Just $10.5M remains of Westmoreland's $105.3M pandemic relief allocation

Westmoreland commissioners have allocated nearly 90% of the $105.3 million in American Rescue Plan funds awarded to the county in 2022 as part of the federal government’s covid relief effort, according to a report released this month.

County leaders will have until the end of this year to designate how the remaining $10.5 million will be spent.

“They (commissioners) are planning discussions to see how they will obligate the remainder of those funds. No decisions have been made,” said Meghan McCandless, the county’s director of financial administration.

American Rescue Plan guidelines restricted the county’s use of the cash to specific categories, including allowing governments to recoup revenue it lost because of the pandemic. Westmoreland officials say, through the end of the June, the county has lost nearly $94 million in revenue since 2020.

More than $82 million from the covid relief grant has been used to replace lost revenue, McCandless said.

Over the past two years, county officials have allocated the bulk of the American Rescue Plan funds to bolster the county’s financial outlook. Millions of dollars were funneled into the budget to pay for general government expenses, including $8.1 million this year that was diverted to cover annual allocations given to outside agencies such as the county’s airport authority and community college.

Funds also have been used to purchase computer equipment and to pay for employee bonuses handed out during the pandemic to help offset job losses during difficult hiring periods.

Commissioners allocated funds to pay for several big-ticket items, including creation of a $10 million fund for demolition and rehabilitation of blighted properties throughout the county and another $10 million program to award grants to local municipalities for water and sewer upgrades.

About $15 million in American Rescue Plan funds was designated to upgrade broadband connections throughout the county, and $4.4 million was earmarked for the Westmoreland County Food Bank.

Despite the allocations, only $43.5 million has been spent so far, McCandless said.

Federal guidelines require all of the American Rescue Plan funds to be spent by the end of 2026.

Westmoreland County Commissioner Ted Kopas said he expects robust discussions about how to allocate the remaining funds.

“The vast majority (of spending plans) took place before I took office (in August 2023). There are a number of ideas, and those need to be fleshed out. I would hope we’ll look at what will have the most community impact while also respecting the still difficult fiscal situation of the county. All I can say is that the three of us will come up with a plan,” Kopas said.

Commissioner Sean Kertes did not respond to requests for comment.

Commissioner Doug Chew, in a text message, said he was “too busy” to comment, noting he was out of town at a conference.

Commissioners relied on the American Rescue Plans to balance this year’s $456.8 million budget that included a 32.5% property tax increase.

Kopas said commissioners could consider allocating a portion of the remaining funds to budgetary needs.

“It’s too premature until we discuss our priorities,” Kopas said.