Community & Economic Development

At Long Last, Congress and the President Fund FY 2018

After months of wrangling, five continuing resolutions, two short-term government shutdowns, and much argument over what funding levels and policy riders should make the final cut, Congress voted and the president signed an omnibus appropriations bill that will keep the federal government funded through the end of the current fiscal year on September 30, 2018.

The $1.3 billion appropriation represents a significant success for our members! Many of NARC’s 2018 legislative and funding priorities received substantially more funding than the president requested and more than was appropriated in fiscal year 2017. Areas that saw significant funding increases include:

  • Transportation and infrastructure, including TIGER Grants, AMTRAK funding, and autonomous vehicles;
  • Community Development Block Grant (CDBG);
  • Workforce Innovation and Opportunity Act (WIOA) state workforce formula grants;
  • Economic Development Administration (EDA);
  • Census Bureau;
  • Opioid crisis relief, including funding for prevention, treatment, and law enforcement;
  • Rural water and broadband programs;
  • Clean Water and Drinking Water State Revolving Funds;
  • Aging programs;
  • Low Income and Home Energy Assistance Program (LIHEAP);
  • HOME Investment Partnerships Program and other housing assistance programs; and
  • Homelessness assistance.

Several policy riders and authorizations were also adopted as part of the omnibus, including:

  • Reauthorization of the EPA Brownfields Program, including NARC supported language;
  • Reauthorization of the Federal Aviation Administration is now extended through September; and
  • Short-term reauthorization of the National Flood Insurance Program (NFIP) is extended through the end of July.

For more information, check out our new blog post on the FY 2018 omnibus appropriations bill.

2018 Omnibus Appropriations Bill Bolsters Many State and Local Programs

Following the release of the $1.3 trillion fiscal year 2018 omnibus appropriations bill on March 21, NARC staff has been combing through the 2,232 page document to learn how localities will be impacted by these federal program funding levels. Much of it is great news for regions! The bill proposes additional funding for so many of the priorities we have advocated for over the last year.

Here are a few highlights:

Transportation

TIGER Grants: The TIGER program increased to $1.5 billion, tripling FY 2017’s funding level of $500 million. It provides some planning money for the first time in many years, allowing for up to $15 million in planning grants. A minimum of 30 percent of the funds are reserved for rural areas, an increase from the current 20 percent requirement.

STBGP: FAST Act highway programs are fully funded, and the bill also includes a one-time increase of $198 billion for the Surface Transportation Block Grant Program (STBGP). The increase will be distributed as it is through the FAST Act, meaning that funds will be suballocated to local areas. The funds are only eligible for road, bridge, and tunnel projects, and the STBGP set-aside (TAP) is waived. The bill includes an additional amount for public/Indian lands and territories ($320 million), and a new competitive bridge program in states with densities of less than 100 persons per square mile ($225 million).

New Life for New Starts: While the administration proposed narrowing the Capital Investment Grants Program (New Starts) funding to only cover projects already underway, the omnibus agreement provides nearly $400 million for new projects. This is an overall increase of $232 million.

Transit: Transit receives full FAST Act funding with an additional $834 million in general fund appropriations, which includes funding for state of good repair grants, buses, and bus facilities.

Rail: The bill includes large increases for several Federal Railroad Administration programs, including Amtrak which will receive $1.9 billion (an increase of $447 million) with $650 million allocated for capital projects along the Northeast Corridor (an increase of $322 million). The bill also includes funding for three FAST Act rail programs that previously received far less than their authorized amounts: the consolidated grant program to support PTC installation ($593 million), the federal-state partnership state of good repair program ($250 million), and restoration and enhancement grants ($20 million).\

Extends FAA: The Federal Aviation Administration reauthorization is now extended through September.

Automated Vehicle Research: The bill repurposes funds to create a $100 million pot for study grants and implementation of an overall study program.

No Rescissions: The previous version of House and Senate bills would have rescinded contract authority, and an amendment by Representative Rob Woodall (R-GA) to the House bill would have made suballocated STBGP subject to rescission. Since this bill ditches the rescission, there is no need for the amendment.

