President George W. Bush's proposed federal budget is now winding its way through the congressional budget cycle, and this process could have a drastic influence on Alexandria — especially the city's community development block grant program. For more than 30 years, these grants have provided funds to create jobs, increase economic development opportunities and expand homeownership.
Since its inception in 1974, the grant program has funded many projects in Alexandria. It assisted 243 families to become homeowners; rehabilitated 265 homes for low-income residents; funded acquisition of nine group homes and 16 supervised apartments; purchased land for the construction of the city's Substance Abuse Services Center; developed the Alexandria Residential Care Home for Seniors and the Battered Women's Shelter; supported the rehabilitation of Hopkins House and the Boys and Girls Club; made accessibility improvements to seven apartments occupied by disabled tenants; supported the Winter Shelter; tested for discrimination in rental and sales housing markets; and supported a microeconomic loan program that has helped 56 Alexandria businesses.
But the president's budget proposal suggested eliminating the program, which is administered by the Department of Housing and Urban Development. In its place, Bush suggested creating a new program in the Department of Commerce called the Strengthening America's Communities Initiative. The White House Office of Management and Budget argued that 35 federal development programs provide similar services and many don't produce significant results. But the new program will fund the initiative 33 percent less than its predecessor.
"It's a shell game," said U.S. Rep. James P. Moran. "Although the program started under Nixon, the Republicans associate it with Clinton and so they want to get rid of it."
After the president's proposal was announced, the Senate voted to restore the money but the House did not. The legislation is now in a conference committee where differences are being addressed.
"Now is the time when all the decisions are being made on this," said Moran, who is a member of the Appropriations Committee. "By the time Congress releases the budget numbers, it's too late to make any changes."
THE PROGRAM is popular among mayors, many of whom are lobbying in Washington to prevent the grants from being eliminated or reduced. Members of the coalition currently fighting Bush's proposal include the U.S. Conference of Mayors, the National League of Cities, the National Community Development Association and Local Initiatives Support Corporation.
"This new proposal is totally unacceptable and we are extremely disappointed that this tactic is being used as an excuse to eliminate CDBG and cut much needed resources to local communities," said U.S. Conference of Mayors President and Akron Mayor Don Plusquellic. "A key priority of this administration is stimulating the domestic economy by creating jobs and expanding home ownership, and that is exactly what CDBG does. CDBG is good business and is the foundation of our nation's communities."
Calculating the impact on Alexandria's budget is difficult because nobody knows what kind of funding the city would receive under a new program or whether the city's current housing activities would qualify for funds under the new program. According to a budget memorandum prepared by the Director of Management and Budget Bruce Johnson, the city would stand to lose approximately $1.4 million in annual funding if Bush's proposal was instituted.
"IT'S A PAY-ME-now or pay-me-later kind of a plan," said City Councilwoman Joyce Woodson, noting that most of the programs serve as intervention to future problems that are often more costly to solve. "The city is not in a position to pick up funding for these kinds of programs, so I don't know what's going to happen to them because we do not have a pool of money hidden in the basement."
The city manager's office suspects that the Homeownership Assistance Program and the Home Rehabilitation Loan Program would be severely curtailed, although its possible that they could continue at reduced levels of funding by using money from the Home Investment Partnerships program. But that would reduce funding for housing development programs that are already being funded under that program. Other city programs such as Fair Housing Testing, the Winter Shelter, Transitional Assistance and Eviction Storage would not be eligible. Those programs would have to find money elsewhere or cease to exist.
"All of these programs are on the chopping block," said Moran, noting that the all-important budget markup process will take place in the next few months. "The result of getting rid of these kinds of programs is that working people will suffer and Alexandria will become a more exclusive community."