Fiscal Note
This resolution describes the allocation of the $47.2 million of local government aid the city will receive under the American Rescue Plan Act (ARPA). Of the $47.2 million, $22.8 million will be allocated toward community investments as described in the resolution. The remaining $24.4 million will be appropriated in subsequent legislation in 2021, as well as the 2022 budget, to maintain government services in response to revenue losses experienced due to the economic effects of the pandemic.
The resolution amends the 2021 adopted operating and capital budgets to appropriate a total of $8,260,000 for immediate community needs. The remaining approximately $14.3 million will be appropriated in the 2022 budget.
Local government aid under the American Rescue Plan Act can be used for COVID-19 response costs, including responding to the negative economic effects in the community, premium pay to essential workers, maintaining government services up to the amount of revenue losses from the pandemic, and for water, sewer and broadband infrastructure. Under the US Department of Treasury interim final rule, the city’s revenue losses total over $44 million in 2020, with further losses expected in 2021 through 2024. The ARPA local government funding is primarily for costs incurred after March 3, 2021, through December 31, 2024.
Title
SUBSTITUTE: BY TITLE ONLY Accepting and allocating American Rescue Plan Act of 2021 (ARPA) aid Local Fiscal Recovery Funds for the City of Madison and Aamending the 2021 Adopted Operating and Capital Budgets to appropriate $4,995,000 of ARPA aid to the operating budget and $3,265,000 to the capital budget for the Acceptance of these Funds.
Body
WHEREAS, the American Rescue Plan Act of 2021 (ARPA) was passed by the U.S. Congress to support economic stimulus to the nation in light of the impacts of the COVID-19 pandemic, and
WHEREAS, ARPA included $362 billion in State and Local Fiscal Recovery Funds to be provided to state, l...
Click here for full text