A year ago, the Jefferson County Commission produced its first draft of a plan to invest $2.4 million in federal aid over two years from the American Rescue Plan Act (ARPA) — and even as it revealed a budget, it promised that the allocations probably would change over time.
A year in, the County has spent or committed $393,000 of the grant funds — and, in fact, the allocations are about to change.
“We had the foresight to see that this was going to be a moving target,” said Eric Seidenstecker, executive director of the Jefferson Local Development Corporation, which has advised the county on its investment strategy and implementation. “The year-two funding always had an asterisk” — meaning the early numbers were seen as provisional.
ARPA, passed by Congress in March, 2021, was designed to provide states and communities economic relief from the effects of the COVID-19 pandemic. Initially, it was targeted at four areas of need: response to the public health emergency and its economic impact; support for essential services; relief to local governments for lost revenue; and infrastructural investments.
Over time, however, the guidance provided by the U.S. Treasury, which administers ARPA, has loosened, giving local governments greater flexibility in deciding how the funds are spent. In addition, officials noted, the county now has a better understanding of what support is most needed. “We’ve repeatedly said this was a fluid deal,” said Commission Chairman Leonard Wortman, “and that at end of year one, we’d need to be reallocating because some funds wouldn’t get used and we’d identify other needs.“
For example, Jefferson County originally allocated $320,000 for assistance to small businesses, in the form of modest grants and loans. But in the first year, just $27,500 was spent from that pot, in part because loans are available from other sources.
So the JLDC has recommended that the county reduce the small-business budget to $167,000. Seidenstecker says grants will still be available to companies and non-profit organizations — and that the application form will be simplified.
But much of the remaining funds will be diverted to expand investments in child care, seen as an urgent need across the county. “That’s one of the easy [investment decisions],” Seidenstecker said. “COVID impacted child care providers and parents working remotely, especially in rural communities.”
JLDC has recommended a $40,000 increase in the year-two allocation to child care projects, to $198,027. In addition to the child care center planned by the City of Boulder in partnership with Southwest Montana Youth Partners, the City of Whitehall and the Whitehall School District are collaborating to develop a new care facility; and the JLDC is considering support to existing providers in the county’s north end.
The county likely will channel funds to rural fire departments and other first responders, a line not included in the original ARPA budget. Those funds could support investments in new personal protective equipment, Seidenstecker said.
JLDC also has recommended support for $5,000 recovery grants to farmers and ranchers facing economic hardship, as well as funding for area food banks to buy meat or produce from local growers and 4-H participants. In addition, the county plans to increase support to assisted living providers, which have faced higher staffing costs associated with COVID care.
Some of the original allocations haven’t been spent and will remain in place. The county set aside $225,000 for investments in broadband and water and sewer projects. A broadband expansion project in Whitehall is now drawing on that pot, according to Seidenstecker; and work is scheduled to begin this fall to improve cellular phone capacity in the underserved corridor along Montana Route 69 between Whitehall and Boulder.
Likewise, the county hasn’t yet touched the $175,000 allocated to land development. Seidenstecker said the county sees an opportunity to invest that sum in affordable housing, possibly in partnership with other actors and funders.
Housing projects are longer-term propositions; coordinating funding, planning, design, and construction can take years. ARPA accommodates that horizon: Although it will receive the second half of the $2.4 million this summer, the county has until the end of 2026 to complete the work those funds will support.
The Commission informally approved the JLDC’s recommended reallocations at its June 28 meeting. Wortman said he plans to meet with Seidenstecker and Ginger Kunz, the County clerk and recorder, to determine whether more formal approval is needed.
Wortman said that with a grant infrastructure now in place, he expects spending to accelerate. “It would have been good to get more of that money into circulation sooner,” he said. “But I’m pretty much happy with the process. It’s harder to spend a million dollars than you’d think.”
