March 15, 2006

Save CDBG - Again!

In Washington this week at the National Press Club, our CDBG Coalition released a significant survey showing substantial negative effect of cuts to CDBG on Americans in need. Akron Mayor Don Plusquellic, Past President of the Conference of Mayors, stressed how CDBG funds are used at the local level to produce housing and economic development in a most unique way.

Montez Martin, NAHRO’s Vice President, presented the findings of the survey information released by the 34 states and 317 communities representing 50 per cent of all CDBG formula grants for 2006. It shows that 5 million low- and moderate-income people would no longer be served. Housing rehab would be denied to 50,000 households, including 5,200 for the elderly. Thousands of jobs would be lost due to the proposed cuts to businesses. New water and sewer projects would be cancelled. Street improvements would be cancelled. Neighborhood centers for seniors, youth, children and the disabled and handicapped would be cancelled along with 208 new parks and recreation projects.

Blue Earth (MN) County Commissioner Colleen Landkamer, President-elect of the National Association of Counties, said it was a “travesty” that local elected officials are back this year again in Washington resisting massive cuts to the CDBG program.

Mayor Plusquellic cited his Senator from Ohio, George Voinovich, who told the NLC Spring Meeting this week that the CDBG federal-county-city partnership is the best federal program ever created. Senator Voinovich, a Republican, speaks with credibility having served as Mayor, County Executive, Governor and Senator from Ohio when he says we should be increasing the funds for the CDBG now, and not cutting the funds.

All representatives of the 17 member coalition profoundly thanked the Republican leaders who have been with us. Mayor Plusquellic and others cited our former mayors now serving in the Congress, namely Minnesota Senator Norm Coleman, former Mayor of St. Paul, and Congressman/former Dayton (OH) Mayor Mike Turner for their support last year and their continued support this year.

Michael Rubinger, President and CEO of LISC, stressed the need for CDBG funds to be used as leveraging in virtually all cities that are economically coming back. He says that private lenders can’t do it alone and the modest amount of CDBG funds is essential to make positive things happen for our cities and further stated it makes no sense to whittle our CDBG funds with repeated cuts each year.

Roger Platt, Senior Vice President of the Real Estate Roundtable, says he just doesn’t get it when it comes to reducing CDBG federal funds for our cities. He says Real Estate Roundtable members – all business types – don’t get it either. Platt says CDBG funds are essential for the renaissance of our cities. The funds are critical to attracting private capital to “do development” by using CDBG funds as seed money.

National League of Cities President Jim Hunt was most forceful when he accused the Administration and CDBG cutters of “taking our hammers away, taking our nails away and forcing us to go out and find rocks and pebbles to build our houses.” Mayor Plusquellic cited USA money going to Iraq to rebuild their cities there while taking away our needed resources here as a crime.

This CDBG Coalition continues to be strong in its advocacy to save CDBG – “AGAIN” as the buttons from NLC and NACo read. In the coming months we will need all mayors’ special attention to restoring proposed cuts of our CDBG funds. For information, please contact Gene Lowe at 202-861-6710 or e-mail glowe@usmayors.org.

All of us are sharing the difficult information that Dearborn Mayor Michael Guido has shared with the world over the past week that he has been diagnosed with cancer and has begun treatment as he works toward recovery and at the same time stays focused on continuing to be a great mayor for his people in Dearborn.

Since we have shared the information with you, we have had many inquiries and of course words expressing support and concern.

Mayor Guido has been quite active working with us on telecom issues since his diagnosis. Further, while he is undergoing chemo, he is most chipper and in good spirits as he continues to manage the affairs of his city. And I look forward to meeting with him soon as we begin to lay out his year as our President as he takes the gavel in early June to be our 64th President.

Our thoughts and prayers go out to his wife, Kari, and both Guido sons, Mikie and Anthony.

Poverty Task Force/Mayors Summit on Gangs/Los Angeles

We call your attention and invite you to join with Mayor Beverly O’Neill, USCM President, and LA Mayor Antonio Villaraigosa for two meetings covering two significant issues in Los Angeles. On March 30, our Task Force on Poverty and Opportunity will meet for the second time and our Mayors Summit on Gangs will meet on March 30-31 as we prepare our agenda and plans for our 74th Annual Conference in Las Vegas, June 2-6.

Gangs are coming on strong with most violent activities that go across states and are involved in terrorist international activities. Plus we continue to see more and more gang activity in our suburban cities.

We see our LA meeting as an opportunity for you to come bringing your police chief to learn firsthand what Los Angeles is doing to face and cope with gang activity. Also, we will have for you best practice sessions from mayors and police chiefs from other cities in other regions.

If you have not registered for our LA meetings, please do so now. For the Poverty Task Force, contact Crystal Swann at 202-861-6707 or e-mail cswann@usmayors.org.

For the Gang Summit, contact Kathy Amoroso at 202-861-6723 or e-mail kamoroso@usmayors.org.

I look forward to seeing many of you in Los Angeles soon.