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Helping Communities Recover and Rebound from the Pandemic: State and Local Fiscal Recovery Funds September 2022 Reporting Data Analysis

Summary

A Treasury analysis of State and Local Fiscal Recovery Funds (SLFRF) reporting data through September 30, 2022. It cites the National Association of State Budget Officers' finding that the median share of SLFRF funds allocated by state governments was 95% and that more than 80% of state SLFRF resources had been budgeted. As of September 30, the largest metro cities and counties had budgeted all of their first tranche and allocated 33% of their second tranche funds. The analysis notes that SLFRF resources must be obligated by the end of 2024 and spent by the end of 2026. It gives examples of projects by category, beginning with public health, where more than 1,400 governments report budgeting over $11 billion for more than 4,900 projects.

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                Helping Communities Recover and Rebound from the Pandemic:
      State and Local Fiscal Recovery Funds September 2022 Reporting Data Analysis


The State and Local Fiscal Recovery Funds (SLFRF) provided under President Biden’s
American Rescue Plan Act continue to play a crucial role in allowing state, local, Tribal, and
territorial governments to stabilize their budgets, respond to the pandemic, and invest in their
communities.
An analysis of annual Recovery Plan Performance Reports that cover activity through June 30,
2022 by the National Association of State Budget Officers found that the median percentage of
SLFRF funds allocated by state governments was 95% as of that date and that more than 80%
of state SLFRF resources had been budgeted overall.
Local governments also continue to make rapid use of funds to address needs in their
communities. As of September 30, the largest metro cities and counties1 had cumulatively
budgeted2 all of their first tranche of funds and had already allocated 33% of their remaining
second tranche funds, which they could not receive until mid-May. SLFRF resources must be
obligated by the end of 2024 and spent by the end of 2026.
Building on previously released reporting data for the periods ending on December 31, 2021,
March 31, 2022 and June 30, 2022, as well previously highlighted projects, Treasury continues
to regularly release SLFRF reporting data received from recipients3; data reported through
September 30, 2022 can be accessed through Treasury’s dashboard or by downloading this
spreadsheet. In addition to helping shore up state and local finances—maintaining and rebuilding
crucial public services while avoiding deeper or continued cuts in employment— the following
examples4 provide a snapshot of the types of projects that recipients are implementing across key
categories using SLFRF funds.5

1
  Metro cities and counties with populations greater than 250,000 residents
2
  Metro cities and counties with populations over 250,000 were required to report adopted budget for each
project.
3
   Tribally reported information is included in aggregate statistics about the program (e.g., the total number of
governments using funds for a specific eligible use, total projects reported, etc.); however due to privacy
considerations, Treasury does not release complete information on all Tribal projects.
4
  The examples included throughout this post are based on recipient reports, and their inclusion in this document
does not constitute an explicit approval of these projects by Treasury.
5
  This analysis includes quarterly Project and Expenditure reporting covering the period ending September 30,
2022 from the largest SLFRF recipients: states, territories, and metro cities and counties with a population over
250,000 or an allocation over $10 million, non-entitlement units of local government allocated more than $10
million, and Tribal governments allocated over $30 million. In addition, to provide the full picture of SLFRF
investments, the figures highlighted in this analysis include previously reported data from smaller SLFRF recipients


September 30, 2022 SLFRF Reporting Analysis                                                                        1
Responding to the Public Health Needs
More than 1,400 governments report having budgeted over $11 billion for more than 4,900
projects addressing public health needs including COVID-19 testing, vaccinations, staffing, and
outreach to underserved communities. For local governments, the provision of COVID-19 public
health services is one of the top programmatic expenditure categories, likely due in part to
SLFRF being the first time that most local governments received direct, dedicated Federal
support to respond to the pandemic and its impacts. State governments, who had received other
COVID specific funds, also dedicated significant funds to pandemic-related public health
projects; many reported using SLFRF funding to supplement other COVID related funds as well
as offset their use of other sources of funding to cover public health related emergency spending
at the pandemic’s outset.

