ARPA fund deadlines looming for counties From the cover
BY MELISSA ENAJE, JAKE MAGEE & JESSICA SHORTEN
Zooming in
What the experts say
Stay tuned
The gist
ARPA funding allocations
Unallocated
Allocated
AS OF NOVEMBER
Galveston County
Fort Bend County
Harris County
One of the major expenses counties may need to cover are employees funded by ARPA. In several counties, a number of employees were hired for positions on mental health teams, law enforcement and general infrastructure projects, such as a contract to expand the Harris County jail-based competency restoration program. During scal year 2023-24 budget workshops, county o cials outlined how to spend the remain- ing funds on new projects and infrastructure e orts, while also considering the salaries which may need to be absorbed by the counties or eliminated once funding is depleted. According to o cials in each county, Harris County’s remaining funds are being targeted toward additional a ordable housing e orts. Galveston County hired ARPA-related positions, such as a grant administrator and accountant. Fort Bend County pushed to help additional small businesses with employee funding and grants.
Thurmond said the one-time federal pay- out was historic for counties and provided an easy way to ll budget holes. While ARPA funding was intended to help replace lost public sector revenue to counties, the responsibility of budget de - cits with county funds fell to the counties themselves, Thurmond said.
During the FY 2024-25 budget workshops next year, o cials with Harris and Montgomery counties said they will need to discuss employee and program needs to determine whether positions and programs have to be cut or if they can be sustained on county budgets or grants.
$158M
$670K
$40M
$915.5M Total
$66.5M Total
$157.6M Total
Local governments are now looking to obligate and use any remaining American Rescue Plan Act funds before an upcoming December 2024 federal deadline. Counties received lump distributions of federal funding in 2021 to ll public revenue losses, invest in broadband and other infrastructure projects, and provide additional pay for essential workers, according to the U.S. Department of Treasury in a news release. Any funding not obligated by December 2024 and spent by the end of 2025 must be returned to the U.S. Treasury. County o cials must decide how to use remaining funding and if they want to continue supporting programs and employees that were funded from ARPA money. “You’ve got to nd some other source to cover that cost. It’s basic budgeting,” said James Thurmond, a professor at the University of Houston’s Hobby School of Public A airs.
$757M
$65.8M
$117.3M
Jobs and education
Housing
Health
Justice and safety
County operations
Other
Remaining
$227.3M
$192.8M
Harris County
$141.5M
$147.5M
ARPA funding deadlines
$47.5M
$158M
December 2024 Deadline to allocate remaining funds December 2025 Deadline to spend remaining funds December 2026 Deadline to have all unused funding returned to Treasury
“You just need to be aware when you create a new demand or a new service, is it sustainable with your current revenue? If it’s not sustainable, then
$2.9M
$14.9M
Galveston County*
$960K
$45.3M
*NOTE: GALVESTON COUNTY ALSO HAD $1.7 MILLION SPENT ON NON PROFIT SUPPORT AND ARPA ADMINISTRATION
$670K $1.7M
what do you cut?“ JAMES THURMOND, PROFESSOR, UH HOBBY SCHOOL OF PUBLIC AFFAIRS
$56.3M
County o cials divided ARPA funding to meet the prioritized needs of each county.
$27.7M
Fort Bend County
$31.8M
$1.4M
$40M
SOURCE: U.S. DEPARTMENT OF TREASURY COMMUNITY IMPACT
NOTE: SOME ALLOCATIONS MAY NOT EQUAL THE TOTAL AMUNT DUE TO ROUNDING. SOURCES: HARRIS, MONTGOMERY, FORT BEND COUNTIES COMMUNITY IMPACT
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