Casey backs grant funding
Bob Casey went to bat for block grants Tuesday afternoon.
“Municipalities depend on this for development projects, which leads to job creation. Lower funding causes some communities to drop projects,” the U.S. senator from Pennsylvania said during a conference call with reporters.
Casey, a Democrat from Scranton, is not striking out at the Obama administration, but urging it to increase funding for the Community Block Grant Development program in its upcoming budget. The trend was decidedly the opposite in recent years.
Casey said the amount Pennsylvania has received has fallen from $236 million in fiscal year 2010, to $200 million in 2011 to $171 million last year.
“It’s down to $171 million, which makes no sense because these funds are critically important to communities,” he said.
Nationally, Casey added, “the overall reduction has been $1.35 billion since 2010.”
The CDBG program is an investment of federal funding intended to help lower-income communities pursue economic development projects that will enhance their well-being and create jobs.
“We know the devastating impact that can occur when these funds are cut, especially in local economies still coming out of the recession,” Casey said.
Washington and Greene counties have benefited from the gas and oil industry, which has enhanced employment there, and communities in Washington have benefited from Local Share Account funding fueled by revenue from the Meadows Casino. Still, both have been impacted by the CDBG cuts, according to an official in each county.
“The amounts have gone down over time,” said Bill McGowen, executive director of the Washington County Redevelopment Authority, which administers CDBG money for municipalities across the county.
He said Washington got more than $5 million one year. It got $3.21 million last June for fiscal year 2014.
According to Brenda Williamson, the redevelopment authority’s community development senior director, CDBG allocations have declined by 31 percent from FY 2010 to FY 2014.
“Over the years, municipalities have had less money to do projects within CDBG guidelines and boundaries,” McGowen said. “The idea is to remove blight and provide affordable projects, but as the amounts go down, (towns) have less and accomplish less.”
Greene County’s CDBG allotment has declined by about one-third in recent years, said Robbie Matesic, executive director of the Greene County Department of Economic Development. The FY 2014 figure was $219,150, less than the $288,311 that Monessen got.
“Every dime of it this money is directed toward people who really need it,” Matesic said. “CDBG is a very good program and there’s not an ounce of waste. I hope the feds hold or increase (funding). It’s directed toward basic services – water, sewer and housing.”
Casey’s pitch to the administration includes a letter to Shaun Donovan, director of the Office of Management and Budget. In it, he called the CDBG program “essential” and outlined how it has benefited programs in four cities – Erie, Allentown, Bethlehem and Scranton.
The senator called on Democrats and Republicans alike to support an increase in CDBG funding. Pat Toomey, Pennsylvania’s junior senator, is a Republican.
“I hope the administration puts the levels of funding in the (CDBG) budget for Pennsylvania as it used to do – and for the nation as well,” Casey added.