Strengthening & promoting cities as centers of opportunity, leadership, and governance

NBC-LEO Protests Budget Cuts to Major Economic Development Programs

Representatives from the National League of Cities and National Black Caucus of Local Elected Officials (NBC-LEO) gathered in New York City recently to denounce proposed cuts to key federal programs that help cities and towns boost economic development in their communities while serving their neediest citizens.

?The President has proposed the elimination of scores of extremely effective programs that have assisted local governments to maintain and improve their communities, have provided jobs for their workers and homes for their families,? said NBC-LEO President Leo V. Chaney Jr., council member from Dallas, at a news conference held on February 11 as part of the group?s winter meeting. ?He has reduced our funds for first responders. And while he has maintained his support for the Section 8 housing program ? very important to cities working to keep housing affordable for our workers ? he is sending a very strong message to me and others here today: His priorities do not appear to be focused on those of us here at home.?

The FY 2006 budget includes a proposed consolidation of the Community Development Block Grant (CDBG) program with 17 other empowerment programs into two new programs. The new programs would be administered by the Department of Commerce at a funding level of $3.71 billion.

Since CDBG funding alone in FY 2005 was $4.7 billion, this poses a serious reduction in the monies available to cities to revitalize and rehabilitate aging downtowns, replace and build new affordable housing, reduce environmental hazards and support a range of jobs programs, Chaney said.

?The CDBG program is unique among federal programs because it allows cities great flexibility to target specific low- and moderate-income communities and address their special needs,? said NBC-LEO President Elect Felicia A. Moore, Atlanta, Ga., council member. ?Through the program, we can leverage federal monies to gain significant private investment ? leading to the goal we share with the President to stimulate more economic growth and build the ?ownership? community he often talks about.?

NBC-LEO held two days of meetings in Manhattan to discuss their legislative priorities, including protection of the CDBG program and other economic development tools. Also high on its list of concerns are public safety and homeland security, including re-entry programs for ex-offenders; health care; and education, including the growing digital divide.

The news conference was held at the site of a major community revitalization program in Harlem that includes housing, lead abatement, and programs to spark retail and other types of small business development.

?Large and small, our cities are home to the majority of Americans and specifically African-Americans,? said Manhattan Borough President C. Virginia Fields. ?Their hopes are our duty to fulfill as their elected representatives. Their hopes and aspirations are directly tied to what we do. We must stand tall and keep marching until we can change this.?

Moore said, ?In FY 2005, Atlanta is set to receive $10.7 million for CDBG, already a cut of five percent from the previous year and 12 percent lower than the city received in FY 2000. Almost $100 million is received throughout the state of Georgia to support Community Development Block Grants. Let me say that again: $100 million dollars.?

Moore said this money goes ?to construction firms, pipe fitters, plumbers and others who help build or rehabilitate housing, shopping centers, and other buildings; to young mothers who are re-entering the workforce or are training for new jobs; to child care workers, who are enabling low- and moderate-income families to go to work with peace of mind that their children will be well cared for; to members of the faith community and other community non-profits for assisting in implementing programs; and to other small business men and women who are partnering with us in advancing the goals of this program.?

Chaney noted that President Bush has announced an initiative to improve and enhance educational opportunities for all children.

?Dallas is already doing something ? we have used CDBG funding to serve nearly 3,000 6-12 year olds by the end of FY 2005 by providing outreach after-school and summer programs through structured recreational, cultural, social and life skill activities,? Chaney said.

The city has already funded 27 after-school sites through CDBG with a budget of $525,849, and planned to expand this program to several junior high schools using FY 2005 Federal Appropriations. These programs would be in jeopardy if CDBG funds are eliminated.

?In total, the City of Dallas has an FY 2005 CDBG budget of $26.9 million,? Chaney said. ?Now just where would we be able to get the money to replace those funds if the Bush proposal is adopted??

NBC-LEO officials vowed to work closely with other members of NLC to lobby heavily in support of the CDBG program in the coming months.

30
 

National League of Cities

1301 Pennsylvania Avenue NW Suite 550 · Washington, DC 20004
Phone:(202) 626-3000 · Fax:(202) 626-3043
info@nlc.org · www.nlc.org
Privacy Policy