Over the last few weeks, House Ways & Means and Senate Finance committees, and subcommittees, have been meeting to develop initial plans for two items: the state’s budget and the remaining balance of CARES Act funding the state received from the federal government. The goal was to get plans ready to be debated by the full House and Senate when they return on September 15. A lot of targeted advocacy from the SC Arts Alliance happened in two weeks, but here’s the result.
State Budget
Here’s the short version. The Senate wants to pass an amended budget that deals with the State’s surplus, so the Finance Committee has passed a proposal. That proposal does not include new money for the arts – it is instead focused on a few large ticket items. New money was/is hard to come by given the uncertainty around the state’s economy. The House meanwhile does not wish to pass any new budget and continue funding the state at level funding through at least January. Either way, advocates should be on the alert to encourage continuing at least level funding for the arts.
CARES Phase II
Both House Ways & Means (W&M) and Senate Finance committees have passed their versions of how to appropriate the almost $680 million remaining in the state’s federal CARES Act allocation. This money must be spent by December 31, or be returned to the federal government. These funds have federal restrictions on what they can be used for – COVID-related expenses (not loss of revenue, general operating, etc). This was reinforced by the Governor who issued his own recommendations for these funds, and included a similar fund in his plan.
While there is no “arts only” fund in either proposal, both the House and Senate versions include a “Nonprofit Grant Program”. However, one distinct difference exists beyond a difference in funding, see it below:
Senate Version ($20 million)
Reimbursement of COVID-related expenses for providing assistance in the following categories – food, rent/mortgage, mental health counseling, and healthcare services.
House Version ($25 million)
Reimburse two-months payroll if business interruption due to COVID-19. Applications for expenditures related to – food assistance (including prepared meals); rent or mortgage assistance; mental health counseling; health care services and access to health care supplies; and arts and cultural items or activities.
[House version also names the makeup of the grant review committee, including an arts representative.]
Both proposals would be open only to nonprofits who have not received any other CARES support such as a PPP loan.
If adopted as-is, both give priority to organizations in those stated service areas, but only the House version includes the arts. You can read the full House proposal at the link below. The Senate version is not yet available, but you can watch the September 9 Senate Finance Committee meeting online in the Statehouse video archives.
What’s Next: Both of these proposals will now make their way to the Senate and House floors when they return on September 15 (adjourning September 24). If they pass each proposal without amendments and match up 100% between the two bodies, it will go to Conference Committee and a compromise will emerge.
