Page 469 - FY 2021-22 Blue Book Volume 2

AMERICAN RESCUE PLAN

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget includes $677 million of fiscal recovery funds from the American Rescue
Plan (ARP). This amount represents the second tranche allocation out of a total City allotment of $1.354
billion. ARP expenditures relate to current year funding as follows:

Fiscal Recovery Funds Amount

2020-21 Adopted Budget $ -

2021-22 Proposed Budget $ 677,224,158

Change from the 2020-21 Budget $ 677,224,158

Pursuant to the American Rescue Plan, in 2020-21 the federal government will send the City an
initial tranche of $677 million for broad fiscal recovery funds as well as an additional $100 million
in Homeless Assistance and Supportive Services Program (HASSP) funds. The Homelessness
Budget exhibit, rather than this exhibit, incorporates the HASSP.

Congress approved the ARP on March 10, 2021, and President Biden signed it on March 11, 2021. The
ARP provides multiple forms of relief to individuals, families, states, and local governments.

Fiscal Recovery Funds

The ARP provides a total of $45.57 billion of fiscal recovery funds for metropolitan cities and distributes it
using a modified Community Development Block Grant (CDBG) formula. Based on the information
available, the City is eligible to receive $1.354 billion. The Department of Treasury will distribute these
funds in two tranches of 50 percent each, with the first tranche of $677 million distributed in 2020-21 and
the second tranche of $677 million distributed in 2021-22. These amounts are estimates from the House
Committee on Oversight and the U.S. Department of Treasury is in the process of refining the estimates for
allocation to cities. The enacted legislation includes a December 31, 2024, deadline to expend these funds.
The legislation defines eligible expenditures as follows:

• (A) Responding to Economic Impacts: To respond to the public health emergency with respect
to the Coronavirus Disease 2019 (COVID-19) or its negative economic impacts, including
assistance to households, small businesses, and nonprofits, or aid to impacted industries such as
tourism, travel, and hospitality.
•
(B) Performance of Essential Work: To respond to workers performing essential work during the
COVID–19 public health emergency by providing premium pay to eligible workers of the
metropolitan city, non-entitlement unit of local government, or county that are performing such
essential work, or by providing grants to eligible employers that have eligible workers who perform
essential work.

• (C) Provisions of Government Services: For the provision of government services to the extent
of the reduction in revenue of such metropolitan city, non-entitlement unit of local government, or
county due to the COVID–19 public health emergency relative to revenues collected in the most
recent full fiscal year of the metropolitan city, non-entitlement unit of local government, or county
prior to the emergency.

• (D) Investments in water, sewer, or broadband infrastructure: To make necessary investments
in water, sewer, or broadband infrastructure.

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