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HomeMy WebLinkAboutDocument Submitted into the RecordCITY OF MIAMI, FLORIDA INTER -OFFICE MEMORANDUM TO : Chairman Angel Gonzalez and Commissioner Joe Sanchez FROM Mayor Manuel A DATE : February 22, 2006 FILE SUBJECT CDBG Funding in FY07 and FY08 REFERENCES: ENCLOSURES: By way of this memo, I a am gain respectfully requesting your help and leadership on the issue of the Federal government's Community Development Block Grant program. Although I fully realize the tremendous amount of time you already commit to City business, I feel it is imperative to impose upon you once again on a matter that will have grave consequences for our City's most vulnerable residents. I am asking that you again co-chair the task force on the challenges facing the Community Development Block Grant ("CDBG") program. Last year the task force managed to mobilize a broad coalition of service agencies, concerned citizens and stakeholders from other regional municipalities. Our efforts included outreach and educational activities throughout the community, direct advocacy to our federal elected officials and an incredibly successful rally to "Save CDBG", attended by over 5,000 citizens and which gained national attention. Under last year's federal Budget, CDBG was proposed to be consolidated with 17 other programs into a new program, with responsibility transferred from the Department of Housing and Urban Development (HUD) to the Department of Commerce. Our efforts and the efforts nationally to prevent this from happening succeeded, keeping CDBG in existence at HUD. However, CDBG did suffer drastic cuts losing approximately $1 billion in funding, from $4.7 billion to $3.77 billion. This will have a direct impact on our local programming and will result in a loss of CDBG program income for the City of Miami in upcoming Fiscal Year 07. Under the President's current Budget proposal, it is recommended that CDBG funding be reduced even further, to $2.975 billion, an additional reduction of $800 million. This creates great uncertainty and alarm as to what the funding levels will be for the individual programs during Fiscal Year 08. In light of the continued challenges facing this program of vital importance to our City, and in particular your districts, which account for approximately 50 percent of the City's total fund receipts, I request that the task force take the following actions: a -04.2-G 6 (i) quantify the fiscal and social impact of the FY 07 funding cuts already adopted by the federal government, on the City of Miami's CDBG program, as well as the FY08 cuts proposed in the President's current budget; Submitted Into the public record in connectiop w th item t'1A • 1 on 7 a-3 o 6 Priscilla A. Thompson City Clerk (ii) continue to inform and raise awareness among your colleagues, the City administration and the people of Miami with respect to these issues; (iii) once again, build a broad coalition to advocate for increased CDBG funding with local officials, the business community and our service organizations; (iv) develop a strategy in conjunction with the City administration to ensure that we maintain a consistent level of funding for the City's program in the upcoming FY 07 Budget year; (v) develop alternative contingency strategies for FY08 in the event that the current proposed further cuts to the CDBG program are approved by Congress. I plan to continue my work on this issue with the U.S. Conference of Mayors who along with other national organizations has been a critically important ally in our efforts to save CDBG and ensure its proper funding. This is an issue that remains at the forefront for mayors in cities throughout America. Moreover, continued federal budgetary contraction in funding areas that are dedicated to serving cities does not really solve fiscal problems but only shifts responsibility to municipalities that are in no position to handle such budgetary pressures. As I have said before, this is not a solution, but merely a shift in burden from the federal government to municipalities. Since its inception, the CDBG program created by President Nixon, has received wide bi- partisan support. It has been a signature program for cities and counties to create jobs, increase economic development opportunities, expand homeownership and provide assistance to the neediest in our society. Already a bipartisan congressional group, including our own congresswoman Ileana Ros-Lehtinen have expressed opposition to any further cuts and their support for this important program. I am confident that your innate understanding of the needs of your community, and appreciation of our City's fiscal processes, will lead to a responsible solution to these challenges that lie ahead of us. I know that your leadership and our collective efforts on this issue can rally our community once again in an effort to "Save CDBG". I look forward to working with you on this important endeavor. Thank you once again for your service to the people of our great City. cc: Commissioner Johnny Winton Commissioner Tomas Regalado Commissioner Michelle Spence -Jones Joe Arriola, City Manager Barbara Rodriguez, Director, Department of Community Development SUBMITTED INTO THE PUBLIC RECORD FOR ITEMONaa3.o6.