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HomeMy WebLinkAboutMINUTES - 01281986 - 1.46 VIATo BOARD OF SUPERVISORS FROM: Phil Batchelor, County Administrator ClJl tra January 23 , 1986 C DATE' COU* SUBJECT: Reductions in Community Development Block Grant Appropriations SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION• Authorize the Chairman to send letters to the County' s Congressional delegation requesting that Congress overturn the President' s deferral of $500 million from the Community Development Block Grant Program. BACKGROUND: On September 21, 1986, the Board of Supervisors requested that this office report to the Board on proposed reductions in the Community Development Block Grant Program (CDBG) . Between the 1980-81 and 1985-86 fiscal years, the County' s allocation of CDBG funds has been cut by 31%, from $4,748,000 in 1980-81 to $3 ,280,000 in 1985-86. During this period of time requests for funds have consistently been between 3 and 4 times the available funding. This level of requests does not, of course, reflect actual need in the community. For the 1986-87 federal fiscal year, the President has deferred $500 million in funding for the CDBG Program. This deferral will take effect unless at least one house of Congress votes to overturn the deferral. This deferral will likely reduce the County' s allocation next fiscal year by at least $400,000. In a "worst-case scenario" , in which not only this deferral, but the impact of 1986 and 1987 Gramm-Rudman Deficit Reduction Act cuts are factored in, the reduction could total $1,250,000 for this County, a reduction of at least 35% from current funding levels, and a reduction of 57% annually from the 1980-81 funding levels. . Staff are planning on a reduction from the current level of $3,280,000 to $2,900,000 next fiscal year in an optimistic scenario, and a reduction to $2,000,000 in a worst-case scenario. Action by either house of Congress could at least reverse the CONTINUED ON ATTACHMENT: X YES SIGNATURE: X— RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDA(((TION OF BOARD COMMITTEE X APPROVE OTHER SIGNATURE(S): C&U-66 ACTION OF BOARD ON January 28, 1986 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS e 1 HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS (ABSENT - AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED January 28 , 1986. Community Development Director PHIL BATCHELOR, CLERK OF THE BOARD OF Dennis Fransen, Chief SUPERVISORS AND COUNTY ADMINISTRATOR Housing & Community Dev. ; CDD ea v M382/7-83 BY ,DEPUTY Page 2 $500 million deferral for 1986-87 . We are, therefore, recommending that letters be sent by the Chairman to members of this County' s Congressional delegation requesting that action be taken in either the House of Representatives or the Senate to overturn the $500 million deferral.