Erie County Council OKs funding for underserved groups. But budget procedure could be roadblock

Erie County Council on Tuesday approved more than $2 million in pandemic relief to help support marginalized communities. But citing local law, the Brenton Davis administration argued the votes were improper and has vowed to hold the money back.

Here's what to know.

Council greenlit funds for DEI Commission, homeless

In a 5-2 vote, council approved $1.5 million in American Rescue Plan funds to the Erie County Diversity, Equity and Inclusion Commission, or Diverse Erie.

The commission, which has operated on a budget of $3.5 million in ARP funds since 2021, was poised to run out of money by June, making Tuesday’s vote a virtual lifeline.

Diverse Erie Chief Administrative Officer Gary Lee said the commission has roughly $600,000 remaining in unallocated funds. The $1.5 million, he said, will allow the commission to engage in homeownership, apprenticeship and health care programs for the foreseeable future.

“I’m thrilled that County Council has taken the steps to do the right thing,” he said. “It’s very important to get this money to the business owners and organizations that are attempting to take the (Black, Indigenous and people of color) community to the next level.”

In another 5-2 vote, council approved $1 million in ARP funds to support the homeless population. The funds will be managed by Erie County Care Management.

Councilmember Andre Horton, a vocal supporter of both votes, said ARP funds were specifically designed to help those most adversely affected by the COVID-19 pandemic.

Referring to the homeless and the BIPOC community, he stressed, “I don’t think there’s a more deserving population under the ARP.”

Administration says council violated Home Rule Charter

The two votes, however, could be all for naught.

According to the Erie County Home Rule Charter, the county executive must first certify the availability of funds before council can approve a supplemental appropriation of those funds.

Erie County Public Information Officer Chris Carroll said the administration has not certified the funds associated with the two approved ordinances.

As such, he said, council “operated outside of their abilities” by voting without certification.

“The Home Rule Charter is clear when it states that all supplemental appropriations need to be certified by the executive,” Carroll said. “These votes are invalid. They’re dead right now because (council) didn’t follow the process. These ordinances hold no weight with the administration … and, in our eyes, are not legal.”

Council Solicitor Tom Talarico similarly warned that council would be “overstepping its authority” by approving the ordinances, insisting “certification has to come first.”

Talarico recommended that council vote to “restrict” the funds instead, stating this was within council’s authority and would lock the ARP funds until spending plans were fleshed out.

Councilmember Ellen Schauerman, who along with Councilmember Charlie Bayle, voted against both ordinances, said she agreed with Talarico’s advice and made a motion to restrict the funds. The motion failed after only Schauerman and Bayle supported it.

“I think justice delayed is justice denied,” Horton said. “We should move this up or down. And if we can’t override a veto, we’ll come back and restrict. But I think we absolutely have to take a stand.”

“If the county executive doesn’t want to certify it, it’s his prerogative,” Councilmember Terry Scutella added. “It’s his issue and he has to answer for it. If you want to sit there and watch somebody wither on the vine that you can help now, then shame on you.”

Why won’t Davis certify the funds?

The Davis administration has always had a rocky relationship with Diverse Erie.

Even before the commission released any money, Davis had cut through the ranks of the organization, removing six of its nine original members for what he considered "blatant conflicts of interest,” an accusation that was refuted by the commission’s solicitor.

Davis also re-allocated the commission’s second round of $3.5 million in ARP funds, which had been unanimously approved by council in 2021.

Carroll on Tuesday further called out the commission, telling the Erie Times-News that one-third of the commission’s budget had gone toward overhead costs and Lee’s annual salary of $150,000.

“There’s a lot of questions that surround the use of that money,” Carroll said. “The county executive is not comfortable with another investment in them when they haven’t showed the ability to leverage their funds.”

As far as the homeless ordinance, Carroll said the administration was not prepared to certify the funds without a more detailed plan.

“One organization ― ECCM ― cannot speak for the entire homeless problem throughout Erie County,” he said. “There’s a lot of different needs that need to be met. The county executive has stated that $1 million is not enough. We want a $2 million to $2.5 million homeless initiative. But we want a plan. Giving money to ECCM without a plan is not in the best interest of Erie County residents.”

Horton argued that ECCM was more than capable of developing a plan, coordinating with organizations and distributing the $1 million without the administration.

“There’s not another entity or organization this side of the Mississippi that’s probably far better prepared to do this kind of work than the ECCM,” Horton said. “This is what they do.”

Horton said legal action might be a possibility if Davis refuses to certify the funds.

Council has already filed a lawsuit against Davis for adding funds back into the adopted 2023 and 2024 budgets.

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

This article originally appeared on Erie Times-News: Erie County PA Council OKs ARP funds for DEI, homeless