The digital divide and broadband were hot topics throughout the pandemic. How Much ARPA Funding Is Available for State and Local Government? No paperwork required, just a conversation. That process is currently under development by the U.S. Treasury. , lets local government provide better service to diverse community members at scale. The ARPA permits the use of its funds for select infrastructure projects: water, sewer, and broadband. Heres a breakdown of what local government needs to know about the ARPA, and what ARPA funds can be used for. ARPA money can't be used to decrease taxes or delay an expected tax increase. Nothing in the legislation forbids spending on multi-year contracts. On January 6, the U.S. Department of Treasury (Treasury) released the Final Rule and an Overview of the Final Rule document for the Coronavirus State and Local Fiscal Recovery Fund (Recovery Fund), a portion of the $362 billion Coronavirus State and Local Fiscal Recovery Fund, established under the American Rescue Plan Act (ARP) signed into law . But a final version of those regulations is still forthcoming. Our software implementation services offer our clients flexibility when choosing their solution. This blog post examines how to position Complete Streets and trails projects for ARPA funding. Update: On January 6, 2022, the U.S. Department of the Treasury issued the Final Rule, which governs the eligible uses of Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") under the American Rescue Plan Act ("ARPA").The Final Rule makes several key changes to the Interim Final Rule, including expanding the eligible uses of CSLFRF and easing the administrative burden for some . States with a net unemployment increase of over 2% are exempt from this rule, and will receive all funds in the first payment. Safe Streets and Roads for All . The American Rescue Plan Act specifically calls for its funds to be used to support the public health and economic impacts of these communities. The. ARPA provided approximately $350 billion of new funding to tribal governments, states, territories, and local governments, $14 billion of which was estimated to be received by Pennsylvania and its municipalities. ARPA funds will be distributedto local governmentsin two equal payments, with the first half of funding awarded beginning in May 2021 and the second half awarded approximately 12 months later. Indianapolis, IN 46268, 4371 U.S Highway 17 South 30, 2021). Local governments can use ARPA funds to cover costs incurred by Dec. 31, 2024, to: Provide government services affected by a revenue reduction during the pandemic (in the most recent full fiscal year prior to the emergency); thus, a local unit may use the money to replace the amount of revenue lost during the pandemic compared to the prior full . For water and sewer, the Treasury aligned the types of projects with the wide range of projects that can be supported by the Environmental Protection Agencys clean water state revolving fund and drinking water state revolving fund. The latest updates include expanded information regarding eligible expenses for addressing court case backlogs, assisting certain business startups, eviction prevention and housing stability services, including utility assistance, counseling, outreach, and legal aid services. Fort Myers, FL 33966, 3499 NW 97th Boulevard Investing in technology and equipment to allow law enforcement to more efficiently and effectively respond to the rise in gun violence resulting from the pandemic. According to the, Support urgent COVID-19 response efforts to continue to decrease spread of the virus and bring the pandemic under control, Replace lost revenue for eligible state, local, territorial, and Tribal governments to strengthen support for vital public services and help retain jobs, Support immediate economic stabilization for households and businesses, Address systemic public health and economic challenges that have contributed to the inequal. Treasury also released details on how these funds can be used to respond to acute pandemic response needs, fill revenue Water, sewer and broadband The Final Rule states recipients may use [CSLFRF] funds for road repairs and upgrades that interact directly with an eligible stormwater infrastructure project.[5] Paving could also be eligible under water and sewer infrastructure as a subsurface drainage measure. Ultimately, this section of the fact sheet suggests that any technology that can help your government support pandemic recovery may be eligible for ARPA funds. However, under the provision of government services, the Final Rule specifically lists maintenance or pay-go funded building of roads as a government service and therefore eligible under revenue loss up to the extent of reduction in revenue. We look forward to meeting you soon. As stated in the Department of the (see below), interest earned on ARPA funds are not subject to the requirements of the Interim Final Rule. Recipients will compute the extent of their reduction in revenue by, comparing their actual revenue to an alternative representing what could have been expected to occur in the absence of the pandemic, . 