Clearview Font: The bill temporarily prohibits the use of funds to enforce the termination of an Interim Approval to use the Clearview Font on highway signs and requires FHWA to conduct a “comprehensive review” of the research and report back to the House and Senate Appropriations Committees.

Aging Programs

ACL: The Administration for Community Living is funded at $2.171 billion, a $178 million increase from fiscal year 2017.

Senior Workforce: The Senior Workforce Development Program remains level at $400 million, rejecting the Trump administration’s proposal to eliminate the program and the House’s proposal to cut the program funding by 100 million.

OAA, Title III: The Older Americans Act (OAA) Title III programs received significant increases:

  • $35 million increase to OAA Title III B Home and Community-Based Supportive Services
  • $59 million increase to Title III C Nutrition Services
  • $5 million increase to Title III D Preventative Health
  • $30 increase to Title III E Family Caregiver Support

Census Bureau

Boost to Census Funding: The Census Bureau is funded at $2.8 billion, an increase of more than $1.344 billion from fiscal year 2017. Over $2.5 billion of that amount will be going to periodic censuses and programs, including efforts to continue preparations for the 2020 Census Survey.

Community and Economic Development

CDBG and HOME: The Community Development Block Grant Program (CDBG) is funded at $3.3 billion – the amount NARC and the CDBG Coalition requested. The HOME Investment Partnerships Program is funded at $1.362 billion, an increase of $412 million. The Trump administration proposed to eliminate funding for both programs in fiscal years 2018 and 2019.

SSBG & CSBG: The Social Services Block Grant (SSBG) and the Community Services Block Grant (CSBG) received level funding at $1.7 billion and $715 million, respectively.

State Workforce Formula Grants: Increased grants under Title I of the Workforce Innovation and Opportunity Act (WIOA) by a combined $80 million, including:

  • $30 million increase to WIOA Adult program
  • $30 million increase to WIOA Youth programs
  • $20 million increase to WIOA Dislocated Worker state grants

EDA: The Economic Development Administration (EDA) received a $25.5 million increase. This allocation ignores the Trump administration’s recommendation to eliminate funding for the agency.

Environment

Brownfields Authorization Language: The omnibus package contains the brownfields reauthorization language NARC has pushed for, including:

  • Allowing local governments to acquire abandoned or tax delinquent property that is contaminated and to clean up the property without fear of liability
  • Funding for brownfields cleanup grants
  • Creating a multipurpose brownfields grant
  • Allowing for the recovery of limited administrative costs

Urban and Community Forestry Program: The Urban and Community Forestry Program is funded at $28.5 million, an increase from fiscal year 2017. The omnibus package also includes a comprehensive fix for wildfire funding.

Energy

Energy Efficiency and Renewable Energy Program: The U.S. Department of Energy’s Energy Efficiency and Renewable Energy (EERE) Program is funded at $2.32 billion, a significant increase of $290 million. Rather than follow the Trump’s recommendations to cut the program by three-fourths, Congress chose to increase EERE’s funding by 14 percent.

LIHEAP: The Low-Income Home Energy Assistance Program is funded at $3.64 billion, a $250 million increase. This program has been slated for elimination by the Trump administration for fiscal years 2018 and 2019.

Flood Insurance

NFIP: The National Flood Insurance Program (NFIP) is giving a short-term reauthorization through the end of July, incentivizing Congress to complete a full reauthorization before the August recess.

Rural Development

New Broadband Loan and Grant Program: The U.S. Department of Agriculture (USDA) Rural Utilities Service received $600 million for a new broadband loan and grant pilot program.

Rural Development Programs: Rural development programs receive $3 billion, an increase of $63.7 million from fiscal year 2017. This includes decreases to the Rural Housing Service and Rural Utilities Service programs, which are funded at $1.99 billion and $661.4 billion respectively.

Substance Abuse Crisis

Opioid Crisis Relief: Includes a $3.2 billion increase for programs responding to the opioid crisis, including funding for prevention, treatment, law enforcement, and other purposes.

Water

Coastal Zone Management Funding: The Coastal Zone Management Program is funded at $75 million, a $5 million increase from the previous fiscal year.

