Friday, March 19, 2021

Why City of Racine is getting way more stimulus money than its neighbors, explained

From The Journal

RACINE — The City of Racine is to see much more monetary benefit than its neighbors from the $1.9 trillion spending bill signed by President Joe Biden on March 11.

$1.9 trillion

Nearly one-fifth of the bill’s expenditures — the third such massive spending bill passed by Congress during the pandemic — is aid to states, cities, counties, tribes and smaller municipalities as the country’s economic revs its collective engine in the wake of the pandemic.

Collectively through the bill, titled the American Rescue Plan Act of 2021, $5.711 billion will be coming to Wisconsin in various forms, with some going to the state, some for capital projects and much of it for municipalities.

The local governments in Racine County are to receive $96.87 million in total, with the money partially (but not totally) being divvied by population. Nearly half of that money is going to the City of Racine.

Why the difference?

Cities with higher poverty rates and more crowded housing are getting larger allocations than simply based on population, based on how the spending bill was designed. Also, locations that are federally designated as “metro cities” — of which there are 18 in Wisconsin, including the City of Racine — are slated to get considerably more than their neighbors, even if those neighbors aren’t that much smaller, population-wise.

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