Funding decreases from CDBG face Utica nonprofits

The Utica OD reported that:

This year, the Young Scholars Program at Utica College received a $43,000 federal grant to help local students graduate from high school.

Next year, that program and nearly two dozen other nonprofits may not receive any money due to a change in how the city will distribute its yearly allotment of Community Development Block Grant funds.

Nonprofit leaders and community members say taking money away from these programs will hurt residents the grant is meant to serve.

Flossie Mitchell, director of the Young Scholars program, said the loss combined with a $150,000 cut this year in funding from the Utica City School District could prove extremely difficult to handle.

“The overwhelming majority of our students live within the CDBG zone and meet the income guidelines,” she said. “If we lose two significant funding sources that could prove extremely difficult.”

The changes are based on what the U.S. Department of Housing and Urban Development wants and will focus the funds on areas that need it to produce visible results, Mayor Robert Palmieri said.

“It is a substantial change but it doesn't mean there won't be funding,” he said. “It just won't be open-ended like in the past.”

Instead, the money will likely go to programs that focus on combating blight and revitalizing neighborhoods, he said.

The funding

On July 2, the Community Development Block Grant Citizens' Advisory Committee wrote a letter to Palmieri asking him to clarify his policy on giving grants to nonprofits.

Last week, Palmieri responded, writing that most, if not all, of the funding will go toward helping neighborhoods around the city. Any money for nonprofits will be limited to those that support city-sponsored activities, such as senior centers.

“In my discussions with (HUD), they indicated that they're looking for a strategic plan and results,” he said. “We're trying to get the most bang for our buck.”

In the past, the city typically set aside 15 percent of the grant funds for local nonprofits.

The committee, which was created by the Common Council, reviews the applications and makes recommendations to the council, said Gene Allen, the committee's former chairman.

The city's yearly grant has been slashed by nearly 25 percent in the last two years, Allen said. This year it received $2.3 million. The city will not know for several months how much money it received for the 2013-14 grant year.

A large chunk of the funding goes toward paying loans for previous projects. The rest of the allotment goes toward the funding and staff of the Urban and Economic Development office.

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