Can Funding Counties Directly Help Them Overcome Their Biggest Problems?


  • The American Rescue Plan brought over $65 billion in federal funding directly to counties for them to use according to their assessment of local needs.
  • A new analysis of county finances finds that direct funding is the best way to ensure that federal funds are used to best advantage, given the widely varying population and economic trends in America’s more than 3,000 counties.
  • According to NACo, the demand side of county balance sheets is exploding. Even counties that are doing well financially are seeing needs in their communities outstrip their resources, particularly related to behavioral and mental health, substance abuse, homelessness, and housing affordability.
  • Federal funds are most effective if they come directly to counties, empowering them to use them according to their understanding of local conditions. That argument from the National Association of Counties (NACo) is a key takeaway from a published report released the day before the opening of its annual legislative conference.

    From Feb. 10-13, almost 2,000 county officials from 46 states were in Washington, D.C., for the conference to meet with members of Congress. “We’re not lobbyists,” says Mary Jo McGuire a commissioner in Ramsey County, Minn., and the current NACo president. Instead, county officials seem themselves as “intergovernmental partners,” fostering consensus and forward motion on issues of mutual concern.


    County governments have a unique ability to impact things that can either improve or undermine the stability of families and communities, from public health and public safety to parks, roads, libraries and mental health.

    In a conversation with Governing just before the conference, NACo leaders talked about present priorities for such cooperation, from Medicaid reform and election security to artificial intelligence and disaster preparedness.

    Governing: The post-COVID economy looks pretty good from a national perspective. How about the county level?

    Matt Chase, CEO, NACo: It’s not monolithic; you are going to see variations across the country. One of the topics we are focusing on is that regardless of the revenue picture, the demand side of our balance sheet is exploding. Even counties that are doing better financially are seeing the needs of their communities outstrip their resources. We’re talking about behavioral health and mental health, substance abuse, homelessness, housing affordability.

    A third of the counties are growing, a third are staying the same, a third are declining. Growth is expensive for the public sector. There’s often a disconnect between a growing county economy and our ability to tax residents to keep up with the growth. More and more, state legislatures are trying to limit our ability to raise revenue.

    Mary Jo McGuire: We need investment from the federal government to come directly to us. If it comes through the state, it doesn’t come as quickly or as equitably. We need direct funding to target the specifics of our work; we all do it a little differently.

    Denise Winfrey, board member, Will County, Ill., immediate past president, NACo: The $65.1 billion [in ARPA funding] that went to counties was essential for them to do the work they needed to do. Being able to direct programs to the immediate needs of residents is what is making a difference.

    Governing: What concerns do your members have about the coming election season?

    Chase: At this conference, we’re bringing key federal officials, including from the U.S. Election Assistance Commission together with secretaries of state, county officials and Major Garrett from CBS News, who just wrote a book on elections. The focus is how we can have the right policies, the right equipment and the right volunteers trained to run a fair and honest election. We understand the political noise, but we’re incredibly proud of the way counties bring together over 600,000 volunteers every election season and run the safest, best elections in the world.

    Winfrey: In my county we have put in new voting equipment, the result of ARPA funding. We have enhanced our sheriff’s department, so we have workers at all the polling places. We have more polling places, and people can vote on the weekends. We’re making sure that people are aware that they can vote everywhere and doing a lot of work with high schools, having youth work as adjuncts to clerk’s offices and helping them register people who will become of age in time to vote.

    Governing: In some ways, the biggest challenges seem to be in dealing with the new communications ecosystem. Are you talking to election officials about how they can keep ahead of misinformation?

    J.D. Clark, county judge, Wise County, Tex., second vice president, NACo: There are a lot of…



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