Delegate Bloxom reports from ARPA Funding Special Session

Hi, this is Rob Bloxom with a Capitol Report on another special session. Governor Northam called this session to appropriate $4.3 billion from the federal government in the American Rescue Plan Act(ARPA). Virginia has three years to spend this money, but for understandable political reasons, the Governor wanted to direct as much of the spending as possible before he leaves office. I can only hope that the pandemic will not shut the economy down again where we might “need” this money for future expenses. Thankfully, most of the spending is a one-time expenditure and does not create recurring expenses. The Governor did leave $1.1 billion to be appropriated at a later date.

One of the largest expenditures was $800 million to replenish the unemployment trust fund. While I think a larger deposit was warranted, this deposit will keep businesses from paying a higher unemployment tax for one year. In the future, all eyes will be on the trust balance as a low balance could trigger a higher per employee tax on business. Broadband also received a $700 million infusion that is supposed to get us to universal coverage. I have my doubts, but it will certainly move us closer.

Other areas with state-wide investment include the Rebuild Virginia program which received $250 million to fulfill grant applications. Tourism received $50 million. The Virginia Employment commission received $73 million to upgrade their system and the Virginia Health Department got $100 million to modernize their computer systems. Utility assistance was awarded a $120 million infusion while school systems received $250 million for ventilation improvement. While investments in our school system are much needed, the process for receiving this money is problematic because it is on a one-to-one match with the localities. This will be the first time any school funding has not been put through the “ability to pay” equation. The Democratic majority claims this matching system will only apply for this program. I hope that is the case, as requiring localities to match state funding on a dollar to dollar basis would be devastating for poor and rural communities.

Other areas of expenses range from bonuses for essential state employees to outdoor recreation improvement of our state parks. There were a host of additional appropriations made in house districts controlled by Democrats who are facing tight re-election campaigns in November. Only one Republican-controlled district received an extra penny. After seven years in the House, in both the majority and minority, I understand how the process works. I will pay close attention to the programs that received appropriations and ensure our district receives our share of the American Rescue Plan Act funding.

As always, I welcome your feedback, comments and concerns. Please do not hesitate to contact me at [email protected]. You may also call my district office in Mappsville at (757) 824-3456. Thank you.

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