With self-imposed deadline approaching, Council rushes to divide stimulus funds

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City council members plan to approve a spending framework for the remaining $ 143.6 million in American Rescue Plan funds, but allocations for a variety of services and programs are still flowing as their Thursday session approaches.

Because of the upcoming summer break, the council has to decide how to use the funds or wait almost two months until the next meeting on July 29th.

Most council members are in favor of moving forward, pointing out urgent uses like rental support that need funding now, but some said at the special session convened on Monday that they felt rushed and said they were against the framework for lack of details could be true.

The funds are not spent immediately. The council’s framework will only instruct the city’s staff on how to spend the funds, much of which will go back to the council in the form of contracts or other items of expenditure.

The council has two competing frames to refer to before the meeting. The staff suggested a spending limit based on the previous direction while Mayor Steve Adler has proposed a separate spending frameworkwith different amounts for some expenditure categories. Financing for the homeless is used Bulk of expenses in both frames.

There are two main differences between the frameworks: Adler cut $ 10 million in historic preservation funds that employees had picked up and also suggested spending reserve funds, which employees didn’t. The council will wrestle with both alternatives on Thursday, with some members in favor of monument protection and the use of reserve funds, others against.

The level of funding for food insecurity can also change. Employees suggested spending $ 3 million in ARP funding on food insecurity, including developing a food system plan for Austin / Travis County, expanding emergency food access programs, and funding co-operatives and nonprofit grocery stores. However, some argued that the amount was too small.

“I really appreciate the staff who … integrate multiple elements of food access,” said Councilor Kathie Tovo. “But I think that number is low.”

Councilor Vanessa Fuentes, who also supported increased funding for food insecurity, linked the initiative with the city’s disaster risk reduction goals. “We must learn from the hardships suffered during the Covid-19 pandemic and winter storm Uri to ensure that the systemic inequalities in food access that plague our communities are not exacerbated in future emergencies,” wrote Fuentes on the city council’s message board.

Another disaster risk reduction initiative, Resilience hubsShe might also see money even though it is not included in any of the spending plans. While staff haven’t estimated the cost of setting up a Resilience Hub pilot program, Tovo argued that the council should still use ARPA to fund such a program. “This is, I believe, our best opportunity to really make the investments in some of the resilience work that we know we need,” said Tovo, estimating the program at at least $ 1 million.

Adler noted that compromises will be required due to the limited resources available. “One of the hardest things about being a council is choosing between priorities,” he said.

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