    •   The State of Alaska budgeted $40 million to address the state's most critical COVID
        public health needs that are not covered by other available funding sources, including
        providing testing equipment and consultation services to address the ongoing needs of the
        pandemic. The state originally appropriated $20 million towards these efforts, but it was
        necessary to increase this appropriation to $40 million due to a rising number of COVID
        infections.
    •   El Paso, Texas budgeted more than $16 million for the health department’s COVID-19
        response teams including testing, vaccination, and the response supply center. This
        initiative will also include the design and construction of a new clinic which will provide
        COVID-19 response services to underserved communities.
    •   Hidalgo County, TX budgeted $2 million for COVID-19 testing in the county, including
        for disproportionally impacted community members. The testing allows county officials
        to efficiently track COVID-19 cases, update safety protocols, and mitigate the spread of
        the virus.
    •   Milwaukee, WI obligated over $13 million for COVID-19 public health services
        including testing, vaccinations, isolation, a COVID-19 hotline, and medical respite care.
        These services are targeted to disproportionately impacted low-income and minority
        communities as these were identified as the most vulnerable populations based on
        socioeconomic status, housing type, and transportation access.
    •   The State of New Hampshire spent more than $11 million to purchase COVID-19 tests
        to increase access to testing in order to reduce the spread of disease throughout New



who report their spending activity annually in April. These annual reporters include metro cities and counties with
populations less than 250,000 and an allocation less than $10 million, Tribal governments with an allocation less
than $30 million, and non-entitlement units of local government allocated less than $10 million. These recipients
are required to file Project and Expenditure Reports annually by April 30. In 2022, these Project and Expenditure
reports covered the period from March 3, 2021 to March 31, 2022.

September 30, 2022 SLFRF Reporting Analysis                                                                           2
       Hampshire, limit the strain on the medical care system, and keep schools and businesses
       open.
   •   Union County, NJ spent nearly $4.5 million to support the county’s vaccination
       campaign, including staffing, acquisition of equipment or supplies, facilities costs, and
       mobile vaccine clinics. The county launched a campaign to reach its most vulnerable
       populations to spread awareness about the vaccine, assist the community in locating
       vaccinations, and clarify misinformation about the vaccine.


Investing in Housing Affordability
Expanding access to affordable housing is a top priority for Treasury and the Administration.
Treasury is playing a key role in this work by encouraging jurisdictions to consider using SLFRF
for affordable housing or to supplement other American Rescue Plan programs aiding renters
and homeowners, such as the Emergency Rental Assistance program and the Homeowners
Assistance Fund. In July of 2022, Treasury also announced new flexibilities and tools to make
support for housing affordability investments even easier, including increasing flexibility to fully
finance certain long-term affordable housing loans. SLFRF recipients have responded by
budgeting $14.2 billion through September of 2022 on nearly 1,800 housing affordability related
projects that focus on short-term assistance and long-term development, an increase of 16% in
the number of projects since the last reporting period in July.

   •   Denver, CO budgeted $28 million for the development and preservation of affordable
       housing. Priorities include rental projects that have deeply affordable units with
       supportive services or large units for families. Planned projects that may be supported by
       this fund include 400 newly constructed rental units, 200 preserved rental units, 50 newly
       constructed homeowner units, and 1-2 projects to acquire existing unsubsidized
       affordable and hotel buildings.
   •   The State of Idaho has budgeted $50 million for gap financing to eligible low- and
       moderate-income-targeted multifamily housing developments and down payment/closing
       cost assistance for low- and moderate-income homebuyers. This will ensure that those
       who were the most economically impacted by the COVID-19 pandemic and the directly
       resulting affordable housing crisis have access to long-term, high-quality, affordable
       housing.
   •   Greenville County, SC allocated $10 million for the production of multi-family and
       single-family affordable housing units; preservation of current affordable housing units;
       and a signature project in a qualified census track that would include new infrastructure
       as well as new multi-family units.
   •   The State of Illinois has allocated $75 million to the Illinois Housing Development
       Authority to provide gap funding for qualified developments eligible for federal low-



September 30, 2022 SLFRF Reporting Analysis                                                        3
       income housing tax credits. The grant funds will help developers overcome increased
       construction costs related to the COVID-19 pandemic-created supply shortages.
   •   Mobile, AL has budgeted more than $4 million to work with housing developers and the
       local Public Housing Authority to revitalize neighborhoods with affordable housing for
       unhoused and first-time homebuyers.
   •   Pensacola, FL has allocated $3 million to improve access to stable, affordable housing
       for unhoused individuals as well as programs to assist the unhoused.
   •   Rochester, NY is dedicating over $13 million focused on the creation of home-
       ownership opportunities for low-income residents in neighborhoods that have faced
       challenges even before the COVID-19 pandemic. This includes constructing new single-
       family houses on previously vacant city-owned land in targeted neighborhoods and
       incorporating sustainability and energy efficiency in construction.
   •   Snohomish County, WA allocated more than $9 million for the identification, planning,
       and purchase of a multi-unit non-congregate shelter building that will include services for
       individuals experiencing homelessness as well as a flexible space for emergency
       response.
   •   Tarrant County, TX has put nearly $34 million into expanding permanent supportive
       housing as the COVID-19 pandemic highlighted the need for additional housing to serve
       its most vulnerable populations. The project includes grant awards to nonprofits that
       focus on housing and was facilitated through an application process run by the Tarrant
       County Housing Finance Corporation.
   •   Victorville, CA has budgeted nearly $11 million for a Wellness Center Campus that will
       include a low-barrier shelter, recuperative care facility, medical clinic, interim housing,
       and wraparound support services. This will be the first facility of its kind in San
       Bernardino County.


