Millions up for grabs: 225 Ohio municipalities haven't applied for federal stimulus funds

After missing an earlier deadline, 225 Ohio municipalities -- including two in Portage County -- have yet to apply with the state for millions of dollars in American Rescue Plan Act funds.

The funds are part of the $1.9 trillion COVID-19 relief and economic stimulus package signed by President Joe Biden in March. The federal aid is flowing directly to major cities and counties. A provision of the recently passed state budget bill unlocked the money for smaller municipalities, which were supposed to apply by Sept. 4 per the Ohio Office of Budget and Management.

These smaller municipalities can receive up to 75% of their annual budgets based on pre-COVID spending. For Ohio’s 2,196 townships, villages and smaller cities, that puts $843.7 million up for grabs.

The 225 holdouts could forfeit a combined $10.4 million if they do not apply by the end of the month under an extended deadline.

Which local communities haven't applied for federal stimulus dollars?

All municipalities in Summit and Stark counties have now applied since the Ohio Office of Budget and Management extended the deadline to Sept. 30.

In Portage County, the villages of Sugar Bush Knolls and Windham have yet to apply, according to an accounting provided recently by OBM. Windham is slated to receive $230,661 while Sugar Bush Knolls would receive $19,169.

Windham Village Administrator Deborah Blewitt said the village is applying for the funds.

"The deadline is the 24th, and we're on it," she said. 

William Elder, fiscal officer for the Village of Sugar Bush Knolls, said he didn't even know the funding was available.

"I never heard of it," he said. "I did get a call from somebody about funding and the deadline was Friday, but I don't know what it was."

He said he has already made inquiries into applying for the funding. 

How much money are Portage communities getting?

The injection of federal support, which will be dispersed in two roughly equal installments this year and next, is more than a million dollars for a couple of Portage municipalities. Streetsboro and Aurora are set to receive $1.7 million each while Ravenna will get $1.9 million and Brimfield will receive about $1.1 million.

Here's what other Portage communities will receive: $963,000 in Ravenna Township; $856,000 in Rootstown; $654,000 in Suffield; $622,00 in Franklin Township; $591,000 in Shalersville; $553,000 in Randolph; $503,000 in Mantua; $331,000 in Nelson; $304,000 in Palmyra; $298,000 in Freedom; $295,000 in Deerfield; $270,000 in Edinburg; $251,000 in Hiram Township; $242,000 in Garrettsville; $194,000 in Windham Township; $191,000 in Charlestown; $181,000 in Paris Township; $121,000 in Hiram; and $106,000 in Mantua. 

Kent will receive a total of $7.5 million, and has received $3.75 million in the first round Controller Brian Huff said. The city is not on the list of smaller municipalities because of its size. 

 Municipalities must all submit final spending plans by Oct. 31, providing in greater detail how they can and will not use the proceeds. Larger cities with more than 50,000 people are then required to report spending by category for each quarter. All money must be allocated by the end of 2024 and spent by 2026, or returned to the U.S. Treasury.

How the federal stimulus funds can and can't be used by communities

States that accept American Rescue Plan Act funds cannot use the money to lower taxes, according to an analysis by the National League of Cities. Local governments may offset the revenue increase with tax cuts.

The funds can be spent to make local governments whole for revenue declines from sales and incomes, which generate tax revenue, fell during the pandemic. The money also can be used to pay for water and sewer projects, to give premium pay for front-line workers and cover some administrative costs. Funds received by municipalities can be transferred to state governments and not-for-profits, but not county governments, and cannot be squirreled away in pension funds.

Record-Courier Reporter Diane Smith and Beacon Journal Reporter Doug Livingston contributed to this story.