July 28, 2020
The Honorable Michael Bennet
United States Senator
The Honorable Cory Gardner
United States Senator
The Honorable Diana DeGette
Member of Congress
The Honorable Joe Neguse
Member of Congress
The Honorable Scott Tipton
Member of Congress
The Honorable Ken Buck
Member of Congress
The Honorable Doug Lamborn
Member of Congress
The Honorable Jason Crow
Member of Congress
The Honorable Ed Perlmutter
Member of Congress
Dear Colorado Congressional Delegation:
Thank you all for your continued leadership, support, and advocacy on behalf of Coloradans. The financial assistance and relief you helped secure for our great state during this economic disruption caused by COVID-19 has been appreciated by me and our communities across the state. As we are continuing our response and recovery from the economic impacts of this pandemic, we are now facing deep budget cuts to programs that are, now more than ever, critically important to millions of Coloradans who may be struggling to meet the daily needs of their lives. The continued uncertainty regarding the extension and funding of key federal programs for Coloradans is making many of our neighbors contemplate extremely difficult choices regarding their financial futures.
As Congress considers the next economic stimulus package, I strongly urge you to consider the following interventions that are critical for stimulating the economy, supporting small businesses, and protecting the lives of thousands of Colorado families and assist Colorado in its effort to recover from this crisis.
State and Local Aid
While the CARES Act provided needed relief for state and local governments, it fell short to meet the needs of both state and local government budgets. Without additional federal assistance, the state's budget will face at least a $6 billion shortfall through the next two fiscal years. In addition, the CARES Act left out 59 of 64 counties with direct access to funding, and almost all Colorado municipalities. The state shared the CARES Act distribution with these left-out local governments, which further expanded the State's budget shortfall. Without further assistance, Colorado will be forced to make difficult budget decisions and will not have the support to continue programs that help the most vulnerable. Colorado and its local governments will continue to see revenue losses that stretch beyond December 30, 2020 and more direct, flexible federal aid is needed in order to continue these programs.
I support the call of the nonpartisan National Governors Association, and urge you to allocate at least $500 billion in direct and flexible relief to states, plus additional funding for local governments. Together, this funding will make a profound impact on the state's and local governments' ability to offset revenue losses due to the impacts of COVID-19. It will assist the state and local governments to continue our response and recovery to ensure public health, education, safety, and get Coloradans back to work.
In any upcoming stimulus package, I also encourage Congress to identify opportunities to temporarily waive state and local matching requirements for a number of federal grant and formula funded programs. This provides a no-cost opportunity to ensure federal dollars keep going out the door to vitally important uses, even at a time when state and local budgets are stretched to capacity.
Federal Pandemic Unemployment Compensation (FPUC)
Since mid-March, more than 600,000 Coloradans have filed for unemployment benefits. As you know, Colorado communities have been especially hard hit in industries such as outdoor recreation, tourism, and hospitality. These same industries will also be slow to recover as Colorado and the nation continue to cautiously re-open. While the CARES Act provided critical support to our state's unemployed early in the crisis, we urge you to consider new investments in the Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation (FPUC) programs or direct cash payments to continue to support Coloradans.
Much needed financial assistance from FPUC has assisted more than 450,000 Coloradans, in total receiving over $1.7 billion in aid. This much needed additional financial assistance, or cash payments, are critical to continue in some form. We cannot afford to let our citizens struggle with employment uncertainty and instability during these difficult times, and suffer even further from a dramatic end to FPUC without some kind of transition or additional cash payments while we are still in this health and economic crisis.
RESTART Act
I urge you all to sign on and support the bipartisan Reviving the Economy Sustainably Towards a Recovery in Twenty-twenty (RESTART) Act. This bill would provide a more flexible and targeted loan program to the hardest-hit businesses. It would allow those that have lost 25 percent of their revenue or more to have access to a special loan program until the end of 2020. It would also allow up to 90 percent loan forgiveness for businesses with fewer than 500 employees and high revenue loss, and would implement a seven-year payback schedule.
