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Jul 23

2021-2022 Budget and ARPA Funding

Posted on July 23, 2021 at 10:57 AM by Marc Garcia

Developing the City budget is one of the most important actions of our organization. On June 22, City Council approved the 2021-2022 budget for the next fiscal year. I’m proud to say that this budget reflects community priorities identified in the City’s Strategic Plan and balances our needs with financial restraint. 

Modesto is currently in a period of transition. We’re moving out of the economic downturn and the challenges brought on by the COVID-19 pandemic. While these events are ongoing, the City is making its way towards recovery.

Our total proposed Operating Budget is $478 million. We worked hard to create a balanced budget – meaning we’re spending as much money as we’re bringing in. We made strategic cuts to expenses and City positions while taking advantage of new American Rescue Plan Act funding. 

The American Rescue Plan is a $1.9 trillion federal emergency relief measure intended to address the impacts of COVID-19. This legislation makes historic investments in local government. The City of Modesto will receive $45.89 million - $22.9 million is already being put to good use, and the remaining 50% will be distributed in May 2022. 

The City must follow the ARPA legislation that outlines how and where the funds can be spent. Our plan is outlined in a pandemic recovery strategy known as Modesto Forward. You’ll see we’re focusing on projects that positively impact the quality of life, economic vitality and service delivery for Modesto residents.

Specifically, that means investments in:

  • Community parks and public facilities 
  • The Children’s Museum, Car Museum and Awesome Spot Playground
  • Downtown housing 
  • Affordable housing and homeless programs 
  • Business support and broadband infrastructure
  • Mental health initiatives 
  • Improvements to City facilities 
  • The City’s forestry program, and 
  • Programs to improve police-community relations

Some of these programs already exist, and some programs are new programs under development that we hope to roll out soon. Together, we are excited to move Modesto Forward and make investments that directly benefit residents and the community. To learn more, visit our Modesto Forward webpage at