County sues over COVID-19 funds
SANDPOINT — Bonner County filed suit against Gov. Brad Little on Thursday, calling on a U.S. District Court judge to snip the strings the state is attaching to its cut of $1.25 billion in federal coronavirus relief funding.
Congress enacted the Coronavirus Aid, Relief & Economic Security Act in response to the spread of COVID-19, which was signed into law by President Donald Trump in March. The CARES Act established a $150 billion relief fund for distribution to states, tribes and units of local government. The fund was created to quickly and efficiently distribute the funds.
The U.S. Treasury to make direct distributions only to local governments with a population of over 500,000 people. However, governments who fall below that threshold are entitled to a per-capita distribution of funds paid to the state of Idaho.
The county’s suit contends Idaho received $1.25 billion and the state has apportioned approximately $282 million for distribution to local governments and tribes. Moreover, neither Congress nor the Treasury Department have delegated any authority to the state to administer the relief funding.
“Rather, the state is function as an intermediary between the Treasury Department and the local governments within its jurisdiction by fairly distributing funds amongst such local governments using a per capita distribution as a benchmark of fairness and equity,” the county said in its 39-page civil complaint.
Moreover, the state is generally prohibited from imposing conditions on the county’s receipt of the funding.
The county maintains, however, that the state attached several conditions to receiving the funding. They include a stipulation that a majority of the funds many only be used for payroll expenses and cannot be used to reimburse the county for purchasing personal protective equipment and waiving the county’s right to increase its taxing capacity by up to 3 percent for the oncoming fiscal year. The county further asserts that the state accept the funding without regard to federally mandated accounting and reporting requirements.
The state is giving local governments until today to put in for the funding.
The county argues that it should receive $14.4 million under the per-capita formula, but the state is only distributing roughly $5.9 million — less than half what the county is entitled to, according to the county’s suit.
The county further argues that the Idaho Department of Commerce is improperly using CARES funding to bankroll its broadband expansion grant program.
“By and through this complaint, the county seeks a declaratory judgment setting forth the rights, duties and obligations of the county and defendants in relation to the funds that are currently in the defendant’s possession and control,” the county’s counsels said in the complaint.
The county is seeking an expedited ruling in the matter due to the state’s Friday deadline, court records indicate.
Keith Kinnaird can be reached by email at kkinnaird@bonnercountydailybee.com and follow him on Twitter @KeithDailyBee.
