County agrees to shift federal funds amid debt ceiling negotiations

The Cortland County Legislature voted unanimously to move federal funds to an ongoing project.

The rest of the county’s American Rescue Plan (ARP) funds, at $1 million, was originally dedicated to addressing a lack of access to broadband internet. Now, the funds will go toward repairing the Cortland County Courthouse.

The county received a $9.3 million allocation in ARP funds in 2021 meant for economic recovery post-COVID-19 lockdown, but negotiations in the The House of Representatives regarding the national debt ceiling could impact the funds.

County Legislature Minority Leader Beau Harbin (D-LD-3) said negotiations are forcing the shift in funding.

The debt ceiling is the legislative limit on the amount of national debt that can be incurred by the U.S. Treasury, limiting how much money the federal government may pay by borrowing more money, on the debt it already borrowed.

The debt limit bill put forward on Friday by House Speaker Kevin McCarthy, a Republican from California, includes a section that would seize ARP funds that have not been spent, according to national reports.

“We fought to set aside these ARP funds for the expansion of broadband,” Harbin said. “We know we need this funding to eliminate the digital divide.”

A report from the Regional Planning and Development Board (CNYRPDB) estimates there are around 1500 households and more than 300 miles of county roads not connected to broadband internet.  

“I would be against this resolution if it wasn’t for the machinations of the majority party in the house of reps that is holding the debt ceiling negotiations hostage with the threat of vacuuming up unspent ARP funds around the country,” Harbin said.

Harbin, however, acknowledged the courthouse is a symbol of the county’s aging infrastructure and deserves funding for renovations.

“There is a lot of work to be done and we know we need the funds to do that,” he added.

The project recently received funding from Assemblymember Anna Kelles, D-Ithaca, who secured $5 million in grant funds. At least $2.4 million of said funds come from the Dormitory Authority of the State of New York (DASNY). DASNY provides construction, financing, and allied services that serve the public good of New York State.

Another pressing matter also weighed on Harbin’s mind. At Monday’s special Legislature meeting, which focused on the county’s emergency order regarding the potential arrival of asylum seekers bused from New York City to upstate counties, representatives of the County Department of Social Services noted they were expecting a $600,000 budget shortfall for next year. 

“That really worries me,” Harbin said. “Ultimately, we are going to continue to move forward with the courthouse because of the uncertainty caused by Congress.”

Harbin noted the Legislature will try to find a solution to the budgetary issues at DSS.