Call our Sentators and Representative to let them know you support their efforts save Mpls Empowerment Zone Funds. Sean Gosiewski, Ward 9 [EMAIL PROTECTED]
Minnesota economic empowerment zones face cuts Kevin Diaz Star Tribune Published Feb 7, 2002 WASHINGTON, D.C. -- An urban revitalization program that pumped $330 million into low-income "empowerment zones" in Minneapolis and 14 other U.S. cities would provide no more direct federal grants, under a Bush administration budget proposal. The cut reflects President Bush's preference for tax breaks and block grants to promote urban renewal. "There are a number of different ways the president can revitalize urban communities," White House spokesman Scott Stanzel said Wednesday. The Clinton-era program once promised Minneapolis $100 million over 10 years for inner-city jobs and business development, with $230 million more in tax credits and expanded bonding authority. Since the program began in 1999, Congress has approved $21.9 million in direct grants, including redevelopment funds for the Sears tower in south Minneapolis and public housing projects on the near north side. Of that, Minneapolis officials have spent about $12 million, part of a nationwide pattern of unused dollars that prompted the Bush administration to cut off new funding. The approximately $10 million that Congress has appropriated for Minneapolis but which so far is unspent would not be threatened by the president's proposal. "The president's budget request places a premium on programs that demonstrate results," said Nancy Segerdahl, a spokeswoman for the U.S. Department of Housing and Urban Development (HUD), which administers the grants. "It's clear that many of these empowerment zones are not spending their existing grant funds, so this budget request will shift the focus toward providing tax incentives as a more effective vehicle to promote economic development and job growth." Bush targets grants Minneapolis officials say they have been slowed by their desire for public input and the often glacial pace of federal monetary allocations. "It takes a while for the money to get in," said Minneapolis empowerment zone director Kim Havey. "You can't just cast money out to the winds." All the same, Havey said, the city's empowerment zone board has doled out an average of $800,000 a month for the past two years on a variety of projects, from the 24-hour Agape Child Development Center in north Minneapolis to the planned Southeast Minneapolis Industrial Area business incubator. The federal grants have leveraged $410 million in empowerment zone investments, about 90 percent of them from the private sector, including non-profits and foundations, she said. That includes $9.1 million provided by the state in 2000. According to Havey, the program has been responsible for the start of 180 businesses and the rehabilitation of 726 housing units in areas of Minneapolis that saw the largest population growth in the 2000 census. The Minneapolis empowerment zone consists of three distinct areas of the city and encompasses 50,000 residents. About 60 percent of the children in the zone live in poverty, according to the city's grant application. The proposed budget cut for 2003 is not the first time the Bush administration has taken aim at the empowerment zone grants. The president provided no new funds in the 2002 budget, only to watch Congress appropriate $3 million more for each of the 15 eligible cities. Among those who led the charge for the extra allocation was Rep. Martin Sabo, a Democrat who represents Minneapolis. "I'm disappointed," Sabo said of the new round of proposed cuts. "This is money that people need." But Democratic congressional aides say it will be more difficult this year to earmark dollars not requested in Bush's budget, which already includes an $80 billion deficit. Letdown for Rybak Since 1993, the federal government has created 30 empowerment zones that provide tax breaks for economic development, an idea often credited to Jack Kemp, the HUD secretary under former President George Bush. Minneapolis, however, was one of 15 cities designated in 1999 to receive ongoing grants along with tax breaks and other incentives to promote the economic revival of neighborhoods. The roll-out, accompanied by the prospect of $100 million in cash, was seen at the time as an enormous victory for then-Mayor Sharon Sayles Belton, who called it "a great big deal." The current prospect of no new funding comes as a big letdown for Mayor R.T. Rybak, who is asking the Minnesota Legislature for $12 million in bonding money for the Minneapolis empowerment zone, the only one in the state. "These are dollars that are specifically earmarked to leverage more dollars to attack the core problems that create poverty and lack of opportunity," Rybak said. "The reason Minneapolis has these dollars is because of the large gap here between the haves and the have-nots." Bush budget documents indicate little faith in the grants: "Evaluations and other performance information provide no convincing evidence that adding grants to the tax benefits of empowerment zones increases that program's effectiveness." But Rybak said tax breaks alone won't help, noting that they're of little use to non-profits and small businesses. "Not everything can be done with tax credits," he said. "Sometimes you need immediate action." -- Kevin Diaz is at [EMAIL PROTECTED] . _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
