Decision To Be Made By Gloucester Twp. About COVID Relief Funds

GLOUCESTER TOWNSHIP, NJ — Gloucester Township now has about $3.4 million in revenue it received from the federal government in response to the coronavirus pandemic in its budget following council action that was taken Monday night.

A decision is still to be made about how exactly that money will be spent, officials said during Monday night's meeting at the municipal building.

Council approved a resolution inserting a special line item for $3,399,527.50,which was provided by the federal government through the American Rescue Plan Act, into the budget during Monday night’s meeting.

It’s about half the money the federal government has said Gloucester Township will receive as part of the act. It will receive the rest of the money next year.

Previously, U.S. Senators Cory Booker and Bob Menendez announced that Gloucester Township would receive about $7.6 million as part of the plan, but that amount was later revised to about $6.8 million, according to Township Business Administrator Tom Cardis.

The money will be used to offset losses in revenue as a result of the pandemic. It will cover the township’s total loss, as opposed tp breaking it down by category.

More information about what the money will be used for specifically would be known toward the end of the year, Cardis said.

When the announcement of the allocations came earlier this year, federal officials said American Rescue Plan money could be used by local governments for expenses related to the coronavirus, to cover lost revenues due to the pandemic to maintain critical services and avoid layoffs of essential workers; provide additional assistance to residents and small businesses; and invest in water, sewer and broadband infrastructure.

However, some confusion remains about exactly how the money can be spent, said Cardis, who was recently involved in a virtual meeting on the subject with the new director for the Division of Local Government Services.

“About 68 percent of municipalities have not formulated a budget yet on this,” Cardis said. “A lot of that confusion comes from the federal government, and what you can and cannot spend it on. You have to spend this money by December 31, 2024. Most municipalities want to dot the i’s and cross the t’s, and make sure it will withstand any future audit by the federal government.”

Further action by the township concerning the use of this money won’t require council approval, but that information will be shared with council members, Council President Orlando Mercado said.