L/SFR Sneak Peek: Anxiety Over Proposed Federal Spending Cuts Continues for State, Local Officials

June 21, 2011 | By Liza Casabona | Post a Comment

(This story is excerpted from the June 27 Local/State Funding Report.) Cities and towns are scrambling to support their neediest citizens in light of additional federal spending cuts looming in the next round of budget talks, already-reduced budgets, dwindling Recovery Act funds and further reductions for programs such as the Community Development Block Grants and the Community Services Block Grants.

Federal spending cuts grab national headlines, but what is sometimes hidden because of the disconnected nature of state governments and local municipalities is the impact that federal policies have on local communities.

Congress reduced funding for many programs as part of the fiscal year 2011 budget negotiations, and as FY 2012 budget talks continue throughout the summer, many additional programs are at risk.

The National League of Cities sent a letter to the chairman and ranking member of the House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies, which pushed for making the CDBG program and the HOME Investment Partnership Program top spending priorities in FY 2012. The NLC’s letter included dozens of articles from local papers around the country outlining the services that are threatened by proposed cuts to the two programs.

For more about state and local reactions to federal spending reductions, subscribers can look to the June 27 issue of Local/State Funding Report.

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