Utah Stay-at-Home Directive to be Extended
In keeping with a national directive, Governor Gary Herbert said today he plans to extend Utah's "stay-at-home" order through the end of April. He will make the official announcement next week. He is also reminding residents to eliminate all but essential travel. It's an important reminder as we enter the Easter weekend and traditional spring break period. He also asks everyone entering a retail store to wear a mask to keep from further spreading the disease.
Leadership Discusses Priorities for Special Session
As recently reported in both the Salt Lake Tribune and the Deseret News, the legislature will likely be in special session next week. We expect lawmakers to discuss
- the state budget,
- the implementation of the CARES Act,
- election dates,
- education and telecommuting issues,
- timing of tax collection,
- unemployment insurance,
- housing issues,
- guidance for when to re-open businesses,
- the framework of authority to issue state or local health orders,
- and more.
You can watch the Salt Lake Chamber panel discussion with Speaker of the House Brad Wilson, Senate President Stuart Adams, and ULCT Executive Director Cameron Diehl by clicking on the tab below.
The ULCT legislative team has been in constant contact with legislative leaders, bill sponsors, and our sister local government organizations (Utah Association of Counties and the Utah Association of Local Health Districts). Legislators are still in the process of drafting bills and working out the technology for next week’s virtual special session. ULCT submitted a list of priorities to legislative leadership and the Governor on Tuesday. We anticipate special sessions one or two times per month throughout the spring.
Our Board of Directors will meet on Monday to discuss the special session proposals. Once the bills and concepts surface, we will evaluate them through our policy prism and notify you via the daily email or Friday Facts.
New Stimulus Funds to Help Local Government
Today the Federal Reserve announced a series of actions to provide additional aid to small and mid-sized businesses as well as state and local governments. The Fed is creating a Municipal Liquidity Facility for up to $500 billion in loans to help state and local governments manage cash flow stresses due to the pandemic. Here are the details, courtesy of Irma Diggs and Mike Gleeson of the National League of Cities:
The primary purpose of this facility is to aid the cash crunch that many states will feel from Congress pushing back the tax filing deadline to July 15th. However, the second enumerated use for the eligible use of proceeds says that these funds can be used for "potential reductions of tax and other revenues or increases in expenses related to or resulting from the COVID-19 pandemic."
This is huge, and here's why. On its surface, the liquidity facility may only appear to be available to 75 Eligible Issuers-the 10 largest cities, 15 counties, and 50 states. The final line of the eligible use of proceeds says that "Eligible Issuer may use the proceeds of the notes purchased by the [fund] to purchase similar notes issued by, or otherwise to assist, political subdivisions and instrumentalities of the relevant State, City, or County for the purposes enumerated in the prior sentence."
As an example, the State of Utah can participate in the liquidity facility, and then Cameron’s hometown of Murray could issue a "similar note" to the one Utah sold to the Federal Reserve. The State of Utah could then purchase the note from Murray, thereby providing liquidity to Cameron’s hometown. The thinking is that there are too many different types of municipalities and other issuers to make the facility available to all and have it function seamlessly. Allowing states to purchase notes from their own political subdivisions makes the distribution of funds more efficient.
For clarity, Eligible Notes are defined as "tax anticipation notes (TANs), tax and revenue anticipation notes (TRANs), bond anticipation notes (BANs), and other similar short-term notes issued by Eligible Issuers, provided that such notes mature no later than 24 months from the date of issuance."
The program does not yet have a start date but experts expect the Treasury to act soon. Cameron contacted state leaders today to determine whether the state of Utah plans to participate. Stay tuned.
Each day there is much information for you to consider as local leaders of our Utah communities. We are here to help by providing resources and finding answers to your questions. If you have questions, please contact us directly or submit your question to the League via our newly improved ULCT coronavirus webpage.
Thank to our local leaders for your commitment to protect the wellbeing of your residents during this challenge. We're all in this together!
Team ULCT
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