JACKSON, Miss.–In a new report called “sobering” by its authors, findings indicate how unevenly COVID relief funds have been distributed.
The report, conducted and released by Hope Credit Union and Louisiana Power Coalition and titled “Racial Inequities in the Distribution of Louisiana’s Coronavirus Relief Funds: A Report for Community Leaders,” revealed that in pure dollar amounts, majority people of color parishes received just over half the amount of funding of majority white parishes.
According to the report, the disproportionate distribution of COVID relief funds in Louisiana thus far may have worsened inequities by race, region and municipality composition.
The report was authored by Calandra Davis of the Hope Policy Institute and Georgia Barlow of the Louisiana Power Coalition.
The Findings
Among the findings:
‘Struggling to Access Resources’
Louisiana received $1.8 billion from the Coronavirus Relief Fund as part of the CARES Act, with 45% of the funds or $811 million going to local governments and small business relief. Local governments were allocated $511 million of the funding. The 64 Louisiana parishes had to apply to Louisiana’s Division of Administration for funding and provide documentation of their expenditures to receive the funds as a reimbursement.
To spread the resources across the parishes, Louisiana pre-determined an allocation for each parish, based on population size and COVID cases, allowing counties to seek reimbursement of expenses up to that allocated amount.
“This reimbursement structure meant that parishes already struggling to access resources before COVID-19 had trouble getting the relief funds, particularly majority people of color, rural and persistent poverty parishes,” the report states.
Analysis of the Local Government Coronavirus Relief Funding Reports
The Joint Legislative Committee of the Budget (JLCB) released regular reports on the local government Coronavirus Relief Funding. The report notes allocations for each parish were calculated with 70% based on number of cases and 30% based on population.
“Allocations changed each period based on the number of coronavirus cases in each parish. After the final period of funding, the money allocated to parishes, which had received less than their allocated amount, was re-allocated to parishes that requested amounts in excess of their allocation,” the report states. “Hope Policy Institute completed an analysis of the report after the first and second allocation rounds. After reviewing the data from the first report released by JLCB, it was evident that some parishes had neither received a payment nor requested funds allocated to them. Information about the available funds or the application process had still not yet reached the most impacted communities by the last week of the program.
“Within the final weeks of the program, HOPE was able to connect with mayors in the parishes that had not yet applied during the first two rounds of funding,” the report continues. “…By the end of the program, local governments submitted over $1 billion in claims to cover COVID-19 related expenses… Only $499,740,634 in authorized payments were made.”
Final Local Government Funding Amounts Reveal Disparities
The final amounts actually received by local governments, compared with what they requested and were originally allocated, the report states.
“Majority people of color parishes received over 100% of funds allocated to them, yet received a much smaller percentage of the amount they actually requested,” according to the report. “The gap in funds allocated and funds requested shows there may have been a greater need for these parishes that was not met. In pure dollar amounts, majority people of color parishes received just over half the amount of funding received by majority white parishes.”
The report additionally noted the disparities breakdown further by race, when considering looking at rural, persistently poor areas.
“Persistent poverty is defined as any county that has experienced poverty rates of at least 20% for 30 years…”Persistent poverty, rural, majority people of color parishes received only a third (31%) of their total allocation of funding. They requested and received over $2 million of the $8 million available, indicating there were barriers to accessing the money. In contrast, persistent poverty, rural, white counties received 74% of their allocated funding.”
Policy Recommendations
Among the policy recommendations made in the report:
- Prioritize areas that have been underfunded in the past
- Prioritize funding based on need
- Create mechanisms to support the applications from all areas
The full report can be found here.