31 CFR 35 at 215, available at: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf. 1232 Winter Garden Vineland Road Suite . City, county, Tribal, territorial, and state governments are receiving much-needed funding as part of the third round of pandemic economic stimulus to lay the foundation for a strong and equitable recovery. Projects may include, but are not limited to green roofs, bioretention basins, roadside plantings, porous pavement, and rainwater harvesting.[6], It should be noted that additional information may be provided when Treasury issues new Frequently Asked Questions ("FAQs") specific to the Final Rule. 6. Funding is one time in two phases. Matching or "cost sharing" means that a portion of the project's cost is not paid by Federal funds. Whats the Difference Between CARES and ARPA? Denver, CO 80202, 3230 W. Commercial Blvd. The Treasury did not release funding amounts for Tribal governments, as they will receive allocation information after submitting their funding applications. Government services include, but are not limited to, maintenance or pay-go funded building of infrastructure, including roads; modernization of cybersecurity, including hardware, software, and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. As entities assemble ideas for using ARPA funds for Complete Streets and trails, the following points are important: . Counties that are CDBG recipients will receive the larger of the population or CDBG-based formula. The $15,000 needs to be used by the end of April, but funds can . All of the county's ARPA funds must be allocated by 2025, and spent by 2026. Investment in critical infrastructure is particularly well suited use of ARPA funds because it is a non-recurring expenditure that can be targeted to strategically important long- term assets that provide benefits over many years. That money can't be used for roads, but still qualifies for spending on special mitigation projects related to public health. The money can used for water, sewer, and broadband improvements, to offset lost revenue from the Coronavirus pandemic, and more. American Rescue Plan Act of 2021. In addition to the revenue loss category, road work would be eligible as required by stormwater system infrastructure projects. Fiscal Recovery Funds, established by the American Rescue Plan Act of 2021, to provide $350 billion in emergency funding for eligible state, local, territorial, and Tribal governments. Treasury considers an investment in infrastructure to be necessary if it is (1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which for some eligible project categories may include a reasonable projection of increased need, whether due to population growth or otherwise and (2) a cost-effective means for meeting that need, taking into account available alternatives DWSRF and CWSRF eligible projects continue to be presumed to be necessary investments under the final rule, with the exception of projects for the rehabilitation of dams and reservoirs. WGIs Lisa Nisenson highlights some ways that Complete Street and trail projects may potentially qualify for funding. Whenever possible, expenditures related to the ARPA funding should be spread over the qualifying period (through December 31, 2024) to enhance budgetary and financial stability. Infrastructure within ARPA is defined largely as (1) broadband and (2) water projects that would also be eligible for funding under the Clean Water State Revolving Fund (CWSRF) or the Drinking Water State Revolving Fund (DWSRF). In communities where the pandemic has led to an increase in violence, recipients may use funds to address that harm. Local jurisdictions should be cognizant of state-level ARPA efforts, especially regarding infrastructure, potential enhancements of state funding resources, and existing or new state law requirements. Reg. On May 10, 2021, the U.S. Department of the Treasury released details on how local government can use ARPA funding. The Treasury Department, the federal agency responsible for administering the program, issued initial guidance its Interim Final Rule in early May. Some types of spending that may not be eligible for CARES Act funding may be valid under ARPA. This removes the need to prove that the pandemic was the specific or only cause of cancelled initiatives. 31 CFR 35 at 260, available at: https://home.treasury.gov/system/files/136/SLFRF-Final-Rule.pdf. Learn how Rock Solid solutions have helped local governments across North America improve citizen engagement. To analyze whether a project is necessary, the Final Rule notes that: Treasury considers an investment in infrastructure to be necessary if it is (1) responsive to an identified need to achieve or maintain an adequate minimum level of service, which for some eligible project categories may include a reasonable projection of increased need, whether due to population growth or otherwise and (2) a cost-effective means for meeting that need, taking into account available alternatives DWSRF and CWSRF eligible projects continue to be presumed to be necessary investments under the final rule, with the exception of projects for the rehabilitation of dams and reservoirs. ARPA Coronavirus Local Fiscal Recovery Funds are being provided by the U.S. Department of Treasury (Treasury) to help local governments recover