In Support of the Repeal of the Requirement for States to Pay Interest to the Federal Government When Receiving Homeland Security Grant Funding (Cash Management Improvement Act)

In Support of the Repeal of the Requirement for States to Pay Interest to the Federal Government When Receiving Homeland Security Grant Funding (Cash Management Improvement Act)

Resolution

WHEREAS, in 1990, the Cash Management Improvement Act (CMIA) was an amendment to the Intergovernmental Cooperation Act, 31 U.S.C. 6503; and

WHEREAS, under the provisions of Public Law 101-453, (31 U.S.C. 5(b)), states are no longer exempt from payment of interest to the federal government for drawing down funds prior to the need to pay off obligations incurred; and

WHEREAS, the provisions of 31 U.S.C. section 6503(c) (1) require that the states pay interest in the event that the states draw down funds before the funds are needed to pay for program expenses; and

WHEREAS, federal grant guidelines extend this requirement to localities; and

WHEREAS, state and local governments who are responsible for Homeland Security use grant funds to prevent, protect, respond and recover from an attack; and

WHEREAS, this requirement reduces the amount of homeland security funding available for state and local law enforcement agencies; and

WHEREAS, the majority of law enforcement agencies do not have the funds available in their budgets to pay for large equipment purchases “up-front” and seek reimbursement later, while at the same time, municipal laws often require funds to be in an account before equipment can be ordered; and

WHEREAS, the federal government has made provisions for advance funds in both the Local Law Enforcement Block Grant (LLEBG) and the Juvenile Accountability Incentive Block Grant (JAIBG) that allow for advancement of funds and interest earned on these funds to be rolled back into the programs thereby increasing the amount of money going into the programs; and

WHEREAS, allowing for the advancement of funds and retaining of interest would allow local law enforcement agencies to spend those funds more quickly and thereby increase preparedness; and

WHEREAS, the advance of homeland security funds to state and local governments enhances crime control programs; now, therefore be it

RESOLVED that the U.S. Department of Homeland Security administer the Homeland Security Grant Program (including the State Homeland Security Program (SHSP), Law Enforcement Terrorism Protection Program (LETPP) and Urban Area Security Initiative (UASI)) in the same manner as the LLEBG, allowing interest earned on those funds to be rolled back into the program.

Resolution
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