• About Us
  • Advertise
  • Contact Us
  • Privacy Policy
Thursday, May 8, 2025
The Iowa Torch
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
No Result
View All Result
  • Home
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion
The Iowa Torch
The Iowa Torch
No Result
View All Result
Home Opinion

Curry: Where did Iowa’s local COVID relief funds go?

Sarah Curry: Thankfully, most communities across the state did not commit to future obligations while spending these funds, but instead put them toward one-time expenses and capital projects.

Sarah CurrybySarah Curry
August 17, 2022
in Opinion
Reading Time: 3 mins read

Polk County Administration Building - Photo by Shane Vander Hart

The COVID-19 pandemic began in March 2020, yet the federal government took over a year to direct financial relief to municipalities across the country through the American Rescue Plan Act (ARPA). The pandemic hit local communities across Iowa hard, but our governments survived the pandemic with little lasting fiscal damage. Now Iowa’s cities and counties face the task of spending ARPA funds while also complying with the U.S. Treasury’s complicated guidelines. 

RELATED POSTS

Feenstra: Lowering the cost of childcare for our families

Grassley: History informs farm policies of today

Hendrickson: Iowa taxpayers win big in 2024

The state’s largest eleven metropolitan cities received nearly $335 million, while counties took in $612 million and smaller governments received $216 million in payments. To discover how local governments were using these funds, Iowans for Tax Relief Foundation (ITRF) conducted a survey of select communities. Our intent was not only to report on what officials have done, but also to discern the long-term effects for taxpayers. 

Elected officials have been presented with countless ideas about how to spend ARPA funds yet prioritizing the interests of the taxpayer should have been at the top of their minds. Thankfully, most communities across the state did not commit to future obligations while spending these funds, but instead put them toward one-time expenses and capital projects. 

The largest spending category of ARPA funds was revenue replacement (41 percent), with Polk County posting the largest revenue loss followed by Council Bluffs and Cedar Rapids. Items Iowa’s local governments have listed under this category range from large capital or infrastructure projects, such as horse barn construction at the fairgrounds, fire station renovations, and building a Justice Center, to everyday items such as office chairs, software upgrades, playgrounds, new signage, and alarm system upgrades. Of the communities surveyed, all claimed some revenue loss except Sioux City, Scott County, and Muscatine County.

The next largest expenditure category was infrastructure (30 percent). Cedar Falls spent millions on sewer and stormwater repairs and wastewater treatment. Sioux City obligated 94 percent of its $40 million on storm water, drinking water, and sewer projects. In some cases, local governments worked together: Linn County and Cedar Rapids obligated over $5 million each for flood control and water/sewer projects, while Cerro Gordo County invested in the City of Meservey’s wastewater well. Another major area of infrastructure investment was broadband or fiber Internet which was listed for Waterloo, Muscatine County, and Pottawattamie County.

ADVERTISEMENT

The broad category of Negative economic impacts (13 percent) was the third largest. Particularly prominent in this category are affordable housing and housing needs in general. Public health only accounted for 12 percent of the total spending and included things like COVID-19 signage and equipment for vaccine clinics, along with upgrades to emergency management operations. 

While many of these expenditures are valid, many Iowans were hoping the aid would produce property tax reductions, and while the federal government would have permitted it, none of the communities obligated ARPA funds directly towards tax relief. Council Bluffs and Polk County went so far as to report erroneously that the funds could not be used for this purpose. That said, 10 of the 19 respondent communities reduced their property tax levies between fiscal year 2022 and 2023, while two left their levy rates the same. Blackhawk County saw the largest property tax savings with a levy reduction of 54 cents while Sioux City saw the largest increase at 97 cents.

There is no doubt many local governments experienced negative financial effects from the pandemic; however, assistance given nearly 18 months after the onset was arguably too late to do much good. Sixty-eight Iowa communities refused the ARPA dollars altogether while 85 percent of the rescue funds allocated to the local governments we surveyed remains unspent. 

