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Putnam legislators weigh where $2.5M in ARPA funds will go after planning-board denial of stabilization center
Summary
Putnam County lawmakers pressed finance staff on options after the Carmel Planning Board denied a People USA stabilization center; Commissioner of Finance said ARPA rules limit reallocation to already open, approved projects and that money must be spent in 2026, prompting calls for alternative funding plans to preserve public-health intent.
Chairwoman Montgomery opened the committees discussion of the $2.5 million ARPA allocation for a proposed People USA stabilization center, saying she had asked County Executive Byrne for clarity after the Carmel Planning Boards unanimous denial of the site. "It was crucial for the Legislature and public to understand the Administrations assessment of the next steps," Montgomery said, noting concern that federally allocated public-health funds remain used for health purposes.
Commissioner of Finance William Carlin described a three-step approach under way: audit People USAs claims with Law, Finance and the ARPA consultant to get a final fiscal accounting; reallocate funds only to open, approved ARPA projects; and, if other resources free up later, allow Department of Social Services and the Administration to develop enhanced mental-health programming. Carlin warned that ARPA deadlines require spending in 2026 and said finding a new site and proceeding through another planning-board process within that timeline was not feasible.
Legislators pushed for greater legislative input and alternatives that preserve the public-health purpose. Legislator Birmingham asked for an ARPA project list from the consultant and suggested creating a capital reserve fund so the county could backfill capital projects and free other funding for mental-health work. Legislator Sayegh and others discussed backfill approaches used previously—"like with the Axon project in the Sheriffs office"—to avoid returning federal money.
Montgomery pressed whether the contract with People USA had been terminated and whether Treasury had been notified. Carlin said contract termination had been "explored" but not finalized and described Treasury reporting as tied to quarterly fiscal reports rather than an immediate notice. The Chairwoman said she believed Treasury should be formally alerted because the original grant purpose was public health; Carlin said available options remain constrained by ARPA rules and the set of currently open projects. He said he expects to return next month with a proposed reallocation plan that will likely emphasize infrastructure projects unless an allowable public-health alternative can be found.
Next steps: Commissioner Carlin said staff will complete the audit of People USA invoices and that he expects to present a reallocation proposal to the Legislature next month. The chair requested the ARPA consultant and Administration representatives attend follow-up meetings to clarify legal and Treasury-reporting obligations.
