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RCAC's Network News January 2013
Volume XXXI, Number 1
In this issue
Housing
Housing challenges in rural communities persistent, On the rise
From National Low Income Housing Coalition
A new report from the Housing Assistance Council (HAC) examines the housing crisis in rural America. Despite enjoying generally lower housing costs, an increasing number of rural households struggle with poverty. Rural poverty rates exceed comparable national rates across all racial and ethnic groups. These poor households also struggle with housing affordability; the number of housing cost burdened households rose by six percentage points in rural America between 2000 and 2010.
The report, Taking Stock: Rural People, Poverty and Housing in the 21st Century, is available online here>>
Loan Fund
Harbor rebuilding after 2011 tsunami
Crescent City is rebuilding its harbor following the devastating 2011 tsunami. RCAC’s short-term $3.7 million gap loan and $8.1 million revolving line of credit keep the project afloat between federal and state disaster funding disbursements. Repairing the harbor, a major commercial fishing port for both Del Norte County and Northern California, is urgent in a county with 13.5 percent unemployment and a median household income of $20,133. Two hundred jobs depend directly on harbor facilities, and another 100 jobs indirectly. RCAC financing is critical to restoring the local fishing and tourism industries. For a video of the project, click here>>
Environmental
Clean Water Act turns 40: A harvest of clean water exemptions on the farm
By Codi Yeager-Kozacek, Circle of Blue
In 1972, when Congress enacted the Clean Water Act, it was still possible to see North Carolina farmers using mules to plow their tobacco, cotton, and corn fields. A big Wisconsin dairy farm fed 100 cows in one milking barn. A typical Nebraska cattle feedlot measured a few hundred acres. In Washington, D.C., lawmakers still viewed the American farm as a family-owned and -managed enterprise, and not much of a threat to the nation’s water. Read more>>
Eye on policy
January Congressional Update
Editors note: Bob Rapoza from Rapoza Associates in Washington D.C. will provide our subscribers with a congressional update in every Network News issue. This will be a great way for our readers to stay informed about what is happening in Washington.
By Bob Rapoza, Rapoza Associates
On Jan. 1, Congress passed legislation to forestall the tax consequences of the fiscal cliff, the most reported provisions of the American Taxpayer Relief Act (ATRA) were the increase in tax rates for high income earners. However, the legislation contained other provisions important to community development and other federal spending programs. ARTA extends the New Markets Tax Credit and Empowerment Zone tax breaks and postpones for two months, the sequester, or across the board spending cuts, required by the Budget Control Act.
There are many ways to look at this deal; it raised taxes on high income individuals and that yields about $600 billion in additional tax revenue. On the other hand, it made permanent Bush era tax rates for 98 percent of all taxpayers and that cost $4 trillion over 10 years.
During the last year Congress and the President have agreed to reduce the federal deficit by $10 billion over 10 years. This is the central recommendation of the Simpson-Bowles deficit reduction commission.
So far Congress and the White House have cut $1.6 trillion from the baseline – $1 trillion from a 10 year freeze on discretionary spending with the balance coming from the increase in the rate for high income taxpayers. On tap is an additional $1.2 trillion required by BCA. This $2.8 trillion compares to the $4 trillion price tag for the tax bill.
The Republicans in Congress have vowed to hit spending on the next cliff, which is the debt limit. The federal government technically hit the limit on Dec. 31, 2012. Treasury can move money for about 60 days. After that, Congress and the White House will be back at it. Around that time the FY 13 Continuing Resolution expires. Expect a busy winter.
Oddz N Ends
NLIHC Membership
Our friends at the National Low Income Housing Coalition (NLIHC) provide great services for their members such as discounted conference rates, free or discounted publications and many other great perks. NLIHC membership is the best way to stay informed about low income housing issues, keep in touch with advocates around the country and support NLIHC’s work.
NLIHC membership information is available at www.nlihc.org/membership. You also can email outreach@nlihc.org or call your outreach associate at 202-662-1530 to request membership materials to distribute at meetings and conferences.