Supporting Workers
In response to the negative economic impacts of the pandemic on communities, SLFRF
recipients have budgeted over $10 billion in SLFRF funds for more than 3,000 projects to
support and expand the workforce. A focus on helping more Americans secure good-paying jobs
is critical and many SLFRF projects are using their funds to help impacted workers enter in-
demand careers, with a particular focus on assisting people that have barriers to employment and
preparing for industries of the future. This can help prepare more Americans for the critical jobs
being created by the Bipartisan Infrastructure Law as well as the CHIPS and Science Act,
Inflation Reduction Act, and American Rescue Plan.

   •   Arapahoe County, CO has allocated $5 million to provide short term certifications,
       work-based learning, incumbent worker training, and supportive services for individuals
       experiencing unemployment or under employment due to the pandemic. The Re-Train

September 30, 2022 SLFRF Reporting Analysis                                                      4
       Arapahoe program will provide up to $10,000 per individual to provide training,
       certifications, and a laptop to improve digital access and literacy.
   •   Detroit, MI budgeted nearly $59 million for Detroiters for Skills for Life, a training and
       career readiness program for residents that continue to face economic hardships
       exacerbated by the COVID-19 pandemic. The program provides employment and skill-
       and career-building activities and assists in removing barriers to employment by offering
       disconnected workers on-ramps so that they may earn income while building critical
       skills to improve long-term employment and job retention prospects.
   •   The State of Idaho budgeted $13 million for the Learning Idaho workforce training
       project. This initiative will consist of four components designed to identify and align
       workforce training to high quality jobs; invest in infrastructure, equipment and
       curriculum to provide training; provide financial assistance to Idahoans to access the
       training; and improve technology resources that connect individuals to jobs, including
       work-based learning.
   •   The State of Maine budgeted $1.5 million for the Maine Apprenticeship Program that is
       specifically focused on building high quality pre-apprenticeship and apprenticeship
       programs for the clean energy sector in partnership with businesses, industry
       associations, unions, education and training providers, and community-based
       organizations.
   •   Pima County, AZ budgeted over $5 million for a ‘Micro-Pathways’ program to provide
       participants with financial support to access short-term programs that lead directly into
       in-demand jobs with family-sustaining wages. The county will also support
       apprenticeships and other workforce programs focused on high growth career fields.
   •   Racine, WI budgeted $2 million for the city to expand its youth summer jobs program to
       help at risk youth to get real world job experience. Funding provides stipends for at least
       50 summer youth jobs, starting in summer of 2022.
   •   Roanoke, VA obligated $3 million to the Star City Works program devoted to
       identifying the needs of employers in high-growth, high-potential sectors and to filling
       any gaps that may exist in the local workforce. The program includes training, work-
       based learning opportunities, and wrap-around supportive services (transportation,
       childcare, food assistance, utility/mortgage assistance).
   •   St. Paul, MN budgeted more than $11 million towards "Learn and Earn" models and an
       investment for occupational training. Residents will be able to access funds to assist in
       paying tuition, books, and technology costs, as well as receive subsidized wages, stipends
       for leaning, and paid internships.
   •   Salt Lake City, UT obligated $1.5 million to cover payroll and benefits to hire positions
       that were unfilled due to the negative economic impact of the pandemic on public sector
       employment.




September 30, 2022 SLFRF Reporting Analysis                                                      5
Stimulating Local Economic Growth through Small Businesses
To ensure sustainable growth for the future, many governments have invested in a wide variety
of support programs that recognize small businesses’ important role as key employers and
drivers of the local economy. Through September 30, governments had budgeted over $4 billion6
for over 950 projects to support small businesses and small business development; this
complements other Administration investments including the American Rescue Plan’s State
Small Business Credit Initiative.