The data from our Iowa-specific survey implies the pandemic did not destroy local governments as badly as news reports had portrayed. In fact, even now, when our lives are practically back to normal, the federal government is scheduled to send more money to local governments this fall, which will only further contribute to the country’s rising inflation.

You can read more details about this survey here.

Tags: American Rescue Plan ActCedar RapidsCouncil BluffsIowans for Tax Relief FoundationMuscatine CountyPolk CountyScott CountySioux City
ShareTweetShare
ADVERTISEMENT
Previous Post

Former ITT Tech Institute students in Iowa see $15.7 million in student loans discharged

Next Post

Miller-Meeks: A year of betrayal

Sarah Curry

Sarah Curry

Sarah Curry is the research director for ITR Foundation. She previously served as the Policy Director at the Nebraska based Platte Institute and as the Director of Fiscal Policy Studies at the North Carolina based John Locke Foundation. She earned a Doctor of Business Administration in Finance where her dissertation focused on municipal debt.

Related Posts

Miller-Meeks: From the Missouri to the Mississippi
Politics

Poll: Large majority of Iowans say country is on ‘the wrong track’

October 5, 2023
crop faceless person with cash and calculator app on smartphone
Opinion

Hendrickson: Iowans are increasingly concerned about our economy

April 19, 2023
man standing beside heavy equipment
State Government

State of Iowa to invest additional $2 million in manufacturing 4.0 technology

February 16, 2023
Study: $1,702 Collected in Property Taxes Per Capita in Iowa
Opinion

Hendrickson: For property tax relief focus on spending

October 19, 2022
brown and beige wooden house under blue sky
Local Government

Polk County may increase housing assessments by 22 percent

September 29, 2022
Hendrickson & Williams: Governor Reynolds’ Tax Reform Ideas are Pro-Growth
State Government

Reynolds announces $40 million for nonprofit projects helping Iowans in need

September 15, 2022
Next Post
Miller-Meeks Asks If Feds Are Prepared to Support States, Cities Fight Cyber-Attacks

Miller-Meeks: A year of betrayal

Hendrickson & Williams: Governor Reynolds’ Tax Reform Ideas are Pro-Growth

Hendrickson: Reynolds vs. Biden: Contrasting visions of statesmanship

Recommended Articles

Miller-Meeks Bill to Support DHS Workforce Passes House

Miller-Meeks Bill to Support DHS Workforce Passes House

July 21, 2021
Pate proposes legislation to create uniform election recount procedures

Pate proposes legislation to create uniform election recount procedures

January 9, 2023
What If There Is a Tie Vote in Iowa’s 2nd Congressional District?

Pate Helps Voters Prepare for Upcoming City-School Election

October 8, 2021

Popular Stories

  • Three LGTBQ Books with Sexually Explicit Material Pulled from Waukee School

    Three LGTBQ Books with Sexually Explicit Material Pulled from Waukee School

    0 shares
    Share 0 Tweet 0
  • Editorial: Johnston School Board can’t legally deny a TPUSA chapter

    0 shares
    Share 0 Tweet 0
  • Rozenboom: Reflecting on the First Week of the 2021 Legislative Session

    0 shares
    Share 0 Tweet 0
  • Reynolds Appoints Joshua Schier as District Court Judge

    0 shares
    Share 0 Tweet 0
  • Hendrickson: John Calvin’s contribution to liberty

    0 shares
    Share 0 Tweet 0
The Iowa Torch

The Iowa Torch​ is a for-profit, news organization that focuses on political news as it relates to Iowans

Categories

  • Current Events
  • Education
  • Federal Government
  • Iowa History
  • Local Government
  • News
  • Opinion
  • Politics
  • State Government

Newsletter

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.

No Result
View All Result
  • Home
  • About Us
  • Advertise
  • Contact Us
  • State Government
  • Federal Government
  • Local Government
  • Politics
  • Education
  • Opinion

© 2022 The Iowa Torch, a publication of 4:15 Communications, LLC.