from the Coronavirus pandemic. Tallahassee, FL 32309, 3111 W. Dr. MLK Jr. Blvd. Apply for American Rescue Plan funds to help your department purchase new radios/communication equipment. Broadband infrastructure eligibility focuses on households and businesses that do not have an existing wireline connection capable of reliably delivering at least 25 Mbps download/3 Mbps upload. Browse our collection of helpful resources on citizen engagement and government software solutions curated by our team of industry experts. We urge the House, Senate, and governor to join many other states in using ARPA funds for repairs of roads and bridges, and take a bold step to finally reverse decades of underinvestment in some . Some services that moved online during the pandemic are likely to remain for the foreseeable future. The American Rescue Plan Act specifically calls for its funds to be used to support the public health and economic impacts of these communities. It's a must-read if you want to understand how to use ARPA funds. The American Rescue Plan Act (ARPA) allocated $350 billion in Coronavirus State and Local Fiscal Recovery Funds (Fiscal Recovery Funds) to help states, counties, cities, and tribal governments respond to the COVID-19 public health emergency, address its economic fallout, and lay the foundation for an equitable recovery. The update was announced by U.S. Treasury in its State and Local Fiscal Relief Fund (SLFRF) final rule published Jan. 6. Public Works, Transportation and Public Utilities, The latest iteration of the FAQ was issued on July 14, Environmental Protection Agencys clean water state revolving fund, Jackie Lavender Bird, Senior Legislative Analyst, Neros Law training deadline extended by a year, MMA urges Legislature to extend remote meeting authorizations. Local government processes could range from: Your technology project is more likely to be funded if you present a coherentplan. Building C, Ste 100 April 6, 2022 update: In 2021 the City of Ann Arbor was informed that it would be awarded $24.2 million in federal American Rescue Plan Act funds. For ARPA funding, weve been working on ways to connect the dots between ARPA goals and Complete Streets and trails projects. The $1.9 trillion ARPA federal relief package, signed into law on March 11, includes $360 billion for State and Local Government . Simplify managing agendas, meetings, and committees with a single, end-to-end solution to optimize and digitize your legislative management process. Take Time and Careful Consideration. Suite 1350 These tools can accelerate aid to community members in the greatest need, and even increase the number of people able to be served through optimization. Please see our July 20, 2021 blog post for additional details. Lets say, for example,that your city uses ARPA funds to set up a loan or grant program for local businesses. If your local governmentis eligible,you must request your funds through theTreasurys submission portal. In addition, Treasury encourages municipalities to consider the guidance issued in the Statement Regarding Compliance with the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule and Final Rule. 2. Most of the county officials interviewed expressed frustration that the ARPA funds can't be used, under current guidelines, for normal county expenses, such as maintaining roads, replacing . . Commissioners said in early January that they couldn't commit to awarding any money to municipalities until they learned whether or not ARPA funds could be used on roads and bridges. While you must ensure the tech meets the guidelinesas summarized above, theTreasury wrote thespending criteria broadly to allow local government to respond to the pandemic inways that best address their unique situation. Were passionate about creating stronger communities and better organizational efficiencies for city leaders. The growth adjustment is the greater of either a 5.2% standard growth rate, or the recipient's average annual revenue growth in the last full three fiscal years prior to the COVID-19 pandemic.. Actual revenue is the total revenue collected over the 12 months immediately preceding the calculation date. Reg. The latest FAQ document adds further guidance for municipalities that wish to partner with nonprofits and private organizations, whether to issue premium pay or to address public health and economic impacts. [3] American Rescue Plan Act of 2021 9901, Pub. She has been a new mobility and smart city consultant, researcher on smart mobility, and urban planning start-up founder. The latest iteration of the FAQ was issued on July 14. For more information on required information as part of such a capital expenditure, please see pages 196-201 of the Final Rule. Finance officers play a critical role in advising elected leaders on the prudent spending of moneys received under ARPA. Overview. Whatareyour pandemic-related pain points, and how have those affected your ability to operate? Our services are backed by our Microsoft-Certified professionals who are ready to tackle the needs of our clients. Reg. Learn more about the CARES Act and its regulations around technology purchases >>, ARPA funding guidelines for state, local, territorial, and tribal