Understanding Eligible Uses of ARPA Funds: How to Calculate Revenue Loss – Conduit Street - Conduit Street

On May 10, the US Department of the Treasury released its Interim Final Rule (IFR) for the Coronavirus State and Local Fiscal Recovery Fund authorized under the American Rescue Plan Act (ARPA), which provides a total of $65.1 billion in flexible, direct funding to every county in America.
Counties may use Fiscal Recovery Funds to replace lost revenue for a broad range of government services, programs, and projects outside of explicit eligible uses of recovery funds under the interim rule.
As counties determine how to invest their ARPA State and Local Fiscal Recovery Funds to foster a swift and equitable recovery from the COVID-19 pandemic, the National Association of Counties (NACo) has provided the following information for counties to reference when calculating pandemic-related revenue loss.
How Does a County Calculate Revenue Loss?
The Government Finance Officers Association (GFOA), a NACo partner, developed a revenue loss calculator, that uses the formula referenced above to help counties calculate revenue loss.
To view Treasury’s FAQs on revenue loss, click here.
The figure below also provides an overview of how a county can calculate revenue loss, with a minimum of $0:
Important Items to Remember When Calculating Revenue Loss
What Is Excluded From the Revenue Loss Calculation?
As outlined in Treasury’s IFR, there are several revenue streams that are excluded when calculating revenue loss, including:
What Sort of Revenue Is Included in the Calculation?
Treasury’s IFR defines “general revenue” to include:
What Can Counties Spend Money On After Calculating Revenue Loss?
Treasury’s IFR states that counties can use revenue recoupment dollars toward ANY government services including, but not limited to:
Note: Revenue recoupment cannot be used for rainy day funds or debt services.
Other NACo Resources
NACo also released an analysis of Treasury’s IFR that provides an in-depth overview of the key provisions within the IFR, with a specific focus on how each of these items may impact county governments.
For NACo’s FAQs on the Fiscal Recovery Fund, click here.
To access NACo’s Fiscal Recovery Fund Resource Hub, click here.
Useful Links
Previous Conduit Street Coverage: Treasury Releases ARPA Reporting Requirements
Previous Conduit Street Coverage: Hot off the Press: New Treasury Guidance on ARPA Funding
Previous Conduit Street Coverage: New Treasury ARPA FAQ: Broadband Spending
Previous Conduit Street Coverage: New Treasury FAQ on ARPA Funding
Previous Conduit Street Coverage: New ARPA Guidance Available From US Treasury
Michael Sanderson
Kevin Kinnally
Virginia White
Leslie Velasco
Allison Valliant
Victoria Maas
Brianna January
Dominic Butchko
D’Paul Nibber
The official blog site of the Maryland Association of Counties.
Enter your email address to subscribe to this blog and receive notifications of new posts by email.
Join 10,230 other subscribers

Staff Login
© 2019 All rights reserved


Leave a Reply

Your email address will not be published.