Politics & Government

Water, broadband, schools, tourism. Where did Kentucky’s ARPA money go? See the list.

With a budget surplus in the billions looming, a projected intake of just under $1 billion per year from the recently passed federal infrastructure bill, around $1.1 billion in leftover American Rescue Plan Act (ARPA) funds and more, legislators have a lot of money to allocate.
With a budget surplus in the billions looming, a projected intake of just under $1 billion per year from the recently passed federal infrastructure bill, around $1.1 billion in leftover American Rescue Plan Act (ARPA) funds and more, legislators have a lot of money to allocate. rhermens@herald-leader.com

About $2.1 billion dollars came to the state of Kentucky via the American Rescue Plan Act of 2021.

The bill was signed into law by President Joe Biden in Spring 2021 with the intent of speeding up the country’s recovery from the COVID-19 crisis, both from an economic and public health perspective.

A majority of Kentucky’s congressional delegation voted against the bill, with the exception of Democrat John Yarmuth. Yarmuth, Chair of the House Budget Committee, introduced the legislation. Nearly all Democrats in both the U.S. Senate and House voted for it while all Republicans voted against the package.

Now with the close of this year’s legislative session, essentially all of that money has been allocated. Roughly half was allocated last session and the fate of about $1.1 billion in ARPA dollars was decided this session.

So, where is it going?

Below is a list of all the documented allocations of funds $5 million or more from the State Fiscal Recovery Fund or Capital Projects Fund, both of which were comprised of ARPA dollars. The list does not include any funds allocated through the state’s $13 billion General Fund, only those from the COVID-19 stimulus package.

  • $748 million for the Unemployment Insurance Trust Fund, which finances the costs of administering the state’s unemplyment insurance programs. That includes more than $500 million for an advance repayment for the Unemployment Insurance Trust Fund. Kentucky was flooded with unemployment insurance claims during the peak of the COVID-19 pandemic.

  • $500 million for drinking water and wastewater infrastructure projects. The funds are allocated to each county based on population, though Jefferson County’s share is discounted by 50 percent. The latest version of the House budget says that Jefferson County’s discount is due to a “high per capita allocation” from the local ARPA fund.

  • $300 million for broadband deployment. Some of those funds were allocated as early as Fiscal Year 2021.

  • $168.7 million for school construction projects – from elementary to high school – across the state.

  • $75 million to eligible nonprofit organizations in the state. Per House Bill 1, eligible organizations must: be based in Kentucky and serve Kentuckians, particularly population groups most affected by the COVID-19 pandemic. Kentucky nonprofits can apply for the one-time grant of a maximum amount of $100,000 per organization. The amount can’t exceed the net negative revenue difference between the organization’s calendar year 2020 and calendar year 2021 financial statements.

  • $75 million for efforts to increase Kentucky tourism, administered through the Tourism, Arts and Heritage Cabinet. $15 million is going towards “marketing and promoting tourism in Kentucky;” two grant pools of $25 million are allocated for local tourism commissions to promote themselves and to attract meetings or conventions, and a third pool of $10 million is allocated to multi-jurisdictional “collaborative destination marketing.”

  • The Cabinet for Health and Family Services (CHFS) was allocated more than $69 million for a test and stay program and $37 million for COVID-19 mitigation in congregate settings.

  • The Department of Corrections received $46 million for “correctional facilities support.” The funds, according to House Bill 1, will “support the operations of congregate facilities within the Department of Corrections.”

  • $38 million to revamp the state’s electronic court filing system. Judicial branch staff have called it a complete update to the state’s trial court case management system.

  • $38 million to establish the Commonwealth West Healthcare Workforce Innovation Center in partnership with Kentucky Community and Technical College System (KCTCS) and healthcare providers. Though not explicitly mentioned in House Bill 1, a previous separate bill that aimed to establish the center stated that it would be located in Owensboro.

  • $36.2 million to provide meals for Kentucky seniors. $21.7 million of that total was allocated this budget cycle.

  • $35 million spread across four different county fiscal courts in near-Western Kentucky for “regional water supply infrastructure projects related to” the incoming Ford-Blue Oval SK Battery Park in Glendale. The twin electric vehicle battery factories represent the largest private investment in Kentucky history at $5.8 billion.

  • $33 million for updates to K-12 school HVAC systems.

  • $24 million to continue a $2 per child increase in the Child Care Assistance Program (CCAP) provider reimbursement rate.

  • $20 million in supporting state implementation of the Victims of Crime Act.

  • $12 million to the Louisville Arena Authority. The city of Louisville must provide a dollar-for-dollar match.

  • $11 million for water and sewer upgrades to the Red River Gorge area. The funds are distributed across several water and treatment systems in the area.

  • $10 million to establish the Healthcare Workforce Initiative. The initiative, according to House Bill 1, will “help grow and strengthen the education and training pipeline of healthcare professions” within Kentucky’s universities and colleges.

  • $8 million for modifications to a wastewater pre-treatment facility at the Marzetti Horse Cave Plant in Hart County.

  • $6 million for Simmons College in Louisville, a private historically black college, for teaching and psychology education.

  • $5 million for Harbor House, a nonprofit facility in Louisville that helps families with disabilities seek employment, education and community-building.

  • $5 million for an education program called Math Nation.

  • $5 million for the Kentucky 4-H Foundation for the construction of swimming pools at 4-H summer camps

This story was originally published May 10, 2022 at 11:41 AM.

Austin Horn
Lexington Herald-Leader
Austin Horn is a politics reporter for the Lexington Herald-Leader. He previously worked for the Frankfort State Journal and National Public Radio. Horn has roots in both Woodford and Martin Counties.
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