Bolstered by $23 million American Rescue Plan funding, proposed budget to be unveiled at Elk Grove City Council meeting

Elk Grove's 2021 general fund expenditures. | 

At their Wednesday, May 26 meeting, the Elk Grove City Council will receive the preliminary budget for fiscal year 2022, which starts on July 1.

Elk Grove's general reserved budget for 2021, which ends on June 30, was $74.3 million. As it has been for in the city's entire history, last year law enforcement accounted for 67-percent of the budget.

This year because of the America Rescue Plan, Elk Grove will receive an additional $23 million. When the city learned about the additional revenue from Rep. Ami Bera at their April 14, they were told while they have some latitude on how those funds are used, there are some restrictions.

Bera informed the city the additional funds could be used for things like additional hazard pay for public safety employees, replace revenue lost from diminished tax revenues, a wide variety of infrastructure projects including water, sewer, or broadband expansion, and transfers of funds to non-governmental organizations that provide social services. He also stressed the money cannot be used to backfill governmental pension obligations.

In April, Elk Grove city manager Jason Behrmann said the city had not received guidelines from the U.S. Treasury Dept. but had expected to have them available earlier this month.

At that time, Behrman said how to use the additional funding would be discussed either during a regular council meeting or a workshop. The money is expected to be distributed in multiple payments over a 12-month period starting this month. 

"Once we get the guidance, we’ll set the date,: Behrmann said in April. "We are already working with various groups including the Mayor’s Economic Recovery Task Force and local non-profits, to understand their current needs and how these funds could be used to support them."

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