How much of federal COVID-19 relief money will local government keep, and how much will they spread around?
That’s something to watch as municipalities and counties decide how to spend money they get from the American Rescue Plan.
The Joliet City Council meets at 4:30 p.m. Wednesday for a presentation and discussion on how to spend the city’s share of the American Rescue Plan.
It’s $22.2 million, which is a lot of money. But it can go fast.
How fast?
Joliet has a Lake Michigan water project underway but yet to be funded with costs estimated at between $592 million and $810 million. Compared to that, $22.2 million is, well, kind of a drop in the bucket, although a big drop. And, water infrastructure is specifically one of the allowed uses for American Rescue Plan money.
The city has 26 positions that have been left unfilled, a budget cutback made because of the economic impact of the pandemic. Filling those positions is likely to be a top priority, and they will cost an estimated $4 million a year.
And, this week President Biden, trying to stem the rise in violent crime in the United States, advised cities that they could use American Rescue Plan money to hire more police. Joliet already plans to hire 25 to 50 police officers in the next two years, a schedule that fits nicely with the American Rescue Plan.
So, you can see how fast the city could spend $22.2 million.
Mayor Bob O’Dekirk last week, however, said in effect, not so fast.
Agreeing to an initial meeting on the use of the money before the end of June, O’Dekirk added that the city should not be quick to make decisions on how to spend it.
“It needs to be vetted,” the mayor said.
And, that’s true.
The city does not have to spend the money on city government.
Tenants, landlords, restaurateurs and other businesses and individuals hurt by the economic impact of the pandemic are eligible for the money.
Maybe the City Council will hear from some of those people when it meets Wednesday.
I expect nonprofits in town will make their case for getting a share of the money.
The Joliet Arts Commission has already made a case for using $600,000 of it over four years to support struggling artists.
Joliet got $11.1 million of the money in May, and it has been set aside for a decision by the council on how to use it. Another $11.1 million comes in May 2022.
The city has until the end of 2024 to budget the money. It has until the end of 2026 to spend it.
Spending it should be easy. Budgeting it could be a challenge.