Dems on Erie County Council say Davis budget for Rescue Plan is vague, ignores minorities

Since taking office in January, Erie County Executive Brenton Davis has sought to repeal and replace a massive COVID-19 relief plan approved by his predecessor.

On Thursday, his first serious attempt at a replacement fell short.

In a contentious two-hour work session, Davis clashed with members of Erie County Council over his proposed re-budgeting of $26.2 million in American Rescue Plan money awarded to the county.

Davis, whose administration developed the new budget with a three-person ad hoc committee, consisting of council members Brian Shank and Ellen Schauerman, both fellow Republicans, and Jim Winarski, a Democrat, said the proposal was merely a "framework," designed for council to agree on areas of investment as opposed to specifics on who exactly will get the money.

Davis seeks to re-budget Rescue Plan:Davis seeks to re-budget Erie County's 2022 American Rescue Plan funds

Council members Mary Rennie and Andre Horton, both Democrats, blasted the lack of detail and said they wouldn't commit to any budget without more information. They also said Davis was more keen to prop up new industries as opposed to serving hard-hit minority communities.

"The American Rescue Plan was intended for those most negatively impacted by the COVID-19 pandemic," Horton said, "and it was also supposed to help those demographics who've been historically impacted ― and that would be Black and brown people."

Davis accused Democrats of grandstanding and using stall tactics to delay his efforts to build partnerships.

"I don't know how we can seriously seek any kind of community partners when we don't have a serious commitment," he said.

While council unanimously agreed to not move the budget forward and to have more work sessions, the stand-off between Davis and Democrats revealed what has been — and what will be — a central question surrounding the use of Rescue Plan funds in the county: Should the money be used on long-term and potentially lucrative business projects or serve the immediate needs of those most affected by the COVID-19 pandemic?

Davis pushes 'generalities,' Democrats want specifics

The $26 million represents the second half of a $52-million pot of Rescue Plan funds awarded to the county. Both halves were unanimously budgeted by the former County Council in 2021 and approved by then-Erie County Executive Kathy Dahlkemper.

Davis has argued the second half was hastily budgeted as Dahlkemper prepared to leave office and that his administration should have an opportunity to revise it. He's also said the U.S. Treasury released new, more expansive guidelines in April and allow for Rescue Plan funds to be used more broadly, and potentially toward his economic development priorities.

Davis seeks regional partners:Davis seeks regional partnerships to maximize federal grant funding

In July, council formed the ad hoc committee to study these guidelines and recommend any budget changes to council. The committee met four times, each time with Davis in his office, according to a statement from the administration and Shank.

The proposed budget Thursday was considered a potential ordinance for the Oct. 4 regular council meeting, as requested by the administration.

But council members, including Horton, said this was the first time the full council saw the budget.

"The seven of us collectively have not had time to digest or even peruse this," he said.

Davis, township leaders support changes:Davis joins township officials to urge Erie County re-budgeting of federal spending plan

Rennie said the proposal was severely lacking details that were present during the budgeting of the first round of Rescue Plan funds in 2021. She insisted the administration provide supplementary documentation and exhibits that break down every bureau and program receiving funds, as well as descriptions and plans of action for each.

"When we sign our names to these ordinances and resolutions, they become law," Rennie said. "We bear the weight. Our one signature is really signing for tens of thousands of people that we represent and that's why it's so important to know what we're signing and that everything we sign is backed up by written rationale. These aren't suggestions, this is the way council operates."

Davis said the ad hoc committee was only meant to develop a budget plan of "generalities," a basic framework of investments that council could agree on and commit the $26 million toward. He said once the money is committed, it will be easier to build partnerships and find leveraging opportunities.

"Counties that can't allocate and move progress forward aren't going to be as competitive as counties that can," he said.

He added it would be an "egregious abuse" of taxpayer dollars for the administration to fill in all the requested details only for council to reject the proposal.

Rennie responded by saying "that's (the county executive's) job."

Proposed budget eliminates diversity commission funding, focuses on business 'clusters'

Among the changes in the proposed budget was an elimination of funding to the Erie County Diversity, Equity and Inclusion Commission, or Diverse Erie, which was created in 2021 to invest in communities of Black, Indigenous and People of Color.

The commission was allocated to receive $3.5 million as part of its second round of Rescue Plan funds.

The Rev. Dwane Brock, bishop of the Victory Christian Center Cathedral in Erie, who attended a council finance meeting immediately after the work session, said Davis was demonstrating "insensitivity" toward marginalized communities.

Diverse Erie awards grants:Diverse Erie makes $1.1 million in grants to drive generational impact in BIPOC communities

DEI Commission wary of budget cuts:Erie Diversity, Equity and Inclusion Commission still in early stages, wary of budget cuts

"Obviously, he doesn't recognize it, but if he does recognize it, he's just ignoring it," Brock told the Erie Times-News. "It's a travesty to humanity and a travesty to poor people in the minority community within Erie, Pennsylvania, and Erie County, and he ought to be ashamed of himself for it."

County Director of Administration Doug Smith and County Information Officer Chris Carroll declined to comment on the matter Thursday.

The budget also eliminates funding for an urban renewal and community development budget line, as well as an entrepreneurship budget line.

New investments included the Beehive Network, Lake Erie Watershed Protection, county re-entry services, general community investment projects and education technology grants. The budget maintained funding for the Erie County Community College and the Homeless Project Grant program.

Davis said part of his vision was to leverage Rescue Plan dollars toward projects like Project RESOLVE at Penn State Behrend, with its focus on plastics, and Project Neptune at Gannon University, with its focus on water-quality testing, and tap into what he called a multi-trillion-dollar Great Lakes economy.

Davis and Project RESOLVE:3 Erie County Council members say Davis plan could divert ARP dollars from hard-hit areas

"Put those two projects together, that essentially makes us the epicenter for water pollution, plastics pollution (research and testing),'" Davis said. "I think this is merely a catalyst for larger returns."

Horton reminded council that it passed a $531 million county budget in 2021 and that "we probably spent less than $1.5 to $2 million on communities of color."

"All these shovel-ready projects — it looks like the rich are going to get richer, and those who have the capacity to put forward stuff quicker or have the grant writers," he said. "It doesn't appear to me that a lot of thought has been given to the American Rescue Plan's mission of impacting those communities and demographics most affected by the pandemic."

A.J. Rao can be reached at arao@gannett.com. Follow him on Twitter @ETNRao.

This article originally appeared on Erie Times-News: Erie County Executive Brenton Davis re-budget of Rescue Plan under fire