’s Doug Ducey, Florida’s Ron DeSantis, Idaho’s Brad Little, Indiana’s Eric Holcomb, Iowa’s Kim Reynolds, Kansas’ Laura Kelly, Mississippi’s Tate Reeves, Missouri’s Mike Parson, Montana’s Greg Gianforte, Nebraska’s Pete Ricketts, New Hampshire’s Chris Sununu, North Dakota’s Doug Burgum, Ohio’s Mike DeWine, Oklahoma’s Kevin Stitt, South Carolina’s Henry McMaster, South Dakota’s Kristi Noem, Tennessee’s Bill Lee, Utah’s Spencer Cox and Wyoming’s Mark Gordon.
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