    •    Cincinnati, OH spent $1 million to deliver operational grants and training to new and
         established women-owned businesses to create job opportunities for residents and
         entrepreneurship opportunities for women - including women in business that have
         carried a disproportionately high burden in managing the social challenges of the
         pandemic.
    •    Cook County, IL allocated more than $10 million to provide no cost technical assistance
         to small businesses to help them address their unique needs, use new tools, and navigate
         resources to address their business needs with a COVID-19 recovery lens.
    •    McHenry County, IL obligated more than $1 million for the Advance McHenry County
         Manufacturing Initiative, which provides manufacturers with customizable technical
         assistance and training solutions to rebound from the pandemic, be more globally
         competitive, and increase resilience to future economic shocks. The program is a
         partnership between the county’s college system and workforce network board that offers
         ten categories of technical assistance aligned with the US Department of Commerce’s
         Baldridge Performance Excellence Framework.
    •    Lee County, FL obligated $250,000 to assist small businesses disproportionately
         affected by COVID-19 by targeting businesses in Qualified Census Tracts and low- and
         moderate-income designated areas who had substantial declines in gross receipts and
         have less access to credit. The project will provide technical assistance, counseling, or
         business planning services to provide individualized and group training in business
         planning and improvement.
    •    The State of Maryland budgeted $70 million to provide financial support to new or
         expanding businesses, including by designating funds for the Maryland Small, Minority,
         and Women-Owned Businesses Account, which gives grants to eligible fund managers to
         provide investment capital and loans to small, minority, and women-owned businesses.
    •    Sacramento County, CA budgeted nearly $3 million to provide assistance to small
         businesses that were negatively impacted by COVID-19 through outreach, technical
         assistance, training, and one-on-one consulting in various languages to engage hard-to-
         reach businesses using culturally appropriate methods.


6
 This amount reflects a $1.5 billion reduction from the last reporting by the State of California, which transferred a
small business project to the state’s general fund.

September 30, 2022 SLFRF Reporting Analysis                                                                          6
   •   Mesa, Arizona budgeted $3 million for a restaurant and food business incubator that will
       be paired with a modern dining facility that will provide business development support
       and cultivate the success, sustainability, and resiliency of local food entrepreneurs.


Making Transformative Investments in Key Infrastructure
SLFRF is allowing state, local, Tribal, and territorial governments to make key investments in
infrastructure projects that respond to needs that were highlighted by the pandemic and that will
support future economic growth. Overall, more than 2,500 governments have budgeted more
than $21 billion for over 6,000 critical infrastructure projects that support expanded access to
high-speed internet and clean water. SLFRF is helping states and localities to further supercharge
the historic federal investments in infrastructure delivered by the Biden-Harris Administration
through the Bipartisan Infrastructure Law and complementing the American Rescue Plan
investment in expanded affordable highspeed internet access through Treasury’s Capital Projects
Fund.

   •   The State of Alabama budgeted $51 million to develop a statewide middle-mile fiber
       network that will support, catalyze, and facilitate future last-mile projects.
   •   American Samoa budgeted $10 million for broadband development as the pandemic
       made clear that remote work, distance learning, and telehealth are essential services. The
       territory will work with local internet service providers to support the delivery of internet
       service that reliably meets or exceeds symmetrical upload and download speeds of 100
       mbps.
   •   Bay City, MI obligated $6 million to remove lead pipes in the city by hiring a crew of
       four new Water Department employees that will be solely dedicated to lead service line
       replacement.
   •   Box Elder County, UT has spent $1.5 million to provide engineering, permitting and
       construction resources for last-mile infrastructure investments to bring high-speed
       internet service to underserved rural communities in the county. This will help stabilize
       rural access to remote education, health care, and economic opportunity where privately-
       funded expansion is not feasible due to distances and low density.
   •   Carroll County, MD budgeted $15 million to make investments in broadband
       infrastructure in response to COVID-19 when households and businesses lacking reliable
       high-speed service were at a significant disadvantage in areas such as educational,
       economic, and health opportunities. Carroll County will increase access to the 12% of
       Carroll households and businesses currently unserved by a high-speed connection by
       providing 100/100 mbps service that will include an option for low-income customers.
   •   Erie County, NY allocated $34 million to address the broadband needs of unserved
       areas, improve services in underserved areas of the community, and enable broadband
       deployment county-wide. The fiber optic backbone will be owned by the county but
       managed and controlled by ErieNet, a not-for-profit local development corporation.
September 30, 2022 SLFRF Reporting Analysis                                                        7
        ErieNet will be open for any viable entity to use or provide services to support broadband
        technologies and services.
    •   Janesville, WI budgeted over $2 million in order to improve drinking water quality by
        replacing publicly owned lead pipes.
    •   Rankin County, MS budgeted $26 million for 45 projects that are improving water
        quality protection, floodplain management, environmental restoration, and wetlands
        restoration.
    •   The State of Tennessee budgeted $500 million to facilitate broadband access while
        promoting programs that encourage broadband adoption and use.
    •   The State of Vermont budgeted nearly $146 million to support and accelerate the State’s
        goal of achieving universal access to reliable, high-quality, affordable broadband by
        providing service to unserved or underserved households and businesses through
        symmetrical 100 Mbps download speed and upload speeds.

