MICHIGAN: 3 area homeless prevention programs
may be cut
Federal proposal threatens $4M for local centers
By Tom Lambert
Lansing State Journal
Originally published March 28, 2005
Three homeless prevention centers that help nearly 8,000 low-income families in mid-Michigan buy food and pay rent and utility bills could be forced to close this fall.
That's because the $4 million that pays for the programs at the centers is at risk under President Bush's 2006 budget proposal.
Sixteen staff members at the centers in Mason, St. Johns and Owosso also would lose their jobs if Bush's plan is adopted, said Ivan Love, executive director of Capital Area Community Services Inc., which runs the programs.
Axing the programs could put people on the streets, Love said.
"That's what we are trying to prevent," Love said. "If we can keep them in their homes, that's half the battle."
The agency gets $1 million through the federal Community Services Block Grant Program. That money could be eliminated or drastically cut under Bush's proposal to consolidate a host of programs.
The loss of the $1 million could cause the agency to lose up to an additional $3 million in state and local funds, Love said. The local and state funds are contingent on the federal money.
In his 2006 budget, Bush proposes moving the Community Services Block Grant from the Health and Human Services Department to the Department of Commerce.
Under the plan, a number of block grants would be lumped with 17 other federal programs, which collectively could see a 33 percent cut, officials say.
The plan also puts at risk $2.4 million the city of Lansing gets every year to help low-income residents make housing repairs and fund other programs. That money comes from the Community Development Block Grant, administered by Housing and Urban Development, or HUD.
David Sampson, the Commerce Department's assistant secretary for economic development, said the goal is to reduce duplication and increase accountability for programs that all essentially serve the same low-income communities.
If the proposal is approved by the House and Senate, the change would go into effect Oct. 1.
Sally Murchinson of Lansing is one of the 16,209 people in mid-Michigan who have relied on the homeless prevention programs.
In November, she found her home without hot water and had to stay with her daughters for a few months until she got a new water heater. Capital Area Community Services paid for the $500 water heater.
"I love my daughters, but there is nothing like being in your own home," said Murchinson, 63, who moved back into her home earlier this month.
Other Capital Area Community Services programs that could be eliminated include those that help low-income residents budget their money, complete income tax returns and help senior citizens find jobs.
Peggy Brown, family support assistance worker for Capital Area Community Services, said the federal government should consider the tight fiscal constraints of places such as mid-Michigan.
"More and more people are coming to rely on our services," she said.
"They need our programs, but they may not be available to them much longer, and that's a real shame."
Programs at risk
The following homeless prevention centers, which help low-income residents buy food and pay rent and utility bills, might have to close if President Bush's proposal to consolidate the Community Services Block Grant Program is approved.
• Clinton County: 1001 S. Oakland St., St. Johns
• Ingham County: 407 N. Cedar St., Mason
• Shiawassee County: 1350 E. Main St., Owosso.
By the numbers
7,879: Low-income families in Clinton, Eaton, Ingham and Shiawassee counties who use programs provided by Capital Area Community Services Inc.
45 percent of them are working poor.
33 percent are on fixed incomes.
10 percent are unemployed and without any income.
9 percent are on public assistance.
Source: Capital Area Community Services Inc.
The Associated Press contributed to this report.
Contact Tom Lambert at 377-1063 or tlambert@lsj.com.