Hawaii grants
in jeopardy

A Bush budget plan could cut
from the $14.8 million in isle
community grants

About $12 million in federal grants allocated to Honolulu each year for community development -- and mostly earmarked for programs that help the disadvantaged -- could be cut under President Bush's budget proposal before Congress.

The prospect of deep cuts to the Community Development Block Grants (CDBG) program is worrying city officials and past recipients of the grants, who say the money is both much needed and well spent.

Hawaii's senators have also spoken out against the proposed budget changes.

"We are incredibly concerned about it," said Jennifer Sabas, spokeswoman for Sen. Daniel Inouye (D-Hawaii). "Because the block grants have such an impact on our state ... the loud outcry is definitely going to be heard." Inouye has also talked to several Hawaii counties and community organizations worried about the budget proposal, Sabas said.

In the budget for fiscal year 2006, Bush wants to shift 18 community and economic development programs -- the largest of which is the CDBG -- from five Cabinet departments into one program under the Department of Commerce.

Individually the programs got about $15 billion. CDBG alone got about $4.7 billion.

But the new consolidated initiative, called the Strengthening America's Communities Program, would only get $3.7 billion under the proposal.

And because the new program has not been formed, it is still unclear how much of the allocation would go to community development grants.

A Housing and Urban Development spokesman in San Francisco did not return calls for comment. But in a statement released last month, HUD Secretary Alphonso Jackson said the new program would make it easier for communities to find the federal development grants they need in one central department.

He did not specifically address the cuts, but said "community development has been integral to our work in improving lives across America ... and we do not intend to change in the years and decades ahead."

Also, Department of Commerce Secretary Donald Evans said in a news conference last month that the president's proposal "is aimed at simplifying access to the federal system, setting new eligibility criteria and establishing strong accountability standards all in exchange for flexible use of the funds."

There is hefty opposition to the proposed changes in Congress among Democrats, and some are worried that the issue will fall along partisan lines. That would give the Republican president an advantage, given the party's domination of both the House and Senate.

The CDBG program was created 31 years ago and many cities have come to rely on its funds, which can be used for capital improvements or operating costs.

In fiscal year 2005, Honolulu got $11.8 million in the grants. Maui and Hawaii counties each got $2 million, while Kauai got $1 million.

City Council Budget Committee Chairwoman Ann Kobayashi said the funds have gone to scores of programs over the years but have also paid for city improvements, including buying firetrucks and building a fire station.

In this year's budget, the Institute for Human Services got about $665,000 for roof repairs on its two shelters.

Executive Director Lynn Maunakea said a loss of CDBG would mean even more backlog in maintenance and repair at community service programs across the state.

Three years ago the Hawaii FoodBank got $1.7 million to expand its warehouse in Kalihi to serve more clients. Dick Grimm, president of the nonprofit, said the project would have been much more difficult without the grant program.

"Will it hurt?" he asked, referring to the proposed cuts. "Sure, it has to hurt."

Bush plan combines 18 in 1

Under President Bush's budget proposal for fiscal year 2006, 18 community development programs -- whose budget totaled about $15 billion in fiscal year 2005 -- would be consolidated into a $3.7 billion initiative called the Strengthening America's Communities Program.

Here is a list of the programs the President wants to consolidate into one:

» Community Development Block Grants
» National Community Development Initiative
» CDBG Set-Asides, for particular programs
» Brownfields Economic Development Initiative
» Rural Housing and Economic Development
» Urban Empowerment Zones Round II Grants
» Community Development Loan Guarantees
» Economic Development Administration
» Rural Business Enterprise Grants
» Rural Business Opportunity Grants
» Economic Impact Grants
» Rural Empowerment Zones/Enterprise Communities
» Community Development Financial Institutions Program
» Bank Enterprise Award Program
» CDFI Native Initiatives
» Community Services Block Grant
» Urban and Rural Community and Economic Development
» Rural Community Facilities