Federal funds for Phoenix lacking
Monica Alonzo-Dunsmoor
The Arizona Republic
Aug. 27, 2006 12:00 AM
When the federal government hands out billions of dollars to fund programs that assist the country's neediest residents, Phoenix gets the short end of the stick.
Although Phoenix is the fifth-largest and one of the fastest-growing cities in the nation, it continues to lag millions of dollars behind smaller communities in federal funding that primarily helps the poorest families.
Much of that money is used for revitalizing blighted neighborhoods, providing a pre-kindergarten education to children of low-income families, helping destitute residents pay their utility bills or rent, and keeping up the city's public-housing apartment complexes.
Phoenix is far behind in serving the needs of its residents because federal formulas often use dated population counts and tend to favor older cities.
In Phoenix, that means more than 40,000 families are waiting for a voucher that would help them pay rent at a nicer, safer place. Or they're hoping for a spot in an affordable city-owned apartment. Instead, those families live in slums or cram into homes with friends or relatives.
While no city gets enough money, the funding inequity means that communities with smaller populations, such as Boston, Atlanta, Detroit and Philadelphia, can help out thousands more residents than Phoenix can.
Although getting a fair share of such federal funding has always been a priority for Phoenix, other issues, such as homeland security, often take center stage.
But some elected officials are now pushing harder than ever for local residents to get their fair share.
"The people of our community deserve the same level of services as people in other parts of the country," Councilman Greg Stanton said.
Newer cities hurt
Phoenix finds itself somewhere in the back of the funding line because by the time it started experiencing a sharp increase in residents and social-service needs, the formulas and political relationships that determined how money was divided had long been formed.
Modern-day programs grew during President Lyndon Johnson's administration in the mid-1960s with the first "block grants" awarded to states. The first grants focused on health, but funding increased and grants expanded into housing, education and job training, and other welfare programs.
Calculations used to dole out federal dollars today are based, in part, on dated population counts and build on what cities have received in the past, both favorable factors for the nation's oldest cities.
Phoenix remains behind because there is little help from the state's delegation in Washington, D.C., about the disparity between the city and smaller communities across the country, city leaders say.
"In order for this problem to be fixed, we're going to need the support of our representatives in Washington," Stanton said. "We're asking for their help."
Neither Sen. John McCain nor Sen. Jon Kyl returned phone calls seeking comment.
Both lawmakers are well-known on Capitol Hill for avoiding what they call "pork," or setting aside money in the federal budget for a specific project. Such funding could give Phoenix a boost and provide at least a temporary reprieve.
Phoenix did receive a one-time bump in funding for energy assistance this year and will be able to help twice as many households than it normally can. But since that money was borrowed from future dollars, it's unclear how much money will be available in the coming years.
The social-service needs in Phoenix far outweigh the assistance the city can provide with its comparatively small pot of federal funding.
At the Sunnyslope Family Services Center, residents used to show up at midnight and form lines that stretched out to the street wanting help to pay their rent or utility bill. For safety reasons, the city no longer allows them to do that, so now the phones ring off the hook with calls from desperate families.
"I've had to turn people away many times," said Tammy Fields, a caseworker at the center. "There is a lot of anger. Some cry. I let them vent . . . and try to find other solutions for them, but there aren't nearly enough."
Four of the programs that help low-income families are Community Development Block Grants, Head Start, public housing and the Low Income Home Energy Assistance Program. The disparity in funding for those programs in Phoenix compared with smaller cities is striking.
Consider Phoenix's share of federal housing dollars, which includes public-housing units and vouchers that help families pay their rent.
• Phoenix, which recently overtook Philadelphia in population to become the fifth-largest city, has a combined 7,562 rent vouchers and public-housing apartment units. Philadelphia has nearly five times more, with 34,471. Even much-smaller East Coast cities, such as Baltimore, Boston and Atlanta, easily surpass Phoenix. Baltimore has 29,263 rent-assistance vouchers and public-housing units.
"We're not even taking (housing) applications anymore because we've got such a backlog," Phoenix Councilman Mike Johnson said. "We're talking about basic necessities."
A home cooling system is one of those necessities in Phoenix, but the cold-weather states have the clear advantage when it comes to energy assistance.
• Minnesota rakes in about $110 per person who qualifies for help. North Dakota pockets about $125 for each person. By comparison, Arizona gets $6.77 per person. That tiny portion hampers the efforts of Valley cities, including Phoenix, to help eligible families pay their energy bills, especially during the stifling summers. In Phoenix, there are 203,800 households that need help but only enough money to help 6,768, of them.
The same inequity exists in Head Start, an early-education program that helps children in low-income homes better prepare for school.
• Phoenix is able to serve only 6,360 children, or 30 percent of those who qualify. In Boston, there are enough Head Start slots to accommodate more than half of the children who qualify. San Antonio can serve nearly 50 percent.
Phoenix also only sees a fraction of what other cities receive in Community Development Block Grants, grants designed to help revitalize depressed neighborhoods.
• Phoenix snags about $17 million for those grants, but there are a dozen smaller cities that pull in more money. Philadelphia gets more than three times what Phoenix gets. Detroit, nearly twice as much.
New tactics
The political battle over the funding for social-service programs is being waged nationally on two fronts. One is to keep lawmakers from making further cuts to the existing pot of federal grant money and the other is a push to fairly divvy up the funds that are available.
Phoenix is now focusing on changing the formulas that drive how the money is split.
"We need Congress and the administration to take a serious look at this," said Karen Peters, the Phoenix director of Intergovernmental Programs, which lobbies on behalf of the city. "This can be fixed. This is something that needs permanent reform. In the meantime, we're here left struggling to do more with less each and every year."
Phoenix's elected officials are visiting with decision-makers in Washington, D.C., weighing in with testimony during congressional hearings on funding for social-service grants.
They also are working with national groups, such as the National Community Action Foundation, to stem overall federal reductions. Their efforts have contributed to keeping the Bush administration from eliminating some of the federal grants.
Phoenix officials are confident that funding will improve, especially as the political power base in Northeast and East Coast cities shifts west with the population.
"I do think it will change," Councilman Johnson said. "The tide is turning."
While there is a long way to go, city leaders are also hopeful about the progress that has been made.
The U.S. Government Accountability Office is studying the formulas that drive how Community Development Block Grants are disbursed. Plans for formula reform are due out at the end of the year.
"It's time," Stanton said. "We can't just let the issue sit there. We have to raise the profile, . . . make sure people are aware of it and say we need help to resolve this."
Reach the reporter at monica.alonzo-dunsmoor@arizonarepublic.com
or (602) 444-2478.
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