Federal 2012 budget getting done

At the same time that the Deficit Supercommittee has been attempting to reach agreement on a broad series of measures, Congress has also been working on finishing up the Fiscal Year 2012 budget.

Last week, the Congress passed what is being termed a "minibus" bill providing $128 billion in funds for the departments of Agriculture, Commerce, Justice, Transportation, and Housing and Urban Development. transportation and HUD.  Congress is expected to wrap the remaining nine annual appropriations bills for 2012 into a single omnibus when it returns to work after Thanksgiving.

While the Senate has begun debate on a longer term transportation authorization, the 2012 budget contains some good news and bad news.  On the positive side, funding is included for not only roads and bridges but also AMTRAK and federal transit programs, as well as the TIGER and New Starts/Small Starts capital improvement programs.

Unfortunately, no funding was included for high-speed rail, a National Infrastructure Bank program or the Sustainable Communities Initiative.

The news is not so good for housing and economic development programs funded through HUD. The CDBG program was cut by $420 million to $2.9 billion. The HOME program, which assists affordable housing is funde at 40% below last year's level. As noted above, the Sustainable Communities initiative is unfunded as is the HOPE VI grant program

Cuts are also made in several public safety programs, including Byrnes Justice Assistance Grants which will receive $370 million as compared to $424 million, and the COPS program $166 million in 2012 as compared to $257 million in 2011.

Reductions in spending should come as no surprise to anyone.  It has been clear that such actions would have to be taken to address the deficit.  Now we'll see if members of Congress are also able to come up with funding to reinvest in those areas that will help to rebuild our country's economy and set us on a path of future growth, namely our  communities and local infrastructure.

Arnold Weinfeld is Director of Strategic Initiatives and Federal Affairs for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.