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How will city, school officials use federal COVID funds to help employees?

How will city, school officials use federal COVID funds to help employees?

Photo: Clarksville Now


CLARKSVILLE, TN (CLARKSVILLE NOW) – In October, Clarksville Now reported that Montgomery County employees who provide essential work during the COVID-19 pandemic will receive up to $10,000 in premium pay, using funds from the federal American Rescue Plan Act (ARPA).

That announcement did not include employees of several county-funded organizations, including the Health Department, Bi-County Landfill, E-911 Dispatch or Clarksville-Montgomery County School System.

“The employees currently included in the ARPA funds include Montgomery County Government employees. Entities governed by independent boards are not included in this plan,” county spokesperson Michelle Newell told Clarksville Now.

However, other federal funding sources could still provide assistance to these public employees, as some funding decisions are still being made.

City of Clarksville

The city of Clarksville received ARPA funds, and premium pay for city employees could be in the cards.

Chief Financial Officer Laurie Matta told Clarksville Now that the city is waiting for further direction from the US Treasury before committing ARPA funds.

“At this time, we are awaiting the final rule before making any such commitments. We want to ensure we spend this money in a way that is explicitly allowable within the final rule provided by the US Treasury. Should we inadvertently misinterpret the ‘interim final rule’ (what is currently available), we could jeopardize future federal funding,” Matta said.

Matta provided Clarksville Now a memo from the Tennessee Comptroller’s Office recommending that city and county governments await “final guidance” before committing ARPA money to premium pay. The memo states that final guidance was expected by September this year.

However, John Dunn, spokesman for the Tennessee Department of Treasury, told Clarksville Now that the US Department of the Treasury has said any spending decisions made by local governments based on current rules will not be held against them, regardless of changes made down the road. His office hopes to receive final guidance in the coming weeks.

Clarksville-Montgomery County School System

Using funds from the Elementary and Secondary School Emergency Relief Fund (ESSER), CMCSS made multiple moves to supplement employee pay throughout the year.

In May, the school system provided employee bonuses totaling over $6 million, according to CMCSS spokesperson Anthony Johnson.

One month later, CMCSS issued step increases to all employees as well as a 3% cost of living adjustment.

CMCSS’ proposed ESSER 3.0 Budget includes retention bonuses for all employees as well as bonuses for specific employee groups, including COVID-19 hazard bonuses for nurses and medical staff; attendance incentives for instructional and student-support positions; one-time market adjustments for bus drivers, custodians, and child nutrition staff; and a comp time payout for classified staff.

Additional incentives have also been provided to address the ongoing bus driver shortage, including $1,000 sign-on and referral bonuses.

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