TALLAHASSEE, Fla. — The first reports from the state on how CARES Act money was spent show that the large influx of federal funds not only helped Florida cope with the coronavirus pandemic but also helped relieve severe revenue losses.
Florida has spent $4.6 billion in federal funds provided through the Coronavirus Aid, Relief, and Economic Security Act from the onset of the coronavirus pandemic through Sept. 30, according to reports Gov. Ron DeSantis' administration filed with the U.S. Treasury Department.
The state received $5.8 billion in total and must spend the remaining $1.2 billion before Dec. 31, or else it reverts back to the federal government.
DeSantis' office has indicated they intend to spend the money by then, but they don't anticipate Congress approving additional money or flexibility to use the money in 2021 despite hope from Democrats and Republicans alike that it would help cushion the state's budget crunch.
The reports, obtained by the Orlando Sentinel this month after first requesting CARES Act details in September, are the first glimpse from the DeSantis administration on how it is spending the funds. The delay has angered Democrats such as Rep. Carlos Guillermo Smith of Orlando, who had been asking for spending details since the summer.
Although the state constitution requires the Legislature to approve state spending, DeSantis has been able to use the CARES Act funds and other federal money to respond to the coronavirus without legislative oversight due to the state of emergency he declared and extended through Jan. 3.
"For months there has been no accountability or transparency for how Governor DeSantis is spending billions in CARES Act dollars," Smith said. "How is it that one person has decided how billions of dollars in CARES Act money is being disbursed across the state of Florida? How does that happen in a democracy?"
DeSantis' aides defended his approach saying the spending was in keeping with guidance issued by the U.S. Treasury Department for how the money should be spent. They also said the money has provided critical services as Floridians grappled with the health and economic effects of the pandemic.
"In addition to supporting state-run community-based testing sites and ensuring adequate PPE for health care workers, these funds have been used to support our schools and provide housing assistance, among other initiatives to support Floridians," DeSantis spokeswoman Meredith Beatrice stated in an email.
The spending so far includes nearly $2.4 billion to help school districts contend with the potential cut in state funds they would have received due to the large drop in attendance in K-12 schools. State law provides funds to schools based on physical attendance in class, and most schools would have seen severe cuts because so many children opted to learn remotely this year.
Another $257 million has gone to affordable housing, rent and mortgage assistance for those affected by the pandemic – which enabled DeSantis to veto $225 million passed by the Legislature for that purpose in the state budget.
Spending on contact tracing, COVID-19 testing and personal protective equipment was smaller by comparison, with more than $181 million was spent for those purposes, according to the reports. But DeSantis aides noted that CARES Act money is only part of the state's response to the pandemic, and millions more in FEMA reimbursements is expected to help pay for similar uses.
The CARES Act money has helped the state avoid a large shortfall this fiscal year. Revenues are expected to be $3.4 billion short of original estimates, as much of the world shut down and brought the tourism industry to a standstill to help stop the spread of COVID-19.
Still, state economists estimate Florida will have a $5.4 billion shortfall for the next two fiscal years, starting July 1, 2021.
Just how much money is being used for normal operating purposes will be crucial for legislators in determining how craft the budget next year.
For instance, the report shows $750 million was spent on payroll for public health and safety employees, which includes Department of Health employees such as nurses, but also state law enforcement officials who have helped staff state-run coronavirus testing sites. Funds were also spent on payroll for prison guards, who have had to contend with new procedure and protocols and take on new risks as the pandemic spread through prisons.
Rep. Evan Jenne, a co-leader of the House Democrats, said he doesn't see anything inappropriate with the spending in the reports, but is wary of how much the state is relying on one-time funds to run the government.
"If we're running at that much of a deficit that you have to buoy how you're paying people working in prisons then that doesn't speak well for the future of our budget," said Jenne, D-Dania Beach.
He also lamented that although lawmakers will gather in Tallahassee for a ceremonial organizational session next week, there won't be any substantive meetings until January – meaning there won't be any legislative oversight of the funds until after they've already been spent.
