Commissioner proposes plan for Montgomery County’s $105M federal COVID-19 stimulus funds

Montgomery County Precinct 3 Commissioner James Noack Noack took a stand against the county proposed tax rate of 44.12 cents per $100 property valuation on social media stating the court should adopt the no new revenue rate of 43.19 per $100 property valuation. less Montgomery County Precinct 3 Commissioner James Noack Noack took a stand against the county proposed tax rate of 44.12 cents per $100 property valuation on social media stating the court should adopt the no new ... more Photo: Jason Fochtman, Houston Chronicle / Staff Photographer Photo: Jason Fochtman, Houston Chronicle / Staff Photographer Image 1 of / 1 Caption Close Commissioner proposes plan for Montgomery County’s $105M federal COVID-19 stimulus funds 1 / 1 Back to Gallery

Montgomery County Precinct 3 Commissioner James Noack is hoping a proposal to get federal coronavirus stimulus money back in the hands of local taxpayers gets traction from county and state leaders.

Last week, Montgomery County received just under $105 million from the Coronavirus Aid, Relief, and Economic Security Act of 2020 or CARES Act. The act provides that payments from this distribution cover costs incurred between March 1 and Dec. 30 which were necessary expenditures due to the COVID-19 public health emergency.

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Since sweeping across the country beginning in March, the United States has recorded over one million cases and over 53,000 deaths from COVID-19. In Montgomery County, more than 500 cases have been logged with nine confirmed deaths.

According to Noack, the county has not seen expenditures near that amount. He added the county’s expenditures to date are less than $500,000. Noack said with that $105 million, the county would save for later in the year for expenses when health officials predict a second round of COVID-19 cases.

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While government-mandated shutdowns were meant to mitigate the spread of the virus, it has taken a toll on the economy.

In a release from his office, Noack is proposing the use of a portion of local CARES Act funds go back to Montgomery County taxpayers in the form of stimulus checks. The amount of each check would be based on a percentage of last year’s county property taxes paid by each individual or entity, similar to the federal government’s formula of using adjusted gross income to determine stimulus check amounts.

“I’m not sure we can turn this into reality,” Noack said. “But if we could, in theory, it could go a long way in helping out our taxpayers. These federal funds are not a gift to Montgomery County taxpayers. These are their dollars; and the best use of these funds is to put them back in their hands.”

One such example, Noack said, would be to distribute one-time stimulus checks representing a percentage of each property owner’s 2019 Montgomery County property taxes paid. This accounts for property taxes paid to the entity of Montgomery County, not school district, municipal or other governmental entities’ property taxes. Montgomery County collected approximately $248 million in 2019 property taxes, each percent would put almost $2.5 million back into the local economy to help jumpstart business.

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After the distribution, there would still be several millions of dollars for preparation of a potential second wave of COVID-19 this fall, such as to purchase PPEs, test kits and other COVID-related medical devices and services in order to benefit the healthcare community in its efforts to battle this ongoing pandemic.

County Judge Mark Keough said he supports any relief for local residents.

“As county judge I am deeply concerned for the citizens of Montgomery County,” he said. “They have endured with great patience a difficult and catastrophic situation. I am in full support of a program that would provide relief for both citizens and small businesses. The CARES act, a federal law, provided Montgomery County with funds to respond to the COVID-19 pandemic, to include expenditures incurred as a result of the emergency, such as providing economic support for those suffering from employment or business interruptions due to COVID-19 business closures.

“I’m currently exploring the legal pathway to make this proposal a reality.”

While the proposal is not on the commissioners’ court Tuesday agenda, Noack said he hopes to start a conversation with county, state and federal leaders to ensure the use of the fund follows the guidelines set forth in the act.

“I hope state and federal leaders join Montgomery County in finding a way to make this happen,” Noack said. “We know it will take a total team effort at all levels to accomplish this. This is a starting point for us to best allocate these funds.”

cdominguez@hcnonline.com