Blog for Rural America

The Center for Rural Affairs, a private, non-profit organization, is working to strengthen small businesses, family farms and ranches, and rural communities. Permission to reprint items from this web log is hereby granted, on the condition that clear credit is given to the original source of the material. If the blog provides information for a story, please let us know by sending an email to johnc@cfra.org.

Saturday, July 16, 2005

Community Development Grant Cuts Worry Nation's Governors

- from the desk of John Crabtree, Center for Rural Affairs, johnc@cfra.org

Community Development Grant Cuts Worry Nation's Governors

Des Moines, Iowa - As the nation's governors gathered yesterday in Des Moines for their yearly meeting, one issue on their minds is the President's proposed cuts in community development grants.

"Iowa is the site for this year's annual National Governors' Association meeting. Many of the Governor's have already expressed concern about a Bush Administration Proposal to nearly eliminate Community Development Block Grants." said Jon Bailey, jonb@cfra.org, Rural Research and Analysis Program Director for the Center for Rural Affairs.

The Center for Rural Affairs recently completed a study of the impact those cuts would have on rural areas. The Center concluded that no Iowa county would qualify for funds under the Bush Administration proposal.

"This would be devastating because not only would most rural communities not qualify they'd also be put into a pool of competing against all of the major cities in the country for this money," Bailey continued.

According to Bailey the nation's governors are the ones who would need to deal with problemsresulting from the President's proposed community development cuts.

"Probably all of these Governors have some administrative authority over these programs, and so they're the ones that actually choose the communities that get this money. And so they should be concerned, because it's the major federal initiative that has to do with economic and community development," continued Bailey.

Bailey also noted that most of the money allocated to communities from the CommunityDevelopment Block Grants goes to small towns in rural states like Iowa for capitalimprovements and economic development.

Questions? Comments? Post them here or contact Jon Bailey, jonb@cfra.org, or John Crabtree, johnc@cfra.org at the Center for Rural Affairs. The full report on the President's Strengthening American Communities Initiative is available at http://www.cfra.org/briefs/rab_saci.htm

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