HomeMy WebLinkAboutMDOC - CDBG cutsM TANA
Department of Commerce
March 8, 2006
RE: Proposed Cut in Community Development Block Grant (CDBG) Program Funding for
Federal Fiscal Year (FFY) 2007
Dear Friend of the CDBG Program:
Last year, on behalf of the Montana Department of Commerce, I asked for your support in the
face of the Bush Administration's efforts to eliminate the CDBG Program. As the result of an
overwhelming response from Montana's local governments and other supporters of the
program in Montana and across the country, Congress rejected the proposed elimination of
the CDBG Program. However, Congress did cut funding for the program 10% for FFY 2006.
This year, the Bush Administration is proposing an additional cut of 25% in the FFY 2007
budget for CDBG. I am again asking for your help to prevent this drastic cut in CDBG
funding, By way of background:
· In FFY 2004, CDBG was funded nationally at $4.33 billion.
· In FFY 2005, the CDBG budget was cut 5% to $4.11 billion.
· In FFY 2006. CDBG was cut 10% to $3.77 billion
For FFY 2007, the Administration's proposed 25% cut would reduce the national budget
for CDBG to approximately $2.8 billion.
As a result of these continued CDBG cuts, Montana communities are struggling to fund their
critical community projects in the face of rising costs for energy, steel, concrete and other
materials. These cuts directly affect the ability of Montana's local governments to provide for
adequate infrastructure and affordable and decent housing, as well as to support economic
development and assistance to businesses - all of which are vital to sustaining Montana's
communities and our quality of life.
If the CDBG program were cut another 25 percent, Montana's allocation would be reduced to
approximately $5,165,000. This would be 18% below the level of funding Montana received
in FFY 1982 ($6,109,000), when the Montana CDBG Program was first established, 24 years
ago. While Montana's community needs are increasing and construction costs are increasing,
funding for CDBG is going backwards. If CDBG funding since 1982 had been adjusted to
keep pace with the annual rate of inflation. Montana would have to receive almost $13 million
to have the same impact our CDBG allocation had then, as illustrated in the attached graph.
Wednesday, March 08, 2006 (2).max
This year, as a result of the 10 percent cut made in FFY 2006, the Montana CDBG Program
will be able to fund only 14 to 17 total projects, six to nine fewer projects than in FFY 2005.
For FFY 2007, if the CDBG Program were cut 25 percent as proposed in the President's
budget, CDBG would only be able to fund 10 to 13 community projects.
The Governor and the past Legislature were very proactive in providing new and additional
resources to provide a higher level of assistance to Montanans, These new State of Montana
increases will be all wiped out if the Bush administration is successful in efforts to reduce or
eliminate proven beneficial domestic programs. In addition, local governments across
Montana have exhausted their resources and their constituents will suffer severely from these
federal cuts.
All of us recognize that state and local government must carry their fair share of community
development costs. Montana has created programs like the Treasure State Endowment
Program (TSEP) to combine with CDBG funding to address our community infrastructure
needs. During the next Legislature, TSEP will award almost $17 million for public facilities
projects. Even with that level of funding, TSEP will still not be able to fund one-third o1' the
communities that apply,
CDBG has long been a crucial resource for funding critical economic development, housing
and public facility projects. Typically, every CDBG dollar is matched by three to four dollars of
other federal, state, and local funds. Montana communities are willing to carry their fair
share; they are asking for a hand up, not a handout from the federal government, We are
simply asking the federal government to padner with us to help combat our state's and our
nation's sedous community problems.
We must continue to provide full funding for CDBG at a level adequate to meet the needs of
our Montana communities. We need your full support at this critical time, We ask you to
contact our Congressional delegation and request their support for full funding of the CDBG
program and to resist any additional budget cuts. Right now is a critical time in Congress to
express your support for full funding of CDBG at a level adequate to meet the needs of our
Montana communities. We ask you to contact Representative Rehberg and Senators
Baucus and Burns as soon as possible. Their addresses are attached.
We thank you for your support.
Sincerely,
Montana Department of Commerce
Wednesday, March 08, 2006 (2).max
We encourage you to express your opinions regarding Montana's Community
Development Block Grant (CDBG) Program to Montana's Congressional delegation
at the following addresses in Washington, D.C.:
Senator Max Baucus
U.S. Senate
511 Hart Senate Office Bldg.
Washington, D.C. 20510
Ph: (202) 224-2651 - (800) 332-6106
Fax: (202) 224-0515
TDD: (202) 224-1998
E-mail: max@baucus.senate.gov
Senator Conrad Burns
U.S. Senate
187 Dirksen Senate Office Bldg.
Washington D.C. 20510
Ph: (202)224-2644- (800) 344-1513
Fax: (202) 224-8594
TDD: (202) 224-8616
E-maih conrad_bums@burns.senate.gov
Representative Dennis Rehber,q
U.S. House of Representatives
516 Cannon House Office Bldg.
Washington, D.C. 20515-2601
Ph: (202) 225-3211 - (888) 232-2626
Fax: (202) 225-5687
E-mail: dennis.rehberg@mail.house.gov