MANSFIELD — Richland County commissioners on Thursday tripled the amount of COVID-19 “lost revenue” they had previously claimed, thanks to a change in American Rescue Plan Act regulations.
The change, issued by the U.S. Treasury Dept. on Jan. 6, will allow far greater flexibility in how the federal money is spent, according to county administrator Andrew Keller.
The change allowed commissioners to claim $10 million in lost revenue due to the COVID-19 pandemic, up from the $3.2 million they claimed in September 2021.
The county is receiving $23.4 million in total ARPA funding, divided equally between 2021 and 2022.
Commissioners have appropriated $1 million in ARPA funding for a targeted small-business grant program and $2 million to help expand broadband internet access to unserved and underserved portions of the county.
That leaves commissioners still with about $20 million to utilize in the ARPA funds.
“Lost revenue” projections under the “interim, final” rules were based on a complicated formula. Keller and county Auditor Pat Dropsey said now simply claiming the $10 million under the new rules would be a better move.
“No calculation of loss is necessary. It can presumed (the county) experienced $10 million in revenue loss,” said Keller, a former Richland County assistant county prosecutor whom commissioners hired in October.
One of his primary roles is to assist commissioners in navigating the ARPA regulations and spending requirements.
“Flexibility is the name of the game with the final (ARPA) rules,” Keller said Thursday, adding the Treasury Dept. adopted the changes after a great deal of feedback and questions from local governments after “interim final” rules were issued in May 2021.
“(The changes) were welcomed across the country,” Keller said. “Local governments felt a little hamstrung by the final, interim rules. It gave local governments a little longer leash in the final rules.”
Keller and commissioners said funds set aside as “lost revenue” can be used for a variety of things, including “traditional county services.”
He said the federal reporting requirements using “lost revenue” funds are now not as stringent and the written justification process is streamlined.
“It makes sense for the county to take advantage of this,” Keller said, indicating “traditional county services” could include areas such as road repair, water/sewer projects, permanent/capital improvements and even day-to-day needs.
“We would be hard-pressed to find something that could not be identified as ‘traditional county services,'” Commissioner Tony Vero said.
Vero said county officials had not rushed to spend ARPA funds, anticipating changes in the rules.
“That is one of the reasons we waited,” he said. “We learned our lesson from (the federal CARES Act in 2020). We knew changes would be forthcoming.
“We didn’t want to throw all our chips into the center of the table without knowing what our cards would be,” Vero said.
Keller pointed out nearly all other county municipalities, villages and townships who received less than $10 million in ARPA funding can now claim their entire award as “lost revenue.”
The exception is the City of Mansfield, which is receiving about $21 million in ARPA funds. The city has claimed $5 million in lost revenue in 2021 and it’s not known if Mayor Tim Theaker’s administration will seek to increase that amount.
Vero said the county will likely use the “lost revenue” funds to help pay for a new fourth courtroom being established inside the county administration building.
“COVID has really impacted the courts,” Keller said. “When you talk to judges and administrative staff, it’s hard to get your mind wrapped around what COVID has done in terms of things like jury pools, social distancing.
“There is a backlog in the courts (due to COVID). The Treasury Department’s final rules acknowledge clogged courts. There is no question an additional courtroom will alleviate some of the backlog,” Keller said.
Commissioners then approved maintenance department purchases totaling about $50,000 using the “lost revenue” funds, buying a new zero-turn mower and a used pickup truck.
Vero cautioned commissioners are still working on ideas with a community steering committee, an effort with the Greater Ohio Policy Council, funded by the Richland County Foundation.
He said the committee, which includes Theaker, is looking at “bigger-ticket” ideas that will have a long-term benefit, including a new community center on Mansfield’s north side.
Commissioner Darrell Banks, who has previously expressed concerns about the committee coming up with plans on how to spend the county’s ARPA funds, bristled at the term “steering committee.”
“It’s an advisory committee,” he said. “I have made that clear several times and I want it to be clear (again).”
