No Government Shutdown Isn’t Good Enough

October 13, 2016

As I’m sure you know, the federal government doesn’t have a budget for this fiscal year. Congress narrowly averted a shutdown with a continuing resolution. So programs that depend on annual spending choices can keep operating at their current funding levels until December 10.

Then what? Well, the government almost surely won’t have a new budget to replace the CR. Nothing unusual about this. Congress has relied on at least one CR in all but four budget seasons since 1977.

Speaker Paul Ryan said the House would return to “regular order” under his leadership, i.e., pass each of the dozen appropriations bills that make up the budget. So did Senate Majority Leader Mitch McConnell.

But they’re not even close. The Senate has passed only three appropriations bills and the House five. They haven’t negotiated final versions of any, though one got folded into the CR.

So we’re likely to have another — either that or a package containing some newly-passed appropriations bills and an extension of current funding levels for the rest.

One way or the other we’re unlikely to have a government shutdown. So why should we care whether we’ve got a bona fide budget or not?

We shouldn’t, I think, care much if Congress decides to punt again — and only once more. But a longer-term CR would leave critical programs under-funded, including some especially important for low-income people.

Consider affordable housing. The Housing Choice voucher program needs more funding annually merely to sustain the number of vouchers in current use because, as you’ve probably noticed, rents rise — and with them, the amount the vouchers must usually cover.

The U.S. Department of Housing and Urban Development needs roughly $765 million more for that, according to the President’s proposed budget. A somewhat similar program administered by the Agriculture Department needs an additional 18 million.

And steady state isn’t good enough. Fewer than one in four low-income households that qualify for housing assistance have it. Three quarters of those who don’t pay at least half their income for rent.

And, of course, some can’t. We don’t know yet how many people nationwide the latest homeless counts found. But we do know that last year’s identified about 564,700, including nearly 127,790 children who were with parents or other caregivers.

Yet the current budget is still shy about 59,000 vouchers left unfunded by the across-the-board cuts the Budget Control Act required and choices Congress made to comply with its (modified) spending caps.

These are indefinite-term vouchers. HUD’s homeless assistance grants fund, among other things, the time-limited vouchers local agencies provide through their rapid re-housing programs.

They also help fund permanent supportive housing for chronically homeless people — not necessarily permanent, but subsidized for as long as occupants need it.

As with other types of housing, per-unit costs steadily rise. Just renewing current contracts would cost roughly $2 billion, HUD estimates.

This is barely less than the total current funding level for homeless assistance grants, which also help cover costs of shelters, diverse services and short-shot aid to prevent homelessness. Costs for these rise too.

A long-term CR would obviously tighten the squeeze — and so put progress toward ending homelessness even further behind what’s needed to achieve the goals that federal agencies collectively set in 2010.  Likewise the goals that local communities have embraced, including the District of Columbia.

All such efforts require ramped-up investments in housing that poor and near-poor people can afford, as well as the subsidies and services funded in part through HUD’s homeless assistance grants.

The federal partner would need to do considerably more than the majorities in Congress seem inclined to. Both the House and Senate have, however, passed bills that would provide somewhat more funding for both regular housing vouchers and homeless assistance.

But not identical bills. So even slight increases might not reach state and local agencies — and if not them, then not the people who are homeless or paying so much for rent that they’re short on money for food, medical care, shoes for the kids, etc.

These slices of the HUD budget are, of course, only examples of what prolonged level funding would mean.

CLASP cites several others. These would further limit job prospects for youth and older adults who lack the education and skills our labor market demands — and for affordable, high-quality child care.

Experts in other areas could undoubtedly name a host of others that a long-term CR would significantly shortchange. Not only low-income people would suffer, but they’d get hit from more directions.

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DC Moves Forward on Affordable Housing. House Republicans Pull Back.

May 18, 2015

Here in the District of Columbia, we’re hopeful about prospects for more affordable housing, especially for our very lowest-income neighbors — both those homeless now and those at high risk because they’re paying at least half their income for rent.

The Mayor’s proposed budget largely accounts for these hopes. Meanwhile, our Republican neighbors on Capitol Hill have decided to put a damper on our progress — and the progress of communities nationwide.

National Housing Trust Fund Defunded

The Mayor’s proposed budget would dedicate $100 million to the Housing Production Trust Fund — our largest source of public financial support for projects to build and renovate affordable housing.

This would double the amount the Fund has for the current fiscal year and probably expand the District’s affordable housing stock by 1,000 or more units, the DC Fiscal Policy Institute reports.