governments, Coronavirus State and Local Government Fiscal Recovery Fund FAQ, On May 10, 2021, the U.S. Department of the Treasury releaseddetails on, how local government can use ARPA funding. Be sure to understand what they are planning and augment their efforts; alternatively, creating cooperative spending plans to enhance the structural financial condition of your community. A municipality may wish to consider the above scenarios in determining the eligibility of a supplemental project that is not specifically identified as eligible to receive CLFRF funds under these provisions. The Treasury also published an FAQ specifically for non-entitlement units of government.. NLC also published an FAQ which is available here.. 30, 2021); Environmental Protection Agency, Clean Water State Revolving Fund, https://www.epa.gov/cwsrf (last visited Apr. Following that notice, the City Council directed the City Administrator to prepare a plan for allocating the funds. For more information and helpful resources on the State and Local Cybersecurity Grant Program, . 19 emergency, the new rule states that the funds can only be used to cover costs beginning March 3, 2021. Rating agencies will evaluate a governments use of the ARPA funds in formulating its credit opinion and, importantly, will consider your governments level of reserves and structural budget balance, or efforts to return to structural balance, as part of their credit analysis. Consider the Treasurys guidelines. For state, county, city, and tribal government, the ARPA established $130.2 billion in emergency funding. L. No. As of May 20, 2021, the Treasury claimsto havedistributedover 30% of American Rescue Plan fundingto state and local governments. Finance officers will play a critical role in highlighting the need to use ARPA funds prudently with an eye towards long-term financial stability and sustainable operating performance. 2023 Government Finance Officers Association of the United States and Canada, Alliance for Excellence in School Budgeting, Accounting, Auditing, & Financial Reporting, Employment Resources for Finance Officers, Imposed Fee and Fine Use by Local Governments, Accounting, Auditing and Financial Reporting, Intergovernmental Relations and Federal Fiscal Policy, Public Employee Pension and Benefits Administration, Tax-Exempt Financing and the Municipal Bond Market, American Rescue Plan Spending: Recommended Guiding Principles. The city was the first applicant for the county's ARPA funds, submitting a $1 million grant to fund a UV wastewater disinfection system at the treatment plant. Revenue replacement 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. Renewals must be completed each year on the SAM.gov website. [7] Coronavirus State and Local Fiscal Recovery Funds, Frequently Asked Questions (as of January 2022), at 1, available at: https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf. To learn more, contact Lisa Nisenson at lisa.nisenson@wginc.com if you would like to leverage ARPA funds for local Complete Streets, trails, and green street projects. You can also access these questions within this freeARPA proposal project plan word doc template. Funds used for the following ineligible purposes must be repaid to the Treasury: The American Rescue Plan provides$350 billionin emergency funding for state, local, territorial, and Tribal governments to remedy themismatch between rising costs and falling revenues. The ARPA defines four broad use categories for the State and Local Fiscal . (L3Harris) Though the number of new COVID-19 cases continues to trend downward in the U.S., the CDC still reportsover 15,000 caseseach week (as ofJune 4, 2021). Under the Interim Final Rule, government services can include, but are not limited to, maintenance or pay-go funded building of infrastructure, including roads; modernization of cybersecurity, including hardware, software and protection of critical infrastructure; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. Restrictions on the uses of these funds include: Funding must be obligated by the end of calendar year 2024 and expended by the end of calendar year 2026. ARE THERE RESTRICTIONS ON HOW THE INTEREST CAN BE USED? The reports will run through 2026 or when all of the ARPA funds are expended, whichever is earlier. Technology ishighlightedas an area for spending to address the negative economic impacts of the pandemic. Here are answers to some of the recent questions we've heard most . Fort Lauderdale, FL 33309, 6310 Techster Blvd., Supporting Services to the Hardest-Hit Communities and Families, Across the country, the pandemic has impacted low-income andvulnerable communities. Swagit hands-free video streaming takes production responsibilities off of your staff, while expanding the reach and accessibility of content. Recipients may also use funding to build internal capacity to successfully implement economic relief programs, with investments in data analysis, targeted outreach and technology infrastructure. If technology can support outreach, applications, placement, or other relevant services, it is likely valid for ARPA funding. Because of the flexibility of these Coronavirus State and Local Fiscal Recovery Funds, its likely that different governments