The COVID-19 virus pandemic hit Schuylkill County square in the wallet last year, but a federal funding program may soften the $4.7 million blow.

The county will tap the $27 million it has received from the American Rescue Plan Act to offset the deficit.

County commissioners on Wednesday listened to the information laid out by pandemic funding consultant Mark Morgan and county Financial Director Paul E. Buber.

Morgan, who is the director of Susquehanna Accounting & Consulting Solutions Inc., of Harrisburg, gave an update on how ARPA money was spent over the third quarter of this year, July through September.

The county spent $2,550 on a fire alarm system for the Children and Youth Services Agency building, which falls under the public health section of ARPA for approved spending, and $250,945 for cyber security for the county’s computer systems, which is included under the infrastructure section.

Pandemic related obligations for the third quarter were $3,725,006 for improvements to the 911 system towers and communication systems; $500,000 to the Schuylkill Municipal Authority for water projects in the north central area of the county, and $500,000 for affordable housing.

Morgan said the county also spent $128,518 to reimburse medical providers who helped county employees who battled the virus.

The money had been paid from the general fund, and because it’s a direct COVID related expense, ARPA funds can be used to recoup the cost.

Another $4,640,873 was earmarked to make up for lost revenue in 2021, Morgan said.

The county’s audit was completed in September for 2020-2021, helping the county determine the deficit, he said.

Buber said outside the meeting that the deficit was calculated by using a formula provided by ARPA.

Buber, as part of a description of a supplemental budget appropriation, said that during last fall’s budgeting process, the county anticipated about $4.3 million in lost revenue.

Instead, the loss was about $4.7 million, leaving a $340,873 shortfall.

That, coupled with the $128,518 the county spent to reimburse for employees’ COVID related medical expenses, left a $469,391 gap that ARPA funds will bridge.

“When all is said and done, the total amount to be transferred from ARPA to the general fund is $4,769,391,” Buber said.

Morgan said that it’s common for counties to properly use ARPA funds to bridge budget shortfalls.

“Many, many, many counties are taking advantage of this lost revenue calculation and process,” he said.

“They’re doing it for two primary reasons: administrative ease of reporting and eliminating some of the onerous compliance requirements, and as a way to not have to raise taxes and, in effect, benefiting county residents.

“Not all, but most counties are doing this,” Morgan said

The plan to use ARPA money to offset the deficit drew fire from county Clerk of Courts Maria T. Casey, who said the shortfall was the consequence of poor budgeting by the commissioners.

“That was an interesting explanation for the fact that you can’t budget,” she said. “A $4.7 million deficiency? I think you owe the taxpayers an explanation.”

She said the ARPA money should instead be used for fire companies, ambulance associations, and to help restaurants hard hit by the pandemic.