East Central Reporter

For the past two years, Shelby County has been discussing the allocation and expenditure of ARPA funds. These funds must be obligated by December 31, 2023, and fully spent by December 31, 2026.

During a recent budget meeting lasting over three hours, board member Tad Mayhall raised concerns about the ARPA fund allocations. He claimed that these funds needed to be allocated by a specific deadline. This statement was questioned by County Board member Martha Firnhaber, who sought clarification on whether the funds had to be under contract by year-end.

Mayhall asserted that they needed to be allocated, with other board members supporting his claim. However, this assertion was later corrected by Judge Ade-Harlow during the discussion. The judge explained that Mayhall's understanding was incorrect and clarified the terms used in legal contexts.

The importance of verifying information before accepting it is highlighted here. If Mayhall reviews the rules regarding ARPA funds as suggested, he will discover that his initial assertion was incorrect. Firnhaber's understanding aligned with Judge Ade-Harlow's explanation.

In their meeting discussions, board members repeatedly used "allocated," but ARPA guidelines specify "obligated." The U.S. Department of Treasury defines "obligation" as orders placed for property and services or entry into contracts requiring payment.

It was also mentioned during the meeting that ARPA funds do not need budgeting; however, this contradicts Illinois law (55 ILCS 5/6-1005), which states expenditures cannot exceed appropriations in any fiscal year without being budgeted properly.

To spend remaining ARPA money appropriately before December 31, 2024, it must be both obligated and budgeted according to state requirements and Treasury Department guidelines.

With cooperation from department heads, finalizing the county budget before November’s fiscal year-end should be feasible. Concerns remain about potential financial risks if future budgets expand excessively due to enthusiasm from department heads anticipating alignment with new board leadership starting in December.