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Legislative Analyst’s Office: A Framework for Allocating Federal Recovery Funds

The Legislative Analyst’s Office has just published the following post:

A Framework for Allocating Federal Recovery Funds

In the coming months, the Legislature will face important decisions over how to use California’s share of the state fiscal recovery funds included in the American Rescue Plan (ARP). Estimated at approximately $26 billion, the recovery funds should go a long way toward covering the state’s direct and indirect costs arising from the coronavirus disease 2019 (COVID-19) pandemic.

Moreover, beyond a relatively broad set of pandemic-related parameters, the ARP likely provides states with considerable flexibility over how to allocate the funds, presenting the Legislature with a unique opportunity. In this post, we lay out some guiding principles for the Legislature to consider as it formulates a plan for using the fiscal recovery funds.

This post is available using the following link: https://lao.ca.gov/Publications/Report/4422

This article was released by the Legislative Analyst’s Office.