How We Used Flexible Federal ARPA Dollars
May 13, 2022
In response to the COVID-19 pandemic, the Federal government provided states with three large stimulus packages partially aimed at mitigating impacts on the economy. The Coronavirus Aid, Relief, and Economic Security Act (CARES) and companion Families First Coronavirus Response Act passed in March of 2020 (roughly $13.6 billion for Utah), followed by the Consolidated Appropriations Act in December of 2020 (approximately $4.3 billion).
ARPA Funding Overview
The third round of funding, the American Rescue Plan Act (ARPA), was passed in March 2021 and included roughly $9.2 billion in aid for Utah. Of that, ARPA provided the state with $1.38 billion in discretionary grants through the State and Local Fiscal Recovery Fund (SLFRF). In addition to the SLFRF, Utah received $136 million specifically to fund capital projects in the aptly named Capital Projects Fund (CPF).
Allowable Uses for SLFRF Funds
SLFRF funds are authorized for several use categories, including:
Activities related to COVID-19 response, mitigation, and prevention;
Replenishment of state unemployment trust funds;
Assistance to households;
Assistance to small businesses and non-profits;
Prevention and response to crime and support of public safety;
Assistance to impacted industries other than tourism, travel, and hospitality, as long as there is a demonstrated impact;
Assistance to populations, households, or geographic areas disproportionately impacted by the pandemic; and
Water, sewer, and broadband infrastructure projects.
SLFRF funds can also be used to provide government services under ‘revenue replacement.’ If state “own source” revenue, as defined by the Census Bureau, falls below a calculated baseline, states can use SLFRF allocations to pay for regularly occurring state services. For more information on allowable uses, check out this post from September 2021.
Legislative Appropriations and Table 1
In the 2021 1st Special Session, the Legislature appropriated $571.2 million (about 41 percent) of total flexible funds allocated under ARPA. During the 2022 General Session, legislators authorized the additional amounts shown in Table 1, below.
2022 General Session ARPA Funded Item
FY 2022
FY 2023
Total
Bill #
Agricultural Water Optimization
50,000,000
50,000,000
S.B. 3
ARPA Projects – Court Caseload
3,000,000
3,000,000
H.B. 2
ARPA Rural Drinking Water Projects
25,000,000
25,000,000
S.B. 3
Conservation (Secondary Water Metering)
200,000,000
200,000,000
H.B. 3
Criminal Justice Data Integration
8,304,100
8,304,100
H.B. 3
Deeply Affordable Housing
55,000,000
55,000,000
S.B. 238
Department of Insurance Technical Correction
50,400
50,400
S.B. 3
Emergency Communications Equipment – Enhanced Interoperability
(10,460,000)
10,460,000
H.B. 3
Event Service Industry Revitalization
4,500,000
4,500,000
S.B. 3
Homeless Resource Center Loan Repayment
1,000,000
1,000,000
H.B. 440
InUtah Pandemic Outreach
(1,000,000)
(1,000,000)
H.B. 3
Learn & Work In Utah Expansion
15,000,000
15,000,000
H.B. 2
Local Match Program
25,000,000
25,000,000
H.B. 2
Mental Health Support for Students
3,000,000
3,000,000
H.B. 2
Redevelopment Matching Grant for Affordable Housing
(5,000,000)
(5,000,000)
H.B. 3
Restricted Fund Decrease
(50,400)
(50,400)
H.B. 3
Southern Utah – Recycle/Reuse
15,000,000
15,000,000
H.B. 3
System Infrastructure, Optimization, & Enhancements
37,376,600
37,376,600
H.B. 3
Teacher Bonuses for Extra Assignments
10,000,000
10,000,000
S.B. 2
Temporary Utah County Refugee Housing
300,000
300,000
H.B. 3
UETN – K-12 Telehealth Equipment
4,432,000
4,432,400
S.B. 3
UETN – Network Infrastructure (ARPA)
13,450,000
13,450,000
S.B. 3
UETN – Telehealth Equipment Replacement
1,413,400
1,413,000
S.B. 3
Utah Lake Preservation
30,000,000
30,000,000
S.B. 3
Utah State University – Monument Valley
5,000,000
5,000,000
S.B. 3
Water Conservation Modifications
5,150,000
5,150,000
H.B. 3
West Weber Site Sewer Infrastructure
5,000,000
5,000,000
S.B. 3
Workforce Development Transition into Tech Careers
300,000
300,000
H.B. 3
Revenue Replacement
332,773,900
332,773,900
H.B. 3
2022 General Session Appropriation Total
$747,985,900
$96,014,100
$844,000,000
Table 1*
Comparison of Proposed vs. Final Allocations
Prior to making any of these appropriations, in May of 2021, the Executive Appropriations Committee divided SLFRF and capital project funds into “buckets”. The following table compares the original buckets to current appropriations as of the end of the 2022 General Session:
May Proposal
Final Allocation
Revenue Replacement, Unemployment Solvency, and Infrastructure
630,000,000
445,773,900
Public Health Response and Remediation
205,000,000
121,500,000
Impacted Economies
65,000,000
141,800,000
Water Infrastructure
280,000,000
430,150,000
Networking and Broadband
175,000,000
121,672,000
Education Remediation
80,000,000
25,000,000
Emergency Preparedness
110,000,000
20,790,000
Access to Justice
35,000,000
23,304,100
Housing and Homelessness
70,000,000
85,300,000
Adjustment to May Estimated Allocation
(136,147,000)
Total Allocations
$1,513,853,000
$1,415,290,000
Balance
$98,563,000
Table 2
Capital Projects Fund (CPF) Potential Allocations
A portion of the funding in these buckets might qualify for Utah’s $136 million ARPA Capital Projects Fund allocation. The CPF is limited to broadband expansion or investment in facilities that enable work, education, and healthcare monitoring. While final approval of CPF projects must come from the U.S. Treasury, the Legislature submits that the projects listed below in Table 3 could qualify for CPF funding.
Potential Capital Fund Allocation
Amount
UETN K-12
4,432,000
UETN Network Infrastructure
13,450,000
UETN Telehealth Replacement
1,413,000
Go Utah Rural Broadband
10,000,000
Huntsman Mental Health
90,000,000
Navajo Mountain
5,000,000
Total
$124,295,000
Table 3
Remaining Discretionary Funding
Just shy of $100 million in discretionary ARPA funding remains for legislators to appropriate. Whether these funds will be available under the more flexible SLFRF or limited to the CPF will depend upon how the U.S. Treasury rules on Utah’s proposed capital projects.
*Descriptions for each of the funding items in table 1 can be found at: https://cobi.utah.gov/2022/1/issues.
