Shelby Co. (ECWd) –
For at least the last two years in Shelby County, the subject of ARPA money being spent has been discussed to include the deadlines of December 31, 2024, for the funds to be obligated and December 31, 2026, for final expenditure.
During a 3 hour and 38-minute budget meeting last night, board member Tad Mayhall raised the ARPA money issue in the budget. He indicated the allocation of those funds needed to be done by a certain time. County Board member Martha Firnhaber questioned the issue and asked for clarification on the funds needing to be allocated by the end of this year or contracted as she was confident they had to be under contract by the end of the year.
Without hesitation, Mayhall said allocated, with other board members chiming in to support the false assertion made by Mayhall. Was this a reactionary “shoot the messenger” because you don’t like being questioned? We reported on Mayhall’s false assertion about the county being able to work from the old budget if they don’t get a new one adopted in time in this article. It appears there are a lot of opinions but little understanding of even the most basic government operations.
Later in that discussion Judge Ade-Harlow informed Mayhall that his assertion was not correct and explained the meaning of words in a courtroom. Mayhall indicated he would go back and read the rules again as if to imply he did not believe what he was being told, which is not necessarily a bad thing.
We have said for years officials need to ask, “Says Who” and “With What Proof” before accepting what they are told. If Mayhall follows through and reads the rules and definitions related to the ARPA funds, he will find, that he was wrong in his rapid assertion on the subject and Firnhaber was correct on the point, as was Judge Ade-Harlow.
While they kept using the word allocated in the meeting, ARPA rules outline the word “obligated” and then define it as found in this document from the US Department of Treasury.
“Under the revised definition of “obligation,” the term continues to mean an order placed for property and services and entry into contracts, subawards, and similar transactions that require payment.”
It was also stated in the meeting that ARPA funds do not need to be budgeted. We assert that is flat wrong.
“(55 ILCS 5/6-1005) (from Ch. 34, par. 6-1005)
Sec. 6-1005. Contract or obligation in excess of appropriation. Except as herein provided, neither the county board nor any one on its behalf shall have power, either directly or indirectly, to make any contract or do any act which adds to the county expenditures or liabilities in any year anything above the amount provided for in the annual budget for that fiscal year.”
In short, in Illinois, you can’t spend money that is not appropriated. If you wish to spend the rest of the ARPA money it must be properly obligated before December 31, 2024, and must also be budgeted.
If they don’t want to accept that, they can read the rules outlined in this document from the Department of Treasury.
9. Do we need to add in specific calculations for budget items in the continuation application?
❖ Yes. Calculations must be included for all budget line items, including a breakdown of allocations to the two different funding sources, VOCA and ARPA.
With the cooperation of all the department heads, there should be no reason the board can’t finalize their budget before the end of November which is the end of their fiscal year.
While we hope we are wrong, we expect to see this year’s budget expand to a level that will put the county in financial peril sooner rather than later. We say this based on the attitude of department heads and their excitement about a new board taking over in December that aligns with them.
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