Contact: Rob Ostrander 202.224.7627 Shana Stribling 202.224.0309
Thursday, April 21, 2005

WASHINGTON, D.C. –– U.S. Senator Kit Bond, Chairman of the Senate Appropriations Subcommittee on Transportation-Treasury, today held a hearing on the fiscal year 2006 federal budget, where he emphasized his support for deficit reduction but warned of cuts to key discretionary programs.

“I support the President’s goal of cutting the deficit in half by 2008. However, reducing the deficit almost solely on the back of domestic discretionary spending is very troubling and is an ill-conceived strategy that could have disastrous results for many important programs,” said Bond. “Discretionary spending should be reduced where appropriate. We should not, however, reduce these programs solely for sake of deficit reduction, especially when many of these programs are important to the health, safety and quality of life of our nation’s citizens.”

Bond heard testimony today from Joshua B. Bolten, Director of the Office of Management and Budget (OMB). While praising the Administration for their goal to cut the deficit in half, Bond also called them to task for only slashing domestic discretionary spending. Bond emphasized that reducing mandatory spending is key to achieving any true spending reform and deficit reduction.

Bond expressed his disapproval of proposals to eliminate the Housing and Urban Development (HUD) Community Development Block Grant (CDGB) program, along with 17 other programs, and replace them with a new block grant program within the Department of Commerce. CDBG programs fund critical housing and community development programs across the nation and are a critical component of HUD’s mission. CDBG consolidated plans helps to ensure that communities tie together CDBG, housing funds and other federal and state resources into a comprehensive approach to local housing and community development needs.

“The proposed elimination of CDBG as well as many of these other programs is a tragedy. Communities across the nation rely on these dollars to fund critical housing and community development programs,” said Bond. “Without this important program, HUD’s mission will be reduced to almost solely housing. As history tells us, successful community development relies on a comprehensive approach to housing and community development.”

Bond also stressed that plans to eliminate HOPE VI and well as rescind the HOPE VI funding from last fiscal year is disturbing. This program, which Bond spearheaded in 1990, has revolutionized the way obsolete public housing is reformed by allowing for the demolition of obsolete housing and the creation of mixed income private and public housing. HOPE VI has resulted in leveraging new private investment and the revitalization of entire communities. The Administration’s proposals for HOPE VI threaten this progress in community revitalization, said Bond.