Common top of mind initiatives for state and local governments often includes modernizing technology, streamlining operations, and improving services for citizens. Of course, each of these initiatives requires funds…which may have just arrived.
On January 6, 2022, the U.S. Treasury Department (Treasury) released the Final Rule for the $350 billion in State and Local Fiscal Relief Funds provided by the American Rescue Plan Act (ARPA). More than $245 billion has been distributed to governments since the ARPA was signed into law in March 2021.
This rule provides additional clarity to states and localities, including tribal and territorial governments, on what they can do with the substantial federal resources made available to them through the ARPA.
The ruling, effective April 1, 2022, provides additional clarity and flexibility on uses, including: |
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Funds can be used to “address administrative needs caused or exacerbated by the pandemic, including addressing backlogs caused by shutdowns, increased repair or maintenance needs, and technology infrastructure to adapt government operations to the pandemic (e.g., video-conferencing software, data and case management systems.”
Additionally, the Treasury is also giving governments the option to put up to $10 million of their relief payments towards revenue losses, enabling them to spend the money on a broad range of general government expenses without jumping through administrative hoops outlined in an earlier version of the rule.
It’s important to remember that today’s citizens have the expectation for their governments to have modern and online services available to them. Avenu is helping 100s of local and state governments modernize their technology to web-based applications and use the Recovery Funds towards:
This is certainly a partial list of what can be accomplished with the funds but one that meets the challenges that so many jurisdictions across the country are facing.
The Final Rule will go into effect on April 1, 2022. However, state and local governments can choose to take advantage of the Final Rule’s new flexibilities and simplifications now, even ahead of the effective date.
Keep abreast regarding changes and updates to the Recovery Fund by signing up for official updates from the U.S. Treasurer.
With just over 40,000 residents, Florence is Alabama’s 11th largest city. Home to the University of North Alabama, this vibrant and welcoming town also hosts the state’s most popular renaissance festival, held annually each October.
This discussion was taken from our show Local Government Insights. If you want to hear more episodes like this one, check us out on Apple, and all your other favorite podcast platforms. Take a moment listen on your favorite platform. We would appreciate your reviews and feedback as we continue to release upcoming episodes.
Thomas Whitener recently unseated a 13-year incumbent in a tight election that was fueled by promises of change and cultural shift that was highly sought after across the county. Thomas is licensed Real Estate Agent, entrepreneur, and former interactive systems and balance designer who is making a big impact on Kalamazoo County. He has built his career on openness and transparency and plans to establish a culture of accountability and fairness to all constituents.
This discussion was taken from our show Local Government Insights. If you want to hear more episodes like this one, check us out on Apple, and all your other favorite podcast platforms. Take a moment listen on your favorite platform. We would appreciate your reviews and feedback as we continue to release upcoming episodes.
Bryan Jones was appointed as the City Manager of Eastvale, CA in 2018. Under his leadership the city has risen to new heights and become one of the Top 20 Best Places to Live in the country.
In recent months amidst the COVID-19 pandemic, Eastvale has seen immense growth across various industries including:
Learn the principles that made this city a success story during COVID!
This discussion was taken from our show Local Government Insights. If you want to hear more episodes like this one, check us out on Apple, and all your other favorite podcast platforms. Take a moment listen on your favorite platform. We would appreciate your reviews and feedback as we continue to release upcoming episodes.
With the American Rescue Plan Act, state and local governments are seeing opportunities to address some of the challenges they are facing brought on by the pandemic. Learn what this meansyou’re your jurisdiction.
Mark Funkhouser, is the president of Funkhouser & Associates and the former mayor of Kansas City. He walks us through key considerations about the ARPA including:
This discussion was taken from our show Local Government Insights. If you want to hear more episodes like this one, check us out on Apple, and all your other favorite podcast platforms. Take a moment listen on your favorite platform. We would appreciate your reviews and feedback as we continue to release upcoming episodes.
Among the $1.9 trillion worth of federal COVID-19 relief in the newly signed American Rescue Plan Act is $350 billion for “Coronavirus State and Local Fiscal Recovery Funds.”
For many cities and counties, the American Rescue Plan’s (ARP) state and local funds are not just a $350 billion lifeline; they represent the largest positive fiscal jolt to their budgets in decades.
The stakes are high. The money needs to move fast and be deployed smartly, effectively and equitably. In 10 years, we may look back at this time and ask: Which places merely spent their money, and which places invested it? And how will your jurisdiction be remembered?
Watch our live Q&A session where we answered questions on the approved ways to spend this money and a discussion on the formula to invest the funds in ways that will support your community and bring additional revenue in for years to come.
Approved Ways to Invest ARPA Funding from Retail Strategies on Vimeo.
Additional Resources:
The COVID-19 public health crisis and resulting economic crisis have put state and local governments under unprecedented strain. The American Rescue Plan provides $350 billion in emergency funding to eligible state, local, territorial and Tribal governments to respond to the COVID-19 emergency and bring back jobs.
State and local governments across America have been under a tremendous strain in the wake of the COVID-19 crisis, and while the need for services has increased, state and local revenues have plummeted as a result of the economic fallout from the crisis.
According to specific guidance released by the U.S. Department of Treasury on May 10, 2021, the State and Local COVID Fiscal Recovery Fund will be made available as follows:
States
The state funding portion is approximately $195 billion, with $25.5 billion distributed equally among the 50 states and the District of Columbia, and the remaining amount distributed according to a formula based on unemployment. You can read more on allowable uses and limitations from the National Association of State Auditors, Comptrollers, and Treasurers ARP Analysis.
Counties
The bill includes $65.1 billion in direct, flexible aid to every county in America, as well as other crucial investments in local communities, including $1.5 billion over two years for public lands counties. Specific county-level estimates can be found through the National Association of Counties interactive search table.
Cities
The bill includes approximately $45.57 billion in funding that is available directly to metropolitan cities with a population of 50,000 and $19.53 billion will be administered to cities, towns, and villages with populations fewer than 50,000 (These funds will be directed to each state for further redistribution based on a per-capita formula established by the U.S. Treasury within 30 days). More information can be found at the National League of Cities
Localities will receive the funds in two tranches – the first, after the U.S. Treasury certifies the proceeds to each jurisdiction and the second, one year later. Funding must be spent by the end of calendar year 2024.
States and local governments will enjoy significant flexibility to allocate funds for the following “eligible uses”:
ARPA funds are non-recurring and should be applied primarily to non-recurring expenditures.
Now is the time to collaborate, listen to your citizens, think about the future, and make investments that will create a sustainable future. Avenu is committed to providing a customized approach to helping governments manage ARPA funding and determining an investment strategy. Contact us today!
COVID tested localities in new in challenging ways. While we are coming out of the pandemic, we can learn from different jurisdictions as we prepare for the future.
Matt Hawkesworth, Finance Director for the City of Pasadena, CA about the different areas of impact COVID-19 has had on the City and how his team has shifted priorities to help balance ever increasing budget deficits.
In this show we discuss:
This discussion was taken from our show Local Government Insights. If you want to hear more episodes like this one, check us out on Apple, and all your other favorite podcast platforms. Take a moment listen on your favorite platform. We would appreciate your reviews and feedback as we continue to release upcoming episodes.