NCLM Southern City Volume 71, Issue 3, 2021

SOUTHERN CITY QUARTER 3 2021 JACK CASSIDY NCLM Communications Associate In early August 2021, leaders from Wayne County and its seven municipalities gath- ered to discuss the American Rescue Plan. On this day, the topic was priorities. American Rescue Plan, or ARP, questions will land in one of four areas: How to get the money, how to legally spend the money, how to choose what to spend on, and how to account and record those expenditures. The first category has nearly concluded, with all metropolitan cities in North Carolina having received their first tranche of funds (the second tranche, which will equal the first tranche and conclude all ARP local appropriations, is to be sent one year after the first). All non- metro cities and towns are receiving their funds through the state, and as of late September, nearly all municipalities had been sent their allotment. As for reporting and accounting, the U.S. Treasury has published detailed interim guidance and resources. While no small undertaking for the capacity of North Carolina’s municipalities, the requirements and deadlines are clear. The other two areas—and perhaps the most critical of all—continue to evolve. As of press time, Treasury has offered interim guidance, and continues to revise and clarify many of its key points. North Caro- lina’s House, Senate, and Governor have all addressed ARP in their respective ver- sions of the state budget—with Governor Cooper proposing that the state match ARP funds in select expenditure cate- gories—but the budget process remains incomplete. NCLM President Karen Alexander pub- lished a letter to League membership over the summer, urging cities and towns to “hurry up and wait.” That is, to hurry up to determine priorities and capacity, and then wait to see how the final guidance and state budget shake out. “Undoubt- edly and understandably, the impulse is to spend this money on immediate needs and move quickly to make decisions,” American Rescue Plan: A Generational Opportunity 28 Never before has money flowed directly to our cities and towns like it has with ARP. How will the money be used? How should the money be used?