policy and advocacy

Issue Brief - Community Development Block Grants

U.S. Department of Housing and Urban Development

ACTION NEEDED
We urge Congress to:

• Keep funding intact at $4.7 billion for the Community Development Block Grants Program (CDBG), which supports arts infrastructure and services for disadvantaged communities nationwide.

BACKGROUND
For 30 years, CDBG has been a signature program for cities and counties, helping to create jobs, increase economic development opportunities and expand home ownership.  It has also been a major source of local arts funding, both for “brick and mortar” development projects and for arts-related services, such as arts education for disadvantaged and at-risk youth. Under the Administration’s proposed budget, CDBG and 17 other programs would be consolidated into one at the Department of Commerce's Economic Development Administration (EDA).  This would take CDBG (currently at $4.7 billion) and the other programs (including programs from Departments of Agriculture, Treasury, and HHS) and turn it into a $3.7 billion program in FY06 at EDA.  The new program would be called "Strengthening America’s Communities Grant Program" at the Department of Commerce and has yet to be fully defined. 

The Administration says that the purpose of the consolidation is "to replace duplicative Federal economic and community development programs with a more consolidated approach that provides for greater flexibility, accountability and targeting than any of the current approaches."  However, even with the creation of this new program, the programs originally funded by CDBG are at risk of losing at least $1 billion.

All the major local and county organizations including the U.S. Conference of Mayors, the National League of Cities, and the National Association of Counties are strongly opposed to the cut and have formed a coalition to fight the CDBG elimination.

TALKING POINTS

• The proposed reduction in CDBG funds (from $4.7 billion to at most $3.7 billion) would have a significant economic impact on arts programs in cities, counties, and communities of all sizes, when city budgets are already tight.
• In FY 2004, 94.9 percent of the CDBG funds allocated to entitlement communities principally benefited low- and moderate-income residents.
• Community-based organizations in cities have received CDBG funding over the years for a variety of projects including construction and public art as well as youth-based arts projects such as after-school programs, mural projects, and children's museums. Many of those projects are located in underserved communities.

Examples:

• North Charleston, SC—This year, the City of North Charleston will be utilizing nearly $1.3 million in CDBG funds for numerous initiatives including an arts program for underserved children.
• Spartanburg, SC—The Arts Partnership of Greater Spartanburg has received a Community Development Block Grant of $100,000 to help cover the cost of making planned cultural facilities handicapped accessible.
• Baltimore, MD—The city of Baltimore receives two grants from the CDBG program that impact the arts.  One grant supports the Bright StARTS Art Program, which provides artist-led workshops to inner-city youth through established after-school programs (in FY 2005 they received $54,000 for this program).  Additionally, they receive funding for the Baltimore Mural Program, which hires artists to work with communities to create murals in city neighborhoods.
• San Bernadino, CA—The Local Arts Council has a CDBG grant (approximately $42,700) through the 5th Supervisory District called “Partners in Arts.” They provide intensive classes in the visual and performing arts to low performing K-6 schools.  A portion of the grant also pays for low-income children to attend symphony performances.
• El Paso, TX—One local nonprofit organization called Creative Kids Inc., receives funding through the CDBG.  The organization provides arts education programs and cultural activities for disadvantaged youth, including foster children, kids with disabilities, and children battling cancer.
• Fort Lauderdale, FL—The City of Fort Lauderdale has committed $110,000 of CDBG Rental Rehabilitation funds for 37 units of artist work space.
• Salt Lake City, UT—Over the years, the CDBG program managed by the city has funded a number of arts programs, including an annual appropriation (approximately $3,000 per year) to commission works for the public art program.  The most recent commission funded through the CDBG program is for artwork at a skateboard park in a lower-income neighborhood.