The biggest story in the media this past year has been the federal deficit and the resulting debt ceiling controversy that bitterly divided the country, stalled the economy, and resulted in a humiliating credit downgrade of the United States. However, under the radar, local governments across United States are playing out some of the same dire fiscal scenarios. Just this past July, the city of Central Falls, Rhode Island, became the latest to declare bankruptcy, and other cities such as Joliet, Illinois, San Diego, California, Harrisburg, Pennsylvania, as well as Hamtramck and Detroit here in Michigan, are facing similar prospects. (1) And with the economy continuing as it is, local financial emergencies will likely become increasingly common in Michigan and around the country.

With an economic stimulus package in the works, Michigan is doing all it can to ensure funding is received and put into projects shortly thereafter.

Governor Granholm plans on submitting "shovel-ready" projects to the Obama administration by January 30th. These projects would be funded by the expected $2.6 billion state economic recovery package. "Shovel-ready" projects are those that will be started within 180 days of receiving the funding, create or preserve jobs, and will be completed within two years. These projects can include everything from road and bridge construction to improvements to public school buildings and libraries.

The Community Development Block Grant (CDBG) program was designed in 1974 to help revitalize cities and neighborhoods with the assistance of Federal funds.  The CDBG program was established under the U.S. Department of Housing and Urban Development, and today is one of their longest continually running programs.