Manhattan Beach Signs Letter For Shares Of LA's CARES Act Funding

MANHATTAN BEACH, CA — The City of Manhattan Beach is among the mayors and council members from cities throughout Los Angeles County that have demanded that the county and City of Los Angeles redistribute about $1.8 billion they received from the federal Coronavirus Aid, Relief and Economic Security Act to the other municipalities.

Manhattan Beach Mayor Richard Montgomery told Manhattan Beach Patch that he signed on to the letter along with 29 of the 87 cities in the county. Those cities issued a joint statement Friday on behalf of The Coalition of LA County Cities, saying they have received little to no federal funding to respond to the pandemic because they do not have the required 500,000 residents to meet the CARES Act threshold.

"It is important for Manhattan Beach and all other cities with a population of less than 500,000 residents," said Montgomery. "Why? Because cities with less than 500,000 residents are not eligible for federal funds under the COVID-related CARES Act! The City and County of Los Angeles both received hundreds of millions from the CARES Act funding.

"I see it as the responsibility of Los Angeles County to assist the small cities throughout the county and share/'redistribute' its CARES Act allocation," said Montgomery. "The exclusion of small cities from the CARES Act does not consider the loss of sales tax revenue to support our public safety and other essential programs. But the ongoing costs of PPE (personal protective equipment) necessary for all City employees has added costs that are 'required' (plastic shields at city hall work stations and COVID signage citywide). Nor does it [federal CARES Act funding] consider the supplemental costs of 'state mandates' and enforcements like beach closures and face coverings."

As part of the CARES Act, LA County received more than $1 billion and the City of Los Angeles received a little less than $700 million, according to the U.S. Treasury Department. It is unknown yet how much money Manhattan Beach has spent on COVID-19-related requirements and mandates, however, West Hollywood has spent more than $1 million in COVID-19 related expenses., according to its mayor, Lindsey Horvath.

Said Montgomery of the federal legislation, "This mistake in federal policy is why Congress is negotiating the HEROS act to provide small cities funds through the pandemic." He called the CARES Act "A misguided and poorly designed federal policy that discriminates against small cities suffering the effects of COVID-19."

In its letter of demands, The Coalition of LA County Cities said the money should be sent to the local governments of the county's cities and unincorporated areas of the county. The county issued a statement Friday saying all cities in the county are receiving CARES funding, with the state doling out $500 million to municipalities across the state, based on population."

"It's also important to note that the CARES Act funding allocations approved by the L.A. County Board of Supervisors this week support programs and services that help all county residents, regardless of where they live," according to county officials. "These include $656 million for public health measures including community-based testing and contact tracing; $200 million for financial support for residents in the form of assistance for rent relief, food and child care; $160 million in grants to support small businesses; and $150 million to support the county workforce's response to the emergency, including disaster services workers and personal protective equipment for employees."

The county Board of Supervisors on Tuesday approved a spending plan of $1.22 billion in federal and state coronavirus relief funds, primarily going toward health care needs. Supervisor Hilda Solis said on Tuesday that $1.22 billion "is a lot of money, but it isn't enough for a county as large as ours."

"We must maximize each precious dollar by investing resources in our communities of color that have been disproportionately impacted by COVID-19 due to years of systemic inequities that have left them chronically under-invested and under-served. I will continue advocating that CARES Act funding be directed to our most disadvantaged communities that have historically been denied access to resources and services," Solis said.

The City of Los Angeles recently dedicated $100 million of its CARES Act funding to a small-business assistance program. The coalition sent a letter to Garcetti and the Board of Supervisors in May asking for support from the larger governments, but they said they have not been assured their cities will receive funding.

City News Service contributed to this article.