Pittsburgh Post-Gazette

Stimulus funds to give local government­s fiscal breathing room

- By Julian Routh Julian Routh: jrouth@postgazett­e.com, 412-263-1952 or Twitter@julianrout­h

All the unpaid debts, delayed capital projects and tight purse strings that local government­s in Pennsylvan­ia have had to carefully maneuver since the beginning of the COVID-19 pandemic may soon be alleviated by hundreds of millions of dollars in direct federal aid.

In the Southweste­rn Pennsylvan­ia counties surroundin­g Allegheny, more than $500 million will pour into the region over the next year from the federal stimulus package, allocated to help local government­s recover economical­ly from a pandemic that has strained their treasuries.

But even though the funds won’t come with as many restrictio­ns as last year’s stimulus and won’t have to trickle down from the state, officials in the counties, townships and boroughs said they want to make smart decisions with the money and build for the future.

“With this, I think that if you plan for the future, the people of Butler County will reap the benefits for 10, 20 years from these dollars,” Commission­er Kevin Boozel said of the stimulus. “Filling a hole is not my plan.”

Like other county commission­ers, Butler’s chairwoman, Leslie Osche, said the board still has to assess how they’re permitted to spend their haul, which is estimated at about $36 million, and look at its budget forecast five to 10 years out.

While the board’s chair named water, sewer, broadband infrastruc­ture and the cost of the vaccine as potential focal points, Mr. Boozel said — in a philosophi­cal sense of good governance — that he’d like to see the money build a solid foundation for an accessible, modern county government.

In Butler’s largest municipali­ty, Cranberry, the board of supervisor­s is mulling what to do with the $3.1 million they’ll be receiving directly. During the CARES Act cycle, the township was able to file about $1 million of expenses, Supervisor Dick Hadley said.

Although the township has been fiscally conservati­ve and had built reserves for rainy days, they didn’t plan for a “rainy year,” Mr. Hadley said. Tax revenue has taken a hit, the extent of which — in some cases — is still unknown, he noted.

Mr. Hadley said the all-Republican board of supervisor­s will sit down to discuss where the money should go.

“We don’t have a full picture of what the requiremen­ts are yet, but certainly, we deferred some capital projects, some buying of equipment, police cars, trucks. We just pushed it all back,” Mr. Hadley said. “This may give us an opportunit­y to bring them back online.”

Wait and see

Westmorela­nd County’s commission­ers haven’t begun to discuss how they’ll spend their $107 million allotment and are waiting to see if there will be as many restrictio­ns as the CARES Act stimulus, Commission­er Gina Cerilli said.

The new money could lend a hand to businesses in the hospitalit­y industry, Ms. Cerilli said, which the county has tried to help recently with funds from a separate grant program. That grant — totaling $3.9 million — can make only a dent in supporting the 1,200 businesses in question, shenoted.

Although she said some of the money could go toward county expenses, Ms. Cerilli recommende­d the board prioritize getting the money to smallbusin­esses and nonprofits again — as they did with thefirst round of stimulus.

The county also could invest in the infrastruc­ture for broadband, a pursuit they couldn’t undertake during the last stimulus because there

was a strict deadline for the spending,Ms. Cerilli said.

Also citing the need for more broadband were commission­ers in Washington County, which should get about $98 million from the package. In some of the more rural areas, school parking lots have become popular spots for students to connect to WiFi, Commission­er Larry Maggisaid.

Fayette County used $5 millionof the first stimulus to installa “pretty big footprint” of hot spots for broadband, Commission­er Dave Lohr said, so parents could work from home and children could learn virtually.

If they have a relatively clean slate to work from with their $25 million share, Mr. Lohr said Fayette County officials could improve broadband, help municipali­ties with infrastruc­ture projects, extend the airport runway, and work on water and sewage lines.

It helps that the county’s budget is in good shape, Mr. Lohrsaid.

“Does that take us out of the mix as far as looking at the budget and making sure we stay safe? No, we will do that,”Mr. Lohr said.

Butler County’s budget isn’t lagging, Mr. Boozel said, because the commission­ers took steps in recent years to prepare for an uncertain future. The last stimulus helped,too, he added.

Thecounty’s haul from the first round of stimulus last year was $16.8 million, and the commission­ers decided to give about half of it to local municipali­ties so it could get one bureaucrat­ic step closer tothe people, Mr. Boozel said.

The Democrat on the GOPmajorit­ycouncil, talking a bit candidly about his priorities and what he’d like to see from the stimulus, said he hopes there will be a focus on alleviatin­g some of the deferred costs the county has taken on, noting that every county has bonds out and different ongoing capital projects.

“I’ll be honest: I don’t think the $36 million is going to help me in my administra­tion,” Mr. Boozel said, referring to the present-day county government. “It’s not for today. It’s for years — 10 years— out.”

“We are most interested in maintainin­g stability for our taxpayers now and into the future,” Ms. Osche added. “As such, we will need to adopt a strategyth­at provides that stability amidst the actions by leadersat state and federal levels that will have much longer-term negative effects on ourtaxpaye­rs.”

Seeking input

There is consensus on the board that public input is necessary. That could include some type of public hearing, Ms. Osche said.

“Public input is crucial to the public taxpayers having a say in where these dollars are to be directed and invested countywide and for what purposes,” Butler Commission­er Kim Geyer said. “These are their dollars and their future, and taxpayers should have a say in how those dollars are spent.”

In Washington County, the board likely will seek input from industry, health care providers and educators to help determine where aid is needed most, Commission­er DianaIrey Vaughan said.

Washington’s commission­ers stressed their desire to help hospitals — notably, the Monongahel­a Valley Hospital and Washington Health System — which have “gone to great expense and great financial loss to administer the COVID vaccine,” Ms. Irey Vaughansai­d.

Hospitals that were already struggling from the effects of having to suspend elective surgeries had to then administer the vaccine at a cost greater than what they receive per shot, and as a result, they are losing millions, the Washington County commission­er said.

“I would hope that we can compensate them for that loss,”Ms. Irey Vaughan said.

Either way, they all agree that pork-barrel spending and pet projects will have no place in their expenditur­es. The county is in decent financial shape because the board’s careful spending over the years put them “in a good position to weather the storm,” Mr.Maggi said.

“We will not be needing these tax dollars to do any county bail-out program,” Commission­erNick Sherman said,noting that revenue from the Meadows Racetrack and Casino and from natural gas royalties have helped keep theirfinan­ces steady.

“Hopefully, we get the kids back to school, the parents back to work, and use this as a platform or springboar­d to get our economy going,” Mr. Sherman added.

 ?? Post-Gazette ?? The Meadows Racetrack and Casino has helped Washington County local government­s get through the yearlong pandemic.
Post-Gazette The Meadows Racetrack and Casino has helped Washington County local government­s get through the yearlong pandemic.

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