One of the basic principles of good financial stewardship is that you don’t spend onetime money on recurring expenses.
It’s true for a business, and it’s especially true for the government.
The Leflore County Board of Supervisors, though, may try to violate this principle next year, if it can get away with it legally.
At a budget hearing this week, the suggestion was floated that to balance the books, the county should consider using some of its American Rescue Plan Act money to cover payroll expenses. The board plans to ask the Jackson law firm that has been advising the county on how the federal money can be spent whether such a purpose is allowed under the terms of the law that provided the windfall.
Even if the attorneys say it’s legal, it would be unwise to use any of the onetime money in this way.
This year’s budget problem, which is apparently heavily rooted in personnel costs, is not going away. Using ARPA money to cover shortfalls for the coming year will only put off for 12 months the tough decisions the county faces to get its expenses in line with its revenues.
There are only two possible long-term fixes for such a budget imbalance. Admittedly, neither solution is politically appealing. The county can either reduce staff, or it can raise taxes. Short of a burst in economic growth, there is no magic wand the supervisors can wave that will make the problem go away.
The ARPA money is intended to help local governments make long-term improvements to their communities. A major point of emphasis in the legislation is improving infrastructure, particularly water and sewer systems.
Look at the mess that Jackson is in from decades of neglect of its infrastructure. Its water and sewer systems are falling apart, resulting in what have become regular boil water notices and the release of millions of gallons of raw sewage into streams and rivers. People are scared to drink the water, restaurants are losing customers and profits, and the federal government is hammering the city over repeated violations of the Clean Water Act.
Leflore County is getting $5.4 million in ARPA money, and the state Legislature has created a matching fund for local governments if they spend the money on water and sewer infrastructure projects. Leflore County should use most of its ARPA money in just that way.
With the 1-to-1 state match, that’s $10 million that could be spent on providing safe public water to parts of the county that don’t have it. The county also could create its own matching program to help local rural water associations upgrade their pipes and their pumping stations.
Such investments would create a benefit for not just one year but for generations. Leflore County should not squander this opportunity.
