The URL can be used to link to this page

Home My WebLink AboutCOSCDA - CDBGPage 1 of 3 Maw Emb~n From: Kromkowski, Frank [fkromkowski~}mt.gov] Sent: Friday, March 17, 2006 3:11 PM To: FK-CDBG-Contacta (E-mail) Subject: FW: COSCDA March 17th Weekly Update (news about the FY2007 Budget Resolution) - Council of State Community Development Agencies ..... Original Hessage ..... From: Angel Billingsley [mailto:abillingsley~coscda.org] Sent: Friday, March 17, 2006 11:02 AM To: Angel Billingsley Subject: COSCDA Harch 17th Weekly Update Weekly Member Update March 17, 2006 Senate Adopts FY2007 Budget Resolution By a vote of 51-49, the Senate adopted S Con Res 83, a $2.8 trillion budget resolution controlling federal funding for FY2007. The resolution allows for approximately $878 billion in discretionary spending. By adding billions in spending to the resolution, Seaators exceeded their self-imposed cap of $873 billion in discretionary spending. Vote on the resolution followed Senate action on a number of amendments that were incorporated into the resolution, adding an additional $12 billion in new spending to the $2.77 trillion budget that the Administration unveiled earlier this year. The Budget Resolution sets limits on total annual federal spending. It is the critical first step in the annual Congressional appropriations process for the fiscal year beginning Oct. 1, 2006. Of particular importance to housing and community development, Senators adopted an amendment (60 to 38) offered by Senator(s) Rick Santorum (R-PA) and Norm Coleman (R-MI) that would restore $1.3 billion to the 2007 budget for the Community Development Block Grant (CDBG) program, funding it at its 2004 level of $4.3 billion rather than the $3.7 billion proposed by the Administration. However the amendment did not identify a corresponding amount (offset) where Congress could find money for the increase. It would have to come from other programs. Senator Patty Murray, (D-WA), Ranking Member of the Senate TTHUD Appropriations Committee who also supports increasing CDBG funds was joined by Senators Sarbanes (D-MD) and Leahy (D-VT) who offered a separate amendment to increase funding for CDBG, paying for the increase by closing corporate tax loopholes. After defeat of her amendment 53 - 45, Murray urged her colleagues not to support the Santorum- Coleman amendment, citing "...the fact is, there's no new money to pay for any of it." This same amendment offered by Senator Coleman passed last year and because it did not provide any additional funding to the Appropriations Committee, the TTHUD Subcommittee received an allocation that was inadequate to fund all of the programs within its jurisdiction and CDBG was cut by more than $400 million. COSCDA sent a Member Alert urging support of the Murray-Sarbanes-Leahy amendment as a way to provide the much needed increase in funds for CDBG. 3/17/2006 Page 2 of 3 In response to criticism leveled against his amendment for not providing a budget offset, Santorum stated, "What this amendment does is set priorities," he said. "Congress and the Senate believe [that the block grant program] ... needs more robust funding. I think we could spend less money other places and put the money here." The House has not adopted it's version of the FY07 Budget Resolution. It is likely to not be as generous as the Senate, making reconciliation of the two measures difficult. There are already rumors that we may not have a Congressional Budget Resolution this year That remains to be seen as the action shifts to the Appropriations Committees who will be charged to fund specific programs and projects staying in line with the overall allocations provided to each funding subcommittee. In essence, the appropriators will be forced to reduce other programs or institute an across- the-board cut to maintain the $4.3 billion for CDBG. The Budget Resolution does not include funding for programs eliminated by the Administration, such as Brownfield and Section 108 Loan Guarantee Program. In related action of Thursday, the Senate cleared a $781 billion increase in the $8.184 trillion federal debt limit on a 5248 vote. The debt ceiling increase is the fourth increase in the federal debt limit during this Administration. CDBG Coalition Holds Press Conference to Release Survey The CDBG Coalition held a press conference In Washington, DC on Wednesday, March 15 to release a national survey on the impact of recent CDBG funding reductions. Speakers at the press conference included executive members of the National League of Cities, National Association of Housing and Redevelopment Officials, U.S. Conference of Mayors, National Association of Counties, LISC, and Real Estate Roundtable. The survey, entitled "Consequences for American Communities", was conducted by the CDBG Coalition, a group of national organizations focused on increasing funding for the CDBG Program. It asked CDBG grantees to provide projections of what they will be able to achieve with their reduced FY2006 formula allocations as compared to the results they achieved using their FY 2004 grants. The results of the survey suggest that the 14 percent reduction in formula funding for CDBG over the last two fiscal years is having a substantial negative effect on the collective ability of states, cities, and counties to promote homcownership, grow local economies, and strengthen the nation's infrastructure. 68% of all state CDBG programs responded. COSCDA thanks all of our members that took the time to respond to this important endeavor. COSCDA is a member of the CDBG Coalition along with such organizations as the National League of Cities, the National Community Development Association, LISC, the Enterprise Foundation and the U.S. Conference of Mayors. CDBG Briefing Held for House Staff COSCDA, in conjunction with the CDBG Coalition, coordinated a CDBG Briefing for House of Representatives staff on Thursday, March 16. The briefing was held to educate House staff on the CDBG program, its purposes, accomplishments, and recent funding reductions. Speakers included the Honorable James Perkins, Mayor, Selma Alabama of the National Conference of Black Mayors, the Honorable Jim Hunt, Council Member, Clarksburg, West Virginia and President of the National League of Cities, Mr. Mark Willis, Executive Vice President, Community Development Group, JP Morgan Chase and Co., and Sister Ann Keefe, SSJ of St. Michael the ArchAngel in Providence, Rhode Island. Each speaker told about specific CDBG projects that had made a tremendous difference in their communities. Mr. Willis told staffhow crucial CDBG funds have provided essential gap financing for community and economic development 3/17/2006 Page 3 of 3 projects. Turnout was very good, and packets with information on CDBG basics, grantee funding levels, and accomplishments were distributed to the House staff. House staffwere requested to get signatures on a letter eo-sponsorad by Rep. Rob Simmons (R-CT) and Rep. Bill Paserell (D-NJ) to the House Transportation, Treasury and HUD Appropriations Subcommittee supporting $4.3 billion in formula funding for CDBG. COSCDA and the CDBG Coalition are planning to sponsor a similar briefing for Senate staffin a few weeks. User Acceptance Testing of IDIS Version 10 HUD expects to have IDIS version 10 (Performance Measurements) screens ready for testing by all IDIS users starting March 27th. The screens are expected to be available for testing between March 27th and April 7th. After version 10 is available for testing, HUD asks that grantees try out the screens as soon as possible on or after March 27th and report any problems to the IDIS Help Desk. HUD, for its part, will attempt to fix any problems reported and make any problem sereens available for further testing prior to April 7th. The goal is to eliminate all problems fi'om the release screens by cob April 7th. More information will be made available about this testing closer to March 27th. If you have questions before that date, contact Colleen Grogan Moore, COSCDA Director of Homeless Programs, at emoore~_,eoseda.org. Council of State Community Development Agencies (COSCDA) 1825 K Street, N.W. Suite 515, Washington, D,C. 20006 Phone: 202.293.5il20; Fox: 202.293.2820 Web Address: www.eoseda.or~ 3/17/2006