Thomas Breen file photo
City Budget Director Gormany: Lots more money coming the city’s way.
The federal aid tidal wave just got $25.3 million bigger.
City Budget Director and Acting Controller Michael Gormany broke that news to the Board of Alders.
In a letter and an accompanying proposed resolution included in the agenda package for Monday night’s full Board of Alders meeting, Gormany wrote that the city found out on Friday that it will be receiving $25,299,535.59 in federal Covid-era aid through the County Allocation of the American Rescue Plan Act.
He said that that new pot of money represents “a substantial infusion of resources to help turn the tide on the pandemic, address its economic fallout, and lay the foundation for a strong and equitable recovery.”
He also told the alders that the state Office of Policy and Management will be distributing this new county-level aid in two tranches: 50 percent now, and 50 percent next year.
City spokesperson Kyle Buda confirmed for the Independent Monday morning that this new pot of nearly $25.3 million is separate from and in addition to the roughly $90 million the city has already been expecting and preparing for thanks to the Covid-era federal bailout legislation.
While that latter money is coming to New Haven through the American Rescue Plan Act’s direct aid to local governments, the former is coming through a county-level provision of aid.
Mayor Justin Elicker has already proposed and an aldermanic committee has endorsed a plan to spend the first $26.3 million of the local government aid on summer concerts, citywide cleanup crews, playground repairs, extended summer camps, neighborhood popup festivals, police walking beats, and “cost recovery” for parking meter, building permit and tax collection revenue lost due to the pandemic. The alders are slated to take a final vote on that initial $26.3 million plan Monday night.
Based on Gormany’s Friday letter, the alders will also likely vote on Monday night on whether or not to accept this new nearly $25.3 million federal aid allocation. Gormany wrote that county distribution claims must be submitted to the state no later than 5 p.m. on Wednesday.
In regards to how this money might be spent, the proposed resolution accompanying Gorman’s Friday afternoon letter states that the “Board of Alders shall determine the program and method for appropriation of remaining funding received pursuant to the Act following receipt and consideration of an investment plan submitted by the Mayor for the purpose of obtaining advice and input from the Board and the community and ultimate approval of such an investment plan following such advice and input.”
Buda also told the Independent on Monday morning that the restrictions placed on how this county-level aid can be spent will likely be similar to the restrictions placed on the direct local aid portion of American Rescue Plan Act funds. That means: “no” to spending pandemic-era federal aid on debt service or pension payments, but “yes” to spending that money on otherwise helping the city recover from the pandemic.
The new federal aid announcements comes at the same time that the governor and the state legislature continue to negotiate the final terms of a new state budget that could boost the city’s annual receipt of municipal aid by $49 million.