JACKSONVILLE, Fla — Major corporations in Northeast Florida have received multi-million dollar grants through the CARES Act to strengthen the economic fight against COVID-19.
Many corporations like health care, aviation and education became victims of the virus. At local hospitals, millions of dollars were lost from postponing elective surgeries, doctor’s visits and even missing cafeteria sales. Somehow hospitals need to cover new expenses to fight the COVID-19 battle. That’s where the CARES Act comes in.
“Its covered dollar-for-dollar what we’ve spent specifically related to COVID,” said Baptist Health CEO Brett McClung.
For Baptist Health, that’s about $40 million.
“Additional beds and medication and supplies,” McClung listed. “The price of PPE skyrocketed.”
Plus renovations were needed to have the capacity for the rising number of COVID-19 patients. UF Health also collected tens of millions of dollars to accommodate needs presented by the virus.
COVID-19 has rocked the education system as well. Schools went spinning with the impulsive switch to virtual learning halfway through the semester. Many students didn’t have the equipment for this change.
“The CARES funding has definitely helped us help students,” said Anissa Agne with the University of North Florida.
The University of North Florida was awarded $5.8 million solely to help students. Computers and hot spots were able to be checked out by students to resume their studies. There were also refunds for student housing and relief money for the many students who lost their jobs.
Officials at Jacksonville International Airport say they’ve seen a 95% drop in passengers in June.
In turn they’re eligible for $28 million in CARES Act funding.
So far, $9 million has been spent on wages and benefits to prevent layoffs and $3 million on capital projects
The airport says in a statement it’s currently reviewing how to use the remaining funds.
“Having this subsidy helped them in the short run,” said economic expert Don Wiggins.
All of this money sounds fantastic, but where is this money coming from?
It was pretty much pulled out of thin air. Every penny of the CARES Act money is borrowed, which expands the national debt.
“The question is, how are we going to pay for this in the long run?” Wiggins asked.
Wiggins says it’ll affect us in one of three ways — or a combination of them all.
“Decrease federal spending, increase taxes or inflation,” Wiggins listed.
For the time being, this money is keeping businesses alive, but Wiggins said it’s going to hurt us in the long run.