Federal COVID-19 Funds: Baltimore City and Baltimore City Public Schools

COVID-19 Federal Funds Report: Maryland, Baltimore City, and Baltimore City Public Schools

Background

As the COVID-19 pandemic reaches its two-year mark, its unprecedented effects on society are still felt today. Federal grant funds provided Marylanders with historic levels of support, from the Coronavirus Aid, Relief, and Economic Security Acts (CARES Act I and CARES Act II) to the American Rescue Plan Act (ARPA). The state received $11.9 billion from ARPA which, combined with both CARES Act dollars ($7.2 and $2.7 billion respectively), totals $21.9 billion in grant funding. This relief allowed Maryland families and the state government to largely weather the pandemic’s economic disruption, culminating in a $7.5 billion budget surplus. This report surveys federal as well as COVID-specific state grants allocated in Maryland, Baltimore City, and the Baltimore City Public Schools system.

Maryland

CARES I

The first CARES Act, signed on Mar. 27, 2020, allocated $7.2 billion in . The largest chunk of funding was $2.3 billion from the Coronavirus Relief Fund which amounted to $2.3 billion. These were funds that went directly to the state to mediate economic and social hardship, with the requirement to use the funds by the state has expended $1.6 billion of these funds, with most of the allocation funding several categories including

• Small business assistance: direct relief, consultation, rental relief.
• Emergency rental assistance
• Direct stimulus payments to qualifying Marylanders
• COVID-19 safety measures: PPE, sanitation, premium pay
• General fund savings (mainly by using federal funds to offset costs for the Department of State Police and the Department of Public Safety and Correctional Services)
• Technology investments: Laptops, broadband, and increased Wi-Fi availability.
• Tutoring and virtual learning needs.

In addition, but not included in the budget, the state also provided agencies with premium pay, quarantine pay, and telework equipment. It is not clear how much this added to total expenditures. Any remaining Coronavirus Relief Funds left when the 2022 fiscal year ends June 30 are likely to

CARES II

The Consolidated Appropriations Act (also referred to as CARES II), signed on Dec. 27, 2020, allocated $2.7 billion in grant funding, primarily in education funding which will be covered in the public schools section. The U.S. Treasury issued $401 million in Emergency Rental Assistance Program funds, including $258 million to the state and $143 million to counties. Direct rental relief to households has totaled $258 million as of January 2022[3].

American Rescue Plan

The American Rescue Plan Act (ARPA), signed Mar. 11, 2021, allocated $12 billion in grant funding, with several streams of flexible funding. The State and Local Fiscal Recovery Fund allocated a total $6 billion to the state and localities. These are funds that give Governor Larry Hogan, along with mayors and county executives, limited discretion over how the funds are spent. Fund uses are required to comply with the Treasury’s final rule, issued on April 1, 2021. Maryland’s $3.7 billion allocation through FY22 primarily funded[4]:

• to prevent businesses from seeing increases in their unemployment insurance premiums
• Investing $500 million in transportation consisting mainly of roads and bridge maintenance
• Investing $400 million toward expanding broadband access
• $599 million to offset other general fund spending to prevent budget cuts and free up funds to cover the Governor’s Economic Relief Initiative ($250M).

Other relevant appropriations include:

• $46 million to be distributed to local school districts in the 2022-2023 school year to help address learning loss
• $327 million for the Blueprint Fund Relief to offset unforeseen costs related to educating students during the pandemic.

Moreover, Governor Hogan introduced a supplemental budget including additional ARPA expenditures that weren’t included in the governor’s initial FY23 budget[5]:

• $2.9 million in state fiscal relief funds.
• $100 million toward the Homeowner Assistance Fund.
• $2 million in housing vouchers

In addition, ARPA increased rental assistance funds, allocating $317 million to Maryland, of which $15.1 million was expended as of January 2022. There are additional state fiscal relief funds that remain to be appropriated, and the state has until December 2024 to accomplish this. While many initiatives have been funded, there is room for additional supports for education, housing assistance, and other priorities.

Baltimore City

CARES I & CARES II

Baltimore City received $103 million from the Coronavirus Relief Fund to cover only pandemic-related expenses. This relief went toward nonprofit organization grants, and direct household support. The deadline to spend the funds was December 2021. CARES II added $17 million in emergency rental assistance, with $16 million expended as of January 2022.

