State hires consultants to help allocate $3.2B in COVID stimulus funds for Oklahoma

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State hires consultants to help allocate $3.2B in COVID stimulus funds for Oklahoma

Thu, 09/16/2021 - 00:59
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Sep. 15—State leaders have enlisted the help of two consulting firms to assist with doling out $3.2 billion in federal pandemic aid coming to Oklahoma.

The local and national consulting firms will help state lawmakers and Gov. Kevin Stitt’s office solicit proposals for the stimulus funds designed to help Oklahoma recover from the COVID-19 pandemic, vet and rank the projects and ensure spending follows federal rules.

The state hired Guidehouse, a national consulting company, to provide oversight and management of projects involving American Rescue Plan Act funds and ensure spending is reported to the federal government as required.

Guidehouse will be paid $383,930 for its services, according to a copy of the contract. The costs will be covered with American Rescue Plan funds, said a spokeswoman for the Office of Management and Enterprise Services, the state agency that finalized the agreement.

Guidehouse is the third-largest health care management consulting firm, and the company is helping more than 30 states, cities and counties with COVID-19 aid, Jeff Bankowski, a partner with Guidehouse, told state lawmakers last week.

The state previously hired Guidehouse to make recommendations on how to consolidate and streamline state government and to review state finances in an attempt to find savings ahead of what was expected to be a tight budget year.

Also helping the state is 929 Strategies, a public policy and government relations consulting company founded by Melissa McLawhorn Houston, a former state labor commissioner who served on Gov. Kevin Stitt’s transition team.

The local consulting firm has signed a yearlong contract and will be paid $10,000, said Mike Jackson, executive director of the Oklahoma Legislative Services Bureau.

How much money will Oklahoma get?

Oklahoma will receive half of the state’s $1.87 billion share of federal aid this year and half next year. All funds must be obligated by Dec. 31, 2024, and spent by Dec. 31, 2026.

Roughly $1.32 billion in aid will be divided among Oklahoma localities. The state will play a role in oversight and distribution of the local funds.

Nationally, more than $350 billion will be distributed to states, tribes and local governments as part of the COVID-19 stimulus package President Joe Biden signed earlier this year.

Lawmakers have stressed long-term, big-picture thinking in determining how the relief funds are spent.

Compared to the CARES Act pandemic relief funds the federal government allocated last year, American Rescue Plan funds don’t have to be spent within the year.

“I think it would be very prudent not to award all the money right up front. I think the best approach will be slow and methodical,” said Rep. Kevin Wallace, R-Wellston, who cochairs the Joint Committee on Pandemic Relief Funding.

The Oklahoma Legislature formed the 24-member joint committee to oversee federal stimulus spending and review funding requests.

What happens next?

The state will begin accepting requests for pandemic relief funds on Oct. 1 through a public website. Proposed projects will be vetted to ensure they meet U.S. Treasury requirements before going to state legislative working groups, the Joint Committee on Pandemic Relief Funding and, ultimately, the governor for approval.

The joint committee will approve this month a set of goals for spending the federal aid. The state will submit to the federal government next month a strategic plan for how American Rescue Plan funds will be spent.

For more information on stimulus funds coming to Oklahoma, visit oklahoma.gov/arpa.