Gary moves forward with ARPA spending

GARY — After months of back and forth, the Common Council approved three ordinances appropriating American Rescue Plan Act funds during a Tuesday meeting. 

In September 2021, Gary Mayor Jerome Prince proposed a spending plan for the first half of the $80.3 million ARPA funding the city was allocated. After a premium pay ordinance was passed in December, the Prince administration sought ARPA funds for four other ordinances: hiring an ARPA manager for a one-year contract not to exceed $60,000, $5 million for a joint venture broadband project, $1.5 million for a leadership and job training program and $400,000 to continue the Guaranteed Income Validation Effort, or G.I.V.E., program. 

Prince and Council President William Godwin, D-1st, also co-sponsored an ordinance requesting $100,000 of ARPA funds for broadband updates to the council chambers. 

The council voted to table the ARPA manager ordinance and postponed the ordinance appropriating funds for chamber broadband updates to the March 1 council meeting. The remaining three ordinances were approved. 

Helping the community

The $5 million of citywide broadband improvements will go towards addressing Gary's pervasive "digital equity" issue, Lloyd Keith, chief innovation officer for the city, explained.

Many neighborhoods in Gary have only one internet provider, while surrounding communities have two to three. Providers are choosing not to wire every home in Gary because the return on investment is not high enough, Keith explained. The $5 million will only fund the initial stage of addressing the issue, helping the city determine the extent of the problem. 

The $1.5 million approved for job training would help revitalize summer youth programs Gary used to offer. The initiative would work with participants ages 14 to 18 and would consist of two parts. Under the first part, the Summer Youth Employment Program, the city would subsidize participants' placement into local companies like U.S. Steel, NIPSCO, Hard Rock Casino, Gariup Construction and more.

The second program, the Mayor's Youth Leadership Training Institute, would show youth "how a city functions from tip to tail," Deputy Mayor Trent McCain explained. The institute would be a replication of city government where participants would learn public speaking, create newsletters and work alongside city employees. 

The third and final ordinance that gained approval during Tuesday's council meeting sought $400,000 to continue the G.I.V.E. program. Based on a guaranteed income program championed by former Stockton, California, Mayor Michael Tubbs, the program gave a randomly selected group 125 qualifying Gary residents $500 a month for six months. 

The program was supposed to continue for 12 months but ran out of funding in December. Once the pilot is complete, the city will present the results to the federal government in the hopes that the program will be implemented on a national scale. 

With many other nonprofit organizations requesting city funds, Councilwoman Linda Barnes-Caldwell, D-5th, said the $400,000 ask is "a lot of money." Councilwoman Tai Adkins, D-4th, pointed out that G.I.V.E. serves less than 2% of Gary's total population, adding that "any projects we do moving forward need to affect the masses."

"I have no problem with people getting checks and enhancing their personal lives, but I also hope we are building capacity within the institutions, civic and otherwise, that the city relies on," Godwin said. "I understand the importance of big data sets and longitudinal studies, but I think at some point we have to say 'what are you going to do the next year, and the next year, and the next year?'"

While G.I.V.E. will continue to fundraise in the hopes of continuing the program after the ARPA funds run out, in the interim, the organization has partnered with Centier Bank to offer citywide financial literacy courses starting in March. 

Councilman Cozey Weatherspoon, D-2nd, said he knows people currently enrolled in the program. Weatherspoon said the continued financial toll of the pandemic and the fact that "inflation is through the roof" makes programs like G.I.V.E. extremely valuable. 

"Helping 125 people for six months is not a lot to ask whatsoever, ... especially when you stop to consider the people we are helping within our own community," Weatherspoon said. "Let's not forget we do have a very high unemployment rate in this city. Let's not forget we continue to have a high poverty rate in this city. Let's not forget we continue to have a large degree of homeless people in this city."

The $400,000 G.I.V.E. appropriation passed with a vote of 7-1, with one abstention. 

On pause 

During a Feb. 8 Ways and Means Committee meeting, Godwin explained that while the ordinance requesting ARPA funds for broadband updates to the council chambers asked for $100,000, the total cost of updates may be closer to $250,000. He also said the city may benefit from bringing in a consultant to evaluate the technology needs.

Adkins moved to postpone the ordinance, and Godwin said he would like to gather more information and possibly amend the requested amount before the ordinance is voted on. 

During last week's Ways and Means meeting, Godwin also said he would like to see "way more specificity" included in the ARPA fund manager ordinance with required degrees and qualifications listed.

The amended ordinance presented at Tuesday's meeting included a brief job description, explaining the contract would go to an individual manager or an accounting firm “to ensure that the relief aid is used effectively and in compliance." After a vote of 4-5, the ordinance was tabled.