The long road to “Rescue” - Here’s the latest on ARP.
We’ve been calling for an open, effective, and transparent use of federal COVID recovery money — the American Rescue Plan. After a sprint to prepare a plan, we’re glad to see the Mayor and her team slowing down their approach; and we hope this opens the door to more opportunities for residents to make their voices heard.
Back in June, we wrote a blog post about the Mayor’s initial priorities for the last $194 million of our American Rescue Plan money. Here’s how those plans have shifted in her latest proposal, which she presented to City Council last week.
Since June, the Mayor learned that many of the Economic Development projects she hoped to spend ARP on aren’t eligible. Her second pass includes significantly more money for NOPD, and also adds funding for youth and some water management projects.
Is that all?
Not exactly. The CAO and the Mayor presented a new strategy for using one-time discretionary money, and presented the American Rescue Plan priorities alongside other one-time funding priorities they labeled “Other Fund Balance.”
Here’s what the graph looks like with all the funding sources lumped together (as proposed):
Where would this “Other Fund Balance” Come From?
This is where it gets interesting. When the City Council allocates money that doesn’t get spent, the money sits in a kind of limbo within City Hall. It can’t be spent on anything other than what it was budgeted for (say, a staffperson’s salary), and if it’s not being spent (say, because there's a vacant position or a program is on hold), the City can’t spend it on anything else.
The City wants to recover all of that unspent money, and use it to accomplish other goals. They’d like to propose a plan for ARP and other funds in January, once they have a clearer idea of the available balance. The CAO stated they’ll be making more regular revisions, too, once per quarter.
What does this mean for community leaders & advocates?
It means folks who care about the budget will want to pay a lot more attention! The Mayor did not include ARP in the 2023 City Budget, which means it will have to be approved by a budget adjustment, likely in January. We’ll be keeping a closer eye on the Budget Committee in the coming months, and continuing to press public officials for greater transparency and a more inclusive process for these symbolic funds. Join us!