American Rescue Plan

Baltimore City received $641 million in local fiscal relief funds, which according to the ARPA Reporting Center – the city’s online ARPA dashboard – has committed $202 million of the funds (31.5 %) and spent $16.4 million, as of March 21. (Dashboard data lags behind funding announcements.) The city is distributing funds through a request for proposal system that closed to nonprofits December 2021 and closes to city agencies at end of March. Additionally, the city publishes funding announcements on its website. The funding investments are as follows:

• Budget stabilization:
  • $130.4 million set aside to address revenue loss and additional spending in the city budget caused by COVID-19. This is currently an estimate and is subject to change.
• Mayor’s Office of Recovery Programs Administration: $10.6 million
• Baltimore City Health Department
  • $80 million over four years to address vaccination hesitancy, increased testing and PPE needs, and food insecurity by providing food to vulnerable populations.
• Mayor’s Office of Neighborhood Safety and Engagement
  • $50 million over three years to support public health approach to violence; provides funding to the Comprehensive Violence Prevention Plan, issues grants and contracts to community-based organizations to administer evidence-based community violence interventions, coordinated neighborhood stabilization response, and direct re-entry services. It also includes neighborhood policing plans that are tailored to specific neighborhoods that give residents more input over how police respond to calls for service.
• Mayor’s Office of Employment Development
  • $30 million to fund four programs:
    • Hire Up ($5.2 million): $15 per hour, 6-month positions for a minimum of 220 low-income residents while also delivering public services supporting cleanliness and safety.
    • Train Up ($8.9 Million): occupational skills training in high-demand industries, industry-recognized credentials, and $100/week stipends for nearly 1,000 residents.
    • YouthWorks ($8.4 Million): Enhancements to the YouthWorks program.
    • Workforce Supports Programming and Wage Subsidies ($2.9 Million): Provides behavioral health care, legal services, adult education, financial empowerment counseling, and career navigation to residents participating in Hire Up or Train Up. In addition, this investment will support wage subsidies for small, minority- and women-owned businesses that hire residents who lost jobs because the pandemic.
  • Economic Recovery Fund: $25 million
    • Baltimore Development Corporation ($11.7 million): To support small business relief – particularly Black, Brown, and women-owned businesses
    • Baltimore Civic Fund ($8.3 million): Aid to over 300 Baltimore nonprofit organizations.
    • Visit Baltimore ($2.5 million): Fiscal relief to Baltimore hotels and tourism industry.
    • Family League ($2 million): Supporting the city’s childcare industry. Eligible applicants may receive $30,000 for licensed childcare centers and up to $10,000 for registered family childcare homes
    • Baltimore Office of Promotion and Arts ($500,000): Support for local artists and creators through direct grant, local outreach, and grant evaluation efforts.
  • Mayor’s Office of Broadband and Digital Equity
    • $6 million for initial broadband investments including:
      • 5 million to install Wi-Fi hotspots across West Baltimore.
      • $1.5 million for administration
      • $1 million for network operation.
    • Mayor’s Office of Homeless Services
      • $15.4 million between rental assistance payments and five listed projects totaling
      • $75 million:
        • Non-congregate Emergency Housing for Individuals Experiencing Homelessness: To cover the acquisition of two hotels including renovation and operating support for non-congregate emergency housing.
        • Shelter Demobilization for COVID-19 Non-congregate Shelter Sites: Includes rental assistance and case management services for individuals who resided in hotels used as shelter decompression sites.
        • Housing Navigation and Landlord Recruitment Support: To reduce the length of time that people experience homelessness. Funds will support housing navigation and landlord recruitment strategies to increase access to safe and affordable housing units.
        • Housing Accelerator Fund: To increase the supply of permanent supportive housing units.
        • Flexible Fund for Diversion and Rapid Resolution: Because of similarity in service interventions, the proposed Homelessness Diversion and Rapid Resolutions funds have been combined to create the Flexible Fund – short-term rental assistance that will prevent people from entering an emergency shelter or help them rapidly exit shelter.
      • Department of Housing and Community Development
        • $100 million to supports three types of housing investments:
          • Protect Residents: $4 million for legal services and utility assistance to prevent eviction and displacement
          • Prevent Blight: $39.7 million, though not explicit in how it addresses blight.
          • Create Affordable Housing Initiatives: $56.3 million to support capital investments in formerly redlined neighborhoods and the building of affordable housing developments including community development.
        • Baltimore City Recreation and Parks (BCRP)
          • $41 million to invest in recreation. The mayor’s $120 million vision for increasing recreation opportunities in the city considers the ARPA allocation and city funds already appropriated for FY22, as well as financial commitments and requests made to nonprofit organizations, private funders, and state sources for FY23.
            • $10 million for public pools
            • $20 million for recreation centers
            • $5 million for playgrounds
            • $1 million for trails
            • $2 million for athletic fields and courts
          • Lexington Market
            • $4.9 million to support recovery and enhance resiliency for legacy and new vendors at Lexington Market.
              • The merchant makeup, according to the mayor, will increase minority-owned businesses to 46% and women-owned businesses to 50%
            • In addition, to complete the redevelopment of Transform Lexington Market project, which halted early in the COVID-19 pandemic, the funding streams include:
              • $2 million contribution from Lexington Market, Inc
              • $7.3 million in grant funds from the City of Baltimore
              • $9.4 million in capital grants from the State of Maryland
              • $9.5 million in New Market Tax Credit investment
              • $11.3 million loan financed by Fulton Bank.
            • Project Evaluation
              • University of Baltimore: $438,000
              • Morgan State University: $162,000

