Infographic showing ARP cuts

It was recently brought to our attention that the City of Buffalo wanted to strip nearly 80% of the Frontline Arts Organization Sustainability fund from their ARP funding plan. This is after organizations waited more than a year for applications to be released, navigated an extensive and complicated RFA process, and then waited another 8 months to hear anything back. After digging into this issue further, it appears that the City of Buffalo is misusing their American Rescue Plan (ARP) funding not just in the arts. And we’re concerned.

On Monday, July 24, 2023, the Partnership for the Public Good (PPG) hosted a press conference publicly announcing their concerns and the fact that they are submitting a complaint to the US Department of the Treasury’s Inspector General about the City of Buffalo’s mismanagement of this funding and violations to the federal procurement laws. They are requesting the Department of the Treasury launch an investigation into the City’s management of these public funds and are collecting a growing body of evidence to prove wrong doing.

 

The Complaint

  • The City has already used $100 million of their original $331 million in ARP funding as Revenue Loss Replacement. They are now requesting an additional $60 million be moved out of community support and into revenue loss replacement, meaning that nearly half of these federal COVID relief dollars are no longer being used to support recovery efforts or community revitalization the way the City originally said they would and the way the federal government approved that this funding would be spent. The progress report budget they submitted to the US Treasury Department last July shows that they wouldn’t need to use any more than the original $100 million for Revenue Loss Replacement.

You can find the budget information the City submitted to the US Department of the Treasury in 2022 on page 5 (or PDF page 8) of the city’s submitted 2022 ARP progress report.

  • It appears the City of Buffalo is using these federal pandemic relief dollars to fill gaps in their budget due to their ongoing inability to manage their own budget and not for it’s intended purpose of supporting the community. Per the Department of the Treasury’s Final Rule on ARPA funding, recipients of this funding can only allocate this funding to revenue loss replacement if the revenue loss is due to the pandemic. Based on comments from the Buffalo Common Council during their July 25, 2023 meeting and based on review of past budgets and actions taken by the City, it’s clear that the City has struggled to manage it’s finances since well before the pandemic and continues to do so.

View the City of Buffalo’s current and archived budgets online here.

  • Nearly $10 million of this $60 million in reallocated funding is to be used for Council Member discretionary spending. This means it is NOT being used for Revenue Loss Replacement as they claim but as a new source of revenue, including a new small business program. But what they did was take this funding away from the small business community nonprofits that would reinvest this funding back into the community to give it to for-profit businesses that would personally pocket any profits they make from this funding.

 

  • The way the City has handled the RFA process has violated Federal Procurement Laws. Various organizations that have been through the RFA and interview process over these past 8 months have cited inappropriate behavior and discrimination by those administering the process that directly violate the Federal Procurement Laws the City is required to follow, including anti-discrimination laws. You can view the full COVID Compliance and Reporting Guidelines online here.

PPG is also submitting a FOIL request to see all scores and comments made by the ARP panels. This is to ensure they followed proper and appropriate procedures and made a good faith effort to complete the RFA process.

 

What can you do?

  • Stay in touch with your elected officials and let them know that you see what they’re doing and don’t support it. This includes all City of Buffalo officials.
  • Reach out to Congressman Brian Higgins and Senator Chuck Schumer and encourage them to support PPG’s request to the US Treasury Department for an investigation on how the City of Buffalo has used their COVID relief funding.
  • If you applied to this most recent RFA for the City’s ARP funding and experienced something that felt wrong or inappropriate at any point during the process, please contact Andrea Ó Súilleabháin (Andrea@ppgbuffalo.org) at PPG to share your story. She is collecting evidence to submit to the US Treasury Dept. to back up the claim they are making.

 

Timeline

March 2021 – The American Rescue Plan Act (ARPA) was passed by the federal government. City of Buffalo met with various community organizations to collect needs in the community and draft a spending plan for these federal relief dollars.

August 2021 – City of Buffalo approved their final Spending Plan that was submitted to the US Department of the Treasury for approval and release of funding.

July 2022 – City of Buffalo was required to submit an interim progress report to the US Department of the Treasury on their progress.

October 2022 – City of Buffalo released the RFA’s for community organizations to apply to their funds.

December 2, 2022 – Applications for the RFA’s were due.

March-April 2023 – Certain applicants were invited to participate in Zoom interviews with the City’s review committees.

July 17, 2023 – City of Buffalo decided to take 55% of the funding that was supposed to be distributed through this RFA process and reallocate that to additional revenue loss replacement and provide new revenue for Buffalo Common Council member districts.

July 25, 2023 – Buffalo Common Council met to discuss this and other items. This topic, along with other ARP related approvals, was tabled until Thursday, July 27 while additional information was collected.

July 27, 2023 – Buffalo Common Council officially approved the ARP funding cuts and changes recommended by the City of Buffalo’s Department of Administration, Finance, Policy, and Urban Affairs.

July 31, 2023 – City of Buffalo submitted an interim progress report to the US Department of the Treasury on their progress.

December 31, 2024 – All ARPA funds must be obligated.

December 31, 2026 – All ARPA funds must be expended.