I hope you had a happy New Year. In this week’s letter I discuss some of the federal pandemic relief funds awarded to the State, and the concerns I have with imminent deadlines for their use.
A.The American Rescue Plan Act (“ARPA”) Program
In March, 2021, Congress enacted the American Rescue Plan Act (“ARPA”), which contained several types of aid to state and local governments. The State Fiscal Relief Fund (“SFRF”) allocated $1.1 billion to Rhode Island to spend within certain guidelines discussed in my November 14, 2021 letter, The General Assembly approved a spending plan as part of the 2022 State budget. In addition to specifying the permitted uses of the funds, ARPA, Congress attached deadlines for the use of these funds, requiring states to “obligate” the funds by the end of this year, and to spend them by the end of 2026. Given the current political makeup of the United States Congress, we should not count on any extensions of these deadlines.
B. The Pandemic Recovery Office – Programs At Risk Of Forfeited Funds
The State’s Pandemic Recovery Office oversees the disbursement and use of the SFRF funds. State agencies design the budgeted programs, and the Pandemic Recovery Office transfers funds based on its approval of the design and the amount needed to complete a particular phase of the program. The agency then spends the transferred funds as it makes progress towards completion. The Pandemic Recovery Office assesses the risk that any program will not be successfully completed within the SFRF deadlines. Last week the Senate Fiscal Office prepared a Report describing, among other things, the Pandemic Recovery Office’s list of programs at greatest risk of missing the deadline (which would cause the remaining funds to be forfeited). This table summarizes that list:
| American Rescue Plan Act | |||
| Use of Allocated Funds ($ Million) | |||
| Program | Authorized | Transferred | Spent |
| State Housing Plan | 2.5 | 0 | 0 |
| Ongoing COVID Response | 41.8 | 0 | 0 |
| COVID Baseline | 34.9 | 4 | 0 |
| COVID Testing | 8 | 0 | 0 |
| Health Source RI Auto-Enrollment | 2.6 | 0.5 | 0.5 |
| Small Bus. Technical Assistance | 10.6 | 8 | 0.5 |
| Minority Business Accelerator | 5.2 | 2.1 | 0.1 |
| Child Care Workforce Registry | 1 | 0 | 0 |
| Domestic Violence Survivor Support | 10.5 | 0 | 0 |
| Adult Education Providers | 5 | 0 | 0 |
| Foster Home Fire Safety | 0.9 | 0 | 0 |
| South Quay Marine Terminal | 35 | 0 | 0 |
| Certified Comm. Behavioral Health Clinics | 30 | 8.2 | 0 |
| Psychiatric Residential Treatment Facility | 12 | 2.1 | 2.1 |
| Butler Hosp. Short Term Stay Unit | 8 | 0.6 | 0.5 |
| 9-8-8 Hotline | 3.5 | 0.1 | 0.1 |
| Total | 199.5 | 23.5 | 1.7 |
C. Selected Highlights
In other words, almost $200 million of federal aid programs are at risk of not being completed on time. Here are some highlights:
- The State Housing Plan is a critical foundation for the use of a total of more than $300 million of ARPA funds dedicated to housing.
- The more than $80 million of unspent COVID relief funds reflect in part the amount left over after earlier allocations addressed the emergency conditions of 2020-21. I expect the administration to propose ways to repurpose some of these funds as part of the upcoming budget. With that said, I believe it is important that our first priority will be to use these funds in ways to make us more resilient for future pandemics, and that any ideas to redirect these funds make sense within the short remaining available time.
- The State has not been able to find enough sources of required matching funds to move forward with the South Quay Terminal project. It is important that the administration promptly “fish or cut bait,” e. either line the matching funds or propose (for General Assembly approval) plans to repurpose these funds, again keeping in mind the imminent deadlines.
- The $53.5 million allocated for mental and behavioral health reflects a priority identified in the Rhode Island Foundation’s Make It Happen report. With that said, these programs cannot “make it happen” if they are not implemented on time. Last week, the Providence Journal published an Article describing the Office of Child Advocate’s scathing report concerning the St. Mary’s Home for Children, documenting staff misconduct and malfeasance that caused harm to the children in its care. The State has allocated $11 million to partner with St. Mary’s to build and manage a new residential psychiatric treatment hospital for adolescent girls. It is now imperative to review that project and make any necessary changes within the narrow SFRF time frame.
D. Conclusion
Almost $200 million in federally funded programs are at risk of forfeiture due to the imminent deadlines attached to that funding. I will try to use my position on the Senate Finance Committee to gain the best possible understanding of this problem, and to contribute the best assistance and advocacy to the administration to ensure that Rhode Islanders receive the full benefit of these programs.