Winooski gets millions in federal cash, though spending decisions may be a long way off

The City of Winooski will be receiving over $2 million as a part of the American Rescue Plan, while the Winooski School District will receive nearly $12 million — but it may be a while before that money is spent.

The City will be receiving $730,000 directly and $1.4 million from a larger pot of money being allocated throughout Chittenden County on a per capita basis.

“These funds are reserved for COVID-related expenses and must be spent by December 31, 2024, giving us ample opportunity to make important decisions on how to utilize this much-needed support,” wrote Mayor Kristine Lott in an update posted March 18.

Federal regulators have to give further guidance on how much of the money can be spent.

“The US Treasury has not issued regulations yet on how these dollars can be spent. Once they do so, the community will have a conversation about priorities and, ultimately, the Council will decide on the expenditures,” said City Manager Jessie Baker.  

Baker added that this will likely be a months, and possibly even years-long process.

Congressman Peter Welch attended a virtual meeting of the Winooski City Council March 15, where the lone Vermont congressman laid out the details of the federal stimulus package.

“You will have the fundamental responsibility about the wise use of funds,” Welch told city leaders. “It has to be used for COVID-related expenses, but that’s broadly defined. Bernie, Patrick and I were really strong advocates for flexibility at the local level.”

The windfall is a “good news, bad news” situation, Welch said.

“It’s good news that you’re going to have some funds to help you with the challenges that you face, the bad news it that you’re going to have to make really tough decisions on the allocation of these funds,” Welch said.

Expenditure details for the School District’s $11.8 million allotment also remain unclear, according to district leaders.

“We’re going to take our time assessing the needs and understanding the rules and strings attached to the funds so we can put together a good plan,” Winooski School District finance manager Nicole Mace told NBC5.

Mace is hopeful that these funds may be eligible to cover HVAC upgrades the School District had begun work on just prior to the outbreak of the COVID-19 pandemic.