Second round of local COVID funding rolling out

The second and final round of municipal funding from the American Rescue Plan is scheduled to hit the bank accounts of Clarion County’s townships and boroughs sometime around Sept. 12.

The ARP funding will bring about $2,015,258 to the municipalities.

Many of the county’s municipalities were expecting the funding in July as the first arrived around that time in 2021. Municipalities then were told to expect the money in August.

A press release from Gov. Tom Wolf’s office on Sept. 2 said the American Rescue Plan has provided a total of approximately $6.1 billion to Pennsylvania counties, metropolitan cities, and local government units to support pandemic response efforts, replace lost revenue, support economic stabilization for households and businesses, and address systemic public health and economic challenges.

Funding for townships includes: Ashland: $55,265; Beaver: $87,660; Brady: $2,826; Clarion: $202,639; Elk: $73,111; Farmington: $94,620; Highland: $26,272; Knox: $51,550; Licking: $28,051; Limestone: $91,167; Madison: $59,085; Millcreek: $19,259; Monroe: $82,584; Paint: $87,473; Perry: $46,577; Piney: $22,189; Porter: $65,261; Redbank: $67,250; Richland: $23,834; Salem: $43,542; Toby: $48,880; Washington: $93,573.

Funding for boroughs includes: Callensburg: $10,048; Clarion: $298,673; East Brady: $47,415; Foxburg: $9,106; Hawthorn: $23,969; Knox: $55,946; New Bethlehem: $47,990; Rimersburg: $46,107; Shippenville: $23,121; Sligo: $34,855; St. Petersburg: $19,259; Strattanville: $26,062.

When the first round of funding was announced in 2021, use of the grant was restricted to a narrow slate of options. The rules were loosened as 2021 went on.

Generally, municipalities can use ARP money to provide general government services, which includes, but is not limited to: roads and bridges, stormwater, water and sewer infrastructure, parks and recreation, public buildings, vehicles and equipment, computers and software, upgrading meeting rooms and equipment, police and fire protection, emergency management, ambulance service, employee pay and benefits, and general administration expenses.

In addition, funds used in the lost revenues category may be used as a local match for most federal grants.

While the less-restrictive rules opened the door for wider use of the money, there remain some uses for which municipalities cannot use the money.

Funds may only be used to cover costs incurred beginning on March 3, 2021. Purchases made for otherwise qualified items before March 3, 2021 are not eligible.

Funds cannot be deposited into defined benefit pension plans to pay unfunded liability.

Funds cannot be transferred into a financial reserve or “rainy day” account.

Funds cannot be used for payments of interest or principal on loans or on fees or costs of new debt.

Funds cannot be used to satisfy settlements or judgements.

Funds may not be used to undermine COVID-19 mitigation practices that follow Centers for Disease Control guidance.

Municipalities have until Dec. 31, 2024, to obligate the funds (under contract or purchase order) and until Dec. 31, 2026, to actually spend them. Any funds unspent after those dates will need to be returned.

 

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