A municipal watchdog report discovered the town is on monitor to spend the whole lot of its $558.7 million use-or-lose ARPA funds by the 2026 deadline, however raised issues about Boston’s skill to maintain sure tasks after the federal money is gone.
The metropolis appropriated the bulk, or $362.2 million of its federal allocation for “equitable and transformative investments,” and will start evaluating “successful projects that can and should be funded” after this grant expires, Boston Municipal Research Bureau concludes in a Tuesday report.
“(Boston) was able to dedicate nearly all the funds for pandemic response, economic stimulus, pilot programs and program expansions, rather than replacing lost revenue, because of the city’s strong fiscal health during the pandemic,” the report states.
“The city appears to be on track with its spending, so now is the time to continue implementing ARPA-funded projects and plan for their longer-term sustainability.”
As of Dec. 31, 2022, 54.2% of the $551.7 million appropriated ARPA funds have been spent or obligated. The metropolis should obligate all funds for procurement or buy orders by the tip of 2024, and spend the complete quantity by the tip of 2026, the report states.
Appropriated funds went towards 116 tasks, the vast majority of which supported initiatives for housing, financial alternative and inclusion, and local weather and mobility. Less than 1 / 4, or $95 million, of appropriated funds went towards mitigating income loss within the fiscal 12 months 2022 and 2023 metropolis budgets.
As a part of Mayor Michelle Wu’s pitch for a “Green New Deal for Boston,” $10 million was devoted to the fare-free bus pilot program and $2.5 million was earmarked for this 12 months’s pilot of 20 electrical faculty buses. Boston Public Schools has a said purpose of absolutely electrifying its bus fleet by 2030, the report mentioned.
The report recommends that the town start to judge tasks supported by ARPA funds as they’re accomplished, and means that bigger tasks be evaluated “mid-way and at the end to assess if the large appropriations are being well-spent.”
“Though the city has already taken steps to emphasize the temporary nature of personnel positions and work funded through ARPA, the city will have to make tough decisions about if and how to continue ARPA-funded projects,” the report states.
In response, a metropolis spokesperson mentioned Boston “remains committed to its strong fiscal management practices,” and pointed to the AAA bond score it obtained from each Moody’s and S&P Global for the ninth consecutive 12 months.
“Any projects seeking support post-ARPA will be addressed through the annual budget process and subject to the availability of resources,” the town spokesperson mentioned. “We continue to work with our federal and state partners to ensure that we are maximizing our opportunities beyond city funding.”
Source: www.bostonherald.com”