Justice, Fairness, Inclusion, and Performance.
Over the next few months, state, local, tribal, and territorial (SLTT) governments and other eligible entities (i.e., hospitals, public schools, and universities) will receive sizeable federal funding through the American Rescue Plan (ARP) to continue addressing needs associated with the COVID-19 pandemic and the resulting economic crisis. In addition to other federal recovery funding programs, SLTTs nationwide are expected to receive $350 billion in Coronavirus State and Local Fiscal Recovery Funds (FRF). This level of federal funding is historic and provides communities across America with the chance to turn the COVID-19 crisis into an opportunity for future resilience. To make effective use of these one-time resources, local leaders should plan to take a comprehensive and strategic approach that is informed by the needs of various stakeholders throughout the communities they serve. Accordingly, below are some ways you can begin to design your path to economic recovery.
Given the unique federal funding opportunities currently available, local governments would benefit from analyzing their unmet needs and priorities to inform development of a long-term recovery strategy that addresses COVID-19’s impact on their local economy and social systems. Steps to support an unmet needs assessment, and subsequent long-term recovery strategy development, should:
Throughout the recovery planning and implementation process, purposeful and consistent opportunities for community feedback and input are beneficial. Government leaders should consider meetings and input sessions with the public directly, as well as with diverse organizations representing historically underserved populations, businesses and private sector partners, nonprofits, civic organizations, foundations and philanthropies, and community and grassroots organizations.
Moreover, to realize the greatest benefits from this funding, local government agencies and organizations must operate jointly and maintain a unified approach throughout. To that end, local governments may benefit from evaluating their internal structures, processes, and systems and identifying opportunities for improvement. Considerations include centralizing grants management to drive the strategic use of funds; augmenting staff with compliance and administrative support; and setting up reporting mechanisms at various levels of governments so leadership and staff can make informed decisions throughout the recovery process.
When coordinating a comprehensive approach recovery, governments should evaluate all funding sources that are available to them. Since the start of the COVID-19 public health emergency, governments have had access to multiple funding sources to support ongoing response and recovery operations. Some primary sources include:
Understanding when and how to use each available funding source can be challenging; however, a detailed understanding of compliance, timelines, and eligibility related to each source enables recipients to optimize funding and its impact on their community. Below are several key considerations for local governments as they continue to put various federal funding streams to use:
Prior to FEMA’s cost-share adjustment, many governments across the nation elected to utilize CRF funding in lieu of FEMA PA funding or initially used CRF funds to cover the 25 percent FEMA PA cost-share requirement. Now that the FEMA PA program is fully reimbursable, local governments should consider reallocating these costs to support remaining response efforts, and to continue any existing recovery programs that support individuals and families, nonprofits, and businesses within their community.
With FRF funds, governments can maximize this funding’s impact by making long-term, mitigation investments within their communities. When possible, local governments should evaluate allowability under FEMA PA and CRF funds first, and then look to expend FRF funds as the longer time horizon associated with them.
Expending this additional federal funding will be no easy task for local governments. Jurisdictions need to carefully plan how to expend these funds with a data-driven approach being paramount to maximize the funding’s impact. Communities that address unmet needs and priorities, while also reimagining how services, programs, and investments are delivered in the short- and long-term, have the greatest likelihood of fully recovering, reaching resilience, and setting their community up for sustainable growth.
This piece was written by Hagerty Consulting and published on ICMA's website. The original piece can be found here.