Stimulus money may come with a catch
Aid formula may shortchange poorer towns, mayors say
Some south suburban mayors say a Cook County formula that was intended to give poorer communities such as theirs a bigger share of federal COVID-19 stimulus money actually hurts more than it helps.
They say it could result in their towns leaving hundreds of thousands of dollars on the table, money they say could greatly help them make up for revenue lost due to the pandemic.
“It’s smoke and mirrors,” said Terry Wells, mayor of Phoenix, as he and other leaders of the Southland Regional Mayoral Black Caucus shared their concerns with the Daily Southtown.
Of the $429 million it received through the federal Coronavirus Aid, Relief, and Economic Security Act, Cook County is doling out $51 million to about 130 suburbs. Townships and fire protection districts can also apply for funds.
Each municipality got a base allocation of $5.90 per resident, plus an “equity lens allocation” that put particular emphasis on granting larger shares to communities that have historically been disenfranchised, have lower median household incomes and a weak tax base.
South suburbs with predominantly minority populations such as Dolton, Harvey and Robbins received larger allocations than better-off communities such as Orland Park and Tinley Park.
The equity formula weighs four components in varying degrees. The factors are: 40% for the percentage of population located in economically disconnected or disinvested areas, as defined by the Chicago Metropolitan Agency for Planning; 30% for median income; 20% for COVID-19 deaths per capita; and 10% for tax base per capita.
Robbins, for example, was allocated $655,000, with almost $623,000 of that coming as a result of its equity lens calculation.
Orland Park was earmarked $475,000, with most of that coming from its population allocation and a bit more than $133,000 from the equity lens formula.
Communities can only use the money for direct COVID-19-related expenses, such as reimbursements for personal protective equipment or modifying office spaces or other work spaces to permit social distancing.
Such expenses incurred between March 1 and the end of this year can be reimbursed.
What it can’t be used to cover is any lost revenue such as reduced sales tax money, amusement tax or
Calumet Park Mayor Ronald Denson is among south suburban mayors critical of Cook County’s distribution of federal COVID-19 stimulus money to suburbs. video gambling tax revenue. “When COVID-19 hit, we all tightened up on
Country Club Hills’ allocation spending,” Wells said. is $520,000, with Mayors said that layoffs about $422,000 of that and furloughs were among attributed to the equity the measures taken to trim lens calculation. costs in the face of declining
Mayor James Ford said revenue. But Ward said that if the city can’t use the the villages lost a lot of tax funding to cover revenue revenue. shortfalls, it could end up “If we can’t make that up losing out on a significant that hurts,” he said. portion of its allocation. Cook County officials
“We looked at our (pandemic did not respond Friday to related) overtime requests for comments costs and we could come about the mayors’ concerns. up with about $100,000” that would be eligible, he Wells and other mayors said. said they also expect to see
Robbins, among the some sort of drop in property state’s poorest communities tax revenue as some with a median household homeowners who’ve had income of just under their work hours cut or $27,000, has so far been who were laid off due to able to identify about the pandemic simply don’t $150,000 in direct expenses pay their taxes. due to the pandemic, “We don’t know that Mayor Tyrone number quite yet,” Wells Ward said. said.
While Phoenix has an Communities are required allocation of $545,000, to notify Cook Wells said his direct costs County by the end of September are in line with those of whether they plan Country Club Hills and to use their full allocation, Robbins. which must be spent by the
“For small communities end of the year. like ours it is difficult to If a town indicates it identify expenses” that won’t use its entire allocation, would total its allocation, the county will reduce he said. “We really don’t the allocation by the anticipated know what we can use.” unused amount. The
Calumet Park’s allocation county says it also reserves is almost $453,000, the right to do an audit nearly $408,000 of it attributed related to allocations and to its equity lens how the money is spent, share, but Mayor Ronald and municipalities have to Denson said he estimates a approve intergovernmental bit more than $100,000 in agreements with the municipal costs are eligible. county. Mayors said that the caucus, comprised of the leaders of 15 communities representing 175,000 south suburban residents, hopes to meet regularly with state elected leaders, and that the group is focusing on issues such as infrastructure, economic development and health care, especially in light of COVID-19 hitting Black and brown communities particularly hard.
Ward said that “timely access to health care” is a priority, especially with the closings in recent years of hospitals in Chicago Heights and Blue Island.
“A lot of people are using the emergency room for their health care,” Denson said.
They said they would like to see the possibility of a Level 1 trauma center, aside from Advocate Christ Medical Center in Oak Lawn, being established to better serve residents.
In its proposal for the south suburban casino license, Matteson has indicated it would like to earmark some of the gambling revenue for such a health care facility.
The mayors said that public safety is also a high priority and that in some instances, such as protests and looting that followed in the wake of George Floyd’s death, their communities’ first responders have been overwhelmed.
While construction is underway on three Amazon merchandise fulfillment centers in Markham, Matteson and University Park and a large logistics center is being built in Country Club Hills, Denson said that until people feel like they are safe in these communities, major economic development will bypass the south suburbs.
“You’ve got to feel comfortable when you go into a community,” Agpawa said. “We understand that, we get it.”