The remaining appropriation of federal funding is likely be announced prior to end of the fiscal year on June 30, 2022. To add input into how these funds should be prioritized, visit the public feedback form for Baltimore City or contact your council representative.

Baltimore City Public Schools

CARES I /CARES II & American Rescue Plan

CARES Act I & II provided several streams of funding to address pandemic-related disruptions in education. The two main funding streams were the Elementary and Secondary School Emergency Relief (ESSER I & II) and the Governor’s Emergency Education Relief (GEER). The American Rescue Plan expanded on ESSER funds and allowed the state and local school districts more flexibility in addressing learning needs. In total, BCPS received $760 million from the three acts. The period of availability for these funds varies. ESSER I & II funding must be allocated by September 2022 and 2023 respectively. ARPA education funding must be allocated by September 2024. Below is a breakdown of funding by programs

• Learning loss: $443.5 million
• Safe reopening: $247 million
• Supplemental instruction and tutoring: $56.3 million
• Summer school: $10.5 million
• Behavioral health: $2.8 million
• Total: $760.1 million

In addition, ESSER II and III allocated funds to the Maryland State Department of Education with required funds set aside for intervention such as summer enrichment and afterschool programs. From this fund, MSDE was allocated $241.9 million. Currently, $50.7 million has not been allocated for use. The chart below shows funding by program for FY22[7] ($ in millions).

Blueprint For Maryland’s Future

The Blueprint for Maryland’s Future will increase funding for public schools from both state and local sources starting in FY23, which covers the 2022-2023 school year. In FY22, spending for BCPS included $27 million in concentration of poverty grants, with $248,833 for each eligible school. This does not include per-pupil funding. In addition, ARPA added $46 million in planned spending to the Blueprint FY23 learning loss. The increase in required funding from BCPS will enable spending that the school district can use to improve the quality of education.

Gov. Hogan’s initial FY23 budget shorted Baltimore City $99 million by cutting the Education Effort Adjustment funding stream, per Department of Legislative Services analysis.  The supplemental budget restores the amount.

[1] (see Appendix R for full list of funds and agencies) https://dbm.maryland.gov/budget/Documents/operbudget/2023/proposed/FY2023MarylandStateBudgetHighlights.pdf

[2] https://dls.maryland.gov/pubs/prod/RecurRpt/Issue-Papers-2022-Legislative-Session.pdf#page=72

[3] https://home.treasury.gov/system/files/136/January-2022-ERA-Monthly-Data.xlsx

[4] see Appendix S for full list of spending https://dbm.maryland.gov/budget/Documents/operbudget/2023/proposed/FY2023MarylandStateBudgetHighlights.pdf

[5] https://dbm.maryland.gov/budget/Documents/operbudget/2023/proposed/FY2023-Supplemental-Budget-No1.pdf

[6] https://home.treasury.gov/system/files/136/January-2022-ERA-Monthly-Data.xlsx

[7] https://dls.maryland.gov/pubs/prod/RecurRpt/Issue-Papers-2022-Legislative-Session.pdf#page=72