American Rescue Plan Act funding can be used to replace lost revenue resulting from the COVID-19 pandemic. Specifically, the law and Treasury guidance provides for an eligible expenditure to, “Provide government services affected by a revenue reduction resulting from COVID-19.” As of January 6, 2022, cities and towns may now opt to either compute the amount of funding that they can use in the Lost Revenue Eligible Use category or they may select the option to utilize the Standard Allocation of up to $10 million dollars or the amount of the entity’s allocation whichever is less. Consequently because of this dramatic change, your attention is called to the latest training materials. If cities select to compute the lost revenue, be sure to use the revised multiplier of 5.2% rather than the 4.1%.
- Lost Revenue FAQs (Treasury) (Updated May 2022) (PDF)
- General Revenue Flow Chart (PDF)
- Lost Revenue Final Rule (PDF)
Use the Revenue Loss Worksheet to Calculate Loss Revenue
The Revenue Loss Worksheet was created to help you calculate your city’s Lost Revenue based on the guidance provided by Treasury. It is designed to be used for all periods from 12/31/2020 – 12/31/2023.
- Revenue Loss Worksheet (Updated January 25, 2022) (Excel)
The spreadsheet contains 3 tabs:
- Calculator Summary: This tab summarizes the information from the other tabs and displays a table that generates “Counterfactual Revenue” (Projected Growth Revenue), compares it to “Actual Revenue,” and calculates “Revenue Loss” (Lost Revenue). You will not enter anything directly into this tab.
- Revenue: This tab is used to collect the city’s revenue and revenue adjustments for 2019 (Base Year) and 2020-2023, as available. Enter your city’s revenue information in the gray areas.
- Growth Adjustment: This tab is only necessary if you believe your city has experienced an average annual revenue growth greater than 5.2% from 2017-2019. If so, enter your city’s revenue information in the gray areas for 2016-2018. The information for 2019 will automatically generate based on the 2019 data entered on the Revenue tab. This tab will not need to be updated each year. It will remain the same.
Each tab has instructions at the top in a navy blue box with white lettering. Beneath the Instructions will be information related to Highlighted Fields. These will explain what the highlighting on each tab means. Generally, highlighting means the following:
- Navy Blue: Used for Instructions, column labels, and table labels
- Dark Blue: Revenue tab data used on/for the Calculator Summary tab
- Light Blue: Growth Adjustment tab data used on/for the Calculator Summary tab
- Gray: Cells for city information/data to be entered into as applicable