NYAPRS Note: Groups like NYAPRS in NY and nationally fought all year long to see that federal stimulus funding is going to state and local aid. Here’re some details on how NYS counties will be faring.
New York Governments Are Getting $24 Billion In Stimulus Aid. Here’s Where It Is Headed
By Joseph Spector Rochester Democrat & Chronicle May 12, 2021
ALBANY – Let the stimulus money flow.
About $24 billion in federal aid from the American Rescue Plan will start heading to New York governments this week, the U.S Treasury announced Monday.
The windfall, part of $350 billion nationally for state and local governments, will be a boon for the state government, cities and large towns, allowing them to close budget gaps and stave off funding cuts after the COVID-19 pandemic shuttered businesses and crippled the economy.
“This funding puts the power in the hands of the people and enables local governments to build back stronger, safer, and healthier,” Rep. Antonio Delgado, D-Rhinebeck, Dutchess County, said in a statement.
The money can be used to support public health efforts, address fiscal shortfalls, fund infrastructure and boost pay of essential workers, lawmakers said.
The money was approved in March by the Democratic-led Congress and President Joe Biden after local governments spent more than a year urging federal leaders to approve aid for them to help balance their books.
“After fighting this pandemic on the frontlines, state and local governments in New York and across the country needed help, and they needed it quickly to keep frontline workers on the job and prevent brutal service cuts,” Senate Majority Leader Chuck Schumer said on the Senate floor Monday.
About $12.7 billion is going to state government to help close a $15 billion gap over two years, and the money was included in the state budget for the fiscal year that started April 1.
The rest will go to cities and counties based on formulas that take into account the size of a community, its wealth and unemployment levels.
It includes $4.3 billion for New York City; $202 million for Rochester; $87 million for Yonkers; $61 million for Utica and $46 million for Binghamton.
About $3.9 billion is going to New York counties, including $188 million for Westchester; $144 million for Monroe County; $75 million for Orange County; $57 million for Dutchess County; and $37 million for Broome County.
The Biden administration launched an online portal Monday that will allow local and state governments to access their share of funds from the Treasury Department.
Most will receive money in two tranches – one this year, the second in 12 months – but states that have seen their unemployment rates increase by 2% or more since February will receive funds in a single payment.
The law mandated the Treasury Department deliver the aid within 60 days of Biden’s signature on March 11, which is Tuesday.
The money, part of the $1.9 trillion COVID relief package that include stimulus checks to the middle class, must be spent by the end of 2024.
Local and state governments are prohibited from using funds to offset tax cuts that were enacted after March 3, limitations that have already prompted the Republican attorney general from Ohio to sue the Biden administration.
In addition, recipients cannot use funds to make a deposit to a pension fund or pad reserves.
