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Talking Points: Community Action
and the Community Services Block Grant


By the National Community Action Foundation

Talking points on how the Community Services Block Grant (CSBG) network is equipped to be the vehicle for a more effective and efficient approach to moving people out of poverty.

Community Action is an excellent example of successful devolution. The Community Services Block Grant is the best example of how to shift responsibility from the federal government to states and local communities.

In 1981: The Community Action Program was administered by the Commuity Services Administration (CSA) here in Washington, D.C. In addition, there were 10 regional CSA field offices. Today: Community Action Agencies are funded by the state-administered Community Services Block Grant which was enacted in 1981 to replace CSA.

In 1981: Approximately, 1,050 federal employees made grants to 900 Community Action Agencies and an additional 150 community-based organizations 45 federal employees make grants to the fifty states and approximately 75 community-based organizations. Today: 45 federal employees make grants to the fifty states and approximately 75 community-based organizations.

In 1981: The community action network operated in approximately 90% of the counties. Today: Under the direction of the nation's governors, 98% of the counties receive the benefits of the Community Services Block Grant.

In 1981: Approximately 900 Community Action Agencies were funded directly by CSA. Today: Under the block grant system the governors have increased the number of local agencies today to 1144.

  • The Community Services Block Grant is a model federal-state partnership. The Community Services Block Grant funds local Community Action Agencies that operate under the control of an elected Board representing the local business community, local elected officials and the low-income community. These agencies operate under a state led planning and administrative process for all block grant recipients. In addition, States have shown a willingness to add their resources to the small federal Community Services Block Grant appropriation. In 1993, (last figures available from HHS) states reported allocating an additional $400 million in grants and contracts to Community Action Agencies. Local governments reported an additional $230 million in funds turned over to grantees of the Community Services Block Grant.

  • Community Action Agencies are the alternatives to the failed bureaucratic response to poverty and its causes. Community Action Agencies mobilize resources, both financial and human, from every sector and combine them in the mix needed by the community or individual client. More than $1 billion deployed through this network in private as well as state and local government funding is coordinated with federal programs in an integrated approach to self-sufficiency. The flexibility of CSBG-funded activities enables this leveraging and coordinating; it also allows agencies to specify and monitor the client's obligations and progress. This management design makes the best use of every expenditure by avoiding one-size-fits-all programming and by steering programs to goals that attract local and private investment.

  • CAAs utilize community volunteers extensively. In 1994 (the last year for which figures are available), Community Action Agencies reported over 25 million volunteer hours. This is the equivalent of 12,750 full time employees.

  • CAAs leverage a large amount of non-federal funds in a unique approach to moving people out of poverty. Nearly $1 billion — or 21 percent — of Community Action Agency funding is from non-federal sources.

  • One quarter of the Community Services Block Grant funds are spent on emergency services including assistance to the homeless. Community Action Agencies, funded by the Community Services Block Grant, are there for people in crisis. CSBG funding allows for flexibility to respond to a wide variety of urgent problems.

  • CAAs offer support to those missed by traditional government programs. CAAs help all sectors of the low-income community. Over 29% of clients are working or recently unemployed. Another 30% are retirees or disabled. Just 27% are receiving AFDC, many of these are enrollees in training programs and/or parents of the Head Start pupils. The shared characteristics of CAA clients are low education (59% have not completed high school), very low-income (47% are below 75% of poverty level), and a need and desire to change. There is little stigma to working with this locally-run agency.

  • CAAs have demonstrated exceptional competence. Community action is set up to handle large and diverse programs and to be accountable to the governors. Over $5 billion in aid and services a year flow through this system.

  • CAAs are uniquely positioned to mitigate the impact of budget cuts on those populations most likely to be seriously affected. Achieving a balanced budget will inevitably result in program cuts that will affect the core clientele of CAAs. CAAs' ability to raise funds, coordinate volunteers and generate jobs will provide valuable incremental aid for those vulnerable populations.

    1. People at the higher end of the poverty scale can be expected to be on their own as programs shrink. They will face mounting obstacles to meeting basic household needs. The vast majority of CAA clients are working or retired. CAA emergency services and case management services (one-third of all services) are designed to keep the crises faced by such families from becoming permanent obstacles to self sufficiency.

    2. Among those who fail to make the transition from dependence to work. CAAs are known for taking the hardest cases. The unique qualities of CAA core funding and management allow them to taior support and intervention in multiple aspects of a client's life and to put conditions on giving continued assistance. This often succeeds where regulation-bound programs cannot.

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    Last updated on June 30, 2005||