DCED cuts affect businesses

LEWISTOWN - In two budget proposals which represent the outside parameters of what the state budget may look like, both have cuts to a state organization that allocates grant money which impacts the lives of thousands of people.

The Pennsylvania Department of Community and Economic Development helps fund countless projects throughout the state which are done to enhance and expand businesses, revitalize neighborhoods, improve infrastructure and boost the overall quality of life.

Mifflin County Planning Director Bill Gomes said that DCED money has been used for a variety of public and private projects in the county, from sewer and water projects to neighborhood revitalization efforts.

Gomes said there were a lot of people concerned about Senate Bill 850, himself included.

Gomes was specifically concerned about available funding for the Land Use Plan and Technical Assistance Program, which is a mandated comprehensive plan that must be done by county governments every 10 years and the deadline for the next plan for Mifflin County, is fast approaching.

Traditionally said Gomes, the state helps fund around 50 percent of the total cost of the comprehensive plan, however under SB 850 there would be substantial cuts. Democratic Gov. Edward Rendell's plan would have essentially kept the funding level for the next fiscal year.

In addition, Gomes said that some shared services positions which serve both Juniata and Mifflin Counties are in danger of losing funding.

"There are a lot of things that could be affected ... I think it is an unfortunate time we're in right now," Gomes said.

Gomes said that in the past DCED money helped fund the Monument Square project, although most of that money was made available through federal funding with some state supplemental funds thrown in to help complete the restoration of the square.

The federal funding for DCED will get a boost from American Recovery and Reinvestment Act money, however those funds may not be available to certain projects spearheaded by the state agency.

Among projects which may not have access to federal dollars are the Elm Street and Main Street programs.

Since its inception a decade ago, Downtown Lewistown Inc., which runs the local Elm and Mains Street programs, has played an important role in community revitalization projects. It has partnered with local and state agencies, along with other non-profit groups to help achieve a better quality of life for the community by supporting efforts to revitalize the area.

"There would be longterm consequences to cuts in the Elm Street and Main Street programs," Gomes said. "They would not be able to function without that state funding."

Under SB 850, the previously allocated statewide funding of $18 million for Elm Street and Main Street programs would be completely eliminated. Rendell has proposed cutting the program back to $15 million. There are approximately 90 of these projects currently funded in Pennsylvania.

DCED Spokesman Steve Weitzman said the governor's budget cuts for the agency "reflect the current reality" of a stumbling economy.

"We are probably going to end up having to do with less than we would like," Weitzman said of the budget and the impact it will have on agency funded programs such as the Elm and Main Street programs.

The Main Street program in Lewistown focuses on a 10 square block area and has been responsible for 32 improvement projects to 27 commercial buildings.

Among the most recent projects that DLI has focused on is the Elm Street plan, which identifies local, state and federal funds, grants, and private and public partnerships that could be established to address needed improvements, programs and services within the Five Points East End Neighborhood.

Assuming Elm Street money is not cut, the grant from DCED would deliver $250,000 every year for the next four fiscal years to DLI to make improvements within the borough's Five Points East End neighborhood. Part of the money for the Elm Street project will go specifically to residents and property owners in the neighborhood for improvements on their buildings. Residents and property owners can apply for matching grants of up to $5,000. The guidelines for how the grant money can be used is laid out by the DCED and is targeted toward infrastructure issues with in the neighborhood, such as building facade improvements and street lighting.

DLI President Jon Zimmerman said that all of this could come to a crashing halt if funding dries up for the two programs.

Zimmerman acknowledges that times are tough and he accepts the fact that the two programs will most likely be cut in some way, shape or form, however he hopes the cuts are not too deep or completely eliminate funding.

"We are looking at a potential disaster ... if we are zeroed out, I don't know how long we could last," Zimmerman said.

"I have talked to our legislators and I have stressed the need to keep this going," he added.

Zimmerman said that these programs provide "a lot of bang for your buck" because they get "whole communities involved."

"I think we need this as a way to motivate all of us to make a difference ... this is really important to small towns in Pennsylvania" he added.

Zimmerman said these programs play an important role in the efforts to keep and attract businesses and young people to the area.

"The Elm and Main Street programs are vital in making Pennsylvania a better to place to live," he added.