Government
BY MELISSA ENAJE & JESSICA SHORTEN
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. Three of the counties which received funding in the Houston area include: • Harris: $915.5 million • Montgomery: $117.9 million • Fort Bend: $157.6 million Any funding not obligated by December 2024 and spent by the end of 2025 must be returned to the U.S. Treasury. County ocials must decide how to use remaining funding and continue supporting pandemic-era programs and employees. Counties balance ARPA shortfalls
ARPA funding allocations
Allocated
Unallocated
AS OF NOVEMBER
Harris County
Montgomery County
Fort Bend County
$158M
$7.4M
$40M
$915.5M Total
$117.9M Total
$157.6M Total
$757M
$110.5M
$117.3M
Jobs and education Housing Health Justice and safety
County operations
Remaining
$227.3M
$192.8M
$141.5M
Harris County
$147.5M
$47.5M
$158M
$39.8M
$42.4M
$2.9M
Montgomery County
$13.2M $11.6M
$7.4M
County ocials divided ARPA funding to meet the prioritized needs of each county.
$56.3M
$27.7M
Fort Bend County
$31.8M
$1.4M
$40M
NOTE: SOME ALLOCATIONS MAY NOT EQUAL THE TOTAL AMOUNT DUE TO ROUNDING. SOURCES: HARRIS, MONTGOMERY, FORT BEND COUNTIESCOMMUNITY IMPACT
Zooming in
What the experts say
Stay tuned
One of the major expenses counties may need to cover is the cost of employees funded by ARPA. In all three counties, a number of employees were hired for positions on mental health teams, law enforcement and general infrastructure projects. During scal year 2023-24 budget workshops, all three counties outlined plans to spend remaining funds on new projects and infrastructure eorts while also considering the salaries which may need to be absorbed by the counties or eliminated once funding is depleted. Montgomery County reserved roughly $2 million to fund another year of salaries for ARPA-based employees. However, The Woodlands Township did not receive direct funding from ARPA due to its being a special-purpose district rather than a municipality. Instead, the township in 2020 received reim- bursement from Montgomery County totaling $244,000, according to county ocials. However, township ocials in 2020 said it would have quali- ed for $30 million to help with pandemic needs if it qualied as a nonentitlement entity.
James Thurmond, professor at Hobby School of Public Aairs, said the one-time federal payout was historic for counties and provided an easy way to ll budget holes without requesting additional tax dollars. While ARPA funding was intended to help replace lost public sector revenue to counties, the responsibility of monitoring any budget decits with county funds fell to the counties themselves.
During the FY 2024-25 budget workshops next year, ocials 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.
ARPA funding deadlines
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 what do you cut? “ JAMES THURMOND, PROFESSOR, UH HOBBY SCHOOL OF PUBLIC AFFAIRS
SOURCE: U.S. DEPARTMENT OF TREASURYCOMMUNITY IMPACT
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THE WOODLANDS EDITION
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