USDA Water/Wastewater Loans: USDA’s Rural Water and Wastewater Program would allow more than $3 billion in loans, $1.8 billion more than the previous fiscal year.

Water State Revolving Funds: The omnibus package provides $2.89 billion in funding to Clean Water State Revolving Funds and Safe Drinking Water State Revolving Funds, an increase of $300 million for each program. The WIFIA loan program also saw an increase in funding this year, currently standing at $63 million.

What Happens Next?

The bill quickly passed through the House and the Senate, leaving one last hurdle: getting the president’s signature. Trump tweeted this morning that he is considering a veto because of two factors:

  • The bill presents no action on the Deferred Action for Childhood Arrivals (DACA)
  • The bill does not provide the full $25 billion the president requested to build a US-Mexico border wall.

On Thursday, March 22 White House Budget Director Mick Mulvaney told reporters that the president would sign the bill. The president has until midnight tonight to sign the bill to avoid a federal government shutdown. If he vetoes the bill and it goes back to Congress, a short-term continuing resolution might be employed to avert a shutdown and buy more time to discuss next steps.

UPDATE, March 23 at 1:30 PM ET:

In a White House press conference, President Trump signed the fiscal year 2018 omnibus appropriations package, making it public law. The legislation provides funding for the federal government through September 30, the end of fiscal year 2018. Although the president said, “there are a lot of things I’m unhappy about with this bill,” he approved the bill for national security reasons and because it authorizes a major increase in military spending. He criticized the rushed process Congress took to pass this bill, saying he would “never sign another bill like this again.”

Bipartisan Letter for Great Lakes Restoration Funding

Representatives Sander Levin (D-MI) and David Joyce (R-OH) submitted a joint letter to the House Appropriations Committee on Interior, Environment, and Related Agencies requesting an appropriation of $300 million for the Great Lakes Restoration Initiative (GLRI) for FY 2019. With 63 bipartisan co-signers joining the effort, this is the largest number of signers supporting GLRI funding. Representative Levin said, “The fact that the Great Lakes Restoration Initiative garners such strong, bipartisan support is a testament to the importance it has to our region and the nation. Our public health and regional economic vibrancy is built on the Great Lakes’ ecological wellbeing, which can only be maintained with our sustained and robust commitment.”

Farm Bill Talks on Hold

At the request of his colleagues, Representative Collin C. Peterson stopped Farm Bill negotiations until House Agriculture Committee Chairman K. Michael Conway provides Democrats with the draft text of the Farm Bill and the Congressional Budget Office cost estimates and impact assessments. Disagreement over the Supplemental Nutrition Assistance Program (SNAP) is partly to blame – as Democrats have made it clear that they oppose the language for SNAP, as it has been described to them and reported in the press. Although Chairman Conway hoped to release a bipartisan proposal last week, it was put on hold to gain support from several committee Democrats. These recent developments are likely to delay committee action until negotiations can start again between the committee Democrats and Republicans.

NARC Co-Writes Letter for FCC Filing

NARC, in partnership with the National Association of Telecommunication Officers and Advisors, National League of Cities (NLC), and National Association of Counties (NACo), submitted a letter to the Federal Communications Commission (FCC) expressing concern with their draft Second Report and Order for 5G deployment set for a vote on Thursday. By exempting “small” wireless deployments from review under the National Historic Preservation Act of 1966 and the National Environmental Policy Act of 1969, the draft order would pave the way for dramatic changes in our communities with limited or, in many cases, no opportunity for local review. We also express our doubts that rural areas and urban deserts will gain from these actions, making broadband deployment an even greater obstacle.

2018 Legislative Priorities & Updated Member Call Info

Members: Take a look at NARC’s policies and priorities for 2018 below. Additionally, NARC will host a member call to review these policies and priorities, explain how NARC staff are working toward achieving these objectives, and share best practices and tips for educating and influencing Congress.

NARC Member Call! NARC’s Policies and Priorities for 2018
March 14, 3:30 – 4:30 PM ET, Please note the new call time!
Dial: (571) 317-3122 / Access code: 304-259-525
Contact Neil Bomberg (neil@narc.org) or Maci Morin (maci.morin@narc.org) with questions.

