The Wisconsin Towns Association, League of Wisconsin Municipalities, and Department of Revenue have produced a model spread sheet to help communities calculate revenue loss caused by COVID-19 as allowed under the federal American Rescue Plan Act, which we are releasing today.
One of the most versatile and flexible categories for utilizing Federal Coronavirus Local Fiscal Recovery Funds from the American Rescue Plan Act is created when communities calculate revenue loss during the pandemic and compare that to actual revenue from the base year immediately preceding the pandemic. However, the formula for the calculation and what is included and excluded as local revenue has created confusion and uncertainty for local governing bodies.
“We saw an opportunity to work together to create a product from which both our constituencies could benefit,” said Mike Koles, Executive Director, Towns Association. “The end result will create a more uniform calculation across the state and utilizes information from revenue forms that local government’s currently use in reporting. The ARPA revenue loss calculator is a win for our members.”
An entire category of ARPA eligible uses centers around determining revenue loss. This category allows communities to fund government services which can include maintenance of infrastructure, new infrastructure including roads; health services; environmental remediation; school or educational services; and the provision of police, fire, and other public safety services. The calculation is a critical step in communities understanding their opportunities.
“Our goal is to provide our members with the services and support that they need,” said Jerry Deschane, Executive Director, League of Wisconsin Municipalities. “ARPA is a new concept and represents an historic investment in local government, it is very important we help lead our communities to success and the calculator is one tool that can aid in this endeavor.”
We would like to thank the Department of Revenue for their help in finalizing the calculator.