Federal tax dollars for Community Services Block Grants (CSBG), low-income initiatives in 42 agencies across 67 counties in Pennsylvania, will total more than $65 million this year.

At a joint hearing of the state House and Senate Local Government Committees on Tuesday, Department of Community and Economic Development (DCED) deputy secretary Jacqueline Parker told legislators that the CSBG program is "one of our greatest tools" for fighting poverty, because the tax revenue "provides funding for those activities which serve as a safety net; services and programs which are not found elsewhere, for those with the greatest need in our communities."

Jacqueline Parker, deputy secretary of the Pennsylvania Department of Community and Economic Development, addresses lawmakers on Tuesday.

The CSBG program, funded through the federal Department of Health and Human Services, finances the Community Action Association of Pennsylvania (CAAP), which coordinates agencies that run on municipal and county levels.  The CAAP organizations provide services ranging from family services to employment training, low-income housing, health services, and economic development.

To receive funding, each Community Action Agency must submit a "work plan" to the state Department of Community and Economic Development, which reviews the plans to ensure the federal money is being spent in accordance with local needs.  The DCED coordinates resources towards projects that demonstrate sustainability and deliver measurable outcomes, said Ms. Parker.

Allocation of CSBG money to the various Community Action organizations takes place according to a specific formula devised by the state DCED.  Seventy-five percent of the allocation is based on the number of persons living below 200 percent of the poverty line, said Ms. Parker, with the remaining portion determined by unemployment figures.

According to the U.S. Census Bureau, 12 percent of Pennsylvanians are living below the poverty level, ranking the state 29^th in the nation for those living in poverty, slightly better than the national average of 13.2 percent.

When asked by lawmakers about what limits there are on how money can be used in CSBG program, Ms. Parker said a wide range of projects are eligible to receive funding.

Members of the state House and Senate Local Government Committees during Tuesday's joint hearing on Community Service Block Grants.

"One of the only things that's not allowed are brick-and-mortar construction projects," she said, but the CSBG does finance housing rehabilitation and restoration projects, such as the work done by the Community Action Commission in the Allison Hill section of Harrisburg.

Of the 42 Community Action organizations in Pennsylvania, the Mayor's Office of Community Services in Philadelphia County takes the largest chunk of funding by far, with $13.5 million in federal taxpayer money for CSBG projects at that location.  No other organization in the state receives more than $4 million for CSBG.

In addition to the $24 million allocated to the state this year by the federal Department of Health and Human Services for CSBG projects, Pennsylvania received $42 million in stimulus money for further CSBG projects.  Overall, HHS distributed $985 million in CSBG funding to the states and territories as part of the stimulus bill.

A spokesman for DCED said the community agencies are responsible for planning for the expiration of those stimulus funds in September of this year, and that the funding will not be replicated.

Eric Boehm is a reporter for the Pennsylvania Independent.  He can be reached at Eric@PAIndependent.com