Money committees approve COVID-19 relief closing budget and direct continued IFC oversight
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Summary
The committees approved the closing budget for ARPA Coronavirus State Fiscal Recovery Funds and issued a letter of intent directing the Governor’s Finance Office to provide regular reports to the Interim Finance Committee on spending status, savings and Treasury updates.
The joint Senate Finance and Assembly Ways and Means committees approved the closing budget for COVID‑19 relief programs funded with American Rescue Plan Act (ARPA) Coronavirus State Fiscal Recovery Funds and directed additional interim reporting from the Governor's Finance Office.
Bridal Leiser of LCB Fiscal presented the closing package and reminded members that the state has fully obligated the original $2.7 billion award, with the closing packet showing where transfers and obligations currently sit. Leiser said the tables in the packet reflect the governor’s recommended budget but do not include subcommittee or committee amendments made during the closing process.
Committee decisions The committees approved the COVID‑19 relief program closing account as presented by staff and gave fiscal staff authority to make technical adjustments to align expense authority with other agency closings. The committees also approved issuing a letter of intent directing the Governor's Finance Office to report to the Interim Finance Committee at each regularly scheduled meeting with at a minimum: a status summary, actual spending of funds for approved programs, identification of any savings following the end of FY2025 obligation deadlines and updates from the U.S. Department of Treasury regarding administration and deadlines for SRF funds.
Informational update Leiser reported the Governor's Finance Office had surveyed recipients about potential savings after the December 31, 2024 obligation deadline; while some agencies reported potential delays in spending, most recipients reported they expected to fully expend awards and fiscal staff said they had not identified substantial savings available to reallocate at this time.
Why it matters The letter of intent and technical-adjustment authority give the Legislature ongoing visibility into how ARPA funds are spent and any reallocations or program savings that may arise as agencies finish projects and reconcile obligations and expenditures.