American Rescue Plan Update and Discussion

Finance Committee

6/8/21

Overview of American Rescue Plan

AMERICAN RESCUE PLAN ACT OF 2021 (ARPA)

FUNDING BREAKDOWN

TOTAL PACKAGE: $1.9 Trillion

Total State & Local

Fiscal Recovery Funds: $362.0 Billion

State Fiscal Recovery Fund:

States Governments $219.8 Billion

Coronavirus Capital Project $ 10.0 Billion

Local Fiscal Recovery Fund:

County Governments $ 65.1 Billion

City Governments $ 45.6 Billion

Non-Entitlement Govts $ 19.5 Billion

Local Assistance (Public Lands Counties) $ 2.0 Billion

Funding Areas & Amounts

Funding Areas & Amounts

Funding Amounts

FOCUS AREA:

State of Arkansas – County Funding: $586.2 MillionWashington County: $46.5 M / Pulaski County: $76.1

Funding Amounts: Counties

Funding Amounts: Cities

State of Arkansas – City Funding: $208.8 Million

ELIGIBLE USES: The Main Categories

• Supporting the Public Health Response

• Addressing the Negative Economic Impacts Caused by the Public Health Emergency

• Serving the Hardest-Hit Communities & Families

• Replacing Lost Public Sector Revenue

• Providing Premium Pay for Essential Workers

• Investing in Water and Sewer Infrastructure

• Investing in Broadband Infrastructure

ELIGIBLE USE BREAKDOWN: Supporting the Public Health ResponseNon-Exhaustive List of Eligible Uses –✓ Vaccination Programs✓ Medical Care & Telemedicine Costs✓ Purchases of Personal Protective Equipment (PPE) ✓ Support for Isolation or Quarantine✓ Enhancement of Health Care capacity, including alternative care

facilities✓ Support Public Communication Efforts✓ Support for Prevention, Mitigation or other services in congregate

living facilities (e.g., incarceration settings, homeless shelters, etc)✓ Ventilation improvements in congregate settings, health care

settings, or other key locations✓ Costs to facilitate compliance with public health orders✓ Behavioral and Mental Health Care Services ✓ Payroll & Covered benefits for public health & safety staff

including paid sick & paid family & medical leave

ELIGIBLE USE BREAKDOWN: Addressing the Negative Economic Impacts

Non-Exhaustive List of Eligible Uses –

▪ Delivering Assistance to Workers & Families

▪ Delivering Assistance to Small Business & Non-Profits

▪ Speeding the recovery of the tourism, travel & hospitality sectors, supporting industries that were particularly hard-hit by the COVID-19

▪ Rebuilding Public Sector Capacity- Payroll Expenses- Covered Benefit Expenses- Investments in data analysis, targeted outreach, technology infrastructure & impact evaluations

ELIGIBLE USE BREAKDOWN: Serving the Hardest-Hit Communities & Families

Non-Exhaustive List of Eligible Uses –

▪ Addressing Health Disparities and the Social Determinants of Health

▪ Investments in Housing & Neighborhoods

▪ Addressing Educational Disparities

▪ Promoting Healthy Childhood Environments

ELIGIBLE USE BREAKDOWN: Replacing Public Sector RevenueNon-Exhaustive List of Eligible Uses –

▪ Maintenance of infrastructure – building new infrastructure, including Roads

▪ Modernization of Cybersecurity, including hardware, software & protection of critical infrastructure

▪ School or Educational services

▪ Health Services, including those unrelated to COVID-19 response

▪ Police, first responders & other public safety services

▪ Environment remediation

ELIGIBLE USE BREAKDOWN: Providing Premium Pay for Essential WorkersNon-Exhaustive List of Eligible Uses –

▪ Staff @ nursing homes, hospitals, & home-care settings

▪ Public Health & Safety Staff

▪ Social Service & Human Services Staff

▪ Truck drivers, transit staff & warehouse workers

▪ Janitors & sanitation workers

• Any work performed by an employee of the state, local or tribal government (NACo- FAQ)

ELIGIBLE USE BREAKDOWN: Investing in Water & Sewer InfrastructureNon-Exhaustive List of Eligible Uses –

▪ Managing & treating stormwater or subsurface drainage water

▪ Facilitating water reuse

▪ Investments in public-owned treatment infrastructure including building or upgrading water and sewer facilities

▪ Eligible uses aligned to Environmental Protection Agency (EPA) project categories for the Clean Water State Revolving Fund and Drinking Water State Revolving Fund

ELIGIBLE USE BREAKDOWN: Investing in Broadband InfrastructureNon-Exhaustive List of Eligible Uses –

▪ Build broadband infrastructure with modern technologies in mind, specifically those projects that deliver services offering reliable 100 Mbps download and 100 Mbps upload speeds, unless impracticable due to topography, geography, or financial cost.

▪ Fiber optic investments

▪ Investments to complement broadband investments made through the US Treasury’s Capital Projects Funds authorized under the American Rescue Plan.

