How should Memphis spend $161 million in federal COVID relief? City leaders disagree

Correction: This story has been updated to clarify what passed in the fiscal 2022 City of Memphis budget. 

Memphis Mayor Jim Strickland's administration spent more than three hours Wednesday outlining how it wants to spend $161 million in federal money.

In about 12 minutes, the Memphis City Council, led by Councilwoman Patrice Robinson, hinted it might be the council's way or the highway. 

At the end of the Strickland administration's presentation, Robinson said she had a different plan to spend the $161 million in American Rescue Plan Act funds.

And, if Robinson, the past chairwoman, garners the political support needed for her plan, there might not be a lot the Strickland administration can do about it. 

The Memphis City Council has budgeting power for the city, meaning that it, not the mayor's office, has the final say on how funds are spent. 

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Robinson outlined an array of spending on home weatherization, home repairs and blight remediation, explaining that it would make a broader impact on the real-time needs of Memphis residents. She hinted that that program could replace the Strickland administration's plans for expansion of the city broadband network. 

"Oh man, would we make a big difference in our community," Robinson, who represents Whitehaven, said. "Councilmembers, think about it. I'll see you on Tuesday."

The Strickland administration had planned to bring a resolution to the City Council on Tuesday that would have appropriated most of the money the city received from the federal government under the American Rescue Plan Act. 

Two weeks ago, at the council's meeting, the administration outlined how it would like to spend the money. It included $25 million for expanding broadband access and about $10 million for expanding Boys & Girls Club programming from Craigmont High School into about 10 other schools. 

The city had also previously told the council of the need to shore up special revenue funds such as the Downtown Tourism Development Zone and the hotel-motel-tax fund.

A different City Council plan for funds

On Wednesday, Robinson said she planned on bringing a resolution that would put the remaining ARPA funds in three buckets, including one that included about $30 million for blight remediation, home repairs for the elderly, and home weatherization. 

In an interview Thursday, Robinson said she may hold her resolution and instead opt for an open-ended discussion among the council on how the funds should be spent. That sort of dialogue could help Robinson garner the support she needs for alternative spending plans. 

Other members of the council quickly signaled their enthusiasm for Robinson's plan Wednesday, and, with that support, suggested that the city administration's wish list might not pass as is on Tuesday. 

Councilwoman Rhonda Logan said, "It's like we're [hurrying] to spend this money and have not thought it through... I think we are actually rushing and we're not giving it due diligence."

The signs of council opposition hint that the administration's planned uses of the funds could be curtailed and broadband expansion could be one such casualty.

The administration's already-laid financial plans and the council's trepidation could set the stage for political confrontation on how the massive, one-time influx of cash is used and showcase shifting dynamics between Strickland and the city council. 

Councilman Worth Morgan, the body's budget chairman, said it would be unlikely the body would vote on appropriating funds this coming Tuesday. 

"There are more questions than there are answers at the moment," Morgan said. 

Such a confrontation over funding might not have happened in years past. The previous versions of the council — those elected in 2015 — often deferred to the Strickland administration, something Robinson noted in an interview Thursday.

"The current council wants to be more involved," Robinson said. "And that's OK, too. 

The councilwoman, who is term-limited, said the city has opportunity to use the federal for more direct impact than some of the administration's proposals. 

"We have to address poverty straight on and do the right thing. We've never had the money to do it. Now we do." 

Samuel Hardiman covers Memphis city government and politics for The Commercial Appeal. He can be reached by email at samuel.hardiman@commercialappeal.com.