Imagine someone has left you some money. It’s a good chunk of change — maybe even 60% of your annual salary. But it comes with strings. You can’t use it to pay your bills and you can’t stick it in your savings account. Your dear departed uncle wanted you to spend this money.
So what do you do with it?
This is the conundrum that counties and municipalities are facing.
The American Rescue Plan — the $1.9 trillion federal covid-19 recovery package — is not all $1,400 checks for individuals. It also includes about $350 billion for communities that has much the same purpose on a larger scale. It is about pumping something into the system.
In this case, it won’t be a trip to the mall or a down payment on a new car. It shouldn’t be hard for a city or township to find a way to spend some extra cash. They all have a list of things they would like to fund or grant applications that were submitted but not approved.
The ARP spells out some parameters. The money can’t just cut taxes back. It can’t go sit in a pension fund. It has a two-fold purpose: reimburse for coronavirus pandemic expenses and provide an infusion of opportunity for projects that might otherwise stay on a wish list forever.
Funding estimates spell out the scope. Pittsburgh, a city with a $564 million operating budget, is looking at $355 million. Greensburg’s pot of cash is $1.4 million. Other area projections range from $7,000 to $27 million. In all, $382.7 million will go to Allegheny County communities and $107.1 million to those in Westmoreland County.
That is a lot of money to do things that haven’t been financially feasible.
That opens up a wide range of possibilities. Some of it could be coronavirus related. Grants to nonprofits that have been hamstrung by pandemic fundraising problems. Loans for businesses that know they can get back on their feet if they can just hold on until the world gets back to normal.
Other options could dovetail with the infrastructure improvements the Biden administration has planned for a next target. Water projects. Sewer lines. Broadband access in underserved areas.
For this one instance, obtaining the money — expected to be released in one disbursement within two months and a second in a year — is not the biggest issue. Making smart decisions about the best use of the windfall is.
The Brookings Institution is advising making a game plan, strategizing based on questions like how fast can help be offered, is it inclusive in who is helped, does it work long-term and does it work well with plans already underway? To answer those questions, the think tank recommends appointing a council of public and private voices.
Government never should spend thoughtlessly. It should be measured and deliberative in spending the people’s money. In this case, it cannot forget that these dollars air-dropped from above are still tax money.
But with the must-spend demand, they come with an opportunity municipalities seldom get — the chance to gather people together and ask what they would do with an unexpected bequest.
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April 05, 2021 at 12:02AM
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Editorial: Following the local money of the American Rescue Plan - TribLIVE
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