BGR: Governments Should Spend Federal Relief Funds Carefully

By Rich Collins

June 23, 2021

NEW ORLEANS – The Bureau of Governmental Research has released guidance for government entities planning how to spend federal pandemic relief funds.

The nonprofit watchdog said governments have “substantial flexibility” in spending the federal dollars, which creates a “rare opportunity to address public needs without burdening taxpayers. But realizing the full potential of this one-time money will require policymakers to establish a prudent decision-making process with strong oversight mechanisms.”

BGR said it developed its suggestions based on its research on local government fiscal issues and its mission of promoting the effective use of public resources. BGR’s release focuses primarily on the City of New Orleans’ $388 million because it is the largest among Louisiana’s parish and municipal governments. However, BGR’s recommendations “generally apply to other government entities receiving federal aid through the American Rescue Plan Act (ARPA), including school districts and the state government.”

The complete report is here but BGR’s highlights are as follows:

In brief, BGR advises the City of New Orleans to develop an ARPA spending plan that:

Covers multiple years and includes options aligned with various economic recovery scenarios
Establishes spending priorities based on analysis of City and community needs
Maintains efficiencies achieved during the pandemic-related fiscal crisis
Identifies new efficiencies that would allow the City to redirect existing revenue
Prioritizes expenditures that evidence suggests will deliver effective outcomes
Compares the cost effectiveness of spending options

In addition, BGR calls for oversight and accountability measures to ensure relief spending delivers the desired results. These include:

Providing residents with the multi-year spending plans and regular updates
Managing relief payments through a dedicated fund to facilitate auditing and accountability
Alerting the public to proposed expenditures through an online City Council calendar
Providing sufficient detail and explanation for individual spending requests
Maintaining dashboards that track council appropriations and City expenditures and results
Monitoring, auditing and program evaluation by the Office of Inspector General

Click here to see complete report.

Fair Use Notice

This site occasionally reprints copyrighted material, the use of which has not always been specifically authorized by the copyright owner. We make such material available in our efforts to advance understanding of issues and to highlight the accomplishments of our affiliates. We believe this constitutes a “fair use” of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is available without profit. For more information go to: US CODE: Title 17,107. Limitations on exclusive rights: Fair use. If you wish to use copyrighted material from this site for purposes of your own that go beyond “fair use,” you must obtain permission from the copyright owner.