BATESVILLE, IN — Batesville City Council last night approved a resolution to use the standard deduction for American Rescue Plan Act Funds.
Council passed an ordinance last year agreeing to certain rules when it came to the use of coronavirus funds.
Those rules allowed for four uses, including covering revenue reductions caused by the COVID-19 pandemic.
This year, the rules state that a standard deduction for revenue loss of up to $10 million can be used for government services.
“We are only receiving $1.5 million roughly, so all of the funds that Batesville is getting has the ability to be under the standard deduction,” said Clerk-Treasurer Paul Gates. “What it does is, it reduces the amount of paperwork for the projects you want to do. It opens up to the city the ability to use those funds on a broader level, instead of being very, very specific. How we’re going to use those funds right now, we don’t know.”
Gates said any funds spent would have to go before Council, which would consider them an additional appropriation since they were not budgeted.
In addition, the funds must be used by the end of 2024 unless a project is underway and it’s taking longer than anticipated.
In that case, Gates says the city would have until the end of 2026 to spend the dollars.
