Thursday, March 24, 2011

Executive Director's Column

March 24, 2011

Washington, DC


CDBG/Impacts on Metro Economies

Over the past two weeks, Conference President Kautz, officers of the Conference and staff have led a relentless effort within the halls of the United States Senate to save the Community Development Block Grant program, CDBG, now threatened with the 62.5 percent cut passed by the new House of Representatives.

We have joined with The National Association of Counties and The National League of Cities in this effort. Both organizations held their Spring legislative conferences back to back. During this period we have joined with NLC and NACo on Capitol Hill. Our efforts culminated in a joint press conference event in the Hart Senate Office Building on March 16. At this event the three organizations released our first-ever survey, Community Development Block Grants: Impacts on Metro Economies, on the leveraging aspect of CDBG funds which have done so much towards increased economic development and jobs in our cities and counties of the metro areas of our nation.

Mayors and county officials are together in stating that now is the worst time ever for Washington to cut CDBG funding below current funding levels. As some cities are turning the corner toward economic recovery in 2011, they are telling us that a draconian cut in CDBG funds at this time would damage the ongoing local recovery and put these economies back flat on their backs as they were when this economic crisis hit us.

At the press conference on March 16, NLC President James Mitchell stressed the need to keep CDBG funds because they are a catalyst for growth that links private sector dollars to federal government dollars.

NACo President Tarrant County Texas Judge Glen Whitley stressed that local government in his Texas County has put up $15 million and coupled $18 million of federal funds for a total of $33 million for infrastructure investment.

Conference President Kautz stressed that cuts in CDBG would simply result in “shift down” to local governments causing us to raise property taxes to replace CDBG funds.

It was a strong united front press conference with officials telling Washington for the first time that the CDBG funds are indeed an economic engine because mayors and local officials leverage the federal funds to increase successful private sector growth and jobs for thousands throughout America.

City and county officials were all on the one message of leveraging CDBG funds. Davenport, Iowa Mayor Bill Gluba took a slightly different note and came out of nowhere in a most passionate manner challenging the consciences of Congress. He spoke not only to CDBG, but took aim at those who had cut programs for the poor. His remarks had a religious tone.

“To quote the scriptures, ‘Whatever you do to the least of my brethren, that you do unto me.’ In this case, the least of us are our homeless families with small children, low-income elderly and displaced veterans who nightly seek out a place to sleep in our homeless shelters in many of our major cities that are funded with CDBG money and are often staffed by volunteers. These draconian cuts proposed by Congress in HR1 [to cut CDBG funding] are clearly cruel and vicious assault on the least of our brethren; these cuts are truly immoral and make a mockery of the Judeo Christian values that are talked about on the floor of Congress of the Unites States; and these cuts are also job killers since a great deal of the CDBG funding goes to job creation and economic development and transportation so that low-income people can get to work. It is outrageous for Washington to have bestowed more than a trillion dollars in TARP bailout funds for big banks and Wall Street and now cut CDBG funding.

Congress took care of them; why don’t they take care of the working people of this country? And these are the same Wall Street bankers and hedge fund managers who are responsible for causing the worst economic meltdown in this country since the great depression. What an insult to the American people. Bonuses for Wall Street, jobs for Wall Street barons and soup bones for us. How hypocritical and tragic of our Congressmen to do this to our American people. This [the proposed budget cuts] demonstrates just how out of touch they really are. May God have mercy on their darkened souls unless they come through for the American people who need it the most!”

Mayor Gluba’s remarks drew cheers from the NLC delegates assembled. They stood and cheered. He gave us the benediction and we left thankful to all those who are working the Senate to save CDBG. The fight continues. It’s not over yet. With your help we can make a difference to keep CDBG in place providing economic growth and jobs in the metro cities and counties of America. Keep talking to your Senators. Don’t let up. We will prevail.

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