Oregon Legislature distributes millions in federal coronavirus relief

State lawmakers approved $244.2 million in federal coronavirus relief money on Wednesday for contact tracing, testing and addressing the unequal impact the pandemic has had on communities of color.

Groups set to receive funds included the Oregon Health Authority, Department of Administrative Services, local public health authorities, tribes and "community-based organizations."

However, an item that would have sent an additional $105 million to the Department of Administrative Services for purchasing personal protective equipment failed after lawmakers expressed concerns about local governments having too little control of federal relief money.

Lawmakers on both sides of the aisle were also frustrated with inadequate coordination between state agencies and local governments and the lack of details in the allocation requests, including which local groups would receive money and how statewide plans would work.

“Tasking these community-based organizations with responsibilities that they may or may not have had previously … is making me genuinely uncomfortable," said Sen. Betsy Johnson, D-Scappoose. "We are contracting out the state’s responsibilities.”

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Of the six items discussed during an evening meeting of the Joint Emergency Board, five elicited concerns from lawmakers.

Social determinants of health are a factor in why the coronavirus pandemic has disproportionately impacted communities of color. Social determinants include income  inequality, unemployment, working conditions, food insecurity and housing.

Community based organizations

The committee approved $45 million to the Oregon Health Authority to work with community-based groups to address these issues. Lawmakers were concerned there wasn't a list of community organizations that OHA was intending to work with, and apparent uncertainty about what precisely the money would be spent on.

House Republican Leader Christine Drazan, R-Canby, said local Coordinated Care Organizations might already be positioned to do this work, but they are not mentioned in the allocation request. Retroactive cuts were already made to CCOs, even as the state might be ignoring them for this work, she said.

“I would say this is incredibly short sighted,” Drazan said.

House Speaker Tina Kotek, D-Portland, shared the concerns about lack of communication with CCOs and operationalizing the goals OHA has for the $45 million, but said the state contracts with community-based groups frequently.

She said most of the groups already have contracting history with the state, and the goal of improving COVID-19 outcomes and lowering transmission in tribes and communities of color is worth supporting.

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Local government worries

The two most contentious items were opposed by city and county organizations, which submitted testimony that the allocations hamstrung their ability to respond to the pandemic at a local level.

"The greatest needs in one community may be different than the needs in another. We believe it is important for the local communities to be able to determine how to best fulfill their own recovery needs," wrote a consortium of groups, including chambers of commerce, the Association of Oregon Counties and the League of Oregon Cities.

Some lawmakers described the state's attitude toward cities and counties in these plans as "paternalistic."

The first was an approved distribution of $94.2 million to OHA to increase testing across the state and to expand pandemic outreach, including contact tracing.

Purchasing testing supplies and equipment accounts for $20.7 million, with the remaining $73.5 million being sent to local public health authorities, tribes and community-based organizations for contact tracing, education, case management, and quarantine wraparound services.

In addition to concerns about local control, lawmakers noted missing details in the funding request, including the lack of OHA's testing plan or list of community agencies receiving money.

With the Legislature set to meet for a special session Monday, some wondered if the particularly controversial funding requests would be better served there, where public testimony could be called and more debate allowed.

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Money for PPE

But the most contentious by far was the failed request for $105 million to the Department of Administrative Services for personal protective equipment — PPE — such as N95 masks and gloves.

In April, the Legislature decided to split the $1.39 billion in federal coronavirus relief funds the state received into chunks for targeted distribution. They set $200 million aside for the state to use its purchasing power to buy and provide personal protective equipment and other services for local governments and tribes.

It is that pot of money where the $105 million and $94.2 million was to originate.

Sen. Arnie Roblan, D-Coos Bay, said from the outset of the pandemic the state should have given a sizable chuck of money to counties so they could respond to the pandemic in individualized ways.

However, he said having money at the state level allows it to step in when counties — particularly rural counties — need help. He said a situation like that unfolded in Lincoln County, where the state assisted with contact tracing to slow the spread of an outbreak.

"The reality is, when the virus hits, and we don’t know when that is … if we don’t have money to spend in our rural communities to solve the problems of the virus, we’re going to be in trouble," Roblan said.

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But confusion about how money would be spent and frustration over lack of communication between the executive branch and local governments led to Democrats James Manning Jr. of Eugene and Johnson joining Republicans and voting down the measure.

"They are not necessarily asking about the value of PPE," Johnson said. "The counties, and other units of government, are asking for flexibility."

Reporter Connor Radnovich covers the Oregon Legislature and state government. Contact him at cradnovich@statesmanjournal.com or 503-399-6864, or follow him on Twitter at @CDRadnovich.

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