Mayor Jackson details city’s spending plan for its $511M in COVID-19 recovery funds
CLEVELAND, Ohio (WOIO) - Millions of dollars will soon flood Northeast Ohio counties and cities to help with pandemic recovery.
The City of Cleveland is set to get a massive amount, over $511 million, while Akron will get around $145 million. The federal funds are part of the American Rescue Plan.
From investing in neighborhoods to investing in small businesses, Cleveland Mayor Frank Jackson outlined how the city might spend the massive amount of money.
The broad plan, discussed Thursday, included three categories. Jackson said each are meant to “restore, relieve or reposition the city for economic success.”
“These dollars will help strengthen the things that we have done and the things we plan to do,” said Jackson.
The city will likely use some of the funding to help with lost tax revenue due to COVID-19.
Jackson said the city could also use a portion of the money to improve its neighborhoods. Examples include: tearing down buildings that are falling apart and therefore making way for new, affordable housing. The funds could also be used to help area small businesses get back in better financial shape.
“All of this is about the future of the city of Cleveland,” Jackson said.
The city’s plan for how to spend the funds is still a general one and nothing is set in stone. Cleveland City Council will also need to give approval before any of the nearly $512 million is spent.
The City of Cleveland will receive the first half of the over half a billion dollars in federal money this year and the second half next year. The funds must be used by the end of 2024.
According to the U.S. Department of Treasury:
“The Coronavirus State and Local Fiscal Recovery Funds provide substantial flexibility for each government to meet local needs—including support for households, small businesses, impacted industries, essential workers, and the communities hardest hit by the crisis. These funds can also be used to make necessary investments in water, sewer, and broadband infrastructure.”
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