PROVIDENCE – On the heels of the General Assembly’s approval to spend an initial tranche of federal stimulus dollars, the capital city is following suit with its own plan for doling out the remainder of its American Rescue Plan Act dollars.
Mayor Jorge O. Elorza in a virtual press conference on Wednesday outlined his recommendations for how to spend the remaining $123.8 million in city ARPA funds over the next two years. The budget ordinance largely follows the recommendations set forth by the Providence COVID-19 Recovery and Resiliency Task Force, which were based upon community feedback.
Like the task force’s final report, Elorza has called for the largest chunk of city ARPA funds, $28.1 million, to support affordable housing and homelessness initiatives. This includes $17 million directly to the Providence Redevelopment Agency to help acquire and renovate properties for affordable housing, along with contributions to the state Consolidated Homeless Fund, which pays for shelter operations and renovations and emergency housing for the homeless.
Another $28 million would plug holes in the city’s budget for the upcoming fiscal 2023 and 2024 years, with financial forecasts that revenue from meals and hotel taxes along with other parking fees and other tourism-related income will remain below pandemic levels, according to Sara Silveria, city finance director.
The third-largest category, a $15 million spend on racial equity, includes $10 million to start a COVID-19 inequities program in which a new committee will recommend reparations to those disproportionately impacted by the pandemic because of racial disparities. Whether those reparations take the form of direct cash payments or some other support like housing costs will be decided by the committee, Elorza said.
The $15 million for racial equity is $3.2 million more than the amount the task force recommended spending in this category. Elorza also upped the spending for city services and infrastructure ($12.5 million up from $10.3 million) and sustainability ($12 million rather than $8.5 million). Meanwhile, Elorza’s proposal shaved off money for business and economic development ($5.3 million rather than $7.3 million) and arts, tourism and hospitality ($7.7 million rather than $10.1 million).
Elorza said he tried to adhere to the task force’s recommended spending amounts as much as possible but also wanted to prioritize infrastructure and “one-time investments” over new programs that would be unable to continue once the funds run out.
Funding distributions also seek to capitalize on already existing projects and programs, such as the Kennedy Plaza redesign, which will receive another $14 million under Elorza’s proposal.
Many of the spending plans call for broad ideas or programs with little detail, which will be determined later on through more specific bidding processes and with additional input from the task force, Elorza said.
The $123.8 million total does not include $42.8 million of ARPA funds the city doled out in 2021 to fill budget gaps and support programs, including grants for small businesses and the continuation of WaterFire Providence.
The proposed budget ordinance was introduced to the City Council Wednesday and will require council approval before any funds can be sent out. Federal law requires the funds be allocated by the end of 2024 and spent by the end of 2026.
More information on Elorza’s recommendations, as well as updates on how the existing $42 million has been spent is available online at pvdrescueplan.com.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
How about just putting the money in infrastructure and PVD school system, cut out the other crap.