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Community Development
MAKING GOVERNMENT RESPONSIBLE means . . . promoting action to address national needs through agencies – both governmental and private -- at the community level . . . promoting the development of self-sustaining agencies capable of existing without continuing government support . . . permitting community agencies the greatest possible freedom to develop solutions to local needs.
POSITION SUMMARY: We need to greatly simplify our system of assistance to communities by consolidating economic and community development programs and developing consistent criteria for federal assistance and thereby reduce the administrative burdens of applying for, and accounting for, federal funds. DISCUSSION: Tax money invested in community development and job training benefits States and localities in many ways. We need to allocate funds to the programs and projects where they will do the most good – and allocate sufficient funds to those programs and projects to enable them to succeed. It is also important to recognize that community development means more than just economic development. "Quality of life" issues are also important--and are of great significance to businesses considering investing in a community. Therefore, funding for assistance in community development needs to be integrated with, and coordinated with, programs of assistance in the development of community amenities and social services. Capacity Building:
We need to provide funding for the development of self-sustaining community and economic development programs that can respond to local needs without the need for continuing federal assistance.
We need to promote citizen involvement in community development by funding local advocacy organizations and agencies.
New jobs provide employment for those who might otherwise need public assistance to secure housing, food, childcare, and health care for their families.
The Catalog of Federal Domestic Assistance programs lists:
Additional local jobs mean more money being contributed to the state and local tax base, and more spending in the local economy.
195 Community Development Grant Programs.
14 Community Development Programs.
107 Economic Development Programs
18 Economic Development Technical Assistance Programs.
These programs provide funding for everything from infrastructure improvements and the construction of affordable housing to assisting communities to attract new businesses. Some of these programs are administered directly through government agencies—federal, state and local. Others provide funds to community action agencies, including private non-profit agencies and “faith” based organization.
While federal assistance programs differ widely in their objectives, they have several important things in common.---
FIRST: They are narrowly focused on a particular class of problem or activity, with little provision for coordination with other programs serving the needs of the same people or geographic area.
SECOND: The funds available under these programs are generally limited to a specific class of grantee organization—which may not exist in areas where there is a need for the kind of activities the program supports.
THIRD: The programs are generally intended to provide specific services, rather than develop local capacity to be self-sustaining.
FOURTH: Funds are generally subject to annual appropriations—which limits local organizations from undertaking activities that require time to develop.
Clearly, there is a need for many of these programs. However, it is far less clear whether or not that need is being met most effectively by the program as currently structures is another question. Moreover, by their very nature, many of these programs lend themselves to political manipulation as Congressmen direct funds to their districts and pet projects—either by exerting their influence over the funding agency or by including specific allocations of program funds in authorizing legislation.
Federal Funding:
Federal economic development assistance programs are also flawed in the way they allocate funds.
Federal funding for economic development programs is generally allocated to states and communities using a formula that gives substantial weight to their poverty rates. From a political standpoint, this is easy to understand. However, even if we accept the proposition that the poorest communities have the greatest need, there is little evidence that investments in the poorest communities represent the most beneficial use of federal funds.
Different kinds of communities need different kinds of help, and can benefit from different kinds of economic development activities. For example, the poorest community in a state is unlikely to be the most appropriate place to allocate funds intended to promote high-tech research activities. On the other hand, those communities may be just the place to target funds to promote light manufacturing businesses.
Earmarking funds for poverty communities is wholly appropriate. But not all programs are appropriate for all poverty communities. Merely being a poverty community does not justify its receipt of federal assistance if it cannot use the funds effectively.
We must also recognize that programs and activities that are insufficiently funded are unlikely to be successful. Spreading money to thinly -- just to satisfy political constituencies -- is unlikely to benefit any of the recipient communities. The only ones who benefit from an underfunded program are those who administer it and the Congressman who takes the credit for directing funds to his state or district
Government-Private Sector Partnerships:
In the area jobs training, the federal government has made great efforts to develop partnerships between educational programs—primarily at the post-secondary level—and industry. Similar partnerships need to be developed between private sector businesses and the economic development efforts of government and non-government entities. While many such partnerships exist, most of them are limited in scope. Greater involvement needs to be sought on the part of lending institutions across the spectrum of economic development activities and through the expanded use alternative forms of loan col lateralization. -- Promoting Solutions, NOT Bureaucracies:-- Federal money is most effectively used when it is made directly available to those who need it. Local development efforts should not be held captive to state politics or made subject to the requirements of state bureaucracies.
Promoting Community Development Corporations:
The term "community development corporation" [CDC] refers to a type of non-profit entity characterized by community based leadership involving small business owners, neighborhood associations and other local stakeholders who work to produce affordable housing and create jobs for community residents. Jobs are often created through small or micro business lending or commercial development projects. Some CDCs also provide a variety of social services to their target area. CDCs are uniquely positioned to build the economic and social strength of poor communities. Unlike government agencies, CDCs are agile and opportunistic in pursuing revitalization. And unlike private developers, CDCs maintain strong links to their communities by involving residents in their governance and development activities.
Promoting Community Action Agencies:
In any discussion of government programs and services, it is easy to lose track of the purposes of those programs and services. Occasionally, it is necessary to remind government agencies why they exist and who they are intended to serve. A local population that demands action by its local government can have a far greater impact on solving problems that a federal program. If we can justify bloated bureaucracies to administer programs, we can certainly justify supporting local organizing efforts to bring about citizen action.
Rural Development:
Rural areas are especially in need of economic development assistance. Few employers are interested in bringing new manufacturing facilities to sparsely populated rural areas. Those ural areas are at a distinct disadvantage when competing with urban areas for grants because most rural communities lack the grant writing expertise and planning resources of urban areas. This problem can be mitigated by including set-asides in funding programs to guarantee that an appropriate portion of federal funds go to rural economic development efforts.
The traditional approach to business assistance in rural areas involved the use of tax concessions to recruit large business establishments. This approach proved costly to the public and in most cases offered little guarantee of lasting benefits to the community. In recent years, communities have placed more emphasis on credit, training, and technical assistance to help strengthen existing businesses and grow new small businesses capable of creating more long-term jobs.
Expanding job opportunities in rural America requires much more than just attracting new businesses. Businesses considering new locations for their facilities need more than merely employees—and the training program that prepare employees to work in their facilities. They look at a community as a whole.
Federal assistance programs that focus on economic development and jobs training are not enough to attract new businesses. These programs need to be co-ordinated with other programs—such as the Community Programs and the Rural Business-Cooperative Service of the U.S. Department of Agriculture—to develop whole communities.
Most federal rural development programs provide funding directly to local entities, such as individual businesses, governments, nonprofit organizations, and tribes. However, regional development programs fund projects through regional organizations, using strategies that are aimed at addressing region-wide issues.The Rural Development program in the U.S. Department of Agriculture, the principal program for providing assistance for rural development, was established "To increase economic opportunity and improve the quality of life for all rural Americans." The Rural Development Program has an $86 billion dollar loan portfolio, and administers nearly $16 billion in program loans, loan guarantees, and grants through their programs. However, for various reasons, much of this funding currently goes to urban areas to help develop and redevelop suburbs and resort cities. In fact, more than half of that money has gone to metropolitan regions or communities within easy commuting distance of a mid-size city, including beach resorts and suburban developments.
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Paid for and Authorized by
Alan Woodruff for Congress
Campaign Committee
10304 Calle Hidalgo N.W.
Albuquerque, New Mexico 87114
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