Across America, local governments are finding it hard to make ends meet.
For many, federal programs such as the Community Development Block Grant (CDBG) mean the difference between slow decay and revitalization.
In Gaithersburg, Md., councilmembers wondered what to do with the Thomas Cannery.
The vacant and blighted building is listed on the National Register of Historic Places and the Maryland Historical Trust.
Located at one of the four gateways to the city?s Olde Towne district, the city used CDBG funds and private dollars to redevelop the building into a premier commercial center.
With 90 percent of the building?s 12,000 square feet leased, Gaithersburg considers the Thomas Cannery a true CDBG success story.
?This is just one of the many success stories we have made possible with CDBG funds,? said Gaithersburg Councilman Henry Marraffa Jr. ?We use it for everything from low-cost housing to building youth centers. It is the backbone of many projects we do in Gaithersburg.?
But that may change soon.
The Bush Administration has proposed combining CDBG ? a program that has been administrated by the Department of Housing and Urban Development since its creation in 1975 ? with 17 other programs that will be administered by the Department of Commerce.
Funding for the new program ? the Strengthening America?s Communities Initiative (SACI) ? would total $3.7 billion, almost $1 billion less than the total funding for CDBG in fiscal year 2004.
Local governments across the nation are adding their voices to the National League of Cities, U.S. Conference of Mayors, National Association of Counties and other organizations representing state and local officials to denounce the Bush plan.
Local officials want CDBG to remain fully funded and under the administration of HUD because the program gives them wide latitude to use the funds, as long as the projects they undertake primarily serve low- to moderate-income people.
If Congress passes the Bush plan, some cities that have received CDBG funding would be barred from receiving it because they are considered too wealthy.
?This is a major issue facing every city,? said Marraffa. ?The elimination of CDBG will not only affect the citizens who directly benefit from it ... it will impact the entire city.
?If we lose CDBG, we would have to do away with projects that improve our city because there is no other source of funding like it. Without it, we?d have more blight, more crime and less development,? said Marraffa.
Many cities would feel the budget squeeze if SACI becomes law.
In Milwaukee, Wisc., CDBG funds directly benefit 60 percent of the city?s population.
In 2004, the city used CDBG funds to renovate or construct 746 affordable housing units, close mortgage loans for 258 low-income, first-time home buyers and create or retain 303 full-time jobs.
?For cities like Milwaukee, which have lost jobs and have gone through several rounds of harsh cuts to balance their budgets, this news could not come at a worse time,? said Mayor Tom Barrett and the Milwaukee Common Council in a letter to President Bush. ?CDBG is not only a wise economic investment and community-planning tool; it is a lifeline for poor communities and our neediest citizens.?
Even the nation?s largest metropolitan areas benefit from CDBG.
Los Angeles uses $2.2 million in CDBG funds to operate the Los Angeles Business Assistance Program, which funds non-profit agencies that provide direct technical assistance and training to small business owners and entrepreneurs.
The program targets low-income citizens and businesses with fewer than six employees. Since 2000, the program has created 500 new jobs and served hundreds of businesses.
The city also uses CDBG funds to investigate and mitigate brownfields sites. One such contaminated property, a former oil well on Venice Beach, is now home to a skate park.
Another project ? Chesterfield Square ? brought a major supermarket, Home Depot, other retail and restaurants to Southwest Los Angeles, creating more than 500 new jobs and restoring pride in a once ailing community.