Charities hoping
Bush cuts fail

Congress begins work on plans
to overhaul grants aiding the poor

Gladys Baisa, like colleagues in Hawaii and across the country, is keeping a close eye on Congress this week to see whether federal lawmakers agree to steep funding cuts proposed by the Bush administration.

Baisa is executive director of Maui Economic Opportunity Inc., one of four Community Action Agencies in Hawaii that assist the poor with the help of funding from the federal Community Service Block Grant Program.

"This money is so crucial," Baisa said. "Without CSBG, we probably could not exist."

Hawaii's Community Action Agencies were among more than 1,100 nationwide that received $636.6 million in community service block grant money in the 2005 fiscal year.

Bush's proposed spending plan for the 2006 fiscal year, which begins in October, eliminated the grants. Budget resolutions passed earlier this year by the House and Senate -- blue-prints for how the government plans to allocate federal dollars -- also cut the funding.

Whether the money is kept is being determined now. The House Appropriations Subcommittee on Labor, Health and Human Services and Education is set to begin work tomorrow on the budget proposal that covers the CSBG funds.

Bush's proposed cuts are part of a plan to consolidate 18 community and economic development programs from five Cabinet departments into one program under the oversight of the Department of Commerce.

Under the proposal, the consolidated program, known as "Strengthening America's Communities," would receive $3.7 billion in funding, down from $5.3 billion the 18 programs received in FY 2005.

A White House position statement calls the new program "a targeted, results-oriented approach that will encourage innovation and economic opportunity. By streamlining the delivery of federal economic development programs, taxpayers will see administrative savings."

All of the proposals are under consideration as lawmakers hammer out the budget.

Even though a Senate amendment to the budget blueprint seeks to restore CSBG funding to 2002 levels of $650 million, some administrators still are nervous.

"It's a pretty worrisome scenario that we're looking at," said Joan White, executive director of the Honolulu Community Action Program Inc. "We're just hoping that common sense and reason will prevail."

While the four Hawaii agencies receive only a fraction -- about $3.9 million -- of the total in 2005, administrators say the federal money is critical because it is used as leverage to apply for other federal and state grants.

Federal officials estimate that every CSBG dollar leverages nearly $5 in state, local and private funds.

"CSBG is glue money," Baisa said. "It's the hub of the wheel, and without it, it would be very difficult for us to operate."

According to the state Office of Community Services, which oversees the federal block grant program in Hawaii, Maui Economic Opportunity received about $496,000 in CSBG money last year.

The Honolulu agency received the largest share, about $2.5 million, the office said. Others that received the federal dollars were the Hawaii County Economic Opportunity Council, about $590,000, and Kauai Economic Opportunity Inc., about $287,000.

"These agencies are dealing with the low-income and the most needy of our communities," said state Community Services Director Sam Aiona. "Any cuts would affect those that need it the most."

Community Action Agencies, which serve the poor through a variety of programs, were established after Congress passed the Economic Opportunity Act of 1964.

In Hawaii, they provide services including job training, housing, transportation, food distribution, education and health care for low-income and homeless residents.

Members of Hawaii's all-Democratic congressional delegation have gone on record against the administration's proposed cuts.

U.S. Reps. Neil Abercrombie and Ed Case and U.S. Sen. Daniel Akaka were among a bipartisan group of 122 House members and 46 senators who signed letters to the respective appropriations subcommittee chairmen asking that CSBG funding be kept at or near current levels.

A spokesman for U.S. Sen. Daniel Inouye said Hawaii's senior member of Congress also supports CSBG funding, but has not signed a letter because he sits on the Senate subcommittee that would take up the matter if it passes over from the House.

"He has told officials in Hawaii that he's going to do his best to ensure funding is there for their needs," spokesman Mike Yuen said.

Case said he sees the Bush plan as a means for the administration to reduce overall funding for social service programs "and get them to fight each other for the funding."

But Case, who represents rural Oahu and the neighbor islands, also said he's optimistic that the money ultimately will be kept.

Gov. Linda Lingle also supports full funding for Community Service Block Grants, Aiona said.

"We know the good work that these agencies do," he said, adding that the bipartisan support at the federal level "just tells you the importance of this program."

Millions at stake Budget proposals for fiscal 2006 being considered in Congress would cut $636.6 million previously allocated to 1,100 Community Action Agencies nationwide in fiscal 2005. Those agencies assist the poor and include four in Hawaii that received a total of $3.9 million last year. >> Honolulu Community Action Program Inc., $2.5 million. >> Hawaii County Economic Opportunity Council, $590,000. >> Maui Economic Opportunity Inc., $496,000. >> Kauai Economic Opportunity Inc., $287,000. Source: State Office of Community Services