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Nevada report shows human impact of Trump's proposed cuts to community development grants

Michelle Rindels
Michelle Rindels
Congress
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Nevada could lose $20 million a year that’s bolstering homeless shelters, rural 911 infrastructure and the Meals on Wheels program if a proposed cut in President Donald Trump’s budget becomes reality.

U.S. Senator Catherine Cortez Masto, D-Nev. arrives for an immigration forum hosted by Nevadans for Common Good on Monday, April 17, 2017 at All Saints Episcopal Church. (Photo by Jeff Scheid/The Nevada Independent)

A report from Democratic Sen. Catherine Cortez Masto’s staff that’s scheduled for release on Monday highlights the types of projects backed by the Community Development Block Grant. While federal funding to the grants is less than one-fifth of what it was at its peak in 1979, Trump’s budget proposes axing the program, which helps neighborhoods invest in locally led projects that address housing and economic development challenges.

“The program is not well-targeted to the poorest populations and has not demonstrated a measurable impact on communities,” explains the budget document, pointing out that the federal government has invested $150 billion in the initiative since its inception in 1974. “Decreasing appropriations combined with an increasing number of localities qualifying for CDBG allocations has reduced the size of the individual grants over time, making CDBG less impactful.”

The program has been criticized for inefficiencies such as high spending on administration, and some have questioned whether some grants were awarded based on cronyism.

In fact, Clark County’s own administration of CDBG came under scrutiny this spring in an audit from the U.S. Department of Housing and Urban Development’s inspector general, which found, among other things, that about $760,000 in funds were spent inappropriately on employees and activities that may not have been primarily focused on CDBG objectives. The audit recommended the county determine how much of that spending truly served CDBG goals and refund the rest; the county is contesting some of the fines and has agreed to repay at least a portion.

But the report, which was compiled through interviews and email correspondence between Cortez Masto’s staff and program beneficiaries, seeks to make the case that funding is making a difference in Nevada.

“The proposed elimination of CDBG should be of concern for all communities in Nevada, whether urban, suburban or rural,” said the 22-page report. “CDBG creates jobs, makes essential infrastructure projects possible, and addresses unique housing needs that benefit elderly, disabled, and economically vulnerable households.”

Among the grant accomplishments outlined in the report:

  • Esmeralda County 911 system: CDBG funds supported an upgrade to the county’s 911 system, which was unable to receive wireless calls and rerouted them to distant localities including Pahrump, Hawthorne and Fallon. The distance to the caller meant that operators often weren’t familiar with roads and buildings, and sent ambulances to the wrong locations. The county received a CDBG grant to fix the problem, and the upgrade is expected to be finished by the end of the year, according to state CDBG grant administrator Jean Barrette. Beyond the 911 system, the grant helped the county buy an emergency vehicle and a fire engine in 2016, and improve a water line that’s expected to support mining operations.
  • Clark County Homeless Youth Center: More than $3.7 million in CDBG funding, along with $3 million in New Market Tax Credits and $1 million from other sources, allowed HELP of Southern Nevada to complete the Shannon West Homeless Youth Center recently. The three-story, 37,000-square-foot building includes 40 dorm rooms, six rooms for classes that help youth attain economic independence, a kitchen and a dining room. The center can accommodate 120 residents, which doubles Clark County’s homeless youth shelter capacity, according to Clark County commissioners.
  • Washoe County homeless shelter: The cities of Reno and Sparks together routed about $625,000 of their CDBG funds in 2017 to Volunteers of America, the faith-based organization that runs the region’s only homeless shelter. CDBG money makes up about one-third of the operating budget for the shelter, which houses 27 homeless families and 304 homeless individuals, according to the Reno Division of Housing and Neighborhood Development. Losing the money could cut the number of available beds by 95; city officials say that could force more spending on medical care and policing for the homeless.
  • Cleone Potter, one of the seniors who receives meals through the Meals on Wheels program, is seen inside her home during a delivery on Friday, May 12, 2017. Daniel Clark/The Nevada Independent

    Meals on Wheels: Catholic Charities of Southern Nevada received a $2.5 million CDBG grant last year that helped the organization expand its food pantry and the kitchen the produces the home-delivered meals. Deacon Tom Roberts, who heads the charity, told Cortez Masto’s staff that the expansion has allowed the organization to move from offering a bag of food to people to allowing them to “shop” in a grocery-store-like setting. He said that model gives the more than 3,000 families who use the pantry each month more dignity and allows them to participate in their own recovery. If CDBG provides more money, Roberts said the charity would use it to expand infrastructure and eliminate a waiting list for home-delivered meals that was about 900 people long. Proponents of the program says it ensures seniors don’t go hungry and provides human contact that can help participants live independently for longer, thus saving the government money.

Trump’s budget has faced bipartisan pushback since its introduction this spring, including from Republican Sen. Dean Heller, who in April called the proposal “anti-Nevada.” It’s unclear how much of it will come to pass; compared with Nevada’s process, in which the governor’s budget proposal drives the conversation for the Legislature, Congress has more say in designing a federal spending plan.

Cortez Masto’s office, which plans to formally unveil the CDBG report Monday morning when the senator visits the new Shannon West Homeless Youth Center that was built with the funds, warned of steep consequences if the grants evaporate.

“Without these funds, local governments would be stretched thin and forced to either cut services or find alternative sources of financing,” staff concluded. “Some organizations that receive CDBG funds would be unable to continue operating, and be forced to close.”

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