Changes to a 30-year-old federal program has Twin Cities development officials concerned.
President Bush’s proposed 2006 federal budget would end the Community Development Block Grant program, folding it into his Strengthening America’s Communities initiative.
That program would spend about $400 million less nationwide than the block grant program.
Local officials say details about proposed changes are unavailable.
“We’re very concerned,” said Auburn Community Development Administrator Reine Mynahan.
“The budget would definitely be smaller, and we don’t know if Auburn and Lewiston would even still be eligible. And we don’t know what the requirements would be, even if we are eligible,” Mynahan said.
Both cities have received CDBG money since the program began in 1974. Lewiston received $1.18 million in this fiscal year. Auburn received $763,000.
The communities have used the money to pay for social service agencies, building affordable housing and paying for community amenities such as Festival Plaza and Bonney Park in Auburn and Railroad Park in Lewiston.
The cities also use the money for economic development in the form of business loans and support for the Bates Mill Enterprise Complex.
The president’s proposed budget would affect the cities beginning in the summer 2006, if Congress accepts it.
The CDBG program and several other federal grant programs would be combined into the Strengthening America’s Communities program and controlled by the Department of Commerce.
It would get about $3.71 billion nationally under the president’s plan. Funding for the block grant program is $4.1 billion.
“I don’t know if the president will get everything he wants, but it appears that the changes in the block grant program will be significant,” said Jim Andrews, Lewiston’s community development director.
“This is the most significant piece of legislation I have seen concerning block grants in years,” Andrews said.
Mynahan said she expects the Twin Cities would have a tougher time qualifying for the new program.
“There would certainly be more communities competing for those grants,” Mynahan said. “And we dont know what the requirements would be anyway.”
But Andrews said there is hope.
“Putting it under commerce could put more focus on economic development,” Andrews said. “If that’s the case, that could work in our favor.”
Comments are no longer available on this story