NEBRASKA - Tasked with spending an unprecedented windfall of federal COVID-19 relief, some of Nebraska’s largest political jurisdictions, primarily the state, are on track to spend more than a combined $10 million of the federal dollars on consultants to help them allocate the money.

Nebraska is not unique in using coronavirus relief for guidance and oversight on spending. The expenditures are necessary for ensuring that local officials' jurisdictions do not run afoul of guidelines that dictate how the money must be used.

The City of Omaha is one of the most recent entities to contract with Deloitte after approval by the City Council in late October. The global consulting firm will provide services related to the development, review, and reporting of the city's American Rescue Plan funds.

The $1.9 trillion act was passed by Congress in March with the aim of thwarting economic damage caused by COVID-19. Eligible state, local, territorial, and tribal governments could receive up to $350 billion.

Jurisdictions that are eligible and accept the money have until 2026 to spend it and are required to regularly report how they have spent it to the Treasury Department. Any money spent outside of the guidelines must be returned to the federal government.

Roughly $56 million was allocated to the City of Omaha in May with another $56 million expected in early spring of 2022. Payment to Deloitte of $250,000 will come out of these allocated funds.

The City of Lincoln went a different way as they are looking to resources from the Biden administration and national organizations for guidance.

“The City of Lincoln has dedicated appropriate policy, legal, and financial staff members to ensuring appropriate compliance with the American Rescue Plan State and Local Fiscal Recovery Funds as well as drawing on technical assistance provided from the administration and national organizations,” Kate Bolz, a mayoral aide for economic development, told The World-Herald. “(The city) will develop additional resources if and when necessary.”

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