City Council Finance Committee to Review Possible Action on Uncommitted Funds From American Rescue Plan Act

On Monday the Pasadena City Council Finance Committee will review possible action recommendations for uncommitted funds received from the American Rescue Plan Act (ARPA).

The ARPA is a $1.9 trillion economic stimulus bill signed into law by President Biden on March 11, 2021. Within the ARPA total allocation, there is $350 billion for state, local, territorial, and Tribal governments to respond to the COVID-19 emergency.

Pasadena’s allocation of direct local stimulus was $52,625,975. The first 50% allocation paid to the City in June 2021 and the balance in June 2022.

The City has committed $32.3 million of ARPA funds with $20.3 million remaining as uncommitted. 

Within the past month, two federal bills have been introduced that include language to claw back any uncommitted ARPA funds. 

Since Pasadena has documented more than $180 million in revenue loss per the U.S. Treasury’s accounting methodology, the City could, according to City Director Finance Matthew Hawkesworth, immediately recognize and expend all remaining ARPA funds under the revenue loss category as part of the FY 2023 Operating Budget.

“The ARPA funds have provided stabilization of funding for the COVID-19 response and recovery efforts, maintaining needed services, and reinvestment in the City’s infrastructure,” Hawkesworth observed in a New Business agenda memorandum to the Committee. “Appropriating funds to stabilize the General Fund from revenue losses, will ensure that this fund remains solvent. Financial plans will continue to be made, to develop balanced budgets into the future.”

The City Council will ultimately decide how to use the uncommitted ARPA funds. 

The Finance Committee meeting will be held at 3:00 pm on May 8 in the Council Chambers at City Hall. The public is invited to attend. Livestream with captioning will be available at www.pasadenamedia.org, and also at www.cityofpasadena.net/commissions/agendas,”