American Rescue Plan Act funds exceeding more than $162 million were delivered to more than 360 non-entitlement Kentucky cities on Thursday, in what is the second tranche of this fiduciary assistance from the federal government.
Many municipalities within the News Edge area received such a payment. Cadiz will receive more than $356,000. Crofton will receive just over $94,000. Elkton will garner nearly $285,000. Guthrie gains north of $188,000. Oak Grove will receive above $978,000. And Pembroke collected nearly $119,000.
Non-entitlement cities are those with populations under 50,000 and chose not to file for a different distinction through the U.S. Department of Housing and Urban Development. These cities, and their officials, were required to submit budget certification forms to the Department of Local Government.
In a written statement from Gov. Andy Beshear, he said noted that COVID has proven that Kentucky can “rise to meet challenges when we work together,” and that his funding will set city governments up for success under the commitment of building a better state.
The monies are specifically earmarked to help governments offset the related expenses of the coronavirus, which required the unplanned purchases of personal protective equipment, vaccination clinics, loss of revenue and payroll, and other costs.
The U.S. Department of Treasury has set forth cohesive guidelines on how the money can be used. Officials can support public health expenditures, address negative economic impacts caused by health emergencies, replace lost public sector revenue, provide premium pay for essential workers, and invest in water/sewer/broadband infrastructure.
While these regulations have loosened some in the last year, the themes and elements have remained the same. The U.S. Department of Treasury has informed local governments they have “considerable” flexibility to use these funds, in order to address diverse needs of their communities.
States and territories may not use this funding to directly or indirectly offset a reduction in net tax revenue, and no recipient may use this stimulus to make a deposit into a pension fund.
