By Schenectady (NY) Mayor Brian U. Stratton and Andrew Cuomo
June 27, 2005

Brian U. Stratton is mayor of Schenectady. Andrew Cuomo is former secretary of the U.S. Department of Housing and Urban Development.

Schenectady's renaissance is under way and gaining momentum, as government leaders, individuals and organizations join together in a collaborative partnership to realize the true potential of this great city.

While the Capital Region is embracing its exciting future as Tech Valley, Schenectady's new administration is working with the city council, Metroplex, county and state officials, our elected representatives in Washington and local not-for-profit agencies to fulfill a vision of a city reborn with new energy and opportunity.

But the task of turning around Schenectady, or any struggling mid'size American city, in 2005 is no small challenge. It is made more difficult by inadequate support from state and federal governments.

A popular political maneuver developed by both state and federal governments over the past decade has been to pass down the costs of services (particularly human services such as health care and housing) to the next level of government below. This means the federal government has been pushing costs down to the state level and the state, in turn, passes those costs down to cities, towns and villages.

Given this, it would seem almost obscene to squeeze local governments even further. Yet, in his fiscal year 2006 budget proposal presented to Congress earlier this year, President Bush does just that by virtually eliminating funding for the long-running and highly effective federal Community Development Block Grant (CDBG) program.

As mayor of Schenectady, and as former U.S. Secretary of the Department of Housing and Urban Development (HUD), we can individually attest to the value and effectiveness of the CDBG program. This program, and the funding stream it provides, must be preserved within the federal budget, and it must be kept within HUD. It is an essential tool for Schenectady and for the nearly 1,000 entitlement communities receiving CDBG benefits throughout the nation.

Ending CDBG takes away one of the few remaining tools entitlement communities have to address the growing challenge of providing essential human and city services without further increasing local property taxes.

Since its establishment under the Nixon Administration in 1974, CDBG has helped our nation's most distressed communities create jobs, increase economic development opportunities and expand homeownership. For more than 30 years, CDBG has been a powerful resource for local governments to boost support for services in communities of greatest need.

Overall, Schenectady has received nearly $70 million in CDBG funds over the course of the program's 32-year history. The nearly $3 million annual allocation Schenectady now receives helps to sustain some of our city's most basic needs: rebuilding blighted neighborhoods, paving crumbling streets, expanding opportunities for affordable housing for low-and moderate-income residents, opening city pools and keeping more police officers on our streets and in our schools.

Without question, CDBG has left its mark on Schenectady. In the Hamilton Hill and Central State Street neighborhoods, CDBG funds have helped Carver Community Center give kids between the ages of seven and 17 a safe and secure place to go after school.

Through the Better Neighborhoods' (BNI) Homeowner Education and Foreclosure Prevention Project, CDBG lets more low-income Schenectady residents buy their own home. Last year, through these workshops and the assistance of CDBG-funded housing counselors, 40 Schenectady residents bought a home of their own, and 17 were able to avoid foreclosure and remain in their homes.

Schenectady's Municipal Housing Authority uses CDBG to provide emergency services to low- and moderate-income residents whose homes suffered damage related to heat, water, sewage or access.

Capitalized with CDBG dollars, the Schenectady Local Development Corporation is able to provide funding for promising small businesses. In turn, these companies are creating jobs for those who need them most.

Even the White House's own budget review agency, the Office of Management and Budget, says CDBG funds play a vital role in running cash'strapped city governments, writing: " . . . communities often use CDBG to fill programmatic gaps not covered by other federal state and local programs. For example, homeless programs may provide funds for operation, but CDBG funds can provide funds for the facility."

We are doing our part by joining with the hundreds of mayors and other municipal officials across the country — Democrats and Republicans — who urge their congressmen and senators to keep CDBG alive and well. Eliminating this vital funding stream is shortsighted and would be hugely damaging to the long-awaited renaissance of small American cities like Schenectady.

Other leaders from New York, who have been silent on restoring CDBG, must also speak out to make sure that a bipartisan message is carried to Washington. Saving CDBG is not a political issue; it is just common sense.

Schenectady's resurrection cannot wait. It is now up to the president and Congress to live up to their responsibility and restore the CDBG program in the federal budget.