Infrastructure Package
NARC urges the federal government to increase direct funding to expand and maintain the nation’s infrastructure, and provide incentives to attract private financing for the subset of projects that can be supported in this manner. The new infrastructure package should resolve the Highway Trust Fund’s funding shortfall, fund regional planning organizations, support multimodal investments, provide flexibility in the projects it supports, and fund existing grant channels.

Broadband
NARC urges Congress to acknowledge that local governments are a key player creating and incentivizing broadband deployment, recognize local authority over rights of way and other public infrastructure assets, encourage public-private partnerships, establish new grant programs to fund broadband deployment, and increase funding for programs targeted at unserved and underserved communities.

Disaster Recovery
NARC urges Congress to immediately reauthorize the National Flood Insurance Program. In addition, Congress should solicit input and guidance from locally elected officials and regional councils on federal emergency preparedness and disaster recovery programs and initiatives. Congress should allocate emergency preparedness, response, and recovery funding directly to regions and localities that know the immediate needs of their communities best.

Farm Bill
NARC urges Congress to support sustained funding for all twelve titles of the Farm Bill to strengthen rural infrastructure (including broadband, water, and wastewater systems), protect our nation’s food supply, increase access to healthy food, and promote environmental stewardship and conservation. Congress should reauthorize the USDA rural development programs that offer critical investments in our nation’s most underserved communities, including the Strategic Economic and Community Program that promotes regional collaboration.

Protect Local Programs
NARC urges Congress to maintain support for federal programs such as the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Low Income Home Energy Assistance Program (LIHEAP), the Economic Development Administration, water infrastructure investment and maintenance, funding for senior programs, and the Workforce Innovation and Opportunity Act (WIOA) that ensure municipalities, counties, and regions meet the needs of their communities.

Funding for the 2020 Census
NARC urges Congress to increase Census funding by no less than $300 million above the current funding level, so that the Census Bureau can adequately prepare for the 2020 Decennial Census and support efforts to accurately count historically hard-to-reach populations.

Budget/Appropriations
NARC urges Congress to support parity between defense and non-defense discretionary spending for fiscal years 2018 and 2019.

Substance Abuse Crisis
NARC supports federal efforts to partner with local and state officials to help address the addiction and misuse of opioids, including prescription pain relievers, heroin, fentanyl, and other substances. NARC also urges Congress to provide emergency supplemental funding to local governments for medicine-assisted treatment programs, expanded drug abuse prevention and education efforts, naloxone, and drug take-back programs.

Brownfields
NARC urges Congress to reauthorize the Brownfields Reauthorization Act of 2017 (HR 1758), which would increase cleanup grant amounts, create a multi-purpose grant, allow for administrative costs, and clarify liability issues for local governments. NARC also urges Congress to at least maintain level funding for fiscal years 2018 and 2019.

House and Senate Drafts for Farm Bill Expected Soon

Agricultural committee leaders in the House and Senate are pushing for draft Farm Bill legislation to be released by the end of March. The president’s FY 2019 budget proposal urged Congress to consider significant changes to the Farm Bill, some of which may make its way into initial drafts.

These changes include:

  • Reducing SNAP by $214 billion over the next 10 years;
  • Making programmatic changes to SNAP, replacing some benefits with food packages and strengthening work requirements;
  • Limiting farm subsidies to those with an income of $500,000 or less;
  • Reducing the average premium subsidy for crop insurance to 48 percent; and
  • Cutting the conservation stewardship program.

We could also see the separation of SNAP from the Farm Bill, which Democrats and Agriculture Secretary Sonny Perdue have previously spoken against.

NARC on the Hill: CDBG Coalition Meetings

Last week, NARC attended Hill meetings with the Community Development Block Grant (CDBG) Coalition on the Senate side to stress the importance of CDBG grants to local governments. In both the FY 2018 and FY 2019 president’s budgets, the administration recommended Congress to zero out CDBG’s appropriated funding. The House has already passed a bill for FY 2018 that allocated $2.9 billion for CDBG grants. The CDBG coalition met with Senate offices to urge them to appropriate at least $3.3 billion to CDBG as they as making final preparations for their FY 2018 Transportation-HUD appropriations bill, as well as for early consideration in FY 2019. NARC will continue to attend Hill meetings this week to advocate for adequate CDBG funding.

