In back-to-back presentations to the Legislative Council on June 2 and the Board of Selectmen June 7, Newtown Finance Director Robert Tait outlined the latest projections of revenue to both the town and Borough of Newtown from the American Rescue Plan (ARP). Connecticut is on track to receive more than $12 billion from the plan.

The latest news from the state’s Office of Fiscal Analysis included a breakdown showing Newtown on track to receive $7,674,000, the Newtown School District qualifying for an added $1,172,000, and the Borough of Newtown also receiving a $580,763 earmark, Tait told The Newtown Bee following the selectmen’s meeting.

Those figures are subject to change in the coming weeks, Tait added, as he also explained to officials that there is an application process that each entity has to complete to secure the funds. The finance director also briefed the council on some of the other specifics and restrictions tied to spending those funds.

At the same time, he said other allocations from the ARP being distributed to other state and regional agencies could possibly benefit the community.

“We may be getting some money to spend at the same time monies are coming in for other functions,” Tait said, noting statewide grants for child care, low-income energy assistance, and transportation projects might be portioned out with Newtown receiving part of that funding as well.

He reminded the selectmen that the deadline to register with the state would be June 9, and that all funds that the town, district, and borough qualified for would be allocated in a split distribution with 50% coming “soon,” and the balance coming in the form of grants passed through the state next year.

Tait told the officials that Newtown has four years in which to obligate the incoming funds, and six years to fully expend them.

Contacted for a reaction, Borough Warden Jay Maher said it was “amazing news,” and that he was looking to analyzing how the borough might be able to allocate those funds. Look for more reporting from The Newtown Bee as the story develops.

Waiting On Webinar

The finance director told the council that allocations from the overall distribution could be applied to six broad categories, and he was anticipating more information from the state on specifics in the coming weeks through a webinar Tait plans to attend.

He said expending funds will all be subject to local Charter stipulations, and the approval of the boards of selectmen, education, finance, and the council.

Responding to a question about spending the full amount from council representative Cathy Reiss, Tait said any unspent funds would presumably have to be returned, and that while the funds pass through the state, the allocations cannot be touched by the state as they were predetermined through the fed.

He also said funds could not be spent to pay off already bonded projects, but could be spent on qualified planned projects that have not yet been bonded, creating measurable taxpayer benefits. Reiss said planned Fairfield Hills water and sewer infrastructure projects would be an ideal area for consideration for spending.

The finance director added that his office and other local agencies receiving ARP funds will be responsible for a lot of post-distribution reporting and conformity over the next six years. During the council meeting, Chair Paul Lundquist noted that it could be challenging to equate the expenditures with COVID-related losses.

“I think that might be a challenge,” he said, “but ultimately this could become a form of tax relief that could help citizens still struggling. It feels like it’s not an easy process to put in a request to meet these needs.”

First Selectman Dan Rosenthal, who attended, agreed, saying conforming to expenditure guidelines is a hot topic among municipal officials. Rosenthal noted that officials are concerned about targeting funds to projects only to learn later that they somehow do not qualify, and that officials know that towns should not reduce budgets in anticipation of promised ARP disbursements.

How To Spend

Councilman Dan Wiedemann asked if funds could be used to underwrite infrastructure improvements and Tait confirmed there was an allowance that could apply to infrastructure. And while the application/registration process faced a tight turnaround, there would be plenty of time for local officials to form a consensus on how applicable funds could be spent.

Rosenthal said there is a possibility that some funds could be applied to community challenge grants for qualifying projects submitted by local groups, nonprofits, and even individuals.

“Some towns are looking at projects they wouldn’t routinely fund, but that have a positive community impact, like arts projects,” he said. “We’re going to have some decisions to make, and maybe there are some things to consider that wouldn’t be traditional projects.”

“It behooves us to be thoughtful [about] every one of those dollars,” Lundquist added. “The devil’s in the details.”

The six areas of allocations as detailed in paperwork submitted by Tait to the council June 2 are:

Support Public Health Response — Fund COVID-19 mitigation efforts, medical expenses, behavioral health care, and certain public health and safety staff;

Replace Public Sector Revenue Loss — Use funds to provide government services to the extent of the reduction in revenue experienced due to the pandemic;

Water and Sewer Infrastructure — Make necessary investments to improve access to clean drinking water and invest in wastewater and stormwater infrastructure;

Address Negative Economic Impacts — Respond to economic harms to workers, families, small businesses, impacted industries, and the public sector;

Premium Pay for Essential Workers — Offer additional support to those who have borne and will bear the greatest health risks because of their service in critical infrastructure sectors; and

Broadband Infrastructure — Make necessary investments to provide unserved or underserved locations with new or expanded broadband access.

Associate Editor John Voket can be reached at john@thebee.com.