The co-chairs of the Joint Audit Committee and the Evers administration are at odds over whether interest from federal COVID-19 funds should be deposited in the general fund. <\/p>\n
The state collected more than $97 million in interest off the $3 billion in funds it received. <\/p>\n
The Evers administration contends federal rules bar the interest earnings from going to the general fund because the state would no longer be able to meet tracking requirements for the money, and the Department of Administration is awaiting further guidance from the feds. <\/p>\n
Meanwhile, Sen. Eric Wimberger, R-Green Bay, and Rep. Robert Wittke, R-Racine, cited a Legislative Audit Bureau report from December in arguing the money should be in the general fund. <\/p>\n
The Joint Audit Committee that the two GOP lawmakers co-chair has a hearing today on the December audit in which they may discuss correspondence from DOA Secretary Kathy Blumenfeld on the topic, according to the hearing notice. If the interest is deposited in the general fund, it would give lawmakers a say in how it is spent. Dem Gov. Tony Evers has had sole authority to disburse federal COVID-19 dollars. <\/p>\n
The December LAB report raised questions about the interest, which totaled $97.2 million through Nov. 30. The state was fronted $3 billion in Coronavirus State and Local Fiscal Recovery Funds through the American Rescue Plan Act President Joe Biden signed in early 2021, and that money was invested in a short term pool for excess cash until it was needed for expenditures, according to LAB. <\/p>\n
The agency contends the interest on the COVID-19 funds wasnt received from the federal government, and thus there are no restrictions on its use. Because of that, LAB argues the money should be deposited into the general fund. <\/p>\n
Blumenfeld sent Wimberger and Wittke two letters last month after they asked for an explanation on why the administration hadnt deposited the interest into the general fund. She wrote in one that DOAs reading of state and federal law contradicts the LFB conclusion. Thus, the agency believes the interest qualifies as money received from the feds because the earnings were originally the property of the federal government and could only be used by the state after receiving permission from the federal government. <\/p>\n
Blumenfeld added the administration is awaiting more guidance from the U.S. Treasury. <\/p>\n
A DOA spokesperson told WisPolitics the administration hasnt spent the interest as it awaits additional guidance. <\/p>\n
Read Blumenfelds letter. <\/p>\n
See the LAB report, which discusses the interest on pages 13-14. <\/p>\n
Read the co-chairs letter. <\/p>\n
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Here is the original post:<\/p>\n
Audit Committee co-chairs, Evers at odds over interest from COVID-19 funds - WisPolitics.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" The co-chairs of the Joint Audit Committee and the Evers administration are at odds over whether interest from federal COVID-19 funds should be deposited in the general fund. The state collected more than $97 million in interest off the $3 billion in funds it received. Continue reading