Arkansas receives second $786.6 million; now, where to spend? – Talk Business & Politics

Arkansas has an excellent downside to have: What ought to it do with $842 million in federal funds sitting within the financial institution? That quantity – really $841,965,067.52 – is what’s left of cash coming from the American Rescue Plan Act of 2021 (ARPA).

It supplied $195 billion in Coronavirus State and Native Fiscal Restoration Funds to states, the District of Columbia and Puerto Rico. The act additionally supplied $130 billion for native governments.

Arkansas has obtained two tranches every of $786,560,790.40. The second arrived Might 19. The primary got here in June 2021. To this point, $55.4 million has not been allotted from the primary tranche. The cash was transferred to the Arkansas ARP Steering Committee Holding Fund. States have till the tip of 2024 to obligate the cash, and till the tip of 2026 to really spend it.

The 20 states with increased unemployment charges obtained their full quantity final yr, whereas the remainder, together with Arkansas, obtained half final yr and the remainder this yr. Funds can be utilized to exchange misplaced public sector income; reply to the pandemic’s public well being and financial impacts; present premium pay for important employees; and spend money on water, sewer and broadband infrastructure.

In a press convention Friday, Gov. Asa Hutchinson stated his priorities are broadband, workforce training and infrastructure – particularly water initiatives akin to growing the usage of floor water for irrigation.

“It actually comes right down to how a lot can we allocate to every of these areas, and I’ve in my thoughts how they need to be allotted out, however there’s loads of different individuals who have a voice in that,” he stated. “However now that we’ve that cash, I do need to speed up the presentation of these plans to the Legislature, and hopefully we’ll be ready to try this within the close to future.”

Spending proposals are obtained by the Division of Finance and Administration and reviewed by CTEH, a guide with experience in ARPA funding. The cash is allotted to departments that current their proposals to a 15-member ARPA Steering Committee established and appointed by Gov. Asa Hutchinson by govt order and chaired by DFA Secretary Larry Walther.

If that committee approves the funding, it nonetheless have to be permitted by Hutchinson and the Arkansas Legislative Council’s Efficiency Analysis and Expenditure Assessment Subcommittee.

There are not any upcoming Steering Committee conferences scheduled.

Of Arkansas’ share, a big chunk, $309.2 million, has been permitted for the Division of Commerce for broadband providers. One other $2.5 million was permitted for broadband implementation at Arkansas State Parks and welcome facilities. The most important share of the cash permitted has been for well being care-related bills, together with $245.6 million by way of the Division of Human Providers and $121.2 million by way of the Division of Well being.

The DHS funding included $129.2 million for surge workers funding and $116.4 million for unreimbursed prices. The Division of Well being funding included $37.68 million for 3 various care services repurposed to accommodate hospital beds and workers. The PEER Assessment Subcommittee permitted that allocation Aug. 6, 2021.

The remainder of the cash permitted by way of the Division of Well being has gone to growing hospital mattress capability. The PEER Assessment Subcommittee has permitted the next quantities for Division of Well being allocations:

Aug. 6, 2021
– Unity Well being, $10.54 million

Aug. 27
– Jefferson Regional Medical Middle, $2.736 million
– St. Bernards Medical Middle, $3 million
– CHI St. Vincent – Little Rock/Scorching Springs, $12.42 million

Jan. 11, 2022
– Baptist Well being Medical Middle – Conway, $3.528 million
– Baptist Well being – Van Buren, $1.386 million
– Baptist Well being – Fort Smith, $3.024 million
– Conway Regional, $7.65 million
– CHI St. Vincent – Scorching Springs, $6.75 million
– CHI St. Vincent – Little Rock, $6.75 million
– Mercy Hospital Fort Smith, $3.6 million
– Mercy Hospital Northwest Arkansas, $4.052 million
– St. Bernards, $2.565 million
– Unity Well being – White County, $7.875 million
– Washington Regional Medical Middle, $1.44 million
– Arkansas Youngsters’s Hospital, $1.5 million

The College of Arkansas for Medical Sciences has obtained three grants totaling $12.04 million: $5.625 million on Aug. 27, 2021 for surge workers funding by way of DHS; $4.7475 million on Jan. 28 to extend mattress capability by way of the Division of Well being; and $1.668 million on Jan. 28 for the Arkansas Rural Join Program by way of the Arkansas Financial Growth Fee.

One other $48 million was permitted for grants supplied by way of the Division of Finance and Administration, although DFA doesn’t play a task in funding choices. That included $10 million to pay CTEH and $15 million to reimburse state companies for buying pre-approved gadgets akin to private protecting gear and sanitizing provides.

Additionally receiving funding by way of DFA has been the Arkansas Alliance of Boys & Women Golf equipment, which obtained $6.34 million; the Arkansas Coalition Towards Sexual Assault, which obtained $6.29 million; and the Arkansas Coalition Towards Home Violence, which obtained $8.28 million.

Two grants have been permitted however not but awarded. A $1.75 million grant to Girls and Youngsters First for finishing a constructing was returned Might 2 after it was prematurely distributed. The funding shall be distributed to the company for victims of home violence on the correct time. A $375,000 grant to the Ozark Rape Disaster Middle was returned April 27 after it was decided that it ought to have been funded over a multi-year interval.