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Funds aimed at mitigating Covid-19’s economic damage went disproportionately towards larger counties than with smaller ones, according to an analysis from the California State Auditor.
In a letter, Auditor Elaine M. Howle explained that larger counties with more than 500,000 people received nearly double the Coronavirus Relief Funds (CRF) per person than did small counties. This amounted to the allocation of 50% of the funds going to the largest 16 counties.
The large counties received up to $197 in funding per resident, while the 42 smaller counties received $102.
“We found that Finance’s allocation of CRF funds resulted in smaller counties receiving significantly less funding per person than larger counties,” Howle wrote. “We also have concerns with the Governor’s Office of Emergency Services’ informal review of cities’ adherence to public health directives, which treated some cities inconsistently.”
In May, the U.S. Treasury Department allocated $15.3 billion in CRF funding, which included $5.8 billion that the Treasury paid directly to counties and cities with 500,000 people or more. It then paid the remaining $9.5 billion directly to the state to use for necessary expenses incurred because of the pandemic.
These funds then went into five main categories: Education, housing, counties, cities and the general fund. Counties would receive $1.3 billion, but the Auditor says larger counties who already received funding were also generously paid, disadvantaging smaller areas.
“Although the U.S. Treasury directly provided a total of $4.5 billion in CRF funds to California’s 16 largest counties, Finance also allocated half of the State’s CRF funds designated for counties, to these large counties,” Howle said.
Fresno County was among the 16 counties to fall in this larger bracket. Meanwhile, Madera, Kings and Tulare counties received less funding on average per person.
In the future the California State Auditor has recommended that more equitable funding be implemented. She also noted that the Finance Department has recently taken further steps to improve the monitoring of CRF expenditures.