The community economic development industry faces an elimination of several programs and cuts to numerous others in the 2002 budget presented by President Bush on Monday, April 9, 2001.
Overall, the President's budget plan would reduce or cut spending on community economic development programs by 5 percent in FY 2002. However, the spending framework that his plan would establish would require significantly larger cuts every year through FY 2012. NCCED is opposed to the President's FY 2002 Budget fundamentally because it will place an unfair burden on and force real cuts in programs and resources that help revitalize low-income communities by promoting access to capital and job creation. Specifically, we are concerned that the FY 2002 budget will
- Eliminate programs that are accessed by community organizations for job creation and housing activities such as the Assets for Independence Act, Rural Housing and Community Development, Environmental Justice, and Sustainable Development Challenge Grants;
- Undermine implementation of the recently enacted New Markets program by drastically cutting the Community Development Financial Institutions Fund and the New Markets Venture Capital Fund;
- Cut core CED programs such as the Community Development Block and EDA;
- Decrease the development of affordable housing; and
- Unwisely eliminate resources used to promote economic development activities in rural communities nationwide.
Based on the emerging debate, it is clear that the President and the Republican Leadership will need to make several concessions on budget issues before the budget process concludes this fall. CDCs should write to their legislators today to arrange a time to meet and discuss the proposed budget.
For the latest information, stay tuned to NCCED's website.
