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NLC Vice President Vows Fight on Proposed Cuts to Community Development Program

03/21/10
NLC Vice President Vows Fight on Proposed Cuts to Community Development Program
03/01/05
A top official of the National League of Cities (NLC) told a key congressional committee today that cities and towns across the country will aggressively fight the proposed elimination of the Community Development Block Grant (CDBG) program.  NLC Vice President James C. Hunt, council member from Clarksburg, West Va., told the House Subcommittee on Federalism and the Census that the CDBG program is one of the best and only tools currently available to spark economic growth.

?Throughout West Virginia, when you travel to virtually every city, from large to small, you don?t have to drive very far to find the areas of our cities and towns that have been forgotten; where poverty and despair reign,? Hunt told the committee, chaired by Rep. Michael R. Turner (R-Ohio).  ?Mr. Chairman, the one-size-fits-all approach proposed by the Administration will likely stifle the flexibility and effectiveness currently found in CDBG.   The result will be that many cities and towns will still be forgotten and poverty and despair will continue to reign.?

Hunt lauded the flexibility of the current program as a key component of its success in revitalizing older neighborhoods.  ?CDBG has played a critical role in rejuvenating distressed neighborhoods and alleviating economic decline in all types of communities.   However, CDBG is not just a jobs creator or economic development incubator, it is also a catalyst for affordable housing and new public infrastructure.?

Hunt urged Congress to fully fund CDBG formula grants at current levels and raised three concerns with the Administration's "Strengthening America's Communities Initiative", which proposes to consolidate 18 programs, including CDBG, move them to the US Dept. of Commerce, and cap the funding at $3.7 billion.   Hunt said, ?The proposal would drastically reduce community development funding that cannot be replaced; alter eligibility requirements to the disadvantage of some low- and moderate- income communities; and, most importantly, narrow the mission of the program, which would reduce its flexibility and effectiveness.?

Hunt said the Administration has mistakenly assumed that impoverished neighborhoods no longer exist in communities that rank above the national average on the poverty and job loss index.  ?We at the local level, however, know this is far from reality,? Hunt said.  ?Using national averages to measure needs just ignores the reality that our nation is comprised of local economic regions that are unique.  For example, the majority of families who earn below the regional median household income in the greater Washington, D.C.-Baltimore metropolitan area may actually earn more than the national poverty rate.  But they are just as much in need of assistance because the cost-of-living in this region is significantly higher than the national average.? 

Hunt also rejected the Administration?s proposal to narrow the use of Community Development Block Grant funds.  ?Clarksburg recently used a $250,000 grant to demolish vacant and dilapidated buildings in certain neighborhoods throughout our city,? Hunt said.  ?These structures were havens for crime, targets for vandalism and fires, and a nuisance for our children.  It is very difficult to assess the impact of removing a drug den from a neighborhood using economic criteria alone.  Yet, the Administration's proposal appears to try to do just that. 

?Mr. Chairman, closing down a drug den may not immediately create job growth, spur new business formation, or encourage new commercial and residential development.  However, it will immediately increase the quality of life for the surrounding neighborhood.  That is measurable and creates the foundation for any plan to attract new commercial and residential development in the future.? 

Hunt told the committee that the membership of the National League of Cities has been galvanized to action by the Administration?s proposal.  ?If you haven?t already heard an earful from your constituents during the past few weeks, you will shortly.  Our members are adopting resolutions in opposition, identifying examples of how this important program has worked in their towns, and are gearing up to come to Capitol Hill later this month.? 

The proposed elimination of the Community Development Block Grant program will be discussed at the upcoming Congressional City Conference, sponsored by the National League of Cities from March 12-15, 2005 at the Washington Hilton.  For more information on the CDBG program or on the upcoming conference, go to www.nlc.org.

For more information, call or email Sherry Conway Appel at 202-626-3003 or appel@nlc.org or John Pionke at 202-626-3051 or pionke@nlc.org

 

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