Local Va. senator seeks to use CARES funds as lost revenue offset

TAZEWELL, Va. — Sen. Mark Warner, D-Va., said Wednesday he is working on helping localities receive more federal money to help offset revenue loss caused by the COVID-19 pandemic.

Specifically, he wants to loosen restrictions on how money is spent from the CARES (Coronavirus Aid, Relief and Economic Security) Act. Virginia has received more than $3 billion from that act but, so far, localities can only be reimbursed for expenses related to the pandemic, not to make up for lost revenue.

But, he said, that loss of revenue is directly related to the pandemic.

Warner addressed the issue during a conference call with a group of professionals from Tazewell County, including Richlands Mayor Paul Crawford, CEO Clinch Valley Medical Center Peter Mulkey, Executive Director of Tazewell Today Amanda Hoops, and Superintendent of Tazewell County Public Schools Dr. Chris Stacy.

The purpose of the call was to discuss how the federal government can best support the region amid the economic and health crisis caused by the COVID-19 pandemic.

Crawford told Warner 60 business license were delinquent and revenue from the meals tax was almost gone in Richlands.

“We may not have seen the hardest part of it yet,” Crawford said, referring to the possibility some of those businesses may not come back at all.

Stacy said the school system is impacted as well from the drop in local revenue.

“The lack of revenue is an issue for all of us,” he said, adding that he does not know yet how much local money the school system will receive so it’s difficult to even do a budget.

“To me, that was one the craziest parts of the CARES Act,” Warner said, adding that the airline industry and small businesses were given money to backfill revenue losses, but not states and localities.

Warner said there are too many restrictions in the act that prevent the state and localities from using the money.

“I have been trying to work with the administration to get that changed,” he said. “I think they are willing to, but I think it has put on restrictions that are not fair. If you are not collecting the sales tax and you are not collecting a meals tax and you’ve got to lay off a police officer … to me, that’s related to COVID.”

But Warner said he does think that will get worked out going forward but it has been a “real restriction so far.”

“Let’s not restrict the state government or local government from filling in lost revenue,” he said.

Gov. Jim Justice in West Virginia, which as received $1.25 billion from the CARES Act, has said the same thing, and believes the feds will change those restrictions.

Hoops told Warner restaurants in particular are struggling and two have not yet reopened.

“We have lost a lot of meals tax revenue,” she said.

Warner said he thinks there will be additional help coming for restaurants, which continue to face difficulty staying in business with carryout only, then outside dining only and the coming restricted occupancy for indoor dining.

“It’s going to take longer to come back,” he said of limitations placed on them. “I have talked to the administration about what is coming that will be restaurant focused. There is even an idea of some community-based bonding authority we might look at.”

Other ideas have also been kicked around, he said, but “I don’t think anything has been settled upon.”

“Restaurants, hospitality, they are going to need an extra shot in the arm,” he said.

Warner said the PPP (Payroll Protection Plan) money they may have gotten came at a time for eight weeks when the communities were basically still closed and that did not work.

“The short answer is there will be something, but what it is specifically going to be, a bunch of us are still kicking around ideas,” he said.

Warner also said one of the needs that has been reemphasized during the pandemic is broadband in rural areas.

“We have not done enough to expand broadband,” he said, and a major commitment needs to be made to make sure everyone has access, similar to the national movement to provide electricity to every household almost 100 years ago.

“It is a necessity,” he said, referring to education, telehealth and business benefits. “We need to make a real commitment to build out full high-speed broadband.”

Both Stacy and Mulkey agreed.

“Broadband is greatly needed,” Stacy said, pointing out the fact that not all students have access. “Even some teachers live in areas without Internet capabilities.”

Stacy said it’s not a matter of poverty, it’s a matter of the service not being available in some areas.

When schools closed in March, classes went virtual, so broadband was a necessity.

That has “greatly hindered” the opportunity to reach everyone, he said.

Mulkey said telemedicine (internet contact with health professionals) has been stepped up during the pandemic.

That allows “patient engagement” without residents leaving their homes.

“Telemedicine got a real boost out of this,” he said.

Hoops also told Warner, who was in Tazewell last year to ride a Slingshot at the unveiling of the 12-ft. dragon at the Back of the Dragon headquarters, that thousands of motorcycles have already visited Tazewell to ride the 32-mile Back of the Dragon trail on Rt. 16 from Tazewell to Marion.

“An influx of people from out of the area is a concern,” she said, but added that the Dragon staff is closely following CDC protocol to keep people safe.

Warner said he thinks that after the pandemic is over there will be real push to promote tourism, even on an international level, with a “visit the USA promotion.”

— Contact Charles Boothe at cboothe@bdtonline.com