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4402 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations <br /> The figure below illustrates the hypothetical recipient calculated in <br /> reduction in revenue for the accordance with the methodology. <br /> 140 <br /> on Actual Revenue <br /> i Extent of reduction in revenue <br /> 130 <br /> =Base year revenue <br /> 01% <br /> -+-Counterfactual revenue <br /> 120 <br /> ................ <br /> 110 <br /> MIA <br /> U <br /> 100 <br /> ,In <br /> Im"N <br /> 511 <br /> IN, <br /> 90 <br /> 12 <br /> 51 <br /> mbi <br /> 80 <br /> • Jun-19 Dec-2 0 Dec-21 Dec-22 Dec-23 <br /> Finally,as explained in greater detail are'due to'the COVID-19 public health the calculation of revenue loss, <br /> below,the clear meaning of the emergency." particularly the burden involved in <br /> statutory phrase"due to the COVID-19 Treasury received a substantial calculating the amount of general <br /> public health emergency"is that it is number of comments on the revenue revenue,given that the definition of <br /> referring to revenue reductions caused loss provisions set forth in the interim general revenue in the interim final rule <br /> by the public health emergency. As final rule.These comments largely does not always align with the <br /> such,it does not include revenue pertained to the following topics:The definition of revenue already calculated <br /> reduced for reasons other than the overall methodology for calculating by recipients for other purposes, and <br /> public health emergency. Treasury in revenue loss;the definition of requested clarifications regarding a <br /> the interim final rule presumed that any "revenue";whether revenue should be number of components,including the <br /> reduction in revenue relative to the aggregated or calculated on some definition of revenue.Commenters also <br /> counterfactual estimate would be alternative basis (e.g.,source-by-source asked for clarification on the <br /> considered revenue lost due to the or fund-by-fund);the appropriate relationship between revenue loss <br /> pandemic and thereby relieved calculation dates (i.e.,fiscal year or calculations across different calculation <br /> recipients of the administrative burden calendar year);the presumption that all dates. Other commenters argued that the <br /> of determining the extent to which revenue loss is due to the pandemic;the revenue loss formula does not precisely <br /> base year; and the definition of capture the nuances of local revenues or <br /> reduction in revenue was due to the "government services." their particular situation. For example, <br /> public health emergency. The Overall Methodology for Calculating some commenters stated that requiring <br /> calculation methodology in the interim Revenue Loss that revenues be aggregated fails to <br /> final rule implicitly assumed that capture decreases in revenue sources <br /> recipients did not suffer a loss in As noted above,the interim final rule that cannot easily be made up for with <br /> revenue due to the public health provided a formula for recipients to other revenue sources. <br /> emergency if they did not experience a calculate revenue loss by comparing Treasury Response:In the final rule, <br /> reduction in aggregate revenue actual revenues received during a given Treasury is largely maintaining the <br /> compared to the counterfactual time-period with a counterfactual revenue loss formula as set forth in the <br /> estimate. The interim final rule invited amount of revenue based on revenues in interim final rule. To address comments <br /> comments on whether Treasury should the base year and an adjustment for that the formula for calculating revenue <br /> revise its presumption to "take into expected growth in revenue each year. loss was difficult to apply,Treasury is <br /> account other factors,including actions Public Comment:Treasury received including an option for recipients to use <br /> taken by the recipient as well as the many public comments on the overall a standard allowance for revenue loss. <br /> methodology for calculating revenue Specifically,in the final rule,recipients <br /> expiration of the COVID-19 public <br /> health emergency, in determining loss. Some recipients,including smaller will be permitted to elect a fixed <br /> whether to presume that revenue losses governments,have expressed concern amount of loss that can then be used to <br /> regarding the burden associated with fund government services. This fixed <br />