The 2022 city of Grand Forks budget season is well under way and we are putting forward a strong and lean budget for next year. Reviewing the current budget performance for 2021, we have kept expenses in check and revenues have been coming in better than expected. City sales tax revenue has outpaced estimates which indicates a strong economic recovery for our region coming out of the pandemic.
As we receive more clarity on permissible uses for the American Rescue Plan Act (ARPA) funds, city administration has been working hard on putting together a strong proposal on where to strategically allocate the $11.4 million in federal funds the city is set to receive.
The significant influx of money into the nation’s economy has certainly raised concerns about impending inflation. While current year-over-year metrics show a large increase in the Consumer Price Index, some deflationary pressure may have been weighing on the economy as many parts of the country were shut down this time last year. Still, when looking at the Federal Reserve economic data, nearly 25% of all U.S. dollars in existence today were created in the last 14 months. That is quite a staggering figure.