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The Domino Effect: De-Funding of CDBG 3/27/17 Press Conference

3/27/17 Press Conference

PERTH AMBOY – Mayor Wilda Diaz thanked Senator Robert Menendez for coming to Perth Amboy to let the citizens know that he intends to do everything possible to keep the CDBG (Community Development Block Grant) funds intact.

Diaz stated, “I am thankful that Senator Menendez responds to everything that Washington is doing, whether it be immigration reform or budget cuts. There are a lot of organizations that are here today who are recipients of CDBG funds. The construction of this building (the Brighton Avenue Community Center) was partially funded by CDBG funds. Some of the funds are used for job training for our youth who give back to the community. Thank you, Senator Menendez who knows how crucial funding is to our community.”

Senator Robert Menendez

Senator Menendez came up to speak. He thanked the Mayor and Council for being here and praised Mayor Diaz by telling her: “Your efforts are inspiring. Job training is important, especially for people of color. Seed money for businesses is important. The budget presented in Washington is very skinny and slight on details. The President forgoes what he said about helping the low income. He wants to eliminate the CDBG funds, not just reduce them. It’s an insult on our communities and we are not going to stand for it. Local programs are needed to spur the economy and it’s important  for our infrastructure. For every dollar of CDBG funds, it brings in $4.00 of private funding. Communities in the State will be going from $81.3 million in funds to zero. Job training, helping juvenile defendants, health care programs, infrastructure, rehabilitating dilapidated homes and Meals on Wheels which helps to keep people independent all rely on part of CDBG funds. We are all here collectively for the collective values of all of America. That’s what the national budget should be. We are here in Perth Amboy to dramatize how these cuts will affect all communities who depend on CDBG funds. I’m on the Senate Finance Budget Committee. Trump’s budget proposal of a $54 billion increase in defense spending is not needed. We spend more on defense than the 7 biggest other countries combined: (China, Saudi Arabia, Russia, United Kingdom, India, France & Japan) with a budget of $596 billion.”

The audience members then asked a few questions. Mayor Diaz responded to one of them.  “The City received $610,000 in CDBG funds and in 2014 the City was recognized (by the Housing and Development Department) for using these funds very wisely. Some After School programs use CDBG funds. Losing this funding could be the difference between someone getting an education to dropping out, or being employed to being unemployed, or from home ownership to homelessness. Financial Institution funds are  needed to help those from going into foreclosure. It encourages non-profits to contribute to help those who need to get housing.”

The Mayor then invited Superintendent of Recreation Ken Ortiz to speak. Ortiz emphasized the needs of CDBG funds. “It provides services for youth employment which trains them for needed skills and job readiness. Many older adults are taking jobs usually held by our youth. The funds have provided youth programs for over 20,000. First time home buyers are provided with money through CDBG funds along with rehab programs that provide safe housing. Other programs which have been partially funded include Concerts by the Bay, Senior services and some programs provided by PRAHD. Funding was used for tenant based home assistant programs. The Jewish Renaissance uses some of the CDBG funds to assist in providing low rental units. $450,000 of CDBG funds was used in improving our Tennis Courts, building a community garden and on this building. We are a City that has a lot of young families with many children. Because of this, recreation and after school programs are very important. A lot of these young families don’t have the extra income for this. When you work one-on-one with our youth, you know how much you are impacting them. If the CDBG funds are eliminated over 150 youth will be eliminated from the after school programs at the YMCA (according to YMCA President and CEO Steve Jobin). We are organizing with the US Conference of Mayors. I think the President would be more open after the defeat of the healthcare program.”

Mayor Diaz made closing statements. “We would have to eliminate programs which will affect our most vulnerable. CDBG funds are not handouts. I’m hoping the President will learn his lesson.”

After Diaz spoke, Senator Menendez spoke again and said that many cities are facing the same problems (as Perth Amboy). “Cutting services will have an economic effect. Ratables will go down. Private sectors need to raise their voices to say that budget cuts don’t make sense. It will hurt small businesses who need the funding and capital provided by these CDBG funds.”

Superintendent of Recreation Ken Ortiz, Senator Bob Menendez and Mayor Wilda Diaz field questions *Photos by Katherine Massopust

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