Putnam redirects ARPA funds to roads while preserving mental health investment 

Putnam County will redirect approximately $2.15 million in remaining federal American Rescue Plan Act (ARPA) funding from a previously planned stabilization center in Carmel to county road improvement projects while continuing to fund future mental health initiatives through a separate reserve account. 

The Putnam County Legislature approved the funding changes at its July 7 meeting after County Executive Kevin Byrne said updated guidance from the U.S. Treasury Department made the reallocation possible. 

The ARPA money had originally been earmarked for a stabilization center project, but county officials said that project could not move forward under its original plan, after the Carmel Planning Board rejected the site plan application earlier this year. Rather than risk losing the remaining federal funds, the administration sought Treasury guidance on redirecting the money to eligible infrastructure projects. 

Under the approved plan, the county will use the $2.147 million in ARPA funding for countywide road paving projects. 

At the same time, officials said the county's commitment to expanding behavioral health services will continue through a separate $2.1 million Mental Health Reserve Fund. Unlike ARPA dollars, reserve funds are not subject to the same federal spending restrictions, providing greater flexibility for future mental health initiatives. 

Byrne said the approach allows the county to retain the federal funding while continuing to invest in behavioral health. 

"We refused to let more than $2 million in federal funding go to waste," Byrne said. "We worked with federal officials, secured additional guidance from the U.S. Treasury and found a path that allows us to improve roads across Putnam County while still maintaining our strong commitment to expanding mental health services through a more flexible funding source." 

The administration said it first proposed the funding shift about three months ago and continued working with the Treasury Department before bringing the measure back to the Legislature. 

Byrne said he appreciated legislators taking additional time to review the proposal before approving it. 

The county said the road funding will allow additional paving projects to move forward without increasing the local tax burden, while the separate reserve fund preserves the county's ability to respond to future behavioral health needs.

Article provided by the County Executive's Office