Santa Maria city officials expressed “grave concern” about a budget proposal that would gut funding from the federal Community Development Block Grant (CDBG) program by more than 60 percent.
President Barack Obama’s budget proposal for 2011-12 includes a 7.5 percent cut to the CDBG program, representing $300 million of the $4 billion federal program. However, Republicans in the U.S. House of Representatives have proposed a stunning 62 percent cut, which passed a House vote on Feb. 19. The cuts must go through the U.S. Senate and to the president before they’re instituted.
City spokesman Mark Van de Kamp said the House proposal would have a widespread impact on thousands of city residents and about 30 nonprofit agencies.
“We are aware of the action by the House and are monitoring it with our Washington lobbyists,” Van de Kamp said.
The city received $1.4 million in CDBG money in 2010-11, with more than $300,000 going to the Good Samaritan Shelter. Based on that figure, about $860,000 in total grant money could be wiped out for this year.
CDBG grants are used at the discretion of local governments and largely go to fund affordable housing programs, improvements to infrastructure and public works, and programs for the poor.
“This helps out the most needy in the community, so it is a big deal,” Van de Kamp said. “This is pretty much what the city can do for social services.”
Van de Kamp said the city has received the CDBG grants since 1974 and is allocated the funds based on population and income levels. He said the city is already using one-time reserves for daily operations and would have no way to make up the difference in funding.
The $2.5 billion cut proposed by the House would drop CDBG funding nationwide to the lowest level since the 1980s, according to the American Planning Association. It would not only affect Santa Maria, but Santa Barbara
This article appears in Mar 3-10, 2011.