Municipalities expecting bigger stimulus
Jackson Township received about $265,000 in funding from the Coronavirus Aid, Recovery and Economic Security (CARES) Act last year. Over the next two years, it will receive roughly 160% of that from the American Rescue Plan Act, signed into law March 11.
Township manager Chris Rearick said Jackson expects to receive $420,000 from the new stimulus package, distributed to the municipality in two segments in 2021 and 2022.
That uptick in federal stimulus funding to municipalities within the county isn't constrained to just Jackson either. Each municipality surveyed by the Eagle expects to receive more funding this time around than they had in 2020, although some towns' gains are less than others'.
Cranberry Township, which received $2.08 million as a result of the CARES Act, expects to see an even larger amount from the Rescue Plan.The township estimates it will receive about $3.1 million, split into two payments, according to manager Dan Santoro. Santoro, however, noted “some folks are suggesting there might be a shake-up in that amount.”Cranberry will be one of the recipients of funds under Section 9901 of the Rescue Plan, which designates more than $130 billion in funding to counties and local units of government, which is then distributed to the political subdivisions by each state.Municipalities under the Rescue Plan receive funding based on their population as a percentage of the state's population. That's a similar manner to the way in which Butler County distributed funds to the municipalities under the CARES Act.This time around, however, the county's boroughs, city and townships will not have to apply for the funds. The money will instead be distributed by the state regardless of whether a municipality applied.And given the larger allocation of money for local government under this round of stimulus funding, each municipality will likely see more funding.In addition to Cranberry and Jackson, Butler city expects $1.27 million, a 41% increase; Butler Township expects $1.6 million, a 42% increase; and Seven Fields projects roughly $270,000, an increase of about 40%.
Much like the county, municipalities are governed in how they may spend these funds by four broad categories of expenditures in the law: To respond to the negative impacts of COVID-19, including aid to households, small businesses, nonprofits and industries such as hospitality; to provide premium pay to essential public workers or provide grants to employers whose workers perform essential duties; to respond to lessened revenue because of the pandemic; and to invest in water, sewage and broadband infrastructure.And county's municipal officials don't expect to know for some time exactly how they may spend these funds because of how broad those categories are.Tom Knights, Butler Township manager, said he hopes for some instruction soon on which types of infrastructure projects may occur using Rescue Plan funding.“To us, right now, that's the biggest clarification, is what infrastructure those funds can be used for,” Knights said. “Hopefully, they're judicious in getting those out, so people can plan projects accordingly.”Rearick said Jackson has, in the past, used grant and similar funding to invest in infrastructure and would be looking to do the same with these two rounds of stimulus money. But he noted the same troubles in identifying which types of projects are covered.“I think we need some time to assess what were the overall impacts of COVID-19 on the community and on the business community, and how those monies would best be spent,” he added. “I think we need more time to have a discussion about the prudent use of those funds, and we need guidance.”Not all municipalities plan on using the cash to fund infrastructure projects, however. In Cranberry, Santoro said, the township expects a long-term, negative impact on the budget because of COVID-19 and the associated state-mandated business shutdowns. These funds, he noted, would help correct that.In 2021, for instance, the township projects a $650,000 decline in business privilege tax collection, and that's without the additional revenue shrinkages due to, for example, more property owners appealing their tax assessments.“What we're talking about from the (stimulus) is a one-time infusion,” Santoro said. “The lost revenue is long-term, and we're still trying to wrap our arms around what that means.”Mindy Gall, Butler city clerk, said she is “glad there will be some coverage for reduction in revenue,” but, like Cranberry, has concerns about the long-term implications of COVID-19.“In 2023, there still might be issues; in 2024, there still might be issues,” she said. “It's not over yet.”