Stabilizing Government Finances

In the Great Recession, spending cuts by state and local governments were a drag on the
economy for years and caused elevated rates of unemployment.7 However, thanks to the Biden-
Harris Administration’s economic recovery programs, these same governments have had the
resources to avert painful cuts to spending that otherwise might have persisted throughout the
recovery from the pandemic. SLFRF has been a key vehicle to provide governments with fiscal
stability to ensure that they do not have to cut their budgets.

Over 13,000 governments reported to Treasury that they budgeted more than $89 billion for over
26,000 projects to provide fiscal stability. (In total, recipients have reported $274 billion in
revenue losses resulting from the pandemic to date; many recipients reporting revenue loss,
however, may choose to report funds in other eligible use categories instead.) Without fiscal
recovery funds, there would have been devastating cuts to public services (like police, fire,
emergency medical services, and education) as a national survey of mayors before the passage of
the American Rescue Plan Act found that 70% anticipated making dramatic service cuts. Instead,
these governments’ strong fiscal health meant that they were able to deliver vital services to their
residents during the most intense periods of the pandemic. Moreover, using SLFRF,
governments have also been able to boost economic growth in their communities, advance
equity, and increase affordability for households. Examples of how governments used SLFRF to
avert fiscal distress include:

    •   Pittsburgh, PA spent $52 million to avoid layoffs across all city departments that would
        otherwise have been necessary due the negative impact of COVID on the city’s revenue.

7
 The Great Recession’s Lessons on State and Local Aid’s Importance in Combating an Economic Downturn and
Supporting Children | Urban Institute

September 30, 2022 SLFRF Reporting Analysis                                                                8
   •   San Antonio, TX expended $112 million to replace lost city revenue, stabilize the city
       budget, and address community needs exacerbated by the pandemic including mental
       health, domestic violence, housing assistance, customer service, and community
       navigators.
   •   Syracuse, NY spent nearly $22 million to support the city’s operations at pre-pandemic
       levels. Due to an estimated revenue loss of $141 million from the COVID-19 pandemic,
       the city would have had to reduce staffing levels across all departments, including police
       and fire, without these revenue replacement funds.

In sum, the latest project and expenditure data, including the information reported for the period
ending September 30, 2022, reflects the important and transformative effect of State and Local
Fiscal Recovery Funds on the fiscal health of state, local, Tribal, and territorial governments as
well as the degree to which these funds are addressing the immediate impacts of the pandemic
while also helping the country be better prepared for any future crises.




September 30, 2022 SLFRF Reporting Analysis                                                          9
      Key Investments through September 30, 2022 for State, Local, Territorial, and Tribal Governments*
                                                                                        Number of            Number of
                                                                                        Governments          Projects
                                                                Reported Funds
                                                                                        Pursuing             Reported
                                                                Budgeted
Category
Housing: Emergency Aid, Affordable Housing,                         $14.2 billion              725                    1,827
Homelessness

Infrastructure: Water, Sewer, and Broadband                         $21.0 billion             2,597                   6,669

COVID-19 Public Health Response**                                   $11.4 billion             1,462                   4,992


Worker Support: Unemployment Aid, Job Training,                     $10.3 billion             1,822                   3,281
Public Sector Workforce, Essential Worker Premium Pay
Small Business Assistance                                           $4.0 billion               512                    964

Childcare and Early Learning                                       $759.2 million              194                    290

           * This chart includes all the most recent project and expenditure reporting received by Treasury
           for all recipients. Specifically, it includes data reported by quarterly reporters (states, territories,
           and metro cities and counties with a population over 250,000 or an allocation over $10 million;
           Tribal governments with an allocation over $30 million; and non-entitlement units of local
           government allocated more than $10 million) through September 30, 2022 and data from annual
           reporters (metro cities, counties, and non-entitlement units of local with populations less than
           250,000 and an allocation less than $10 million, Tribal governments with an allocation less than
           $30 million) through March 31, 2022.
           **Includes vaccinations, testing, contact tracing, PPE, prevention in congregate facilities,
           medical expenses, and other public health measures.




           September 30, 2022 SLFRF Reporting Analysis                                                           10


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