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County says roughly $2M in ARPA funds used for premium pay; Treasury asks for documentation
Summary
Cheshire County officials told commissioners that the U.S. Treasury has asked for clarification about ARPA-funded premium pay given in 2021–22; county staff said roughly $2 million was used, that payments were applied to eligible departments, and supporting documentation has been provided for compliance review.
At the May 7 Cheshire County commissioners meeting, county staff reported that the U.S. Treasury had requested additional information about premium pay the county provided to employees using ARPA funds in 2021 and 2022.
Cheryl, who is handling Treasury communications, said the county received an email seeking clarification on whether funds were obligated and expended before April 1, 2022, the date the Treasury's final rules took effect. She said the county responded that the premium pay was allowable under interim guidance, that the county stopped using ARPA funds for premium pay before Treasury’s April 10, 2023 cutoff, and that supporting documentation will be made available for any desk review.
“I'm like, from my top of my head, like 2021 was like 672,000,” Cheryl said of the initial premium‑pay disbursement, and she estimated total ARPA premium‑pay use over the program at about $2 million. She added that four quarters of 2023 distributions were roughly $1.2 million and that one premium-pay stream targeted nursing‑home staff in response to federal vaccination mandates. The county also provided countywide premium pay (with exceptions for higher‑paid personnel) to help retain staff in essential departments such as nursing, the nursing home and EMS.
Cheryl said the county structured some premium pay as phased or prorated payments and later absorbed ongoing increases into the budget so taxpayers would not face a sudden spike. “We ended the premium-pay program well before the rule change,” she told the board, adding that the county prepared documentation showing department-level allocations and quarterly distributions.
Commissioners thanked Cheryl and noted the county will continue to respond to any Treasury follow‑up.
Next steps: county staff said they will supply requested records to Treasury's desk reviewers if requested and continue internal compliance reporting.
