Mayors encourage Congressional support of successful local grant program
March 3, 2011
Community Development Block Grant program threatened on Capitol Hill
COLUMBIA, SC – March 3, 2011 – More than 100 mayors from around thestate have come together to call on the members of the South CarolinaCongressional delegation to maintain funding for the CommunityDevelopment Block Grant program. The 109 mayors sent a letter today to the delegation outlining the positive impacts of the CDBG program in communities of all sizes and regions.
“Last year alone, South Carolina communities of all sizes received morethan $50 million through CDBG to support local development projects,”said Manning Mayor Kevin Johnson, president of the Municipal Associationof SC. “In most cases, the federal funds are matched by state, local orprivate dollars making this investment even more important.”
In his FY12 budget, President Obama has called for a reduction of 7.5percent to the CDBG program within the Department of Housing and UrbanDevelopment. At the same time, the FY 11 funding for CDBG remainsuncertain until the Senate passes and President signs the FY 11 budgetwhich is still pending in Congress. The House-passed version of the FY11 budget includes a 62 percent cut to CDBG. The federal government hasbeen working under a continuing resolution for FY 11 since October.
In their letter released by the Municipal Association of SC, the mayorssaid, “We certainly understand the challenges Congress is facing toreduce the federal deficit and get federal spending under control. Butwe can cite hundreds of examples where the CDBG program has been asignificant catalyst for the local economies of cities and towns.”
The letter continued, “Reductions to CDBG amount to more than just thedollars of a line item. The impact of this CDBG cut on hundreds ofprojects and programs at the neighborhood level — and the jobssupported by those projects — will be very real.”
Now in its 36th year, CDBG provides funding for South Carolina localgovernment projects in two ways. First, non-urban units of localgovernment (non-entitlement communities) can apply for grants to supportrevitalizing neighborhoods, improving community infrastructure,providing public facilities, and creating or retaining jobs.
In program year 2009, South Carolina non-entitlement communitiesreceived $26 million in grants. These funds are awarded through the SCDepartment of Commerce. Nearly $275 million in CDBG funds have beeninvested in 185 different South Carolina towns, cities and counties(non-entitlement communities) over last 10 years.
Second, larger urban units of governments with a population above 50,000(entitlement communities) receive funds directly from HUD based onrequirements regarding type of project, matching funding and othercriteria. Last year, South Carolina’s urban cities received more than$22 million. These dollars were multiplied many times over with matchingfunds from governmental and private sources.
In both entitlement and non-entitlement grants, local communitiesmake the decisions on how the CDBG dollars can best be used in their owncommunities. Over the years, the CDBG program has been one of the mostflexible funding sources available to help cities and towns,particularly in lower income areas, reach their community and economicdevelopment objectives.
The Municipal Association of South Carolina
The Municipal Association of South Carolina is a nonpartisan,not-for-profit Association of incorporated cities and towns dedicated toraising the standards of municipal government through a broad range ofservices.