While necessary to prevent the spread of the virus, limitations and other shutdown restrictions have prevented these businesses from recovering. Without assistance targeted to unique industries like independent venues, bars, and other specific types of business, our local economies will continue to suffer. This bill aligns with our efforts to provide more flexibility to businesses who have experienced severe economic hardship by keeping Coloradans on payrolls.
Expanding Testing and Contact Tracing
In May, the U.S. Department of Health and Human Services committed to providing Colorado with 392,000 ThermoFisher COVID-19 test kits. We have received only 249,600 (64%) of these kits and recently discovered that HHS will no longer fulfill the rest of the total number originally promised. In addition, in April, the federal government committed to provide 196,000 swabs and 145,000 vials of transport media to Colorado each month. Of the 784,000 swabs promised, only 487,520 have been delivered (62%). Over 100,000 of these swabs that were delivered were not sterile and are not suitable for testing. These shortfalls are a major setback in terms of our current capacity and pose a significant challenge for our state's ability to contain the virus. Without the anticipated support, we will need at least $40 million in additional funds to test at our 5% testing of the general population goal, and at least $20 million in additional funds for surveillance testing that meets Centers for Disease Control and Prevention (CDC) standards for nursing homes, residential facilities, and community testing sites across our state.
Significant Funding to Address Educational Challenges
As Governor I believe education is one of the best investments we can make, as states and as a nation, to ensure a strong future for our children and a vibrant, healthy economy. Today, our education system, and the students, educators, and families it serves, is under significant stress as a result of COVID-19. Without sufficient resources in P-12 education, we risk long-term school closures, significant learning loss, widening achievement gaps, and long-term damage to the teaching profession. In higher education, decreased enrollment, an increased need for student support services as well as remote or hybrid learning models, will put significant pressure on institutions of higher education to adapt quickly or risk school closure.
In Colorado, we have utilized education funding to address COVID-related challenges, as well as to promote innovation for school districts and institutions of higher education disproportionately impacted by the crisis through the Governor's Emergency Education Relief Fund. However, these funds are not enough to address our system's enormous challenges. Therefore, Congress should pass an appropriations bill that includes significant new resources for the Education Stabilization Grant Program, including the Elementary and Secondary Education Relief Fund, Higher Education Emergency Relief Fund, and Governor's Emergency Education Relief Fund.
Significant Funding to Housing Assistance
Adequate access to stable housing is fundamental to health, particularly in times of economic uncertainty. Through CARES Act funding, we were able to create the Property Owner Preservation (POP) Program for rental assistance through the Department of Local Affairs (DOLA). This fund helps Coloradans who have been financially impacted by the pandemic and need rent assistance by allowing landlords to apply for assistance on behalf of tenants through our Division of Housing. These funds are used to provide rental assistance, mortgage assistance, and guidance for other housing services. However, it is crucial that we secure additional funds to continue this program and support our local communities to protect thousands from losing their homes in the coming months. I strongly encourage Congress to include a robust emergency rental assistance package in the next round of relief.
Additionally, the COVID-19 crisis has exacerbated pervasive issues of homelessness and rural housing insecurity across Colorado. I implore you to include funding for new emergency housing vouchers, rural housing and rental assistance, and additional funding for HUD and USDA Programs. I appreciate the important steps you and your colleagues have taken to lessen the impact of COVID-19 on struggling Coloradans, and humbly ask that you consider additional steps, such as the request for $11.5 billion in Emergency Solutions Grants (ESG) funding to ensure adequate response to and prevention of COVID-19 outbreaks among individuals experiencing homelessness.
Thank you in advance for your time and consideration. Together, we can continue the ongoing and collaborative efforts to address the challenges caused by the COVID-19 pandemic and work to secure additional relief that will help Coloradans land back on their feet. My team and I stand ready to assist you in your efforts to secure assistance for all Coloradans during this difficult economic time.
Sincerely,
Jared Polis
Governor