Berks County officials outline process for American Rescue Plan spending

Oct. 19—Berks County has never seen a flood of federal cash like this, and might not ever again.

Huge amounts of cash have been funneled to governmental bodies like the county to help fight against and recover from the COVID pandemic. Most recently, Berks was allotted nearly $82 million through the American Rescue Plan.

The county commissioners want to make sure that windfall is spent in a way that has the greatest possible impact. But the first decision they will have to make is determining how much of the federal money should be spent directly by the county, and then how much should be doled out to other organizations and groups.

Those issues were the focus of a lengthy discussion at a county operations meeting Tuesday.

Commissioners Chairman Christian Leinbach reported that the senior leadership team is looking very closely at the budget to figure out how much money is needed to address the financial losses the county experienced over the last 19 months. And that impact, he said, was severe.

He said, based on their research, the county could use all the money to compensate for losses that will be felt for years to come.

"If you look at our county prison, county nursing home, Children & Youth Services and a number of other areas, there are significant costs that have impacted the county," he said. "And one of the things that we don't want to do is give away all the money and raise everyone's taxes because we don't have enough money to make up for the losses that the county experienced."

But just because the county could spend all the money on its own doesn't mean it should, Leinbach said.

"We believe we have an obligation to deal with community challenges, especially where the only dollars available are going to be from that $82 million," he said.

The county will have to perform a bit of a balancing act, Leinbach said, knowing that it's unlikely Berks will see the likes of the American Rescue Plan again anytime soon. The federal government might soon "turn off the faucet" when it comes to spending, meaning governmental bodies and other entities may see a drop in funding.

"That means we need to be wise about how we spend these dollars and understand that we may never see this kind of money again in the near future," he said. "And, in fact, we may see a relative drought going forward. So it's a lot of responsibility."

The county has already banked $41 million, the first of two installments of rescue plan money the county is slated to receive. A second installment is expected next May. Municipalities have until the end of 2024 to earmark those funds and until the end of 2026 to spend those funds.

So far, the commissioners have allocated just $6 million. The board voted this summer to give $3 million each to the Reading Fightin Phils and the Santander Arena and Performing Arts Center to help offset financial losses as a result of the pandemic.

Commissioner Kevin Barnhardt said the need in the community is overwhelming. He said the county has already received about 50 inquiries from different organizations seeking a total of $160 million — nearly twice the amount of money the county has received.

"It's critically important to understand that there will be a decision point in the near future," he said. "A lot of this money will be absorbed by the county as lost revenue so that's probably the biggest decision point and then beyond that is what the process will be for organizations that need assistance."

Commissioner Michael Rivera stressed the process will be fair and transparent.

"The process will be open to everyone," he said. "We have been collecting a list of the requests we are aware of but, again, that does not mean that any of those have a priority. Everyone will have a equal opportunity to apply for these funds."

But that doesn't mean everyone who applies will get funding.

"Each application has to meet the guidelines and we have a limited amount of money," he said. "While $82 million sounds like a lot of money, when you start adding things up and looking at the losses the county has suffered the number isn't really all that much."

Leinbach said that is the reason why the county is working where ever they can with the municipalities and school districts to get the most out of the American Rescue Plan dollars. He specifically noted that investing in broadband infrastructure is one of the issues where those efforts could be combined to make the biggest impact.

"We all have a responsibility to work together to ensure that these dollars have the greatest possible benefit in our community," he said. "And that's true in a lot of the areas that we're looking at."

To make sure the money is used in the best way possible, the commissioners have come with a plan for deciding how it will be distributed. Much like how the county dealt with federal CARES Act funding, committees are being set up to deal with different categories of recipients.

The County Operations Committee, which is led by senior leadership, will focus on:

— Assessing and documenting the negative financial impact on the county budget and operations as a result of the COVID pandemic.

The Community Support Committee, led by Barnhardt, will focus on:

— Addressing food insecurity.

— Examining homelessness.

— Studying affordable housing.

— Identifying mental health needs.

— Evaluating community health needs.

— Determining unmet social service needs.

The Business Response Committee, led by Rivera, will focus on:

— Identifying workforce issues.

— Creating additional programs and supports for businesses.

— Establishing programs that promote equity and inclusivity.

— Determining adult basic education needs for the county's underserved population.

The Special Projects and Infrastructure Committee, led by Leinbach, will focus on:

— Determining transportation needs.

— Addressing the water and sewer needs of residents.

— Investigating investments in broadband infrastructure.

— Identifying special projects that could involve arts and culture.

Leinbach said that after an application is approved through a committee it will then be voted on by the commissioners.

In assessing applications, the committees will identify needs in the community, propose funding appropriate to meet those needs, consider the long-term benefits of these investments, coordinate resources with other local governments to avoid a duplication of efforts and determine which programs and projects will be the most impactful and assign priority.

The key questions for consideration include:

— Does the request create a long-term benefit to the county?

— Does the entity have documented plans and competitive bids for the project?

— Will the funding support the underserved community?

— Has the entity received non COVID-related funding? Will there be a matching of funds from these sources or from another government agency?

— Has the entity received COVID-related funding? Will there be a matching of funds from these sources or from another government agency?

— Has the entity applied for non COVID-related funding and been denied?

— Has the entity applied for COVID-related funding and been denied?