will take varied approaches for identifying areas of need and selecting the right projects for fund usage. . To enable the best possible assistance to individuals,households, small businesses,andindustries, the Actgives government flexibilityfor how tobestuse ARPA funds. The Treasury Department did, however, prohibit premium pay for employees who were allowed to telework during the public health emergency. The township used the funds to pay public safety workers overtime. Any budget shortfalls that led to the reduction of staff or projects can be covered. The Coronavirus Local Fiscal Recovery Fund (CLFRF) provide recipients with broad latitude to use funds for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.. ARPA Funds & The Broadband Planning Network. Care should be taken to avoid creating new programs or add-ons to existing programs that require an ongoing financial commitment. He said local leaders would have liked to use the latest relief money to upgrade the township's roads and parks, but such general infrastructure projects aren't allowed under the law. Section 9801 of the ARP Act increased the CCDF mandatory and matching appropriation to $3.55 billion. Use of ARPA funds to cover operating deficits caused by COVID-19 should be considered temporary and additional budget restraint may be necessary to achieve/maintain structural balance in future budgets. We've compiled information about funding in the Act, how that applies to software investments, and examples of how your organization can get the ARPA funds needed to serve your community. The guidance around negative economic consequences includes rebuilding public sector capacity, including by rehiring public sector staff, and replenishing unemployment insurance trust funds to pre-pandemic levels. Hiring law enforcement officials, even above pre-pandemic levels, or paying overtime where the funds are directly focused on advancing community policing strategies in those communities experiencing an increase in gun violence associated with the pandemic Analysis of this expected trend begins with the last full fiscal year prior to the public health emergency and projects forward at either (a) the recipients averageannual revenue growth over the three full fiscal years prior to the public health emergency or (b) 4.1%, the national average state and local revenue growth rate from 2015-18 (the latest available data).. When considering how to best advise elected officials and plan for the prudent use of ARPA funds, we offer the following outline of Guiding Principles for the use of ARPA funds: Temporary Nature of ARPA Funds. The $1.9 trillion legislation is in addition to nearly $4 trillion in COVID relief provided in 2020. The interim rule does, however, reference example projects that address COVID-related impacts and needs. Suite 375 ARPA states that municipal relief funds must be allocated by December 2024. Recipients may donate funds to a non-profit that serves to benefit the community as a whole (e.g., a municipality could give the funds to organizations like "Friends of the Library" or "Friends of the Park" and those organizations can use the money to improve the library or purchase new park equipment. They may be used for any public purpose authorized by state law. For over a year now, local government has played a critical role in helping communities through the pandemic. This post offers insights on guidance to date of publication; new guidance may change or refine project eligibility, so be sure to. Suite 1600 The Coronavirus Local Fiscal Recovery Fund (CLFRF) provide recipients with broad latitude to use funds for the provision of government services to the extent of the reduction in revenue due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year prior to the emergency.[1] The U.S. Department of the Treasurys (Treasury) Final Rule, effective April 1, 2022, identifies the maintenance of infrastructure (such as roads) as a government service that may be funded by CLFRF under certain circumstances. The move will . Investments in water, sewer and broadband infrastructure. [3] Pay-go infrastructure funding refers to the practice of funding capital projects with cash-on-hand from taxes, fees, grants, and other sources, rather than with borrowed sums. In Northeast Ohio, the city of Lorain ran a small surplus in 2020 and has a $29 million budget for 2021. If you are considering new programs and positions, determine how to sustain these programs once the APRA funds have been expended. https://home.treasury.gov/system/files/136/SLFRF-Compliance-Statement.pdf. But to do that, they need property. The latest guidance clarifies that road repairs connected to eligible water and sewer infrastructure improvements can be included. On May 21, 2021, the U.S. Department of Revenue issued an interim final rule (referred to as interim rule hereafter) establishing funding criteria. Use other dedicated grants and programs first whenever possible and save ARPA funds for priorities not eligible for other federal and state assistance programs. This means that when ARPA funds are used under the "Revenue Loss" category, the Federal Procurement Guidelines are not applicable. 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