Andy Sullivan

(Reuters) – Erie in Pennsylvania needs a makeover. Although the 100,000-strong lakefront community has seen an increase in jobs and business downtown, it still suffers from vestiges of its industrial past, such as abandoned factories, concrete buildings that are ugly, and decaying homes.

While leaders may have many development plans in place, the lack of funds is what prevents them from putting these into practice.

It seems that their hopes and dreams are now possible. Congress approved President Joe Biden’s $1 trillion Infrastructure Law last year. This law provides $550 Billion in funding for projects such as bridge repair and environmental cleanup.

This is the biggest U.S. public works surge since 1960s. However, it’s not certain that those funds will reach Erie. The state governments will receive roughly half the money, and the remainder will be distributed on a competition basis.

The money will need to be applied for by local governments in order to receive it. After decades of belt tightening many aren’t equipped to handle this task.

Perry Wood is the Erie County Gaming Revenue Authority’s executive director. He stated, “Nobody has been ready, because nobody had needed to be prepared until now.”

The U.S. Labor Department reports that local governments have lost 3.7% of their administrative work since the COVID-19 epidemic began in 2002.

Some communities have struggled to handle the $500,000 billion of COVID-19 assistance Washington sent to their local governments. Shanna Draheim, of the Michigan Municipal League said that one out five Michigan communities missed the first round of federal coronavirus assistance because they were unable to complete the paperwork.

CHALLENGE SMALL CITIES

A lot of people look to professionals outside. Mason, Michigan’s city has set aside as much as $40,000 to pay a consultant for its application for funding for the upgrade of its sewer network. It is an expensive expense that will affect 8,300 residents.

Deborah Stewart, city manager said that it is difficult for small communities to compete.

According to academic studies, federal homelessness grants tend to be more effective for communities who are able to show that they will utilize the money efficiently than those in greatest need.

This can be a benefit to cities that have the ability and resources to deal with federal bureaucracy. According to Reuters, only 11 counties were awarded 50% of competitive grants by federal agencies responsible for most infrastructure spending in the last fiscal year.

Experts warn that smaller cities could be left behind in the rush for infrastructure funds. Bruce Katz of Drexel University, who helped Erie to apply for infrastructure grants, said, “It will be overwhelming in many instances and could even favor large, wealthy metropolitan areas.”

Erie’s planning director Kathy Wyrosdick said that many federal programs require that local governments also provide matching funds. Erie was not able to take part in recent years because of this hurdle. Washington was also not able to help with the bureaucratic maze.

She stated, “It’s disingenuous saying, ‘We’ll grant you the cash if your stuff is figured out.’”

Biden Administration says they are working on reducing these barriers.

New competitive grant programs often include provisions for communities who have been affected by poverty, pollution, or discrimination. Administration also demands that the spending it makes on climate change and clean energy must be at least 40%. Officials say that in some cases matching-fund requirements may be waived.

The White House last week released a 461-page guidebook https://www.whitehouse.gov/wp-content/uploads/2022/01/BUILDING-A-BETTER-AMERICA_FINAL.pdf that breaks down the law’s funding opportunities, and the Transportation Department has held outreach sessions for local governments.

Biden met directly with mayors, local officials, to encourage the law. Former New Orleans mayor Mitch Landrieu is the White House infrastructure coordinator. He claims he’s spoken to hundreds.

Erie has a mix of government, private and civic groups. Erie Insurance is the largest employer in the city.

The first thing to do is hire more grant writers, planners and other administrative staff. Local philanthropies will cover the cost of $11 million. Wyrosdick explained that such a move will make the region more resilient to other catastrophic events like climate change, or another pandemic.

She stated that “the system that must be in place in order to compete for federal dollars is that system that should always have been in place.”