Letter to Appropriations Subcommittee - FY 09 Transportation-HUD
March 20, 2008
Members of the Subcommittee on Transportation, Housing and Urban Development and Related Agencies Committee on Appropriations United States Senate Washington, DC 20510
Dear Senator:
On behalf of the 1.4 million members of the American Federation of State, County and Municipal Employees (AFSCME), I am writing to request your strong support to increase funding for key housing, community development, and transportation programs as Congress considers the fiscal year 2009 Appropriations bill for Transportation, Housing and Urban Development, and Related Agencies.
As described in detail below, AFSCME strongly supports increased funding for the Department of Housing and Urban Development’s Community Development Block Grant formula grants, Public Housing Operating Fund, Public Housing Capital Fund, and Resident Opportunities and Supportive Services. AFSCME also strongly supports increased funding for important highway, transit and transportation safety programs at levels consistent with the SAFETEA-LU authorization bill and the Airport Improvement Program as authorized in the Federal Aviation Reauthorization Act. These increases are critical to future development and maintenance of the nation’s highways, transit systems and airports. Our nation’s economic growth is directly linked to the investment we make in our transportation systems and infrastructure.
Department of Housing and Urban Development
The Department of Housing and Urban Development (HUD) funding is needed to ensure Public Housing Authorities have the resources needed to preserve, enhance and increase the public housing stock and provide public housing residents with appropriate services. HUD funding is also needed to promote sustainable and supportive communities for low- and moderate-income Americans.
HUD - Community Development Block Grant Formula Grants
AFSCME requests $4.1 billion for FY 2009 Community Development Block Grant (CDBG) formula funding. While this would significantly increase FY 2008’s appropriation of $3.593 billion, FY 2001’s appropriation was $4.41 billion and thus our request is still low by historic levels. AFSCME strongly opposes President Bush’s FY 2009 proposal to fund CDBG formula grants at $2.927 billion, which would be a cut of 19 percent or $666 million. Furthermore, AFSCME opposes the President’s proposed $200 million CDBG “challenge grant”, which would further cut CDBG’s formula funding to $2.727 billion and thus reduce many participating jurisdictions’ appropriated allocation. HUD - Public Housing Programs
The affordable housing crisis continues to afflict many low-income and impoverished families, and the recent mortgage crisis has begun troubling middle-class families. To provide affordable housing options, localities need federal funding to preserve, maintain and develop varied housing opportunities tailored to local communities. In many areas, the best option is public housing and to ensure its success, Congress must continue the long-standing federal investment in public housing’s permanent inventory of 1.3 million units, which house 2.5 million Americans (50 percent are seniors or people with disabilities). Despite average incomes far beneath the poverty line, public housing residents reflect America’s diversity, including nearly one million children and one million seniors (more seniors live in public housing than in any other housing program).
AFSCME represents approximately 15,000 members working at Public Housing Authorities (PHAs) who have direct experience with the public housing stock and its residents. To ensure America’s public housing continues to help seniors, children, working families and their communities, AFSCME members know Congress must continue investing in public housing. Public Housing Operating Fund
AFSCME requests $5.3 billion for the Public Housing Operating Fund because the President’s FY 2009 budget justification to Congress demonstrates PHAs need this amount to operate their public housing. In fact, President Bush’s proposed budget prorates the PHA operating budget to only 81 percent of PHA needs. Although the President’s proposed FY 2009 budget of $4.3 billion is $100 million above FY 2008’s $4.2 billion, AFSCME opposes this amount because it still underfunds PHAs’ operating costs by $1.1 billion and would undermine public housing. Unless Congress provides adequate funding, PHAs will fail to deliver tens of thousands of housing units to needy families and many will continue languishing on waiting lists for years and years.
Public Housing Capital Fund
AFSCME requests $3.5 billion for the Public Housing Capital Fund, which renovates, repairs, and modernizes public housing. AFSCME opposes President Bush’s proposed FY 2009 budget of $2.024 billion (a 17 percent cut) because it dramatically underfunds needed capital costs and threatens nearly $1 billion in private capital investments. HUD’s most recent analysis estimates PHAs’ backlog for capital repairs is $18 billion. Underfunding the Capital Fund tends to increase future costs for many capital repairs such as roofs, heating systems and elevators because investing early tends to prevent more expensive capital repair costs later.
Resident Opportunities and Supportive Services
AFSCME requests $55 million for Resident Opportunities and Supportive Services (ROSS). The ROSS program provides vitally needed grants for service coordinators to work in public housing to address seniors' unique needs.
Department of Transportation
Investments in highways, transit and airports stimulate the economy. By increasing funding for the Department of Transportation (DOT) programs, Congress will improve highway safety, reduce congestion and stimulate state and local economies, create new development, increase property values and reduce travel time. In addition, improvements in the highway, transit and aviation infrastructure will create good jobs in transportation operations and maintenance, construction and supplier industries.
Federal Highway Administration Programs
AFSCME requests $34 billion for Federal Highway Administration programs (FHWA). While the President’s budget request falls short of AFSCME’s request, we believe the amount requested by the President is too far below what was authorized for these programs by SAFETEA-LU. The FHWA has a massive responsibility and the funding level ultimately authorized by Congress was significantly below the level necessary for the agency to adequately meet its goal of improving the nation’s mobility on the highways. These programs improve highway safety, reduce congestion and improve the efficiency of our highway system. Congress should invest no less than the level that was authorized, guaranteed and signed into law by President Bush. Federal Transit Administration Programs
AFSCME requests $10.5 billion for federal transit programs. The President’s request to cut transit spending by $202 million would place a tremendous burden on state and local budgets and local public transit systems and will result in more gridlock on the roads and overcrowded buses and trains. Cuts in transit spending will hinder the ability of public transit systems to improve, maintain and efficiently operate their transit systems.
Airport Improvement Program
AFSCME requests $3.9 billion for the Airport Improvement Program (AIP). This request rejects the President’s $765 million cut in the program and provides the amount that was provided in the Federal Aviation Administration (FAA) Reauthorization Act. The increased amount recognizes the need for an increased investment in the nation’s airports and it addresses airport safety needs.
We thank you for your continued leadership on appropriations issues and for your serious consideration of AFSCME’s funding requests for these vital programs.
Sincerely, Charles M. Loveless Director of Legislation
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