Clinton on elimination of CDBG funds...

[DrummerDeanna]

Got this press release - thought it was pretty interesting - dems are trying to do something - a lot of people will be affected by this - and her letter to the pres. is at the end

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SENATOR CLINTON PROTESTS PLANNED ELIMINATION OF COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM

President’s Budget a devastating blow to highly successful funding program for cities across New York and the nation

New York State could lose millions of dollars in funding

Washington, DC – Senator Hillary Rodham Clinton today said she was disappointed by the President’s decision to effectively eliminate the Community Development Block Grant (CDBG) program in his Fiscal Year 2006 Budget. According to the Department of Housing and Urban Development (HUD), in Fiscal Year 2005, New York cities received almost $400 million in much-needed grants through the program for affordable housing, social services, neighborhood revitalization and job development.

The Bush budget would eliminate the Community Development Block Grant (CDBG) and replace it with a new, consolidated program that is supposed to carry out the activities of 18 existing economic and community development programs. This new program is funded at $400 million less than the amount spent on CDBG alone last year. In sum, the 18 programs cost more than $5.6 billion a year and the Bush budget slashes this investment by 33 percent to $3.7 billion. In a further blow, the President’s budget also eliminates the Community Services Block Grants (CSBG), a vital anti-poverty funding program, in the same way.

In Fiscal Year 2005, CDBG funding provided $393 million in 2004 to New York state. Late last week, after hearing reports of the proposed cuts, Senator Clinton wrote to President Bush directly to urge him to increase funding for both CDBG program.

“This is an incredible blow to cities across New York and the nation. The Community Development Block Grants program is a lifeline for many individuals already struggling to make ends meet,” Senator Clinton said. “And now the President wants to leave them out in the cold.”




“Since 1974, this successful program has provided critical funds to cities so that they can make affordable housing available, revitalize run down neighborhoods and provide economic development opportunities to those who need them most,” Senator Clinton said. “I call on the President to rethink this near-sighted decision.”




The CDBG program, begun in 1974, is designed to allow communities to develop affordable housing, neighborhood revitalization activities and economic opportunity, principally aimed at low and moderate income persons. Over the past 10 years, Congress has funded the CDBG program at no less than $4 billion dollars in each fiscal year. CDBG funds are tied to hundreds of major job creation and affordable housing success stories across the country.

The Council of State Community Development Agencies, the National Association for County Community and Economic Development, the National Association of Counties, the National Association of Housing and Redevelopment Officials, the National Association of Local Housing Finance Agencies, the National Community Development Association, the National League of Cities, and the United States Conference of Mayors have all opposed the cuts.

On Friday, Senator Clinton letter sent to President Bush protesting reported cuts to the CDBG program. The letter, which was signed by a number of Democratic Senators including Senators Schumer, Kerry, Kennedy, Corzine, Lautenberg, and Durbin, was prompted by media reports that suggested that the President’s budget would propose cuts of up to 40% in the almost $5 billion program that allocates community development funding to cities across New York and the United States. Senator Clinton also joined with Senator Kennedy in sending a letter to the President protesting the proposed cuts to the CSBG program.

A full breakdown of FY 2005 Community Development Block Grant Funding for cities in New York can be obtained on the Department of Housing and Urban Development’s website at [ http://www.hud.gov/offices/cpd/about...et05/index.cfm ]http://www.hud.gov/offices/cpd/about/budget/budget05/index.cfm .

[A copy of the Senators’ letter is attached]

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February 3, 2005

The Honorable George W. Bush
President of the United States
Washington, D.C. 20500

Dear Mr. President:

We write in anticipation of receiving your proposed 2005 Budget because of initial reports concerning your Administration’s proposal to eliminate nearly half of the $5 billion previously made available to cities, counties, and states in the Community Development Block Grant (CDBG) program. The CDBG program permits communities to implement affordable housing and neighborhood revitalization activities and these funds are tied to hundreds of major job creation and affordable housing success stories across the country.

The Council of State Community Development Agencies, the National Association for County Community and Economic Development, the National Association of Counties, the National Association of Housing and Redevelopment Officials, the National Association of Local Housing Finance Agencies, the National Community Development Association, the National League of Cities, and the United States Conference of Mayors have all opposed these proposed cuts because they know that without these funds, creating opportunities for investment in our urban areas will only become exceedingly more difficult.

The CDBG program, begun in 1974, is one of the most successful programs run by the Department of Housing and Urban Development. We cannot understand what it is about a program, with a mission designed to provide decent housing, a suitable living environment, and expanding economic opportunities, principally for low and moderate income persons, that would cause your Administration to initiate massive budgetary cuts as reported in recent weeks.

If we are to move forward as a nation, and put more Americans back to work, then the CDBG cuts your Budget is expected to contain are simply unworkable. On December 26, 2004, you hosted a White House Economic Conference in which you said, “One of the tests of leadership at all levels of government is to confront problems before they become a crisis.” Mr. President, we believe that the type of budgetary cuts you are proposing for our cities, counties, and states, will exacerbate the job, housing, and economic development crises so many American communities face at this moment.

If reports that the CDBG program is currently slated for massive cuts are accurate, we urge you to reconsider such a harmful proposal. We look forward to working with your Administration to solve the economic problems facing communities across America, but we cannot make much progress if one of the most effective tools at our disposal – CDBG – is destroyed.

Sincerely,