One-time funds were key to local governments weathering COVID-19 pandemic, state auditor says

Many WTIP listeners became familiar with federal-funding acronyms during the COVID-19 pandemic.

There was the CARES ACT, which was passed by Congress on March 25, 2020. Last month marked the two-year anniversary of the American Rescue Plan Act’s (ARPA) passage, and with it, the $350 billion Coronavirus State and Local Fiscal Recovery Funds (SLFRF) program.

All of these funding streams brought money to Cook County and the other 86 counties spread across Minnesota. And it’s these funds, according to the state auditor, that helped local government make it through the pandemic.

“Using one-time funds effectively was key to local governments weathering the global pandemic,” Minnesota Auditor Julie Blaha said.

Blaha and her staff have spent the first few months of 2023 talking with city and county officials across the state to examine the concerns, obstacles and successes of the federal relief programs that impacted local governments.

“Local governments were concerned about what the pandemic would do to their bottom line and if they would be able to transition back to a time without extra COVID-related funds,” Blaha said. “Two years later, the data generally shows spending, debt levels, and reserves are like those before the pandemic.”

Blaha spoke with WTIP’s Joe Friedrichs about the federal funding and other one-time payments that helped local governments navigate the COVID-19 pandemic. Audio below.

Joe Friedrichs April 23, 2023