A Close Up on State and Local Fiscal Recovery Funds Spending in Our 26 Sample Cities
the key take away Heading link
The key takeaway is that while the majority of obligated SLFRF dollars went to revenue replacement, as a group, our sample cities spent a small amount of the SLFRF money they had available to spend by the end of 2021.
It is still too early to make definitive conclusions about the SLFRF program at this stage for three reasons. First, Treasury did not finalize program rules until April of this year. Some governments were hesitant to spend SLFRF dollars before rules were finalized. Second, the data available thus far only covers spending that took place between March and December 31, 2021. Third, governments have until the end of 2024 to obligate the funds, so we expect spending trends to unfold over the next few years.
Further, as the data here suggest, drawing conclusions about how the program is working in general may be difficult. The SLFRF program was designed to be flexible enough to meet the highly variable needs of governments across the country. Because of this, understanding and assessing the program’s outcomes will require both analysis of national datasets and a granular approach to contextualizing spending decisions within local political dynamics, policy priorities, and pre-COVID fiscal conditions.