COMMITTEE REPORT

COMMUNITY DEVELOPMENT GRANTS CONSOLIDATED IN BUSH PROPOSAL

On February 1, the Strengthening America's Communities Initiative was announced by the White House, intended to restructure federal economic and community development programs. Seven federal agencies currently administer 35 different grant, loan and tax incentive programs – the new proposal consolidates 18 of those programs. The program sets new eligibility criteria determined by job loss and unemployment and poverty levels. Participating communities would be required to meet accountability measures to track goal progress. Various organizations have found that the consolidation plan initiates a $2 billion cut in overall funding. Among other things, the Community Development Block Grant (CDBG) is folded into the new program – the CDBG alone is fully funded at $4.7 billion, and the consolidation would total $3.7 billion. NCSL does not have an official policy on the development grants, but is tracking the issue.

BUDGET ANALYSIS RELEASED

On February 22, the Center on Budget and Policy Priorities released its analysis of how budget changes introduced in President Bush’s FY06 proposal will affect community development grants, as well as some education, human services, and environmental programs. The report provides state-by-state information on projected cuts, and is found online at www.cbpp.org/2-22-05bud.htm.

FANNIE MAE FELLOWSHIP MADE AVAILABLE TO STATE OFFICIALS

The Fannie Mae Foundation is providing 35 fellowships to state and local elected officials who focus on affordable housing and community development issues for a Harvard Kennedy School of Government program for senior executives. Curriculum for the 3-week seminar is intended to enhance management and decision-making skills in organizational strategy, policy development, and management of operations and human resources. Two sessions are hosted in Boston beginning on June 12 and July 10. The application deadline for this year’s program is April 1. Information and the application are online at www.fanniemaefoundation.org/grants/kennedy_school.shtml, or at 202-274-8000.

ALLGEIER NAMED ACTING USTR

On February 18, President Bush announced that Ambassador Peter Allgeier has been appointed to serve as the acting US Trade Representative, to temporarily replace Robert Zoellick, who is the new Deputy Secretary of State. Allgeier has been the Deputy USTR since 2001, responsible for trade negotiations with Europe, the Free Trade Area of the Americas, and the continued implementation of NAFTA. He has been with the agency since 1980.

BUSINESS TAX INCENTIVES IN NEBRASKA UNDER REVISION

A lawsuit similar to the Cuno federal court case in Ohio has been filed in Nebraska, challenging the state’s tax incentive program for big businesses as a violation of the interstate commerce clause in the US Constitution. At the same time, a bill has been introduced in the Nebraska state legislature to revise the tax incentive provisions. LB646 would eliminate the current provisions and revise the state’s tax incentive program. The bill text is at http://srvwww.unicam.state.ne.us/current/intro/INTRO_LB646.pdf.

SPRING FORUM SCHEDULED IN WASHINGTON, D.C.

The Economic Development, Trade & Cultural Affairs Committee will next meet at the Spring Forum, held April 14-16 in Washington, D.C. The Committee will conduct discussions on tax incentives for businesses and the recent Ohio federal court case, Cuno vs. DaimlerChrysler; the Supreme Court case Kelo v. City of New London and its effects on the use of eminent domain; and reform efforts for regulation of Fannie Mae and other government sponsored enterprises. A seminar on international trade issues and preemption of state law will be held in conjunction with the Spring Forum, co-hosted by NCSL and the National Association of Attorneys General. Please see www.ncsl.org/forum/ about registration and lodging. Committee agenda updates will be online at www.ncsl.org/standcomm/scecon/scecon.htm.