News Photo by Steve Schulwitz Alpena County Treasurer’s office employee Cindy Cebula pulls a tax-record book from a shelf while at work Friday. The treasurer’s office will have more money to keep track of, as the county was awarded about $5.5 million from the recently passed stimulus package.

ALPENA–Counties, townships, and cities are in line to get a financial boost, the likes of which they have never seen before.

In the coming weeks, local governments will begin to receive portions of the $65 billion allocated to local governments in Michigan from the $1.9 trillion American Rescue Plan that passed through Congress last week and was signed by President Joe Biden Thursday.

Data released by the U.S. House Committee on Oversight and Reform, and reported by Crain’s, shows local governments can expect big sums of money to help them overcome financial challenges.

Counties in Northeast Michigan are the big winners, as Alpena, Montmorency, Presque Isle and Alcona counties will each receive amounts in the millions.

Alpena County is slated to receive $5.5 million, while Presque Isle County will get about $2.4 million. Montmorency County will receive $1.8 million, while Alcona County is slated to receive $1.8 million.

Alpena County Commissioner John Kozlowski said the county needs the money, but it needs to learn how to handle finances better so it doesn’t end up in tight financial positions like the one it’s currently in.

Local governments are expected to receive half of their money in the next several weeks, with the balance forwarded a year after that.

Alpena County started the fiscal year with a budget shortfall of about $1 million, but was able to whittle it down thanks to layoffs, grants and draining its budget stabilization fund.

“If we can’t make it without this, then we are doing something wrong,” Kozlowski said. “Yes we can use the money, but if we don’t rethink how we’re doing things it won’t matter. We need to fix the problem we are in ourselves and not rely on government bailouts to do it for us.”

The Municipal Employees’ Retirement System of Michigan recommends the county pay nearly $1 million a year, to help cut the $10 million it still owes for retirement benefits.

In a press release, Bill Wild, the Michigan Municipal League president, praised the funding and said it will help municipalities overcome the harm the COVID-19 pandemic has caused to finances.

“The passage of American Rescue Plan will bring desperately-needed relief to municipal governments large and small across the state of Michigan,” Wild said. “This is a historic moment for Michigan local governments and communities across the nation.”

Stephan Currie, executive director of the Michigan Association of Counties, said the money is a windfall for counties, but there are parameters established for its spending. He said spending the money to reduce the amount of unfunded retirement liabilities isn’t allowed, nor is it meant to pay off debt.

Currie said MAC is working on a plan to help counties who need advice, planning, or help determining how to responsibly use and manage the money.

He said large sums of money are often a challenge to administer, and the association will assist its members anyway possible. Currie said he suspects the funds will do a lot of good, if used the right way.

“This is an unprecedented moment and I think counties should take advantage of it,” he said. “They can shore-up budgets and use this opportunity to get the money out to the community in ways it will benefit.”

Alpena County Commissioner Marty Thomson said the federal funding is welcome and he is optimistic it will help right the financial ship. He added the county must do a better job finding ways to boost revenue and reduce expenses.

“Grant dollars are awesome gifts to our financially challenged county budget but they are temporary fixes, Thomson said. “We need to be using the relief to find more permanent budget answers or we will be right back where we started when the grants run out. Furthermore, if the grant dollars coming to us can only be used to grow government , and not reduce debt, that will make it more difficult. We will work hard to use any grant gifts wisely.”