Coronavirus

Here’s how Gov. McMaster thinks remaining CARES Act dollars should be spent in SC

Gov. Henry McMaster on Thursday laid out his recommendations on how the state’s remaining federal CARES Act money should be spent including adding an incentive for schools to offer five-day-a-week in person instruction.

In a news conference at the state’s emergency management headquarters, McMaster said $450 million of the aid, intended to help states weather the coronavirus, should go to the unemployment trust fund, hit hard this year by a spike in unemployment and requests for benefits from furloughed or laid off workers. The legislature allocated $500 million to the unemployment fund in the first round of CARES Act money distribution.

The governor called for $73 million to be given to the Department of Health and Environmental Control and $20 million to the Medical University of South Carolina go to be used for COVID-19 testing.

McMaster wants $50 million to go to help school districts and charter schools reopen for five-day-a-week in-person instruction. Only 19 school districts in the state are offering in person instruction five days a week, something the governor urged schools to do.

McMaster said he hopes the funding will help more schools open up to five days.

“South Carolina’s economy is returning to normal because people have returned to the workplace, following precautions designed to keep them healthy and working,” McMaster said. “I believe that schools are no different,” he said, adding that schools can reopen safely if they follow safety measures.

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To help small businesses, $30 million should be used for small relief grants similar to the Paycheck Protection Program, McMaster said. The $5,000 grants would be for businesses that did not receive money under the PPP.

“A lot of money went out under that program, but a lot of our small businesses, did not receive that money,” McMaster said.

McMaster also wants legislators to approve $15 million for relief grants for nonprofits, similar to the PPP program.

The governor also recommended $75 million go to state agencies public universities, historically black colleges and universities, and technical colleges, and $50 million to go to counties, municipalities, first responders and law enforcement.

McMaster is making these recommendations as legislators are slated to return to the State House next week to consider a budget for the 2020-21 fiscal year, which began in July. That budget plan was postponed as the state grappled with the pandemic.

“As you are aware, the Accelerate SC task force conducted a thorough review of the CARES Act and made expenditure reimbursement recommendations for COVID-19 prevention efforts, and for measures for returning our state’s economic engines to full speed,” the governor wrote in a letter explaining his recommendations to lawmakers.

McMaster’s recommendations are close to what legislators are considering.

Legislators want to send $420 million into the unemployment trust fund.

While House members want to send $100 million to local governments, and the Senate proposal calls for $115 million to go local governments and universities.

House members are proposing $45 million be used for a small business relief program and $10 million for non-profits. Senators have proposed $20 million be used for small businesses and $20 million for non profits.

Joseph Bustos
The State
Joseph Bustos is a state government and politics reporter at The State. He’s a Northwestern University graduate and previously worked in Illinois covering government and politics. He has won reporting awards in both Illinois and Missouri. He moved to South Carolina in November 2019 and won the Jim Davenport Award for Excellence in Government Reporting for his work in 2022. Support my work with a digital subscription
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