LEGISLATIVE
MEMORANDUM
TO:

FROM:

DATE:

SUBJECT:
Wisconsin County Officials

WCA Government Affairs Associate Marcie Rainbolt

April 7, 2021

County Board Authority to Donate Funds to Nonprofit Food Pantries 
With the federal government’s anticipated distribution of American Rescue Plan Act (ARPA) funds beginning next month, counties are strategizing as to the best use of their allocation. The good news is counties will have until December 31, 2024, to spend the money distributed through ARPA, so there will be ample opportunity to discuss the highest and best use of the funds. In addition, the U.S. Department of Treasury will be developing and disseminating guidance shortly, which will hopefully answer many of the questions our county members have.  

One question that has arisen again with the influx of these ARPA funds is whether the Attorney General’s 2017 opinion seemingly limiting a county’s authority to appropriate funds to a nonprofit corporation impacts county planning for the ARPA funds. The 2017 opinion concluded counties did not have the authority to provide funds to a nonprofit whose mission is to operate a food pantry. (See a 2017 memo from WCA General Counsel Andrew Phillips about the September 1, 2017 Attorney General’s opinion regarding authority of a county board to appropriate funds to nonprofit organizations here.)

Since that time, a Wisconsin Legislative Council analysis from March of 2021 provides additional analysis and concludes a court may likely uphold a county’s authority to donate funds to a nonprofit food pantry notwithstanding the Attorney General’s 2017 opinion.

In recent discussions with various stakeholders, WCA staff noted how cooperative relationships with our municipal partners would likely form as a result of the ARPA funding based upon the shared goals associated with negating the adverse consequences the pandemic has caused. The Attorney General’s 2017 opinion did not address county appropriations in the context of joint county/municipal programs, nor was Legislative Council asked to provide analysis on this question.  

UPCOMING GUIDANCE
In an effort to provide a level of clarity as counties prepare for the ARPA distribution, the Wisconsin Counties Association (WCA) has asked WCA General Counsel Phillips to thoroughly analyze the issue so counties can make the appropriate decision on how to utilize their ARPA funds. Attorney Phillips will prepare guidance for WCA, which will be distributed to the entire county family as soon as it is available.  

QUESTIONS
In the meantime, if you have questions about the analysis please contact Marcie Rainbolt, Government Affairs Associate at WCA via email or at 866.404.2700.