In early 2022, I wrote a post concerning the use of the American Rescue Plan Act (ARPA) monies, a crucial financial aid that municipalities received due to the COVID crisis. This post is an example of what can happen when you fail to adhere to the regulations and restrictions for how that money is used.
At a public meeting in the fall of 2021, Greene Township in Erie County decided that a good use of the ARPA money was to give every employee $10,000 each. Of course, there were restrictions. The US Treasury dubbed this "premium pay" and could be used for work incurred after March 3, 2021. It was limited to in-person work and not teleworkers. In addition, it could only go towards an employee whose work presented "heightened risks due to being physically present at the workplace." Due to public outcry and media coverage of the Supervisors' decision, they retroactively sought and obtained township auditor approval. In simple terms, "they put the cart before the horse" with their vote on the funding. It didn't take long for the watchdogs of the public funds and municipal actions for Pennsylvania to begin an investigation.
The Pennsylvania State Ethics Commission recently ruled on the case, finding three of the supervisors violated Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a). This occurred when they participated in discussions and actions to award compensation to themselves without formal approval by the Township Auditors, resulting in a private pecuniary benefit to themselves. Each of the three supervisors was ordered to repay $6,000 for the so-called bonus money they had paid themselves This serves as a stark reminder of the serious consequences of misusing public funds.
There were plenty of warnings from state officials on how to best utilize this money, and programs were provided by the Pennsylvania State Association of Township Supervisors (PSATS). These programs offered opportunities for municipal officials to ask directly those involved in the process how to proceed legally. In short, there were resources available to municipalities to help them understand the rules for ARPA funding. This case serves as a clear example of the need for vigilance and adherence to regulations when handling public funds.
As with any municipal happenings in the commonwealth, the team at Keystone Municipal Solutions stays informed and on top of current events to handle your concerns professionally. Once again, it is time to "fire this thing up" and proceed with caution when dealing with public funds.
About the Author
David L. Anthony is a member of the Keystone Municipal Solutions team of experts. He is a veteran of municipal government, having served more than 33 years in various positions of public service. Contact him at david@keystonemunicipalsolutions.com. To learn more about David and the Keystone Municipal Solutions team, click here.
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