Agencies are responding in various ways to ARPA funds. HdL can help craft an action plan that makes sense for your agency.
Written by: Barry Foster, Principal and Managing Director
April 15, 2021
A month has passed since the announcement of the American Rescue Plan Act (ARPA) and agencies are struggling with how to best use the one-time funds. The headlines below only represent a handful of California agencies, but one thing is clear across the state – revenues are down and economic recovery is needed ASAP.
HdL’s Economic Development team offers custom strategic planning and development consulting for ARPA funds. Click HERE to learn how HdL can help navigate your ARPA needs.
Recent California ARPA Headlines:
Instead of a $650 million deficit, the city will now have a $23 million deficit "thereby maximizing the city’s ability to maintain its services and programs.” Although the one-time federal stimulus will help with addressing the upcoming two-year budget, it won’t help with the Fiscal Year 2023-2024 budget deficit.
Santa Barbara’s transient occupancy tax (TOT) revenues are projected to fall 16 percent below the city’s adopted budget. The city plans to address the revenue losses with department service reductions in order to achieve expenditure savings, deferral of some capital projects, labor concessions, and the use of reserves.
City managers in Tulare County are waiting to commit to any statements on what they might use the funds for as firm guidelines on allowable uses have yet to surface.
California City’s small tax base wasn’t affected as much as others so now they question if they should spend the one-time money, invest it or leverage it.
Almost $1.2 billion in rental assistance could start flowing as soon as this week, helping low-income tenants pay back rent that accumulated from April 2020 through March 2021.