(Los Angeles, CA)— Representative Diane E. Watson (CA-33rd) and Los Angeles Mayor James Hahn today held a press conference at City Hall to criticize President Bush’s 2006 budget that cuts Community Development Block Grants (CDBGs) by $700 million.

“For thirty years, the CDBG program has empowered local groups to revitalize their communities and create economic opportunity,” remarked Congresswoman Watson. “CDBG is not a government handout – rather, it is one of the most effective tools cities and neighborhoods have to fight poverty and create jobs and wealth. While the President’s goal of balancing the budget is laudable, it is short-sighted to do it by cutting a program as successful as CDBG.”

The President’s 2006 budget, submitted to Congress yesterday, will cut CDBG programs by 16%, which could result in as much as fifteen million dollars less for Los Angeles. 

“To put this number in context,” said Congresswoman Watson, “the total project cost of the LA County Technology Business Center, built with CDBG funds, was only five and one half millions dollars.  The Business Center is currently one of California’s largest high-tech business innovators.  In my congressional district, the Marlton Square project is in the process of reinvigorating a decades-old shopping center with badly needed new housing and retail development.  Cuts in CDBG funds will adversely impact this important redevelopment program and result in fewer job and business opportunities for the residents of Los Angeles.”
 
Congresswoman Watson remarked that upon returning to Washington she will ask her colleagues from both sides of the aisle to join her in writing to the President to convince him to restore full funding for Community Development Block Grants.