Use of State and Local Fiscal Recovery Funds under ARPA

Matthew H. Hymel, County Administrator

The historic $1.9 trillion federal relief program, known as the American Rescue Plan Act (ARPA) of 2021, brought much needed financial resources to millions of Americans and businesses to generate a strong, resilient, and equitable recovery from the pandemic. That relief program included $65 billion to support counties and cities across the nation through the State and Local Fiscal Recovery Funds (SLFRF).

As part of SLFRF, the County of Marin received $50.2 million, funds which must be expended by the end of 2024. It is important to note that SLFRF is just one of a number of stimulus funding programs under ARPA, and the County does receive separate ARPA funding for other specific County programs unrelated to SLFRF.

During the annual Budget process, the Board of Supervisors identified the following priority spending areas for the County's $50.2 million in SLFRF funding:

  • Racial equity initiatives
  • Climate change and sea level rise projects
  • Homelessness services and permanent supportive housing (including city and town partnerships)
  • Revitalization of Golden Gate Village in Marin City
  • Public health and mental health services, including ongoing COVID-19 response
  • Southern Marin Health and Human Services hub
  • Fire Department facility improvements
  • Childcare and early education initiatives
  • Enhanced funding for nonprofit partners 
  • Economic impacts, including specifically for West Marin
  • Broadband improvements and expansion

The County’s focus in each of the priority areas outlined above will be to target support in areas where the COVID-19 pandemic has exacerbated racial, health, economic, social and education inequities. It is important to note that not only will racial equity be a standalone spending area (as listed above) but will be a key element of all identified spending areas. For instance, sea level rise and a lack of permanent supportive housing disproportionately affects Marin County’s low-income residents, and residents of color. The County’s Racial Equity Action Plan continues to guide the County's work in advancing racial equity in all aspects of County operations.

The County's planned use of SLFRF funds

Final guidance on how local governments may use SLFRF funding was published in the U.S. Department of the Treasury Final Rule [31 CFR Part 35], issued in November 2021 and finalized in January 2022. The Final Rule specifies that local governments may use these stimulus funds for a broad category of needs – recognizing that the COVID-19 pandemic has affected nearly every aspect of daily life for Americans: from the economy, education, mental and physical health, food security, childcare, to housing and homelessness.

However, there are extensive reporting requirements for any direct use of SLFRF funds. This includes quarterly expenditure reports submitted to the U.S. Treasury detailing all goods and materials procured, subcontracted awards and compliance with federal employment, procurement, and construction regulations and standards for all expenses. Therefore, for administrative efficiency, the County of Marin has opted to identify three qualifying "projects" that will directly make use of the entire $50.2 million SLFRF allocation. The County will then repurpose the proceeds of local funds towards the Board of Supervisors directed priority spending areas listed above. 

The goal of this strategy is to a) ensure swift application and use of the stimulus funds toward the local community’s highest priorities; b) ensure full and incontestable adherence to eligible use of funds as defined by U.S. Treasury in the Final Rule; and c) minimize the County’s administrative burden in required federal reporting for $50.2 million of expenditures.

Direct use of SLFRF funding

The County Administrator’s Budget Office has analyzed the Final Rule guidance issued by the U.S. Department of the Treasury and identified three projects which will make direct use of the $50.2 million in SLFRF funds (listed below). Note: all required federal reporting to the U.S. Treasury on the use of the County’s federal SLFRF funds received will be for these three projects.

Directly-funded projects Funding
1: Public Health Response to the COVID-19 Pandemic $32,649,752
2: Public Sector Workforce Capacity $7,624,164
3: Revenue Replacement $10,000,000
Total $50,273,916 

Indirect use of SLFRF funding

The Board of Supervisors identified priority spending areas listed will make indirect use of the stimulus funds. Projects within priority-spending areas will be supported by the proceeds of local funds that result from the County applying all direct SLFRF funds to: Public Health Response, Public Sector Workforce Capacity, and Revenue Replacement.

As the Board of Supervisors approves projects within the priority spending areas, they will be added to this page as indirect beneficiaries of the County’s receipt of SLFRF funding. 

Project:                                  Sea Level Rise & Climate Change adaptation projects

Amount:                               $5,000,000

Board priority area:             Climate Change and Sea Level Rise

Related Board date:            August 24, 2021 (Santa Venetia levee $1m), December 14, 2021 (all projects $4m): July 12, 2022 (Stinson Beach $100k)

Mitigation projects were identified in the County's Climate Action Plan, and are focused on smaller scale, high emission reduction potential projects that address the Marin's largest sources of emissions (transportation, agriculture, and natural gas), as well as reflect nature-based adaptation measures that plan for sea level rise and improve diverse habitats and wildlife. The Santa Venetia levee project protects 660 parcels from tidal flooding and sea level rise.

Project:                                 Legal services to tenants to prevent evictions

Amount:                               $258,000

Board priority area:             Racial equity initiatives

Related Board date:             March 15, 2022

The $258,000 contract with Legal Aid of Marin provides free housing-related legal services to low and extremely low-income residents countywide.

