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PROPOSED RESOLUTION
ARPA OPEN COMMUNITIES - OBLIGATION OF FUNDS
WHEREAS, on March 11, 2021, the federal government authorized the American Rescue Plan Act of 2021 (“ARPA”) which includes $1.9 trillion in federal stimulus funds to hasten the United States’ recovery from the economic and health effects caused by the COVID-19 pandemic; and
WHEREAS, specifically, the federal government has authorized and allocated a federal award of approximately $1,000,372,385 of ARPA State and Local Fiscal Recovery Funds (“SLFRF”) funding to Cook County to assist the County in its recovery from the economic and health effects of COVID-19; and
WHEREAS, on June 24, 2021, the Cook County American Rescue Plan Act Framework (the “ARPA Framework”) was presented to the Cook County Board of Commissioners; and
WHEREAS, the Cook County Board of Commissioners via Resolution 21-3654 accepted the ARPA federal award allocated to Cook County to assist the County in its recovery from the economic and health effects of COVID-19 in the amount of approximately $1,000,372,385.00; and
WHEREAS, Resolution 21-3654 and 21-3657 further authorized the Cook County Budget Director and Comptroller to create and implement a special fund for the ARPA SLFRF award and other accounting measures to track the acceptance and spending of the federal award; and
WHEREAS, the Cook County Board of Commissioners authorized the Chief Financial Officer, the Director of Budget and Management Services (“Budget Director”), Chief Procurement Officer and applicable using agencies to issue grants, contracts and agreements for ARPA SLFRF programs approved via Resolution 22-0637; and
WHEREAS, since the issuance of the ARPA SLFRF award, the U.S. Treasury (“Treasury”) has issued guidance on obligation and spending rules; and
WHEREAS, in April, 2022 the Treasury adopted the SLFRF Final Rule in Federal Register; in November, 2023 the Treasury issued Obligation Interim Final Rule in Federal Register; in March, 2024 the Treasury updated SLFRF Final Rule FAQs - sub-regulatory guidance; the deadline for Cook County to obligate the full ARPA SLFRF award is December 31, 2024 and the deadline for Cook County to spend the obligated ARPA SLFRF is December 31, 2026; and
WHEREAS, in accordance with Treasury guidance, Cook County had anticipated to obligate a portion of the remaining ARPA SLFRF through Memorandums of Understanding in advance of December 31, 2024 to maximize funding to community programs and be able to obligate 100% of the funding by the federal deadline; however, the Government Accountability Office (GAO) published a letter on December 2, 2024 that cautions against SLFRF recipients expensing funding for costs incurred made after December 31, 2024; and
WHEREAS, Cook County’s actions and strategies to-date are all in alignment with Treasury guidance; however, due to recent shifts in the federal landscape and in accordance with the authority granted in Resolution 21-3657 and in Sections 19, 20 and 21 of the FY 2025 Budget Resolution, Cook County is adjusting its strategy to meet the obligation deadline to reduce risk of funds being later called into question; and
WHEREAS, to mitigate such risk, in close out of the 2024 Fiscal Year, the Budget Director will transfer up to $93M in ARPA SLFRF grant funds in the amounts determined by the Budget Director from the Connected Communities, Healthy Communities, Sustainable Communities, Safe and Thriving Communities and Vital Communities Policy Pillars to the Open Communities Policy Pillar for use of the funds as Revenue Loss; and
WHEREAS, with this action, Cook County will reallocate eligible expenses in the close out of the FY 2024 Budget to the Revenue Replacement Eligible Use Category to successfully meet the obligation deadline of December 31, 2024, and reduce the risk for the County’s ARPA SLFRF award; and
WHEREAS, while continuing to maximize funds for community programs, with the $93M allocation, Cook County will be using only up to $277M of its $428M calculated Revenue Loss.
NOW THEREFORE BE IT RESOLVED to mitigate such risk and in close out of the FY 2024 Fiscal Year, the Cook County Board of Commissioners supports the Budget Director and Comptroller’s transfer of up to $93M in ARPA SLFRF grant funds to the Open Communities Policy Pillar for Revenue Loss; and
BE IT FURTHER RESOLVED, in accordance with Section 27 of the FY 2024 Budget Resolution as well as Sections 19, 20, and 21 of the FY 2025 Budget Resolution, the Cook County Board of Commissioners supports the Budget Director, Comptroller and Chief Financial Officer transferring up to $93M in expenses in FY 2024 to the Revenue Loss program in the ARPA Fund as part of the year end close; and
BE IT FURTHER RESOLVED, the use of such ARPA SLFRF grant funds in the close out of 2024 Fiscal Year will be provided in the Budget Director’s ARPA reports and in accordance with Section 21 of the FY 2025 Budget Resolution through the Final Appropriation Trial Balance for 2024.
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