Updated: September 27, 2021
Commentary
How counties and nonprofits are queuing up for federal stimulus funding
By Rich Hooks Wayman
What would you do if you won the lottery? What if you won a lottery, but you had to spend the money in two years and it came with spending restrictions? Well, Maine counties are facing this quandary right now, and community nonprofits are offering recommendations to advance the common good.
On March 11, President Joe Biden signed the American Rescue Plan Act of 2021 into law.
According to the Maine Center for Economic Policy, Maine counties are estimated to receive $262 million, municipalities $118 million and public land counties $115 million. The amounts vary by population, ranging from Cumberland County ($57 million) to Piscataquis County ($3.2 million).
These funds must be used by Dec. 31, 2024 and have limited eligible uses:
- Support public health expenditures
- Address negative economic impact to workers, households, small businesses and affected industries
- Replace lost public sector revenue for government services
- Provide premium pay for essential workers
- Invest in water, sewer, and broadband infrastructure.
Maine counties have important decisions ahead. Partnering with Maine’s nonprofits will allow counties to distribute funding effectively and leverage relationships. Nonprofits are driven by their charitable missions and hold deep knowledge of community needs, particularly in low-income or hard-to-reach populations.
Counties should balance investment in water, sewers and broadband with human capital and community well-being. People are still hurting. Now is the time to invest in social needs as people try to find their place in this new economy.
Counties may wish to explore how these federal funds can support both the development of affordable housing as well as the establishment of social services. Guidance from the U.S. Treasury encourages local counties to support “populations, households, or geographic areas disproportionately impacted by the pandemic,” which would include communities with deep poverty census tracts and communities of color.
Human change and better health do not happen in a vacuum but through human connections. Maine nonprofits are suited to offer social services and direct care to disproportionately impacted households, including community health workers, home aides, case managers, system navigators, employment support specialists, crisis response services, prevention services for substance use disorders or child neglect, supportive housing programs, financial assistance for childcare, food distribution programs, and mobile health teams.
County commissioners must also weigh other factors:
- How will the money be spent to benefit rural towns and not just urban or suburban centers?
- Will these funds prioritize economic development for local business owners?
- If large contracts are issued for infrastructure projects, will the county ask contractors about their recruitment of persons with disabilities, women, persons of color, veterans, youth, and persons re-entering community life after incarceration?
- Will this time-limited funding be used in a way to seed or launch new programs that will be able to show positive outcomes (based on evaluations) or sustain their projects after the funding goes away?
- Are their ways to leverage these funds to accomplish regional (multi-county) economic development goals?
This offers our local leaders a once-in-a-generation opportunity to make strategic investments to improve the health and well-being of all communities. Maine nonprofits have always been at the forefront of community reforms and are ready to assist in this effort. Let’s get back to work!
Rich Hooks Wayman is president and CEO of Volunteers of America Northern New England.
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