Project:                                  Childcare Investments

Amount:                               $1,000,000

Board priority area:             Childcare and early education initiatives

Related Board date:             April 26, 2022 (First 5 Marin $525k)

The $525,000 contract with First 5 Marin provides for substantial local investments in teacher recruitment and retention, safety-net navigation, and early childhood mental health services.

Project:                                 City/County Partnerships on Homelessness

Amount:                               $2,922,648

Board priority area:             Homelessness services and permanent supportive housing

Related Board date:             March 15, 2022 ($500k to Novato, San Rafael, Sausalito), September 27, 2022 ($922k for High Utilizers), October 25, 2022 ($500k to Novato to match state funds)

These funds will support (1) enhanced, intensive case management for individuals experiencing homelessness and (2) provide matching funds for targeted supportive services to assist individuals in moving from encampments into housing in Novato, San Rafael, and Sausalito.

Project:                                 Non-Profit Partnerships

Amount:                               $300,000

Board priority area:             Enhanced funding for nonprofit partners

Related Board date:             May 24, 2022

Funds will support various nonprofit organizations in Marin in providing community services and programming to underserved areas and residents.

Project:                                 South Eliseo Homekey Property

Amount:                               $6,400,000

Board priority area:             Homelessness services and permanent supportive housing

Related Board date:             July 19, 2022 ($1m fees), May 10, 2022 (project approval), January 31, 2023 ($5.4m construction costs)

The property will provide critical, long-term supportive housing services to up to 50 individuals experiencing homelessness in Marin. Under the State's Homekey program, the property will provide permanent supportive housing to low-income individuals with 24/7 onsite support.

Project:                                 Department Equity Initiatives

Amount:                               $2,500,000

Board priority area:             Racial equity initiatives

Related Board date:             August 23, 2022 (Foster care initiatives $190k), September 27, 2022 (Marin City Community Engagement Plan $100k, Marin City 80 exhibit $50k, Parks Workforce Housing $400k), January 31, 2023 (Arts Equity Network $20k), April 25, 2023 (Microbusiness Food Support $100k, Fire Foundry $500k, Public Defender DMV Liaison $94k)

As part of the FY 2022-24 Budget process, $2.5 million was approved for 20 one-time initiatives in 14 different County Departments to advance racial equity. These include investments such as the Racial Covenant Mapping project, subsidies for Foster Youth, and entry-level career programs in Public Works, Elections, Fire, and Parks.

Project:                                 Broadband Investments

Amount:                               $1,000,000

Board priority area:             Broadband improvements and expansion

Related Board date:             September 13, 2022 (Bolinas Stinson Unified School District $100k), March 7, 2023 (Marin City internet access $520k)

$1 million was approved for one-time investments related to expanding access to high quality broadband, specifically for underserved residents and geographic areas in Marin. This includes low-income, disabled and school-aged children; as well as West Marin residents, schools and organizations.

Project:                                 Golden Gate Village Resident Empowerment Fund

Amount:                               $2,000,000

Board priority area:             Revitalization of Golden Gate Village in Marin City

Related Board date:            February 28, 2023

Matched with $1 million from the Marin Community Foundation, the County's $2 million ($3 million total) will go towards establishing a new Resident Investment Fund which will be used to provide enhanced economic opportunities, pathways to homeownership, wealth creation, debt forgiveness, job training and education for Golden Gate Village residents.

Project:                                 Healthcare Infrastructure Support

Amount:                               $1,000,000

Board priority area:             Public health and mental health services

Related Board date:            February 28, 2023

Provides funding to Federally Qualified Health Centers (FQHC's): Marin Community Clinics, Petaluma Health Clinic/Coastal Health Center, Marin City Health and Wellness Center, and Ritter Clinic to support various capital improvement projects.

Project:                                 Participatory Budgeting

Amount:                               $2,500,000

Board priority area:             Racial equity initiatives

Related Board date:             TBD

The Office of Equity is managing the County's first Participatory Budgeting program -- a process which will award $10,000 to $250,000 grants to nonprofits for community oriented projects that advance racial equity.

SLFRF expenditure reporting to the U.S. Treasury

The County, along with all State and local jurisdictions, is required to submit an annual Recovery Plan report to the U.S. Department of the Treasury detailing both how expended funds were used, and how future funds are planned to be spent. All annual reports will also be published and made available to the public on this webpage,

Schedule of the reporting period and Recovery Plan reports (completed reports are linked):

 Annual Recovery Plan Report Period Covered Report Date
1 Award date - July 31, 2021 August 31, 2021
2 July 1, 2021 - June 30, 2022 July 31, 2022
3 July 1, 2022 - June 30, 2023 July 31, 2023
4 July 1, 2023 - June 30, 2024 July 31, 2024
5 July 1, 2024 - June 30, 2025 July 31, 2025
6 July 1, 2025 - June 30, 2026 July 31, 2026
7 July 1, 2026 - December 31, 2026 March 31, 2027

In addition to annual reports published on this page, the County submits detailed quarterly expenditure reports directly to the U.S. Treasury through the SLFRF reporting portal.