Making the Census Count: How Regions Can Help

Although 2020 is a few years away, preparations are already in full swing for the next Census. The groundwork that the U.S. Census Bureau is laying out today will affect the accuracy of the 2020 Census across the country.

The Census Bureau is up against a significant accuracy issue: past Census reports have historically undercounted certain populations in the United States. These groups include young children, minorities, and low-income communities. The Census Bureau is once again concerned about this problem occurring in the next decennial Census count.

Why is this significant for NARC members? The George Washington Institute of Policy reports that there are several hundred federal financial assistance programs and sixteen large federal programs that rely on Census data to disperse funds to states and local areas. These programs include funding for housing, health care, transportation, education, and food assistance that your communities rely on. The Census count also determines the number of seats each state has in the U.S. House of Representatives. You may also use Census data to make decisions about your region based on how the population is changing.

The Coalition on Human Needs recently hosted a webinar that highlighted why it is essential for local and state governments, advocacy groups, and the federal government to work together to ensure that the 2020 Census is accurate. The following is a summarization of the points presented during the webinar about the 2020 Census.

Policy and Operational Challenges

The Census Bureau is currently facing a ‘perfect storm’ of policy and operational challenges. The administration, Senate, and House have all proposed approximately $1.5 billion in funding for the Census Bureau in fiscal year 2018. However, the agency needs at least $1.8 billion to carry out all its 2020 Census activities. Congress has also capped the 2020 Census cost at the 2010 Census level, which doesn’t account for increases in the U.S. population over the last decade. The current political climate has also led to a new threat: an amendment to add citizenship and legal status questions to the 2020 Census. This has produced participation fears in many communities.

To make up for the gap in federal funding, the Census Bureau has tried to streamline its operational processes. This comes with its disadvantages. Having half the number of local area census offices and census takers compared to the 2010 Census effort has posed a serious challenge of collecting information across the U.S. The push to make the Internet the primary response option produces a digital divide, especially for seniors and low-income communities that may not have access to a computer. There have also been cybersecurity concerns, promoting worries of having personal information at risk of being compromised.

Undercounted Groups

The following groups have typically been underrepresented in past decennial Census surveys:

  • Young children (ages 0-4)
  • Males
  • Renters
  • Hispanics
  • Hispanic males (ages 30-49)
  • Blacks
  • Black males (ages 30-49)
  • Native Americans
  • Pacific Islanders
  • Immigrants
  • Low-income households
  • The homeless
  • Highly-mobile groups
  • Individuals without Internet access
  • Selected minority-heavy areas

There are several possibilities of why certain populations are undercounted. Places of residence on the Census Bureau’s Master Address File may not be up to date. Some Census takers may not feel the need to include certain people that are living in their home full-time. An example of this could be a grandparent who did not include their grandchild as being a part of their household even though the child is living with them full-time. Complex households can cause confusion when filling out the Census, such as two households who share custody of one child. It is difficult to track highly mobile populations, like renters or the homeless, because their place of residence may often change. Language barriers and government distrust can also lead to underrepresentation in Census data.

What Can Local Governments Do?

The Census Bureau needs your help to make the population count as accurate as possible. Local governments should participate in the Local Update of Census Addresses (LUCA) Operation. LUCA relies on states, counties, cities, townships, and Indian reservations to review and comment on the Census Bureau’s address list before the 2020 Census. This ensures that all addresses and associated populations, which the Census cannot update from governmental data and third-party sources alone, are counted.

The Census Bureau encourages local governments to arrange for a regional planning agency or council of governments to conduct their LUCA review if they lack the resources to do it on their own. This is a clear call to action for regional councils to get involved. You should check with the local governments in your region to see if they can participate in LUCA. If not, you should offer them your assistance to make sure all the addresses in their jurisdiction are accounted for. Otherwise, you may be putting your region at risk for of receiving fewer federal dollars. Visit the LUCA webpage to learn more about LUCA and about how you can get involved.

