Schumer Blasts Administration Budget Cuts To Federal Housing Programs - Could Cost Syr Area Nearly $2 Million This Year Alone

Schumer Blasts Administration Budget Cuts To Federal Housing Programs - Could Cost Syr Area Nearly $2 Million This Year Alone

Today, U.S. Senator Charles E. Schumer revealed that the Bush Administration's Fiscal Year 2008 budget could cost Central New York communities million of dollars in federal housing support. According to Schumer, the Community Development Block Grant program is again on the Administration's chopping block and, though they have assured Syracuse officials and representatives from communities across the country that the formula has not changed this year, the program stands to be cut by $515 million. Schumer said the CDBG program provides a direct lifeline to communities in Syracuse by ensuring there is ample affordable for families in this age of skyrocketing housing prices.

"CDBG provides critical housing dollars to Syracuse and these cuts would hit us like a ton of bricks," Schumer said. "This is a program that helps America's most-deserving communities create jobs, support local businesses, and keep our streets safe. CDBG is a lifeline to cities because many communities would not be able to find the funding or the flexibility they need without it. I'm going to fight tooth and nail to restore this funding."

Schumer revealed that the administration's cuts to CDBG would cost the Syracuse area nearly $2 million this year. Under the continuing resolution passed by the Senate yesterday, Syracuse would receive $6.3 million in CDBG funds. If the cuts were enacted, Syracuse would only receive $5.06 million in FY 2008. Onondaga County, in addition to the cuts to Syracuse, would lose $677,198 in CDBG funding, down from $2.19 million last year.

Other communities in Central New York that will be hurt by these cuts include Auburn, which would lose $219,568, Rome, which would lose $245,414, and Utica, $597,916.

Schumer said: "CDBG is the glue that holds together other Federal programs serving low-income communities. CDBG funding has allowed communities throughout upstate New York to fund critical community development projects. These cuts would result in mayors and local officials having to cut the staff that facilitates public service and facilitate public works programs and having to eliminate several community development programs altogether."

HUD is the federal department principally responsible for community economic development. CDBG is the centerpiece of the Federal government's efforts to help states and localities meet the needs of low-income communities. The CDBG program was established to foster the undertaking of housing and community development activities in a coordinated and mutually supportive manner by federal agencies and programs, as well as by communities. HUD's community development programs, coupled with HUD's housing and homeless programs and supportive services, provide our communities with a comprehensive approach to serving the needs of residents.

In a personal letter to Senator Kent Conrad (D-ND), Chairman of the Senate Committee on the Budget, and Senator Judd Gregg (R-NH) Ranking Member of the Senate Committee on the Budget, Schumer wrote, "CDBG is one of the most effective Federal domestic programs to revitalize neighborhoods with proven results. It is vital that New York State retain its level CDBG funding in order to continue the many community development services that its citizens have come to rely upon. Therefore I urge the Senate Budget Committee to fully restore funding to the Community Development Block Grant Program."

http://schumer.senate.gov/SchumerWebsite/pressroom/record.cfm?id=269897