INELIGIBLE USES:

▪ Directly/Indirectly offset a reduction in net tax revenue due to a change in law

▪ Deposit to a Pension Fund (as an extraordinary contribution) –Counties may use funds for routine payroll contributions whose wages and salaries are an eligible use.

▪ Funding Debt Service

▪ Legal Settlements or Judgements

▪ Deposits to Rainy Day Funds or Financial Reserves

▪ General Infrastructure Spending is not covered as an eligible use outside of water, sewer, and broadband investments or above the amount allocated under the revenue loss provision

Jan 27, 2020 – Declaration of Public Health Crisis

Mar 03, 2021 – Beginning of Recovery Fund ‘covered period’

July 09, 2021 – Deadline to comment on US Treas Interim Final Rule

Aug 31, 2021 – Deadline to submit first Interim Report to US Treasury

Aug 31, 2021 – Deadline to submit first Recovery Plan Performance Report to US Treasury – Local governments above 250,000 population only

Oct 31, 2021 – Deadline to submit first Quarterly Project Expenditure Report

Dec 31, 2024 – Recovery Funds must be obligated (NOT Incurred)

Dec 31, 2026 – Recovery Funds must be spent and all work/performance completed

Key Dates

American Rescue Plan Discussion

Finance Committee

6/8/21

1. Process

2. Patience

3. Outcomes

Discussion Areas for Tonight

Process Goals

•Transparent

•Collaborative

• Intentional

Suggested Process Framework

Agree on Focus Areas

Initial Exploratory Meetings

Second Round “Deep Dive” Meetings

Submit Interim Report & Recovery Plan

Performance Report

Expenditures Approved by Quorum Court

Benton County Focus Areas

• County Employees

• County Facilities

• Infrastructureo Water

o Sewer

o Broadband

• Public Health and Economic Recovery

• Criminal Justice Coordinating Committee

Suggested Meetings

Initial Exploratory Meetings

• Beginning week of July 19th

• Extension of the Finance Committee

• Potentially a meeting for each focus area

• Agenda would include:o “Quick Hits” – immediate

expenditures

o “Further Study” – items that require additional information, subject matter expertise and consideration

Deep Dive Meetings

• August and beyond

• Finance Committee and potentially incorporated into Budget Committee

• Larger ideas with bigger price tags

Patience – We have time….

2021 2022 2023 2024 2025 2026

Agree on Focus Areas

Initial Explorat

ory Meetings

Second Round “Deep Dive”

Meetings

Submit Interim

Report & Recovery

Plan Performa

nce Report

Initial Expendit

ures

Agree on Focus Areas

Initial Explorat

ory Meetings

Second Round “Deep Dive”

Meetings

Submit Interim

Report & Recovery

Plan Performa

nce Report

Initial Expendit

ures

Agree on Focus Areas

Initial Explorat

ory Meetings

Second Round “Deep Dive”

Meetings

Submit Interim

Report & Recovery

Plan Performa

nce Report

Initial Expendit

ures

Agree on Focus Areas

Initial Explorat

ory Meetings

Second Round “Deep Dive”

Meetings

Submit Interim

Report & Recovery

Plan Performa

nce Report

Initial Expendit

ures

Kick Off$27MM

Rec’d

First Reports

Due

2nd

Round: $27MM

Encumbered or Expended Expended

Outcomes: Two simple questions (answers are much more complicated!)

1. Does this expenditure meet the criteria of the

ARP?

2. Does this expenditure solve a problem/provide

a benefit for Benton County citizens?

Discussion and Q&A

APPENDIX: American Rescue Plan Resources

Resources:

US Treasury Coronavirus State & Local Fiscal Recovery Funds: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-fundsInterim Final Rule: https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdfNational Association of Counties:

Resources:

US TREASURY

US Treasury Coronavirus State & Local Fiscal Recovery Funds: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-state-local-and-tribal-governments/state-and-local-fiscal-recovery-funds

Interim Final Rule: https://www.govinfo.gov/content/pkg/FR-2021-05-17/pdf/2021-10283.pdf

Fact Sheet: https://home.treasury.gov/system/files/136/SLFRP-Fact-Sheet-FINAL1-508A.pdf

Frequently Asked Questions: https://home.treasury.gov/system/files/136/SLFRPFAQ.pdf

Quick Reference Guide: https://home.treasury.gov/system/files/136/SLFRP-Quick-Reference-Guide-FINAL-508a.pdf

Resources:

National Association of Counties (NACo)

National Association of Counties: https://www.naco.org/resources/featured/us-treasury-interim-final-rule-guidance-state-and-local-fiscal

NACO-FAQ’s: https://www.naco.org/resources/page/american-rescue-plan-act-coronavirus-state-local-fiscal-recovery-fund-faqs

Arkansas Association of Counties (AAC): https://www.arcounties.org/arp/

Government Finance Officers Association (GFOA): https://www.gfoa.org/