Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
Local governments across Massachusetts are bracing for the loss of least $3 billion in federal funds for housing, community redevelopment projects, public transportation, and police and fire departments as part of the budget agreement announced in April that averted a federal government shutdown.
The agreement struck between President Barack Obama and congressional leaders will reduce funding for the Department of Housing and Urban Development’s community development program by $942 million, to $3.5 billion, according to a breakdown of cuts released by the House Appropriations Committee.
The budget deal would also eliminate $680 million from public transportation grants, more than $700 million from low-income housing, and $786 million from grants for local agencies that respond to emergencies.
Newton Mayor Setti Warren, who is chair of the U.S. Conference of Mayors’ Committee on Community Development, told the Newton Tab recently, “At a time when our economy is only beginning slowly to recover and states and local governments are still making drastic cuts in their budgets, Community Development Block Grants are an investment that will stimulate much-needed job growth and leverage crucial private and public investments.”
The federal CDBG program is used by local governments for roadwork, public housing and other projects. The federal government administers the funding for larger cities, while funding for smaller cities and towns is administered by states.
According to the Salem News, Salem city officials are anticipating a loss of about $203,400 in community block grant funding from a year ago. Last year, the city received $1.25 million; this year it expects about $1.04 million.
Nonprofits are able to use CDBG funds as seed money to leverage other financial sources, according to New Bedford Mayor Scott Lang.
Amesbury makes extensive use of the CDBG program, in the amount of $1 million per year, according to Shauna Becotte, Community Development Block Grant director.
“Every year we submit an application,” Becotte told the Newburyport Current, “either for infrastructure improvement or housing rehabilitation. Most recently, this program provided funds for sewer improvements. We have applied again for $1 million, and we have made it into the competitive round.”
The federal budget agreement cut the federal highway program by nearly $900 million, and funding for high-speed rail, a priority for President Obama, will be eliminated. The National Infrastructure Investment Grants program, modeled after the popular TIGER program, retained $528 million in funding, after facing possible elimination.
The agreement was only a prelude to budget battle looming over the fiscal 2012 budget and the need to address the nation’s long-term debt.