Gwinnett County had more than $50 million in unspent coronavirus aid at the end of November, but leaders are confident they won’t have to return a cent to the federal government.
“It isn’t immediately alarming,” said Shannon Candler, the county’s grants manager. “We absolutely will not be returning any dollars to Treasury.”
The county received more than $197 million in federal funds, including $163.4 million in Coronavirus Aid, Relief, and Economic Security or CARES Act money that must be spent by Dec. 30. The remainder of the federal grants have use-by dates that extend into 2021 or later.
Of the CARES Act funding, nearly $81 million had been spent by the end of November, with $65.2 million earmarked for programs. That left $27.1 million for small business assistance and county needs that was neither obligated nor spent.
Some questioned why, with so much left, the county wasn’t distributing money differently. Penny Poole, president of the Gwinnett NAACP, said more money could have been spent to make sure students had internet access and technology so they could learn. She said food insecurity remains an issue, as does housing.
“The way they distribute public funds in Gwinnett County, it’s an abomination,” Poole said.
Among its distributions, the county reimbursed expenses for 15 of its 16 cities and gave money to nonprofits. County government would still be on the hook if that money wasn’t spent.
A Dec. 15 deadline was created for the cities to spend the $25 million they had access to so the county would have enough time to claw back any leftovers, Candler said.
Many of the cities spent all of their allocations by Thanksgiving and asked for more money. Only Rest Haven, population 30, did not seek any reimbursement.
“Those cities were determined to expend every dollar that was allocated,” Candler said.
But the same deadline wasn’t given to the nonprofits, which were granted $29.7 million. For them, the expenditures aren’t as clear.
Stephanie Cho, the executive director of Asian Americans Advancing Justice — Atlanta, said she’s used the money that group got to provide weekly groceries for 250 families. But Cho said she’s concerned that caution on the county’s behalf could lead to “wasteful” spending as entities rush to use the money by the end of the year.
“We haven’t given ourselves a cushion,” Candler said of the nonprofit spending deadlines. “We are definitely in nag mode at this point, harassing mode, whatever you want to call it.”
So why be confident that all the money will be spent?
Because the act requires expenditures by Dec. 30, Candler said, any leftover funds can still be applied to projects where money was spent in 2020, even if it’s 2021 before leaders know how much, exactly, is left.
Candler said the first report is due Jan. 11, but updates can be made until April, as long as the spending took place in 2020. The county’s eligible unreimbursed expenditures exceed the $27.1 million in unspent CARES Act funds “by a considerable margin,” she said.
One example is at the county’s health department, she said, which received $5 million from Gwinnett but is expected to spend millions more than that on coronavirus testing. The department has also purchased coolers and other supplies to prepare for vaccine distribution. Such expenditures are eligible for the federal funds, said Charlotte Nash, chairman of the Gwinnett County commission.
Other possibilities include public safety overtime; personnel costs for part-time employees whose work changed, like lifeguards who helped deliver food; and emergency sick leave that occurred before the end of the year.
“As far as spending money, I feel OK,” said Buffy Alexzulian, the county’s finance director.
The CARES Act expenditures have so far included $17.9 million in grants to 1,674 small businesses, $7.7 million in loans to 81 small businesses and $2.4 million in rental assistance. The rental assistance program kicked off last month, with a $5 million allocation.
Candler said all $5 million will be spent to keep people in their homes, and outreach is being done to more businesses to help keep them open.
The county still has access to community development block grants and other money that is intended for coronavirus relief, but doesn’t have to be spent by the end of the year. On top of that, County Administrator Glenn Stephens said, he expects more stimulus dollars to become available in the coming months.
As such, the county plans to do another needs assessment in January to determine where money is best spent. As an example, rental assistance was prioritized over mortgage assistance in the first round because it appeared that more mortgage lenders were willing to work with owners on payment plans.
“The biggest issue that will not go away is people who need a place to live,” said Poole, with the NAACP. “I don’t like how the monies were spent. They have not given a dime to homeowners who have lost their jobs.”
Any change in needs could inform how the remaining $23.7 million the county already has access to is spent.
“Is food insecurity still as high as before?” Candler asked. “Are there other needs?”
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