Oregon to get more than $4 billion for state, local government from American Rescue Plan | KATU
PORTLAND, Ore. — Oregon stands to get more than $4 billion in aid for state and local governments courtesy of the recently signed stimulus bill, and officials may have greater flexibility in how they spend those dollars.
Funding comes from the most recent stimulus bill, the American Rescue Plan Act, which dedicated $350 billion to state and local governments. Oregon is estimated to get more than $4 billion, with funds split between the state, counties, and cities.
The state is expected to get an allocation of $2.6 billion. The city of Portland could get just over $200 million.
Here are estimated allocations to other cities and counties, according to the National League of Cities:
- Beaverton: $17.51 million
- Corvallis: $13.81 million
- Gresham: $27.17 million
- Hillsboro: $18.62 million
- Salem: $32.88 million
- Washington County: $116.68 million
- Marion County: $67.46 million
- Multnomah County: $157.65 million
- Clackamas County: $81.10 million
"Our general fund and lottery fund budgets in recent years have been around $25 billion," said House Minority Leader Christine Drazan, R-Canby, in a recent interview with KATU News. "To put that into perspective, $2.6 billion into the state of Oregon is a lot of money. That's in addition to the billion-plus infused into our state over the course of the last year."
Officials are still waiting for guidance from the U.S. Treasury to determine how governments can use the funds. Decision-makers may have some flexibility when they decide how to spend the money when compared to a similar provision from the CARES Act last year.
Statutory language specifically says governments can use the money to respond to the pandemic or its negative economic impacts, including assistance to households, small business, nonprofits, and industries like tourism or travel. They may also use the funds for premium pay to eligible essential workers, up to $13 per hour above regular pay. Officials can also use the money to make up lost revenue, something not allowed under the CARES Act.
The money can't be put into a pension fund and states can't use the funds to offset a tax cut.
Portland Mayor Ted Wheeler wrote to city commissioners and staff earlier this month ahead of passage of the stimulus bill. Anticipating additional funding, he said the city must "remain committed to ensuring our response reduces existing inequities. We must also remain committed to the needs of vulnerable populations and to ensuring our recovery creates a more a resilient, prosperous, healthy, equitable, and just community."
City leaders anticipate they will receive funds in two separate installments, 12 months apart. When possible, the city will make decisions in conjunction with the budget process.
"All other recommendations about the Local Relief Funds will be made later in the spring as the City considers items like community need, capacity to deliver, eligibility of uses, and what our jurisdictional partners consider as part of their investment strategy. The City’s goal is to work across Bureaus and across jurisdictions to avoid duplication of effort and meets the needs of our community in a coordinated way," said Brie Fraley, director of the Office of Government Affairs, in an email to KATU News.
City leaders will discuss the funding further at an April 1 budget session.
This story is part of our Following the Money initiative. If you suspect government waste or a lack of accountability, give our Following the Money reporter, Keaton Thomas, a call or write him an email
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