The Platte Institute along with almost 30 other free market think tanks are asking Congress to modify the CARES Act to allow for more flexibility in already distributed funds instead of spending more money. Now, Platte’s partner organization in Utah has called on their delegation to support Representative Bacon’s FLEX Act.
This press release partners with an opinion piece published in The Salt Lake Tribune discussing the need for flexibility:
“Utah legislative leaders recently learned that economic losses caused by the novel coronavirus pandemic will likely reduce tax revenue between $186 million and $599 million in the current fiscal year (ending in June) and between $592 million and $1.287 billion in the upcoming fiscal year. At the same time, the state of Utah received $687.5 million in pandemic relief funds from the federal CARES Act, of which $433 million remains unallocated.
The downturn driving Utah’s budget shortfall has been caused by the pandemic, so common sense would argue that states should have great flexibility to address pandemic tax revenue impacts with CARES Act funding. But that’s not the case….
…In the case of CARES Act funding, that means enacting the FLEX Act, sponsored by Rep. Don Bacon of Nebraska. The FLEX Act would increase flexibility for the state, counties and municipalities in Utah by adding the offset of revenue shortfalls to the list of allowed state and local government uses of CARES Act funds.”
When introduced, H.R.6652 - Flexibility for Localities and Eligibility Expansion Act of 2020 had 10 bipartisan co-sponsors. At the time of this writing, there are now 15 co-sponsors of the legislation. The additional supporting representatives are Houlahan (D-PA), Napolitano (D-CA), Adams (D-NC), Burgess (R-TX) and Young (R-AK).