We looked at numerous data points that show the impact of the pandemic on certain individuals, communities, and economic sectors. For example, we know:

◼ Pennsylvania is still down over 400,000 jobs compared to pre-pandemic levels and we know the sectors that bore the brunt of the job loss.

◼ Thousands of women were forced to leave the workforce due to numerous factors, including lack of child care, schools closing, layoffs, etc., and that providing women, especially low-income women and women of color, with the tools needed to be successful is critical to their return to the workforce.

◼ Businesses in certain segments of the economy suffered great financial losses and may not have benefitted from the federal assistance programs like other businesses did.

◼ Black and brown-owned businesses and other historically disadvantaged businesses in communities of color were, and continue to be, disproportionately hurt by the pandemic and large numbers of these businesses were shut out of federal business assistance programs.

◼ Hundreds of child-care facilities closed their doors for good during the pandemic leaving working parents and guardians without access. Other providers were stretched to their financial limit with closures, lost revenues, lower enrollment, etc.

◼ Our home and community-based care providers and congregate care providers faced, and continues to face, significant challenges as they work their way through the pandemic.

◼ The inequity inherent in our K-12 education funding system was laid bare as children in low-income communities struggled with the challenges of remote and hybrid learning due to lack of equipment, internet access and other factors.

◼ The commonwealth’s IT systems were overwhelmed due to high demand in areas like unemployment compensation, professional licensure, and online liquor sales, resulting in unacceptable wait times to receive benefits or services.

◼ Substance use and mental health services are in high demand, especially in children and young adults, based on the physical and psychological effects the pandemic has taken on our citizens.

◼ Gun violence, domestic violence, hate crimes, etc. are increasing in whole or in part due to the stress caused by the pandemic.

◼ Our public health workforce and our essential/frontline workers have placed their lives on the line to help us weather the pandemic and deserve not only our recognition and respect but additional compensation.

◼ While resilient, our workforce, especially our public health workforce, must be strengthened through aggressive job training, recruitment and retention, and professional development initiatives that help create a world-class workforce.

◼ Equity in the delivery of COVID-19-related health services and vaccine hesitancy are major issues in communities across Pennsylvania, especially in rural communities and communities of color. Addressing these issues is key to ending the pandemic.

◼ Low-income communities and communities of color have been disproportionately impacted by the pandemic across the board. We cannot leave these communities behind as we recover. ARP investments must promote a “just” recovery for all, no matter an individual’s race, gender, ethnicity, sexual orientation, gender identity, disability, socio-economic status or zip code.

No. But by using ARP funds to make these sound investments we can lay the strong foundation upon which future General Assemblies and future Governors can build to re-write the commonwealth’s future.

We estimate the New Deal for PA will generate approximately 63,000 jobs (direct, indirect, and induced). The estimates are based on modeling done in September 2020 by researchers at the Political Economy Research Institute (PERI) at the University of Massachusetts – Amherst for job creation impacts of economic stimulus. The study focused on the care economy, public health, infrastructure, housing, and other areas.

Pollin–Sierra_Club_Job_Creation—-9-9-20–FINAL.pdf (umass.edu)

NOTE: To be clear, the PERI study was not a study of the New Deal for PA.

In addition, we believe thousands of additional jobs will be created and/or retained based on the direct assistance that we provide to small businesses

Where appropriate, the New Deal for PA uses the programs created with CARES funds under Act 24 of 2020. We recommend some programs be revised to maximize effectiveness and comply with federal guidance. If proposed funding does not fit into an existing program (e.g., utility assistance), a new program will be created.

The funds will be allocated as grants and will not need to be repaid.

Yes. The ARP lays out specific uses for the State Fiscal Recovery Funds. Federal guidance provides more information. We believe everything we’ve proposed complies with the federal guidance and is related to the Coronavirus Pandemic.

The American Rescue Plan specifically prohibits the commonwealth from using the monies to pay for tax cuts or for deposits into pension funds.

Senate Democrats will strongly advocate for using American Rescue Plan funds as they were intended — to help Pennsylvanians. ARP funds are one-time revenues and won’t fix our structural deficit. This money needs to be put on the street so we can rebuild our commonwealth and our economy.

We believe current revenue and expenditure projections for FY 2020-2021 through FY 2022-2023 support investing the majority of the $7.3 billion we are receiving from the State Fiscal Relief Fund into our 3 main categories of assistance — people, projects, and public health. We reserve approximately $2.5 billion to address revenue changes we will face in the out years (e.g., expiration of savings we are seeing from enhanced FMAP). However, Senate Democrats believe these funds also should be spent if our revenue situation continues to improve.

Senate Democrats did not propose using CARES funds to balance the FY 2020-21 budget. It was not our preference, but the decision did not absolve our caucus of our responsibility to govern in a bi-partisan manner and ensure a budget crisis was not piled on top of the pandemic.

No. The New Deal for PA distributes $6.15 billion from only the funds/sources mentioned above.

Commonwealth agencies, service providers, businesses, individuals, and others will receive funds either directly or indirectly from the federal government in the form of stimulus payments, unemployment compensation payments, loans, grants, subsidies, tax credits, etc. The total financial benefit Pennsylvania will receive from the $1.9 trillion American Rescue Plan is yet to be determined.

Federal guidance was released on May 10, 2021. We will continue to review it and seek clarification where needed. Under the statute, the Administration will have to submit a request to the U.S. Treasury for the funds. When we will receive the funds and whether we will get the funds at one time or in two tranches is to be determined.

In the meantime, we strongly urge the four legislative caucuses and Governor Wolf to begin conversations immediately on how to spend these funds.