Communities lose grant status, plan to challenge survey results

Thirteen Washington County communities have lost their ability to access two critical types of Community Development Block Grant (CDBG) funding because a 2014 U.S. Census Bureau American Community Survey shows that they no longer meet low and moderate income (LMI) requirements. It comes as a surprise to many in a county known for its high rate of poverty. The City of Eastport just barely missed the threshold level of 51% by 0.23% points at 50.88%. With the results in, the 13 communities have lost their LMI status and the ability to apply for CDBG funds for public facilities, such as fire stations, and public infrastructure, such as wastewater treatment plants and drinking water systems.
The 13 communities that lost their LMI status are: Addison, Calais, Columbia, Deblois, Eastport, Grand Lake Stream, Jonesport, Lubec, Milbridge, Pembroke, Roque Bluffs, Steuben and Topsfield. Five communities that had not been designated LMI in the past C Robbinston, Meddybemps, Northfield, Waite and Whitneyville -- learned that they now fall into that category.
Between 1982 and 2013, communities in Washington County received a total of over $50 million in Department of Housing and Urban Development (HUD) CDBG funds through the state's Department of Economic and Community Development. The cities of Eastport and Calais were the two highest recipients at almost $10 million each, with such municipalities as Lubec, Machias and Milbridge receiving between $3 and $4 million during the time period. Perry has received $120,000 and Pembroke over $800,000. The county government received $2.5 million. Without such funds, communities would be hard-pressed to implement critical public and facilities projects that improve quality of life through replacement and improvements to drinking water systems, wastewater plants and public safety infrastructure.
Washington County Council of Governments Executive Director Judy East is working with those communities that have asked for assistance to implement door‑to‑door surveys to reassess income levels. Eastport is the first community to implement such a survey, which is being conducted by the end of the year, because of the possibility of applying for a $1 million grant to help with the city's breakwater project.
The question on the minds of many, East notes, is whether or not the U.S. Census Bureau American Community Survey results accurately reflect income levels of year‑round residents. In a fact sheet prepared for survey recipients, she states, "The 2010 census did not ask any questions about household income. Instead, since 2005 the American Community Survey (ACS) asks income questions." For populations under 20,000, which applies to all communities within Washington County, the ACS combines five survey years to obtain results. "ACS estimates are less precise than the comparable estimates from Census 2000 and prior decennial census years." She continues by noting that HUD "issued LMI figures for all rural areas in the fall of 2014 based on the ACS averages of two full five‑year sampling cycles C since 2005."
HUD allows communities within a few percentage points of the LMI threshold to conduct surveys to prove or disprove the American Community Survey figures. If it does confirm that a community is no longer LMI, then the community needs to understand how its funding streams will change. If it does not, then communities have proved that they are still LMI and eligible for the two types of CDBG funds that had been lost to them.
East stresses that there are other types of CDBG funds that communities can still apply for as long as LMI requirements are met for specific target areas, such as job creation for a percentage of people with previous earnings that fell in the LMI wage range.

Communities to challenge survey
Every penny of eligibility for CDBG funding is important, says East, because in the last 10 years the funding source has decreased by about 50%. "Because of shrinkage, priorities have changed," she says.
Eastport is scrambling to get the survey done in time for a mid‑January deadline, with notices mailed out to all homeowners about the pending survey and its legitimacy in an age of scams. Information has been posted in The Quoddy Tides, including a sample of the survey, on social media and on the Shead radio station.
Eastport City Manager Elaine Abbott hopes that residents will understand how serious the issue is and will support the survey efforts. She says, "The importance of CDBG grants is incalculable. Small towns and cities rely heavily on CDBG grants for major improvements that we, as taxpayers, wouldn't be able to afford on our own. Eastport has benefitted from millions of dollars in CDBG grants for projects to improve our downtown, to upgrade our wastewater system, and upgrades to the fire station, to name only a few. Loss of CDBG funding will, without a doubt, carry a negative future impact on Eastport and other small communities."
Lubec Town Administrator John Sutherland is anticipating that the town's selectmen will agree that a survey needs to be done in his community. "Otherwise we're stuck with it [the ACS status] for five years." The town was at 49.82% of the 51% threshold, whereas the 2000 census had the town at 61.7%. He asks rhetorically, "Take a walk around Lubec and see where the prosperity is." He lists a number of infrastructure projects that the town is working on: a public works garage, paving projects for roads, and sidewalks. They all take funding that CDBG could help with enormously, he says.
East is working with Sunrise County Economic Council Assistant Executive Director Jennifer Peters, who will be training the 10 or so volunteers for the Eastport survey. During either the last week of December or the first week of January the volunteer troops will go to 300 out of the 600 year‑round households in Eastport, knock on doors and hand over a short survey to be filled out. It's completely anonymous, with only four items: household income within a range depending on number of people in the household; race; whether any household members are elderly or severely disabled; and if the respondent is a female head of household. No one will be asked for names or addresses. A blank and sealable envelope will be provided, which will be returned to the volunteer.
East notes that the income level range that the householder should check should be close to the amount that is used on tax forms for annual adjusted gross income. Usually this is line 37 down at the bottom of the first page of form 1040. Many who earn their incomes from self‑employment or small businesses such as fishing will remember that line 37 allows for business expense deductions to reduce income levels.
In 2000, Eastport's census was at 55.3% of the 51% threshold. In 2014, its drop of just over five points is less than Lubec's astonishing drop of 11 points since 2000. Sutherland questions the American Community Survey's accuracy. "My understanding is that the survey had a small sample. Any time you use a small sample it can be skewed." He adds, "It's painting a picture that isn't accurate. And it's definitely something I think we should be tackling sooner rather than later." East says that the community‑led door‑to‑door survey initiatives will determine whether a community truly is LMI or has moved beyond that marker. Abbott certainly hopes that re‑surveying will prove that Eastport is still an LMI community. She says, "In times of high-pressure situations such as the loss of our breakwater, CDBG asks, 'What can we do to help?' and then works tirelessly to get the job done."
Those interested in volunteering for the Eastport survey should contact Jennifer Peters at 255‑0983. For more information about the ACS survey and LMI status, contact Judy East at 454‑0465.