Cal Cities develops revenue loss calculator for cities receiving American Rescue Plan funding

Jun 16, 2021

The League of California Cities, alongside a team of city finance professionals and the California Society of Municipal Finance Officers (CSMFO) created an innovative revenue loss calculation tool that will help cities comply with the American Rescue Plan Act funding rules. 


The ARPA established the Coronavirus State Fiscal Recovery Fund and Coronavirus Local Fiscal Recovery Fund to provide support to State, local, and Tribal governments responding to the impacts of COVID-19 on their communities, residents, and businesses. The U.S. Department of the Treasury Department outlined several eligible uses for the funds, including revenue loss.  

To determine the amount of revenue that may be used under the "revenue loss" provisions of category "C" of the Treasury Department Guidance, a recipient agency must calculate its revenue loss under ARPA’s provisions and the implementing rules issued by the Treasury Department.  

The new tool developed by Cal Cities and CSMFO incorporates the latest Treasury Department’s Guidance and its applicability to local government finance in California as understood by our team of finance professionals. This is a 1.0 version of the calculator. It will be updated and improved as Treasury Department guidance evolves. Cities will be able to calculate revenue at multiple points throughout the program.  

Two versions of the calculator have been prepared to support cities’ choice to use fund basis (modified accrual) or government-wide (full accrual) financial records.

For more information about revenue loss calculations and eligible uses prescribed by the Treasury Department, please review pages 9-12 of the Department's Frequently Asked Questions (Updated June 10, 2021). Additional resources can be found on Cal Cities' Guide to Local Recovery page.  

If you have comments or questions on the calculation tool, please contact Michael Coleman at If you have other questions, please do not hesitate to email us at