After two days of discussion, Northampton County Council on June 18 unanimously approved a plan for the distribution of $27.6 million in CARES Act funding that will help the county get back on its feet after a lengthy business shutdown. Priority must be given to small business grants; tourism; municipal and community assistance; mental health and addiction projects; nonprofit assistance; and broadband development. But council added one condition. It must approve all grants before they are awarded.

At a committee hearing on June 17, council seemed ready to abdicate any oversight over $4 million in CARES Act grants set aside for small businesses suffering as a result of Covid-19. Executive Lamont McClure proposed they just hand the money over to the Greater Lehigh Valley Chamber of Commerce, and let that organization pick the winners and losers for these $15,000 grants. But council President Ron Heckman, who was unavailable when this matter was first discussed, made very clear at the June 18 meeting that council, and not the chamber, should decide who gets what. By an 8-1 vote, council agreed with Heckman. Member Tara Zrinski was the sole No vote.

Heckman sponsored a measure giving council the final say in the disposition of county funds.

“I don’t think our participation is necessary,” said Zrinski, who argued the money needed to be spent right away. But Heckman reminded her that council is “the steward of this money. This is one of our fundamental responsibilities.”

Zrinski said the county should trust the chamber to make the right call, but Heckman responded with Ronald Reagan’s famous quote - “Trust, but verify.” He added he wants to see who applied so he knows whether chamber members were given preferential treatment.

Council member Kevin Lott, usually a staunch ally of Executive McClure, sided with Heckman.

“I will not vote for a resolution that just hands money to the chamber and says, ‘Have a good time!’” He agreed the disposition of county money is council’s job.

“This is why we’re on council, to oversee finances,” he said. He said he is even leery about letting the chamber write checks out with the county’s money, saying that is bad optics.

Council member Bill McGee suggested that council could review applications as they come in and are recommended. He pointed out there’s no need to wait until all applications have been processed. Council member Lori Vargo-Heffner added that, if necessary, council could call a special meeting to award grants so that the delay would be minimal, if at all.

Heckman pointed out that the chamber is not doing this out of the goodness of its heart, and asked McClure, “What’s the vig?” McClure revealed that the chamber would be getting 5 percent of the $4 million in grant money, or $200,000. McClure said this percentage was low, but Heckman seemed dubious. Vargo-Heffner later suggested the chamber should be asked to accept a bit less money.

This marks the first time since McClure’s election that council has disagreed with the executive. He seemed unfazed by the setback. He said he understood the philosophical objection and would make sure that council reviews every penny spent, from small business to nonprofits to municipalities.

“Our desperate small businesses, their furloughed employees and our embattled municipalities can rest assured that I will continue to push hard to get the relief to them ASAP,” he said in a statement issued after the meeting. This grant money must be spent by December.

The Northampton County Department of Community and Economic Development (DCED) has put together a guideline for the distribution of $27.6 million of CARES funds.

$10 Million Small Business

· Small business loan program ($2 million)

· Small business grants program ($4 million, with small businesses defined as businesses with fewer than 100 employees)

· Fund for Small Business Marketing

· Technical assistance and micro grant program

· Entrepreneurship/early state company protection program

$10 Million Municipal

and Community Assistance

· Assistance to the county’s municipalities for response and planning efforts

· Purchase of PPE in response to the pandemic

· Assistance for bi-county ventures

$4.6 Million Nonprofit

Assistance Programs

· Food security

· Housing tourism-related NPO’s

$3 Million Human Services

Northampton County’s Drug and Alcohol and Mental Health divisions will utilize this funding to ensure:

· Existing consumers can continue to receive treatment services, including inpatient and outpatient drug and alcohol and mental health counseling

· New consumers can access drug and alcohol and mental health services amidst and beyond the Covid-19 pandemic

. Adequate funding for transitional housing services

· Providers have access to appropriate technology to continue and enhance telehealth services

· An adequate supply of personal protective equipment for county and provider staff

· Extended shelter stays for individuals experiencing homelessness

Application forms for relief are imminent.