City loses $8 million in CDBG funds after budget deal
The adoption of legislation reducing the current federal fiscal year budget by nearly $40 billion
will result in an $8 million reduction in the city’s Community Development Block Grant funding, according to Terry Gillen, city’s director of federal legislative affairs. The reduction is part of a cut in the overall CDBG budget nationally of almost $1 billion.
Gillen told the Philadelphia Business Journal
, however, that “The silver lining is we didn’t get cut worse. There are lots of cuts that didn’t happen that could have happened.”
Under the proposed plan, the city’s CDBG budget for FY 2012 will drop from about $55.3 million to about $47.3 million. Funding for education is spared and cuts to job training and health care funding aren’t as bad as had been expected, Gillen said. All departments are
currently conducting an analysis to determine the exact extent of the cuts, she said.
National programs eliminated under the budget deal include the $125 million Career Pathways Innovation Fund and the $40 million Green Jobs Innovation Fund. Also cut were the Women, Infants and Children nutrition program (by $504 million) and assistance to state and local law enforcement by $415 million. Community healthcare centers lose $600 million.
The LIHEAP program was cut by $390 million and funding for maternal and child health programs, including family planning, by $17 million. The federal Women, Infants and Children program lost over $500 million.
Although President Obama came into office pledging to greatly increase the number of people participating in AmeriCorps, the new deal would cut $23-million in spending on the national service program, which got $327.5-million in 2010. The budget for the Corporation for National and Community Service, which manages AmeriCorps, would fall to $1.08-billion, down from $1.15-billion in 2010.
Programs that benefited from the deal include the Child Care and Development Block Grant, which increased by $100 million despite earlier GOP efforts to reduce it by $39 million, while Head Start funding increased by $300 million.