AAC
County Lines
American Rescue Plan funding and its uses are hot topic
County Lines [(ISSN 2576-1137 (print) and ISSN 2576-1145 (online)] is the official publication of the AAC. It is published quarterly. For advertising inquiries, subscriptions or other information, please contact Christy L. Smith at 501.372.7550. Executive Director/Publisher Chris Villines Communications Director/ Managing Editor Christy L. Smith Communications Coordinator/ Editor Holland Doran
AAC Executive Board: Debbie Wise – President Brandon Ellison – Vice President Jimmy Hart – Secretary-Treasurer Tommy Young Terri Harrison Debra Buckner Dana Baker Kevin Cleghorn Terry McNatt Debbie Cross Brenda DeShields Ellen Foote Doug Curtis Gerone Hobbs Marty Boyd John Montgomery Heather Stevens Randy Higgins National Association of Counties (NACo) Board Affiliations Debbie Wise: NACo board member. She is Randolph County Circuit Clerk and president of the AAC Board of Directors. Brandon Ellison: NACo board member. He is Polk County Judge and vice-president of the AAC Board of Directors. Ted Harden: Finance & Intergovernmental Affairs Steering Committee. He is a member of the Jefferson County Quorum Court. David Hudson: Chair of Justice and Public Safety Steering Committee. He is Sebastian Co. Judge and member of Rural Action Caucus Steering Committee and IT Standing Committee. Barry Hyde: Justice and Public Safety Steering Committee. He is the Pulaski County Judge. Rusty McMillon: Justice and Public Safety Steering Committee. He is Greene County Judge Joseph Wood: Community, Economic and Workforce Development Steering Committee. He is Washington County Judge. Kevin Smith: IT Standing Committee. He is the Sebastian County Director of Information Technology Services. Gerone Hobbs: Membership Committee. He is the Pulaski County Coroner. Paul Ellliot: Justice and Public Safety Steering Committee, vice-chair of law enforcement subcommittee. He is a member of the Pulaski County Quorum Court. Ellen Foote: Community, Economic & Workforce Development Steering Committee. She is the Crittenden County Tax Collector. Tawanna Brown:Telecommunications & Technology Steering Committe. She is Crittenden County Chief Computer Operator.
DIRECTOR’S DESK
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s the Summer of 2021 draws to a close, our collective rear-view mirrors have a split screen. When we rolled through spring some folks — Chris Villines AAC smart folks — were beginning to discuss the Executive Director possibility of resuming normal activities this fall and being completely back to normal by say, October. The last half of summer, however, did not comply. Planned and obvious choices of travel and conferences blurred a bit, but I am so happy that we were able to have our annual conference this year in Benton County and very happy to have reconnected with so many of you in August. Full coverage of the conference can be found in the magazine. As we enter the fall, many of you have received a vaccine, and you are comfortable with face-to-face gatherings. Most of the AAC policy team will be out and about to see you as your associations reconvene. This is a great place to remind you that Lindsey French likely will not be there — but for a great reason. Join me in congratulating she and Nick on the arrival of Laney Blake into the French home! When we do get out and about, I’m sure the most discussed issue at our association meetings will be the one that is consuming a lot of time here at the Association. The American Rescue Plan (ARP) is undoubtedly the most complex issue I’ve dealt with that has a federal – county nexus. Our ARP team is working diligently to peel back the layers of ARP money and offer sound advice. This team is made up of myself, Eddie Jones, Mark Whitmore, Josh Curtis and Christy Smith. And, as a part of our team we are thrilled to have one of the best federal experts around working with us in the form of Lindsey Holman. An Arkansas native, she has worked in Washington, D.C., for the National Association of Counties and others, and her experience has been a blessing to our team and all of you. Many of you have her on speed dial already and have asked her volumes of questions. The bottom line is the federal government has launched an extremely complex program and is defining it as it goes along, or as Lindsey Holman would say, “they are flying an airplane while building it.” Until final rules are in place on how the money can be spent, most localities are hesitant to spend much. The dangers of clawback rest solely in the laps of the government (NOT the sub-recipient) that misspends, so most are moving forward with a great degree of trepidation. That said, in this game there are a few layups, a phrase coined by Mark Whitmore for those investments that are less risky and broadly defined by the U.S. Department of Treasury. First and foremost, every county has just been guaranteed a growth rate of 4.1 percent when calculating revenue losses for 2021, 2022 and 2023. Using the Treasury formula for revenue loss calculation (and our judges and treasurers have been well educated on this thanks to helpful folks like Debbie Cross, Greene County Treasurer) many of our counties have growth rates of less than the 4.1 percent for 2021. This means that you can utilize ARP funding to make up the difference between the actual growth rate and the 4.1 >>> percent put forth under ARP. Revenue losses found for each year, 2021-
COUNTY LINES, SUMMER 2021
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