As we evaluate the respective budget proposals of President Bush (released last month) and Governor Codey (unveiled this month), and as we attempt to assess their “contributions” to local property tax relief efforts, we could justly be criticized for focusing on the negative. In fairness to our federal and state executives, who face vertigo inducing deficits, 2005 looks to be a rocky row to hoe. But in defense of our own discouraging analysis, the glass is more than half empty — and what’s left just don’t taste right.

For example, President Bush has proposed, as part of his FY ‘06 Budget package, a major change that would consolidate 18 direct grant programs, including the Community Development Block Grant (CDBG), into two programs and move them into the Department of Commerce.

Funding for the President’s entire “Strengthening American Communities Initiative” is set at $3.71 billion — nearly $1 billion less than the $4.7 billion in total Community Development Block Grant funding for FY 2005.

For 30 years, America’s cities, large and small, have used CDBG grants to create jobs, provide affordable housing, eliminate blight, and generate new economic investment. Nationally, CDBG grants helped create or retain over 90,000 jobs in 2004 alone. Over the 30-year life of the program, CDBG has leveraged nearly $324 billion in
new private investment in our nation’s communities,
a three-to-one return on investment.

CDBG helped more than 11,000 households become homeowners in 2004. It also helped rehabilitate nearly 19,000 rental housing units and more than 112,000 owner-occupied single family homes — adding to the stock of clean, decent and affordable housing in America and supporting the President’s call for an ownership society. Last year, the CDBG’s 38,550 projects served more than 9 million people by helping to build new or reconstruct existing public facilities, roads, fire stations, libraries, and water and sewer systems.

We have asked our Congressional delegation to support an FY 2006 budget and appropriations package that funds CDBG formula grants at no less than $4.355 billion, which is level with FY 2005 allocations. Congress should maintain the CDBG as a separate and distinct program from other economic development programs that provides a direct and flexible source of funding to local governments.
On this, as on other budgetary issues, your involvement will be the key. Federal and state policymakers need to hear from you. And just as we have to appreciate the problems they face, they have to know that our local property taxpayers deserve at least as much consideration as any special interests.

Editorial from New Jersey Municipalities, Volume 82, Number 3, March 2005