ASHLAND — The City of Ashland’s slice of American Rescue Plan funds was cut nearly in half with the passage of recent state legislation that distributed the funds to Ohio townships that were originally left out of the conversation.
Now, city officials are left hoping Ohio lawmakers — who have recessed for summer and don’t plan on returning to session until mid-September — will fulfill the original ARP allocation estimate.
The city originally expected $3.98 million. Now, it is only expecting $2.1 million.
Ashland is not alone. Centerburg, in Knox County, also expects less.
“The Ohio Municipal League is trying its best to convince state leaders they need to make up that difference with the $5.6 billion in ARP funding that the state is receiving,” Ashland Mayor Matt Miller said. “They believe the cities and villages with populations under 50,000 should get the full amount we expected to receive.”
But as Ashland and other communities lament the loss in welcomed federal stimulus money, others rejoice.
Madison Township, in Richland County, was originally left out of the ARP pie. The township of 14,680 is now set to receive $1.1 million.
The mechanics of how this happened is found in an understanding of the process.
Ashley Ringle, director of communications of the Columbus-based Ohio Municipal League, said initial estimates, which were released in March, excluded townships.
“So there was confusion for months on whether townships will get (ARP) funds,” she said.
In May, the U.S. Treasury announced Ohio was one of eight states that would themselves determine ARP eligibility and the definition of a non-entitlement unit, which includes communities with populations less than 50,000.
The Ohio Township Association said townships were “unintentionally left out of original ARP bill language – due to definition inconsistencies for ‘non-entitlement unit of local government.’”
In June, the state’s Office of Business and Management announced townships would be eligible through the passage of legislation, which specified that a little more than half of the state’s ARP money allocated to cities with populations below 50,000 ($815 million) now go toward townships, too.
To review, state government will receive $5.6 billion, cities over 50,000 people (considered “metro” cities) will receive $2.2 billion, cities with populations below 50,000 will get $815 million and counties will get $2.2 billion. For a searchable chart that tracks individual amounts, click here.
So the legislation passed last week will now divert more than half of the $815 million figure, $422 million, to townships originally left out. Gov. Mike DeWine signed that legislation June 29.
The bill means 1,305 townships across Ohio — which were originally not counted as NEUs — are now eligible to receive ARP funding. It also means that the pot of federal money earmarked for communities like Ashland and Centerburg (all considered NEUs because populations are below 50,000) is now slimmer.
“So our request has been for the state to use its share, $6.5 billion, to make municipalities whole and bring those estimates back up. That didn’t happen,” Ringle said, adding the legislature is on summer recess until Sept. 7.
The state’s portal to apply for the first round of ARP funds opened July 6. The website can be found here.
