Northeastern Wisconsin cities to receive millions from American Rescue Plan

OSHKOSH (WLUK) -- Some of Northeastern Wisconsin's largest cities will be getting millions of dollars to boost the economy, as part of President Joe Biden's stimulus package.

The City of Green Bay anticipates $25 million, the City of Appleton anticipates $14 million, and the City of Oshkosh -- $20 million.

Oshkosh Finance Director Russ Van Gompel says he's waiting on final rules from the federal government detailing how the money can be spent. There are some broad spending categories he's aware of.

"What is the revenue we lost last year and how can we replace that, the second pot is a look at some economic recovery, the third item is really investments in water, sewer and broadband," Van Gompel said.

Jeff Sachse is a former state economist who researches the economic impact of COVID-19.

"Because of the reliance especially on property tax revenue that you see in a lot of communities in Wisconsin, the budget holes weren't that significant," Sachse said.

Sachse says the question is whether governments will spend the money on debt or investment.

"That's both a policy and a political decision," he said.

Van Gompel says next week Oshkosh city leaders will start brainstorming how to spend the money.

"Any bit helps. It's really a one time source of revenue. So we've got to make it work and make it an investment in maybe infrastructure," Van Gompel said.

Biden's COVID-19 relief package is $1.9 trillion, leaving some concerned about the cost.

"This recovery plan is a lot of money. Can the United States afford to be borrowing as much as it is?" FOX 11 asked Sachse.

"The two things I would be concerned for long-term is the question of whether this leads to inflation in the future, which I know the federal reserve is monitoring very closely," Sachse replied.

He added that as more things get put in a stimulus, the price tag goes up, and we don't know what that upward spending limit is.

"My concern is that in the future, we may be in another situation where we need the federal government to help, and that price tag may get to the point where they will simply say no," Sachse said.

Van Gompel expects to get half of the payment in the next two months. The second half would come at a later date.

The money cannot be spent on tax cuts or pension funds.