For Immediate Release: Wednesday, December 23, 2020
Maryland Treasurer Kopp, Comptroller Franchot, Senator Cardin, Montgomery County Council President Hucker join community leaders, business owners and local elected leaders in pushing for Release of $1 Billion Fund
Annapolis, MD via Zoom -- Maryland Treasurer Nancy Kopp, Comptroller Peter Franchot and U.S. Senator Ben Cardin joined a coalition of community leaders, business owners and elected leaders from Maryland’s largest counties to call on Governor Larry Hogan to use the state’s Rainy Day Fund to help residents who are struggling to put food on the table, pay rent and make ends meet.
The event highlighted a supermajority of the Maryland Board of Public Works, including the State’s Chief Fiscal Officer and Chief Investment Officer, as well as the state’s senior U.S. Senator and elected leaders from many of the state’s largest counties jointly calling on Gov. Hogan to use the Rainy Day Fund for the purpose it was created.
The virtual event featured remarks from residents facing eviction and food insecurity, business owners at risk of permanent closure and layoffs, and updates on the federal relief bill from Sen. Cardin.
As Maryland’s local economy continues to grapple with the effects of COVID-19, small businesses, unemployed residents, working families and Black and brown communities still face staggering financial shortfalls. Over 30,000 small businesses in the state have shuttered permanently or are expected to close and food distribution lines continue to grow.
“I’m relieved that Congress finally passed a second stimulus, but even this second round is simply not enough to help Marylanders who are losing their lives and their livelihoods due to the pandemic and its economic impact,” said Comptroller Franchot. “Fortunately, Maryland has more than $1.5 billion in reserves - even after the Governor’s previous announcements of relief and frankly, right now, not later, we need to get these funds - a state stimulus - into the hands of our citizens facing eviction and food insecurity, as well as businesses desperately trying to stay afloat and keep their employees paid. Thousands of these people cannot wait for the next stimulus to be signed and go into effect. They need help now.”
“The absence of local aid from the federal relief package will have a devastating impact on our residents and struggling businesses,” Hucker said. “Without additional support from Gov. Hogan, our local governments will be forced to cut spending on critical programs that people rely on every day, like food relief, rental assistance and hazard pay for our first responders. The reserves in the Rainy Day Fund should be going to work now for our families and our small businesses - not sitting in the treasury in Annapolis.”
Community leaders, business owners and residents from across the state shared their stories and echoed calls for additional state funding.
“On March 9, I employed 45 people. I had to lay off nearly each one because I had to refund my entire spring schedule of business due to event cancellations,” said Eddie Wingrat, president of Flowers and Fancies of Owings Mills, Md. “As we receive federal and state funding, we were able to gradually hire some back as we are permitted to do business. The initial funding has been used to operate the business but ran out in the fall. This has been the most devastating year of business since we started in 1971. We have no road map and the uncertainty of financial assistance has created a roller coaster of endless choices and emotions for all of us.”
“After months of serving the front line of this pandemic, our doctors, nurses and my fellow first responders are showing real signs of strain and we are desperately working together to keep people safe,” said Brian Holtslander, paramedic and firefighter with the Anne Arundel County Fire Department. “I eventually became sick with COVID and the 80 hours of leave reimbursement provided by the first CARES Act helped my family during that time. Without aid to local governments in this second bill, I am not sure how local jurisdictions will afford these increasing COVID-related expenses as our hospitals reach maximum capacity and patients back up on ambulances. The need for local aid is reaching a critical tipping point.
Last week, Congress removed much-needed funding to state and local governments from the bipartisan aid bill that was approved on Monday evening. In the spring, Maryland and local governments received $2.3 billion from the Coronavirus Relief Fund through the CARES Act, which proved to be critical in assisting with budget shortfalls and expenditures related to jurisdictions’ COVID-19 public health and economic initiatives.
“The COVID Relief Fund isn’t exactly ‘relief’ - it’s a payment plan that is causing us to go deeper into debt, while I have already depleted my personal savings to keep 50 percent of my employees, who are like my family,” said Lakeisa Battle, owner of Southern Peach BBQ and Soul Food in Suitland, Md. “Relying on third party apps to keep extra revenue coming in - after paying 30 percent to them, the increased cost of food, no breaks in rent, utilities and insurance…the only assistance that I have received is a $25,000 grant that is being used to bring employees back and to make sure my restaurant is safe to accommodate customers and employees.”
Currently, the State of Maryland has more than $1.5 billion in its reserves: $586 million from its FY 2020 General Fund Balance and more than $928 million in its Rainy Day Fund - a dedicated fund that state lawmakers and governors have prudently saved to help Maryland navigate economic recessions.
Presenters underscored the severity of the economic crisis impacting Marylanders and small businesses and the need for Maryland to use any balance from its CARES Act funding and the State’s reserves to supplement the stimulus package passed by Congress earlier this week.
“I’m proud to be involved with this group of community-minded people,” said Mike Dunn, president/CEO of the Greater Salisbury Committee. “We should all be united in doing whatever we can to uplift each other and advocate for our hardest hit communities and businesses.”
The coalition urged Marylanders to get involved by signing the petition at https://mdreliefnow.com/.
To view the virtual press conference, visit: https://www.facebook.com/MDCOVIDReliefNow or click here.
# # #
Release ID: 20-502