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122868 1 (1983-11-04)

handle is hein.gao/gaobacxvw0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE RooM 85 PATRICK V. MeNAMARA 3DM.RAL BUILDING 477 MICie4.-.! AVENUE DETOwIT, MICMIoAN 48226 NOVEMBER 4, 1983 The Honorable James J. Blanchard Governor of Michigan State Capitol Lansing, Michigan 48909 122868 Dear Governor Blanchard: Subject: Michigan's Early Implementation of the Small Cities Community Development Block Grant Program Enclosed is our final report which describes Michigan's decisionmaking process in implementing the Small Cities Community Development Block Grant Program as authorized by the Omnibus Budget Reconciliation Act of 1981. It also provides a comparison of 1982 State-funded activities and populations targeted with those of the Department of Housing and Urban Development (HUD) in 1981 and provides local communities' and others' perceptions of the success of Michigan's program. Michigan was one of seven States we visited to provide the Congress with up-to-date infor- mation on States' progress in implementing their Small Cities Program. We previously sent you a copy of our overall report to the Congress, States Are Making Good Progress in Implementing the Small Cities Community Development Block Grant Program (GAO/RCED-83-186, Sept. 8, 1983), which incorporated the results of our work in seven States. The enclosed report details the results of our review in Michigan. Essentially, we found that HUD, in fiscal year 1981, and Michigan, in fiscal year 1982 (excluding HUD multiyear commit- ments), each spent about $21 million to fund Small Cities Program projects. However, Michigan's program reflected priorities that were different from HUD's. Although they both funded the same types of projects, HUD's program emphasized housing and public works projects. Michigan's program emphasized economic develop- ment. As a result, housing and public works projects under Michigan's program decreased, and economic development projects increased. Michigaa spent about 65 percent ($13.4 million) of its funds on economic development projects or public works projects that had economic development as a goal, and about 31 percent (about $6.4 million) on housing rehabilitation. In 1981, HUD spent about 38 percent ($8.2 million) of its Michigan (384807)

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