IFC: State reports ARPA funds fully obligated; officials brief committee on housing, labs and youth projects

Bridal Leiser, fiscal analyst with the Legislative Counsel Bureau, told the Interim Finance Committee that the state's coronavirus State Fiscal Recovery Funds (ARPA SFRF) show a $0 unobligated balance and that the state met the Treasury's obligation deadline. "The remaining unobligated balance, which is $0," Leiser said. He summarized five work-program requests before the committee and said three would de-obligate roughly $410,000 from previously approved allocations and repurpose that authority for the Governor's Finance Office to support ARPA positions.

Tiffany Greenmeier, director of the Governor's Finance Office, told the committee the state reported to the U.S. Treasury that 100% of SFRF funds were obligated by the Dec. 31, 2024 deadline and that the remaining funds must be spent by Dec. 31, 2026. "No. We have not had anything from D.C. about the ARPA dollars being pulled back," Greenmeier said when asked whether federal recapture was a risk. She said the GFO had asked all ARPA recipients to reassess their projects and return worksheets by April 15, 2025, so any excess funding could be reallocated at the June IFC meeting.

Why it matters: The committee is responsible for reconciling work programs and ensuring state reports to the U.S. Treasury are accurate. Members pressed agencies with large outstanding balances for concrete spending schedules because any unspent funds after Dec. 31, 2026, could trigger reallocation or recapture rules.

Project updates and questions - Home Means Nevada (housing): Christine Hess, chief financial officer for the Nevada Housing Division, said the Home Means Nevada portfolio is 41% spent overall and that all funds for land acquisitions and preservation tranches are obligated. "Of course all funds are obligated," Hess said, and added that draws on multifamily preservation and rehabilitation projects often arrive in large lump sums. Housing officials offered to provide project-by-project quarterly reports and spend forecasts to the committee.

- Nevada State Public Health Lab (NSPHL): Kevin Knuff, representing the University of Nevada, Reno (the site host), disputed a low figure on the committee's spreadsheet and said construction is underway. "To date, all the funds have been committed and, we, construction has started and to date we have spent $12,600,000 on the project," Knuff said of the $75 million appropriation, which he said was about 16.8% expended. NDOT and campus representatives told the committee they expect completion before the federal deadline and that progress payments are issued as work is performed.

- Nevada Health and Bioscience Corporation (Southern Health Laboratory): Warren Hardy, representing the Nevada Health and Bioscience Asset Corporation, said planning is finished and contracts and a lease with University Medical Center (UMC) were being finalized. Hardy said the project is "well underway" but did not provide a total spent-to-date figure; he said he would provide that number to the committee.

- Boys & Girls Clubs (Southern and Northern Nevada): Daniel Solow, with Boys & Girls Clubs of Southern Nevada, said the East Las Vegas campus tied to the Shaquille O'Neal Foundation is ready to close financing and that construction has a notice to proceed. He said a significant drawdown is likely within 30 days and that about 50% of the project funding could be drawn down shortly after closing.

- Washoe County Behavioral Health Center (formerly West Hills): Julia Ratti, Washoe County behavioral health administrator, summarized work since the county purchased the building in Feb. 2024 and said the county will present a $2 million CMAR (construction manager at risk) contract in April for abatement and demolition and a $14.8 million CMAR guaranteed maximum price in May to complete phase 1 by May 2026. Ratti said the county had reallocated $3.2 million in local ARPA funds to close gaps and that the county remains committed to spending the $14.5 million awarded by the state.

- Carson Tahoe Health mental-health projects and Vitality Unlimited campus: Michelle Joy, CEO of Carson Tahoe Health, said the youth outpatient center is complete, a youth crisis stabilization center is about 50% complete, and adolescent inpatient work is pending permits; she reported about $1.13 million expended to date (roughly 32% of the project total cited in committee materials) and said the project is on track to expend the appropriation by the end of the year. Sarah Adler, local project manager for Vitality Unlimited, said Vitality purchased a Carson Tahoe Regional Medical Park site and reported roughly 25% total project expenditure (including local partner funds), with design contracts and a CMAR letter of intent in place. She said Vitality is prepared to use reserves or debt to complete the project if necessary.

What committee members asked for: Several members, including Assemblymember Daniel Monroe Moreno and Majority Leader Dina Titus Cannizzaro, pressed agencies for monthly or quarterly spend forecasts, project-by-project updates for major housing tranches (including the $500 million Home Means Nevada allocation), and explicit timelines that show how each project will meet the Dec. 31, 2026 expenditure deadline. Housing Division staff agreed to provide quarterly reports and project spend plans for projects less than 50% expended.

Ending: Committee members repeatedly emphasized timetables and documentation because the state has 18 months to spend funds before the statutory Treasury deadline. Greenmeier and Housing Division staff said they would distribute more detailed, project-level reports and spend forecasts to the committee in advance of the June meeting.

Sources: Legislative Counsel Bureau presentation by Bridal Leiser; Governor's Finance Office report by Tiffany Greenmeier; Nevada Housing Division updates from Christine Hess and Steve Acroft; project updates from Kevin Knuff (UNR), Warren Hardy (Nevada Health and Bioscience Asset Corporation), Daniel Solow (Boys & Girls Clubs), Julia Ratti (Washoe County), Michelle Joy (Carson Tahoe Health), and Sarah Adler (Vitality Unlimited).