In the Weeds with Alabama Daily News

In the Weeds with Alabama Daily News


In The Weeds with State Finance Director Kelly Butler

June 12, 2020

Intro by TODD STACY, interview by CAROLINE BECK, Alabama Daily News
This week we dove into the CARES Act and specifically how much federal money the state is receiving, where it is going and how it is being spent.
To catch you up, in March Congress passed and the president signed the Coronavirus Aid, Relief, and Economic Security Act. It provided $2 trillion dollars in payments from the treasury aimed toward propping up the nation as we headed into the breach of the pandemic. About $560 billion went to individuals and families in the form of stimulus checks, about $500 billion went to stabilize corporations and institutions to keep the economy from crumbling, about $377 billion went to small businesses as part of the popular Paycheck Protection Program. About $153 billion went to public health efforts, about $70 billion went to prop up government programs and services, and about $340 billion went to state and local governments. 
Alabama’s share of that money is $3.7 billion. That’s a lot of money when you consider our General Fund budget in 2021 is about $2.4 billion. 
As taxpayers, it is important to ask where all that money is going and how it is being spent. This past week, Alabama Daily News reporters Caroline Beck and Mary Sell did just that. Caroline filed through all the numbers to report exactly where funds are going and then went to the very top to interview Finance Director Kelly Butler about it. More on that in a minute. Mary dug specifically into Alabama’s colleges and universities, which are getting $275 million in all. I encourage you to go read both stories if you haven’t already. 
Now, CARES Act money has gotten a lot of attention recently because of the high profile fight between Gov. Kay Ivey and the Legislature over the Coronavirus Relief Fund. If you’re listening to this, I’m confident you know what happened, so I won’t rehash. But in the end, that $1.9 billion fund was appropriated to various state agencies with the Legislature holding back some in reserve. 
The other half, or roughly $1.8 billion, was allocated directly to state agencies, institutions or health care providers. According to Mr. Butler, there were already existing grant programs in place so there was no need to go through the Legislature. 
About $449 million went to health care providers, which include hospitals, nursing homes, clinics and other facilities. Hospitals are quick to point out that they only got about a third of those funds and their revenue losses totaled more than $740 million for March and April. $217 million went to K-12 education; $191 million went to Rural Health Care providers; $115 million went to laboratories for CDC-led disease prevention and enhanced detection; $132 million went to transportation grants; $64 million for child care grants; $54 million for airport; $48 million for the Governor’s emergency education relief fund, $37 million for Community Development and Service Grants through ADECA, $20 million to public housing; $16 million to low-income energy assistance; and $13 million to Head Start. 
And don’t forget the $1.9 billion the state has to dole out through the Coronavirus Relief Fund. 
All this money passing through from the federal government keeps state accountants busy, particularly at the Department of Finance. That’s the agency most responsible for processing applications, measuring the need versus the federal guidelines and being accountable for how the money is spent. 
Leading that agency is  Butler. One lobbyist recently told me Butler just became the most popular person in town and the guy to know for all those who are seeking out coronavirus. So when Caroline said she was going to interview him, I said why not do it In the Weeds?
For those that don’t know, the Finance Director is one of the most powerful positions in state government. It certainly is the highest ranking Cabinet member beyond Chief of Staff,