On the community level, local leaders should encourage participation in the following ways:

  • Advertise the upcoming 2020 Census to your constituents.
  • Create opportunities to educate your community on how to accurately fill out the Census, and clarify misunderstandings for more complicated households.
  • Consider establishing a Census Complete Count Committee in your region. This is a voluntary group that brings community stakeholders together to increase awareness about the Census and urge people to respond.
  • Encourage leaders of your communities, especially those representing historically undercounted populations, to be a “trusted voice” advocating Census participation.
  • Promote the Census Bureau’s high confidentiality with information gathered from the surveys.
  • Craft culturally sensitive messaging about the Census to underrepresented communities.

Implications of Southeast Michigan’s 2045 Forecast

Demographic and socio-economic trends discussed in the Southeast Michigan Council of Governments’ (SEMCOG) 2045 Regional Forecast will necessitate some lifestyle changes in the greater Detroit, Michigan region. The biggest of these trends is the aging of the population and the lack of incoming young people. These trends will create a labor shortage that can impact a regional economy.

One in four people in Southeast Michigan will be over age 65 by 2045. The same will be true in Singapore except they will reach those numbers by 2030. In Singapore, the plan for aging workers is to keep them working. They’ve launched a $2.2 billion program with many initiatives, including subsidizing retraining skills and allowing an employee beyond the retirement age of 62 to work until age 67. Accommodating an older employee involves some creative solutions, e.g., part-time or flexible hours, larger font sizes, and smaller-sized deliveries that are easier for older folks to handle.

The U.S. economy will also see some shifts as industry adapts to an older population. SEMCOG’s 2045 Forecast noted increases in health care and related industries. Another not-so-obvious increase is expected in the home remodeling industry, as baby boomers choose to “age in place.” Home renovations from this age group are expected to account for nearly one-third of all remodeling dollars by 2025, according to a report from the Joint Center for Housing Studies. I was in China recently, where an article by my former college advisor went viral. It was about how she remodeled her parents’ home to help them age in place. It dealt with a range of issues, including not only removing physical barriers to increase accessibility, but also improving line-of-sight, lighting, sound, as well as designing storage and furniture details.

Speaking of aging in place, the City of Auburn Hills, Michigan, has taken a proactive approach to this concept. With input from the community, they know that many older residents enjoy city events, parks, and plan to stay in Auburn Hills as they age. To address potential barriers, the city created an Age-Friendly 2015 Action Plan. According to Mayor Kevin McDaniel, the plan “is the start of our journey to creating a city that will be ideal for residents of all ages for years to come. It will serve as a guide as we continue to commit to improving our citizens’ and visitors’ access to our community.”

While local governments are already planning for an aging community, they are also adjusting to fewer school-age students and figuring out what to do with school buildings no longer needed. In Dearborn Heights, Michigan, Berwyn Elementary School is now Berwyn Senior Recreation Center. Built in 1958, Dearborn Heights began leasing the building from the Crestwood School District in 1979. Housing 20 classrooms, a large multipurpose room, and a kitchen, the facility is now used for classes, special events, health programs, meetings, and the Wayne County Nutrition Program. The city purchased the building from the Crestwood School District in 1997 and renamed it the Berwyn Senior Recreation Center in 2015. Similar things may happen in your community, as the U.S. senior population is forecast to grow dramatically in the next 30 years (see figure below).

U.S. Senior Population, Aged 65 and Over, 2010-2045

Source: SEMCOG 2045 Forecast, 2017.

A version of this blog originally appeared as a sidebar to a longer article in the Spring 2017 issue of Semscope, SEMCOG’s quarterly magazine. 

Interested in knowing how SEMCOG’s data impacts local governments and residents in Southeast Michigan? Then, you’ll want to read Xuan’s blog posts. Other posts by Xuan Liu.

Dr. Xuan Liu is the Research Manager for Southeast Michigan Council of Governments (SEMCOG). He oversees data analysis on demographics, socio-economics, land use, and transportation at SEMCOG. He is also specialized in modeling land use and transportation relations. He received his Ph.D. from University of Michigan.