Spending Proposal Released

Mayor Richard Riordan released a $160-million housing and community development spending plan Monday that emphasizes improving neighborhoods and creating more jobs.

The mayor’s proposal, which probably will receive a less than warm response from the City Council, reflects a $7-million drop in federal Community Development Block Grant funds, a particularly painful decline given the number of community groups seeking them.

The plan, which went to Council President John Ferraro on Monday, deals with issues that touched off a tug of war last year over competing needs and tight resources in the city.

The spending proposal reveals Riordan’s continued emphasis on helping communities for the long term, rather than just funding one-time programs.

Decisions about funding were particularly tough this year, mainly because the city received $110 million in community block grants despite requests totaling about $225 million, mayoral aides said.

“When the council starts to wrestle with this, they will see . . . the needs are great throughout the city,” Deputy Mayor Kelly Martin said.

But almost as soon as the spending plan was released, it got a chilly reception throughout City Hall. Councilman Mike Hernandez, in an initial review of the plan in his Community and Economic Development Committee on Monday afternoon, said he has several concerns about it, particularly the decrease in housing funds.

“Last year, the housing budget was reduced by $11 million,” Hernandez said. “This year, it’s going from $35 million to $30 million. I just thought I’d point that out. Last year, that was the major issue in the debate. . . . I expect there will be a lot of dialogue this month.”

The housing and community development proposal this year reflects the mayor’s continued desire to improve neighborhoods by “leveraging” funds--combining them with other funds in certain areas. That way, community block grants, for example, are “not the first dollars at the table,” Martin said. “We wanted to be really rigorous about requiring that we do this in the greater context of an area or a neighborhood.”

The budget asks for $1 million, for example, to refurbish the Exposition Park Community and Recreation Center. The reason? That part of the city is getting a boost from the opening of the new Science Center, as well as from other improvements proposed for the area.

“We’re asking: ‘What else is going on in these areas?’ ” Martin said. “We want to build on what’s already going on.”

Among the highlights of the spending plan, which must be approved by the City Council:

* $31 million for housing programs, with the mayor’s support going to programs that provide housing to the most of people at the lowest expense to the city.

* $10.4 million for housing programs for people with AIDS, an increase of about $300,000 over last year.

* $3.5 million for emergency shelter grants.

* Continued funding for the mayor’s “targeted neighborhood initiative” to revitalize 12 areas mainly through efforts of the communities themselves. New this year is the Van Nuys Civic Center project, which would receive $1 million.

* New funding of $1.5 million for the city’s after-school program, LA’s BEST, now operating at 24 elementary schools.

* $2 million for child care facilities, down from the $5 million allocated last year.

The spending plan includes several new and continued efforts at creating more jobs. A new $3-million Los Angeles Equity and Growth Fund would provide gap financing to leverage private sector investments and jobs in low- to moderate-income areas.

“Quality job creation is of paramount importance to us,” said Deputy Mayor Rocky Delgadillo.

One relatively small item--$138,391--included in the plan has some potentially far-reaching benefits. The mayor proposes to hire staff to help with the next federal census as an attempt to get a better count of residents. Most of these federal funds are allocated on a formula basis and census data is typically used, so a more accurate count would help the city receive more funds, aides say.