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Politics & Government

Skokie Cuts Grant Funding to Social Agencies

Trustees adjust amounts after getting word of less money coming from federal source.

The Skokie Community Development Block Grant (CDBG) program became a victim of the spending-cut fever tearing through Washington, D.C., and as a result, some local agencies will receive less funding from the village than expected.

Some officials say this could foreshadow what lies ahead for the program as federal dollars are likely to become sparse.

Earlier this year, in annual CDBG funding to local agencies that support social programs available to residents. Village staff based that figure on money provided in previous years by the U.S. Department of Housing and Urban Development (HUD), which manages the grant program.

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At a July board meeting, trustees were informed the actual amount would be $471,268, about 14 percent lower than originally projected, as HUD was dispensing reduced contributions. 

Due to conflicting budget schedules between the village and the federal government, trustees are forced to use an estimate in allotting funds. When word came that there would be less money, it was not a huge surprise to village officials.

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“As time went on and we didn’t hear anything, we feared this
might be the outcome,” said Tom Thompson, economic development coordinator for Skokie.

“I wish the system would move faster," he added. "If we had known this. . ., we could have gone into the public hearings with a more conservative amount.”

Not surprisingly, the Skokie board was disappointed, as agencies were notified through e-mail and phone messages of the situation.

“This is the first time HUD has pulled the rug out from under from us,” said trustee Randall Roberts.

To compensate for the funding loss, the board agreed with the village staff's recommendation to essentially spread out the pain as much as possible among the individual agencies.

“They all understood this is the fairest way,” Thompson said.

Among those facing a cut is the Shore Community Services (SCS), which had expected to receive $12,000 for such building improvements as replacing windows and doors as well as upgrades to a bathroom. Now the agency, which provides services to people with developmental disabilities, will receive $11,300.

“You are always disappointed when there is a reduction but in this case it is not enough to significantly harm the project,” said Gerald Gulley, executive director for SCS. “We will be able to go ahead.”

Another agency taking a modest cut is PEER Services, which will now receive $8,845 instead of $10,000. That money is targeted to help pay for staff to provide outreach and substance abuse treatment for low-income adults in Skokie.

Kate Mahoney, PEER’s executive director, was not thrilled about the budget priorities of the federal government at the moment.

“It is really short-sighted for the federal government to cut funding from the CDBG program,” she said. "Those dollars are targeted to help low-income people. Some of the people who are struggling the most are being impacted by the federal cuts.”

But Mahoney also praised village trustees for doing what they could under the circumstances. “We value our partnership with the village and are pleased that they value the services we deliver to Skokie residents,” she said.

Since deep spending cuts are a major part of the , the CDBG initiative may not have the financial backing it once did in Washington. As a consequence, the village can expect to have less to give out in future years.

“Programs like this [CDBG] are getting a close look in Washington nowadays and from what we are reading, we expect further cuts next year,” Thompson said.  “We probably won’t know how severe they will be for six months or more.”

During the July meeting, the board approved an amended action plan that was sent to HUD for approval. Funds could be distributed by Skokie's Economic Development Division once the federal agency gives its OK.

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