By GREGORY ZELLER //
Federal officials are debating a fourth round of pandemic-flavored stimulus aid for American citizens – but as the nation crawls out of the economic pit dug by the COVID-19 crisis, individual taxpayers aren’t the only ones who can use hand.
Local governments are also struggling with the lingering effects of shutdowns, lost wages and decimated tax revenues. The American Rescue Plan Act of 2021 includes funding for county and town governments caught in COVID’s switches – and a new report by the Nassau County Comptroller’s Office urges caution and careful planning by municipal administrations eager to cash in.
Released earlier this month, “Guiding Principles: Making Smart Investments with Stimulus Funding” focuses on smart options for Nassau County and its myriad fiefdoms regarding future ARPA applications and allotments – including an imperative to “approach the moment responsibly, with an eye toward strategic long-term sustainability.”
“Smart investments can make transformative progress and ensure that structural gaps are narrowed and closed in our budgets and our communities,” the report states, adding, “There are several ways in which local governments can make smart decisions to improve municipal finances.”
Jack Schnirman: If you fail to plan…
The comprehensive report summarizes the ARPA and lists allowed and prohibited uses for federal stimulus funding – local government can use the money for capital-improvement projects, for instance, but not to cut taxes or boost a reserve fund.
It also breaks down the “direct impact” of COVID-19 funding to date, noting $385 million in federal funds already allocated to Nassau County and a projected $774.2 million in recovery funds earmarked for “non-entitlement units” including towns and villages.
The county is on course to end Fiscal Year 2020 with a surplus and not a deficit (the comptroller’s office is slated to issue its FY2020 annual financial review by the end of this month). “Guiding Principles” credits this first and foremost to an infusion of federal dollars related to the pandemic, and suggests several actions to help Nassau “seize the moment” and remain in the black.
Right at the top: investments designed to reduce operating costs, “overdue investments” in the county’s technology infrastructure and “investments in our residents,” such as improved access to good childcare options.
The report also encourages new investments in workforce development and programs designed to close equity gaps, with total transparency on “the use and impact of federal funds.”
The federal money will be there – but what county leaders do with it will determine how effective it is in stimulating the regional economy, according to Nassau Comptroller Jack Schnirman, who called the report a “a marker that offer(s) perspective to this conversation.”
“We all know that smart investments can make transformative progress in our communities and ensure that structural gaps are narrowed and closed in our budgets and our communities,” Schnirman said. “There are a variety of ways in which local governments can make smart decisions to improve municipal finances.
“An economic recovery that helps people will make a real difference and lead to a more sustainable recovery for our county government’s finances,” the comptroller added. “The funding provided under [ARPA] provides a unique opportunity for state and local governments to make strategic investments in long-lived assets, enhance financial stability and cover temporary operating shortfalls until economic conditions and operations normalize.”
