Title:
Title
CARES Act Relief Fund for Creative Economy Recovery Program: Additional Grant Funding for Arts, Tourism and Creative Economy
End
FileID
File ID: 2020-01062
Location
Location: Citywide
End
Recommendation:
Recommendation
Adopt a Resolution increasing the Creative Economy Recovery Program budget by a total of $6.9 million from the CARES Act Program (G02610100) in the Federal CARES Act Fund (Fund 2704) to support the arts, tourism and creative economy.
FileName
Contact: Mannylyn Timoteo, Administrative Analyst, (916) 808-3982, Jody Ulich, Director (916) 808-5105, Convention and Cultural Services Department.
Body
Presenter: None
Attachments:
1-Description/Analysis
2-Coronavirus Relief Fund Programs
3-Resolution
Description/Analysis
Issue Detail: On March 13, 2020, the City declared a local emergency in response to the spread of the COVID-19 pandemic. Several actions were taken by the City to provide immediate economic relief to city businesses and residents. On April 21, 2020, the City received $89.6 million in Coronavirus Relief Funds (CRF) from passage of the CARES Act.
Framework and Funding Priorities: On May 12, 2020, Council participated in a workshop to discuss a CRF framework and funding priorities and on May 26, 2020 adopted a general framework proposed by the Mayor for funding priorities. During the workshop, Council expressed overall interest in funding programs and projects that provide small business assistance, get people back to work, offer opportunities for youth enrichment, address homelessness and housing issues, and support families impacted by this pandemic. The deadline for expending CRF funds is December 30, 2020.
A working group of departments has been working with the City Attorney and Auditor’s offices to prepare CARES Act funding recommendations and review funding suggestions for eligibility and alignment with identified Council priority areas:
• Small Business Assistance: Financial, technical, and entrepreneurship assistance to small businesses, non-profits, and community-based organizations (CBOs).
• Workforce Training: Fund programs and partner with workforce development providers, CBOs, and educational partners at all levels to retrain and uptrain workers dislocated due to the pandemic.
• Youth Enrichment: Implement robust programs, curriculum, and service for youth, including providing the necessary transportation and technology to support these programs.
• Family Services: Funding to support additional services for Sacramento families, including the expansion and availability of childcare services, food access, and programs that address domestic violence exacerbated by the stay-at-home orders.
• Homeless Services & Rapid Re-Housing: Services to place unhoused individuals into permanent housing and implement homeless aversion programs.
• Arts, The Creative Economy & Tourism: Financial and technical assistance directly to support the arts, tourism, and creative economy that have been devastated by the current pandemic.
Additionally, Council expressed a commitment to equity and inclusion. Each program and project will be screened through an equity lens to ensure CARES spending benefits our entire community, particularly those communities most impacted.
Creative Economy Recovery Program Grants:
• On May 26, 2020, Council committed $28 million in CRF to support immediate local economic relief services and programs for residents and businesses. Included in the $28 million was an allocation of $5 million for the Creative Economy Recovery Program.
• On June 30, 2020, Council approved an additional amount of $2.5 million making the total CRF fund allocated to Creative Economy Recovery Program at $7.5 million.
• On August 18, 2020, Council adopted a Resolution that formally allocated the previously approved $2.5 million in order to bring the total CRF funds allocated to the Creative Economy Recovery Program to $7.5 million.
• On August 19, 2020, the Sacramento Art, Culture, and Creative Economy Commission unanimously approved and allocated approximately over $5 million of grant awards to Arts Education, Creative Businesses, Cultural Equity Investment, Individual Artists, and Collective/Collaborative Programs.
Policy Considerations: The City has been impacted by a global pandemic. Establishing programs and budgets that include federal CARES Act funding is consistent with City Council action relative to state and federal grant awards.
Economic Impacts: CARES Act funds and other eligible federal and state grants will assist the City in providing economic relief to residents and business that have been impacted by COVID-19. Additionally, CARES Act spending will support and advance inclusive economic growth, improve the health of neighborhoods and support people, places, and actions that promote overall economic recovery.
Environmental Considerations:
California Environmental Quality Act (CEQA); National Environmental Policy Act (NEPA): The proposed action is not a project under CEQA because it relates to government fiscal activities that do not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment. (Cal. Code Regs., tit. 14, §§15060(c)(3), 15378(b)(4)). The proposed action involves activities that are exempt from NEPA under title 24, section 58.34, of the Code of Federal Regulations.
Sustainability: None
Commission/Committee Action: None
Rationale for Recommendation: The additional allocation is needed since the allocation for grant opportunities has shown a need for additional funds as the existing amount of allocated funding does not meet the current demand requested.
Financial Considerations: On April 21, 2020, the City received $89.6 million from the CRF to address impacts related to the COVID-19 pandemic. This report recommends that an additional $6.9 million of CRF funding be approved as part of the Creative Economy Recovery Program (G02610100) to assist and provide economic support to the creative industry, local businesses and tourism that still require relief due to the devastating impact state and local orders have had to such activities. The current CRF program schedule is included as Attachment 2
Local Business Enterprise (LBE): None