Guest Opinion | Rick Cole: The City of Pasadena Should Spend Its $52.2 Million COVID Relief Check Wisely

The City of Pasadena is about to receive a big COVID relief check from the Federal Government.  Our share is $52,230,000.  No, that’s not a typo.  Under the $1.9 trillion American Rescue Plan, Pasadena will receive at least $52 million. That’s on top of emergency costs already reimbursable by the Federal government or the many specific earmarks in the bill for housing, transit, small businesses and other programs that will benefit Pasadena.  

The law forbids only two uses for the money going to cities: paying off pension debts or cutting taxes. In three paragraphs, the new law says the money can be spent for: response to the public health emergency; aid for residents, businesses and nonprofits suffering from negative economic impacts; providing premium pay to essential workers; substituting for lost revenues; and making “necessary investments in water, sewer, or broadband infrastructure.”

That’s a lot of money.  To put it into context, last July the Council adopted a General Fund budget of $269.6 million to pay for the core functions of City government (excluding the Water and Power utility and other specialized business operations.)  Of course, revenues have been hit hard by the downturn, especially sales and hotel taxes.  To avoid sharp cuts in city services, some of that $52 million will be needed to backfill those lost revenues.  But Pasadena residents raised their taxes in 2018 to provide $14 million in additional annual city revenues, so the city finds itself in an enviable position to spend the Federal windfall wisely.  

On the one hand, the purpose of the Federal “rescue” is to provide quick relief to help communities get back on their feet.  On the other hand, President Joe Biden promised to “build back better” and address long-standing problems that the pandemic both highlighted and worsened.

That argues for Mayor Victor Gordo and the City Council to think strategically about how to spend this one-time infusion.  It can be squandered to prop up the status quo – or it can be invested in programs, policies and projects that will improve long-term health, safety and prosperity for all, especially those hardest hit by the pandemic amid Pasadena’s growing divide between rich and poor.

Our elected officials are scheduled to get a preliminary report on Pasadena’s share of the rescue monies at today’s City Council meeting.  There will be enormous pressure to start writing checks now.  After all, some Pasadena residents and businesses are in dire need.  But once the money is spent, it’s gone. If most of it isn’t directed at long-term jobs, housing and public improvements, we will have missed an extraordinary opportunity to “build back better.”

Government being what it is, organized interests will immediately raise their voices and thrust out their hands.  That’s natural.  But the Council should look beyond those who make the most noise or have the best access to City Hall.  Like America, like California – only more so – Pasadena finds that many people have emerged economically unscathed or even advantaged by the pandemic.  If you own your home, can work remotely and are part of an industry that’s prospered or been unaffected by the pandemic, COVID has been both scary and inconvenient, but you’re still drawing your pay — and the value of your home has appreciated.  On the other hand, if you lost your job, had your business dry up, lost a loved one or ended up in the hospital, the impact has been devastating.  Moreover, families of public school children have struggled for a year with daunting challenges that impede learning and social development.

A wise plan for allocating these funds won’t emerge from political power plays or knee-jerk reactions.  It will only come from intelligent and imaginative public discussion of how to use the lessons of this pandemic, including our long overdue reckoning on race, to guide thoughtful spending.  The Federal government has provided Pasadena City Hall with significant resources.  We can employ them to rethink and refocus local strategies, for example, to promote local jobs that pay better and housing that’s more affordable.  We can reconfigure policing to make us all safer.  We can revamp mobility to be more convenient and environmentally sustainable.  We can leverage other resources to make us water self-sufficient to withstand the next drought.  We can bring the advantages of high-speed broadband into every home — and at the fingertips of every student.  These are not “pie in the sky” visions – they are urgent priorities if we want to “build back better.” The best choices will combine long-term impact with opportunities for the unemployed and local businesses to immediately be part of the rebuilding.

Crises can bring out both the best and worst in people.  It can make us act like heroes – or heels.  The same is true of communities.  Cities can rise to the occasion or be swamped by calamity.  Coming out of this pandemic, Pasadena should lead – and set an example for other communities.  It’s a remarkable opportunity – let’s rise!

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Rick Cole is a former Mayor of Pasadena