The County has identified known American Rescue Plan revenues of $317,327,304, including $224,058,903 of Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) allocation, $71,605,012 of Emergency Rental Assistance Program 2 (ERAP 2) allocation, $12,000,000 of HOME Investment Partnerships allocation, $3,355,250 of ARPA Funding for Health Centers allocation, $2,508,139 of Substance Abuse Prevention and Treatment Block Grant (SABG) allocation, $2,300,000 of ARPA Headstart allocation and $1,500,000 of ARPA Public Health workforce grant funds.
Of the the $317,327,304 summary total figure above, $127,606,232 has been received by the County, including $112,029,452 of CSLFRF allocation and $15,576,780 of the federal ERAP 2 allocation. These figures will increase as the federal and state governments release additional allocation information related to different funding segments of the American Rescue Plan, primarily in the Health Services and Employment and Human Services departments. The County Administrator's Office will provide quarterly updates to the Board commencing in November 2021.
The American Rescue Plan Act (ARPA) was signed into law on March 11, 2021 by President Biden. The ARPA is a broad and far-reaching funding package totaling $1.9 Trillion, which provides direct stimulus to taxpayers, advances on child tax credit payments, direct allocations to State and Local governments as well as a myriad of competitive grant programs administered by federal agencies. A summary of the ARPA, including national funding figures, is included as Attachment A for reference.
Countywide Impacts of the American Rescue Plan Act
During the FY 2021/22 budget development process, the County Administrator's Office requested information from specific departments about known impacts from the ARPA for context in assembling the FY 2021/22 Recommended Budget. Because the passage of the ARPA occurred late in the County’s budget process, there was very little information to share in subsequent budget presentations, with the exception of the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF), which was widely being tracked throughout the legislative process by state and local government professional organizations such as the National Association of Counties (NACo). At that time, the County was estimated to receive slightly more than $220 million over a two-year period.
On June 28, 2021, the County Administrator sent correspondence to department heads establishing guidance for reporting impacts of the ARPA on their respective departments. This included an initial assessment of ARPA impacts by program area, a request for information about COVID-19 costs, a survey of one-time needs and templates of required quarterly reporting documents. In summary, departments reported the following information:
- Known ARPA Revenue: $317,327,304, of which $127,606,232 has been received by the County
- Unreimbursed COVID-19 Costs: $16,882,139, including $7,368,000 of unrealized gas tax revenue due to Shelter in Place orders
- One-Time Needs: $71,655,531, including $4,120,000 that could be leveraged from non ARPA funding sources
It is important to note that the One-Time Needs figure above reflects projects that could be obligated prior to December 21, 2024 consistent with CSLFRF guidelines discussed further below. Line-item details of the Known ARPA Revenue, Unreimbursed COVID-19 Costs and One-Time Needs figures above can be found in Attachments B, C.1 and C.2, respectively. A copy of the County Administrator's memorandum to department heads, including the template of quarterly reporting documents, can be found in Attachment D.
Primary ARPA Revenue Drivers
Of the $317,327,304 in known ARPA revenue allocated to the County so far, the County has received $127,606,232, which is composed of two of the largest funding streams that will impact the County; specifically, the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) and a second allocation of Emergency Rental Assistance Program (ERAP) funds. Below are additional details about both revenue streams.
Coronavirus State and Local Fiscal Recovery Fund - $224,058,903
Contra Costa County has been allocated $224,058,903 of CSLFRF funds directly from the U.S. Treasury. The funding is allocated in two, 50% tranches the first of which was received by the County on May 18, 2021 in the amount of $112,029,451. The second tranche will be distributed to the County in May 2022. The ARPA outlines four specific eligible uses for CSLFRF funding:
• COVID-19 response activities or its negative economic impacts;
• Premium pay to eligible workers performing essential work during COVID-19;
• Government services to the extent of the reduction in revenue due to COVID-19; and
• Infrastructure investments specifically for water, sewer and broadband.
Each category above has several nuances associated with it, which we intend to present in more detailed during today's Workshop. The ARPA requires CSLFRF recipients with populations over 250,000 residents to submit an annual Recovery Plan Performance Report, including descriptions of projects and information on performance indicators and objective of each award. CSLFRF expenditures must be incurred by December 31, 2024 and ultimately spent by December 31, 2026.
Emergency Rental Assistance Program 2 - $71,605,012 ($38,941,950 Federal + $32,663,062 State)
Contra Costa County has been allocated an additional $71,605,012 in ERAP 2 funds directly from the U.S. Treasury and via the State of California through the State’s ARPA funding allocation. This funding complements ERAP 1 funding previously received both from the U.S. Treasury and via from the State in the amount of $75,822,311 making a total of $147,427,324 rental and utility assistance funding available to Contra Costa residents, landlords and utility providers. The State of California requested letters of intent from counties and cities slated to receive State allocations of ERAP 2 funds, subject to final approval by governing boards, to secure funding allocations. The County Administrator's Office filed the letter of intent with the State on July 27, 2021 and will bring the issue back to the full Board when more information on next steps is provided.
ERAP 2 funds are to be used largely in a similar fashion to ERAP 1, but also allow for relocation cost and security deposit assistance to eligible residents. ERAP 1 funds must be expended by September 30, 2022 and ERAP 2 funds must be expended by September 30, 2025.
County Department Presentations
In addition to the County Administrator's report, the Health Services and Employment and Human Services departments will provide presentations to the Board today regarding known and still to be determined impacts on their respective departments. Based on the analysis conducted by departments in response to the County Administrator's June 28, 2021 memorandum, the Health Services and Employment and Human Services departments will receive the vast majority of still to be determined ARPA program allocations and will provide the Board with additional context about those potential funding streams.
Copies of the PowerPoint presentations from the County Administrator's Office, Health Services Department and Employment and Human Services Department are attached to this staff report for reference.
The current and anticipated expenses related to COVID-19 and the timeliness of financial reporting would be absent direction from the Board of Supervisors.
Speakers: Pete Caldwell, Executive Director of We Care Services; Dan Geiger; Marianna Moore, Ensuring Opportunity Campaign, Budget Justice Coalition; Natalie Blackmur, First 5 Contra Costa; Elsa Stevens; Charity White, San Francisco Foundation, Contra Costa working group; Cathy Botello, Executive Director at Counseling Options & Parent Education Family Support. Inc (C.O.P.E.); Angela Vargas, Bay Point.