b'ViewpointsThe fear that the massive influx of federal aid would be wasted or would primarily be used to balance budgets or cut taxes seems to be unfounded.John Kamensky is Emeritus Senior Fellow at the IBM Center for The Business of Government.Allowable Uses for State and Local Fiscal Recovery FundsReplace lost public sector revenue Recipients may use funds up to the amount of revenue loss for services traditionally provided by recipient governments.Support the COVID-19 public health andRecipients can use funds to address economic harms to households, economic response small businesses, nonprofits, impacted industries and the public sector, including populations or groups experiencing disproportionate impacts.Provide premium pay for eligible workersEligible workers are generally those working in-person in key economic performing essential work sectors who are below a wage threshold.Invest in water, sewer, and broadbandTo improve access to clean drinking water, support vital wastewaterinfrastructure and stormwater infrastructure, and to expand affordable access to broadband internet.Source: U.S. Department of the Treasury (January 2022). Coronavirus State & Local Fiscal Recovery Funds: Overview of the Final Rule. pp. 6-7. While the potential uses of the Recovery Fund are broad,Recovery Funds to improve efficacy of programs addressing there are several specific restrictionsthe monies cannot benegative economic impacts, including through use of data used to replenish under-funded pension funds, or rainy dayanalysis, targeted consumer outreach, improvements to funds, or to cut taxes. data or technology infrastructure, and impact evaluations.Interestingly, Treasurys guidance on allowable usesIn addition to flexible uses of various pandemic relief specifically encourages building state and local capacitiesfunds, the monies are distributed more broadly than any to develop and use evidence and data to better managegrant program since the General Revenue Sharing program their overall performance. The guidance notes: State, local,of the 1970s:and tribal governments may use payments from the Fiscal 2022 IBM Center for The Business of Government 75'