The District could have counted on a share of the revenues that at long last were to flow to the National Housing Trust Fund. But the House subcommittee responsible for the U.S. Department of Housing and Urban Development’s appropriations raided those revenues.

A bit of budgetary legerdemain here. Basically, the subcommittee cut funds for the HOME program, which provides grants to state and local governments for a wide variety of activities related to housing and home ownership.

But it then partially offset the cut by allocating to HOME all the funds that were supposed to go to the Trust Fund. And for reasons not altogether clear to me, it tucked into its bill a provision prohibiting any other funding for the NHTF.

The defunding — and the under-funding I’ll discuss below — were approved by the full Appropriations Committee last week, on a straight party-line vote.

So much then, so far as the majority’s concerned, for funds intensively targeted to rental housing for extremely low-income households, as only 40% of the District’s Trust Fund resources must be.

Federally-Funded Housing Vouchers at Risk

The Mayor’s proposed budget would expand the Local Rent Supplement Program — the District’s locally-funded version of the federal Housing Choice (formerly Section 8) voucher program.

LRSP would get an additional $6.1 million — $3.7 million for tenant-based vouchers, which go directly to extremely low-income households so that they can afford to rent at market rates, and $2.4 million for project/sponsor-based vouchers, which help cover the operating costs of housing that’s affordable for these households.

But it’s doubtful the DC Housing Authority, which administers both LRSP and Housing Choice, will have more vouchers to award.

The House HUD appropriation reduces the funding local housing authorities will have to renew Housing Choice vouchers. They’d be shy a total of $183 million of what HUD estimates they’d need to sustain all vouchers now in use.

Here in the District, about 280 fewer families would receive Housing Choice vouchers, according to a White House fact sheet. If accurate, this means that DCHA would have to retire even more vouchers than it did after the across-the-board cuts known as sequestration.

DCHA and other housing authorities may face similar problems with the contracts they’ve awarded to affordable housing projects. The President’s proposed budget included HUD’s best estimate of the cost of renewing all such contracts. The House HUD appropriations bill falls $106 million short of that.

Further Losses in Habitable Public Housing

A nationwide study conducted for HUD five years ago found a $26 billion shortfall in the funds needed to repair and renovate public housing units. DCHA alone figured it would need $1.3 billion to preserve and redevelop all the units it manages.

That was about a year ago, not long before Congress level-funded the public housing capital fund, leaving it with $625 million less than it had when the HUD study produced its shortfall estimate. And level-funding doesn’t translate into the same level and quality of goods and services, as all of us with personal and household expenses know.

The House Appropriations Committee has nevertheless cut funding for the capital fund by $194 million. Hard to see how this wouldn’t further increase the number of public housing units left vacant — or demolished — because they’re egregiously substandard or so damaged by fire, flooding and the like that repair costs exceed available resources.

Squeeze on Homeless Services

The Mayor’s proposed budget includes a range of investments to move the District forward toward the goal of making homelessness in the District “rare, brief, and non-recurring,” as the new Interagency Council on Homelessness strategic plan envisions.

Her budget also includes a more realistic estimate of the costs of providing emergency shelter for families during the winter months — a refreshing change from the past few years, when the Gray administration minimized family shelter needs and then had to shift funds from other human services programs to cover the costs of motel rooms.

As in the past, local funds would supply most of the homeless services budget. But the District also expects a small increase in homeless assistance funding from HUD.

The House Appropriations Committee would, in fact, provide a small, increase for the grants — $50 million more than approved for this fiscal year. For all intents and purposes, however, the grants would, at best, preserve the status quo.

No additional money to help communities achieve the goals set by the U.S. Interagency Council on Homelessness — a source for the District’s own ICH goals.

And lest I haven’t rained on this parade enough, the Mayor’s plan to expand permanent supportive housing includes an as-yet unreported number of Housing Choice vouchers supplied by DCHA. So we could be looking here at a robbing Peter to pay Paul.

Not the District’s fault. It’s what the Republican Congressional majority chose when it decided not to lift the caps imposed by the 2011 Budget Control Act, but instead to boost defense spending through another bit of budgetary legerdemain.

None of this is yet a cause for hand-wringing, though teeth-gnashing seems appropriate. A bill passed by one appropriations committee is a long way from becoming an agency’s budget.

But we’re a long, long way from a HUD budget that would meaningfully support the District’s commitments to more affordable housing and a lot less homelessness.