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National Association of Counties * Washington, D.C.            Vol. 31, No. 17 * September 13, 1999

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Gray joins in call for full HUD funding

By Dianne Taylor
Consultant


NACo President C. Vernon Gray addresses reporters Aug. 26 at a press conference unveiling a HUD report highlighting the impact of proposed cuts in the FY00 HUD budget.

On Thursday, Aug. 26, NACo President C. Vernon Gray, along with Mayor Lee Clancy, Cedar Rapids, Iowa, representing the U.S. Conference of Mayors (USCM), Martin Luther King III, from the Southern Christian Leadership Conference (SCLC), and Cushing Dolbeare, national housing advocate, joined HUD Secretary Andrew Cuomo as he unveiled a departmental report highlighting the impact of proposed cuts in the FY00 HUD budget.

The report, titled “Losing Ground: The Impact of HUD Budget Cuts on America’s Communities,” outlines how the $1.6 billion cuts proposed by the House Appropriations Committee would wreak havoc on communities across the country.

In supporting full funding of the HUD budget, Gray indicated that the proposed reduction in HUD funding would result in 1,500 jobs not created, 3,525 houses not constructed or rehabilitated and non-delivery of untold human services such as child care, job training and transportation to work across the entire state of Maryland.

Gray said, “Counties across the nation depend on HUD monies to fund vital programs that benefit millions of families. Cuts in proposed funding for HUD will hurt our efforts to increase the supply of affordable housing, create jobs and revitalize communities.”

Prior to the August congressional recess, the House Appropriations Committee made cuts to both the Community Development Block Grant (CDBG) program and the HOME Investment Partnership program. The CDBG program was reduced by $250 million (6 percent) and HOME was cut by $20 million.

In addition to cuts in CDBG and HOME, virtually all HUD programs sustained some reductions. HOPE VI, the distressed public housing program, was cut by $50 million; brownfields would be funded at $5 million less than current levels and Housing Opportunities for Persons with AIDS (HOPWA) would be cut by $25 million. The funding subcommittee chose not to allocate funds for Regional Connections.

When viewed in its entirety, the cuts would negatively affect counties’ ability to meet the most basic needs of its working families, children, homeless and elderly.

These reductions have been made to stay within the budget caps agreed to in the 1997 Balanced Budget Act as well as to free up funds generated by higher than expected surplus to provide a tax cut.

The full House is expected to vote on the HUD budget in early September. The Senate has not yet acted on the spending measure.

“The real impact of these cuts means counties will not have the resources to meet their community, economic development and housing needs in urban, suburban and rural areas. We must all join together and urge Congress to fully fund HUD programs,” Gray said.

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