As mask mandates begin to be reimplemented and the nation faces yet another wave of the COVID-19 pandemic, Gurnee will begin to feel a bit of relief in the form of finances from the American Rescue Plan Act of 2021.
The Gurnee Village Board received details of the federal funds headed its way at its meeting Monday.
The $1.9 trillion economic stimulus bill was passed by Congress and then signed into law by President Joe Biden on March 11 to help speed up the recovery process from the dramatic economic impact that the COVID-19 pandemic had throughout the country.
Approximately $65.1 billion of that total has been set aside to distribute to municipalities throughout the country to help address some of the financial hits that they’ve taken since the start of the pandemic, including Gurnee.
Gurnee is set to receive more than $4.1 million, although village finance director Brian Gosnell said that the amount could be increased if any municipalities make the decision to forego receiving any money as part of the plan.
“The only thing that could change with that figure is if there are entities that don’t take it, they will reapportion that money to the entities that do take it,” Gosnell said. “If anybody says no to the American Rescue Plan funding, we could see a portion of that.”
The money will be disbursed in two allocations. The first will be sometime this month or in September, and the village will receive $2,064,856. The village will receive that same amount approximately a year after it receives its first allotment.
According to Gosnell, the funds will be distributed through the Illinois Department of Commerce and Economic Opportunity, and the village had to request its portion of the funds through the department. The portal for requesting funds opened on July 22, and Gurnee’s request was entered by July 23.
Gosnell said that the department was involved with the distribution of funding from the CARES Act, which was passed in March 2020, just after shutdowns began to take place throughout the country.
“They know what they’re doing,” he said.
Although there is $65.1 billion reserved for municipalities, there are four primary ways that the money has to be spent by its recipients, according to Gosnell. One of its uses can be to make up for lost revenue due to the pandemic. Gosnell added that because Gurnee does not levy a property tax on its residents, it most likely has more lost revenue than other municipalities that do.
According to Gosnell, the village’s lost revenue throughout the pandemic is approximately $7 million, so the more than $4 million it is receiving through the American Rescue Plan will only help to recoup some of those losses.
The funds can also be spent to respond to the pandemic through assistance to households, small businesses and nonprofits or specific impacted industries such as tourism or hospitality; providing premium pay to essential workers and making necessary investments in water, sewer or broadband infrastructure.
