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NEW ROCHELLE, N.Y. -- Second-year Boys and Girls Club of New Rochelle Counselor-In-Training Julianna DeMicco said she feels the club's Passport to Manhood, mentoring program should receive all of the funding it deserves, and no less, which may or may not happen depending on the outcome of Tuesdays debt crisis deadline. DeMicco said she finds the possibility "ridiculous."
It needs to be a resource to people, DeMicco said, noting its necessity to support the city it assists.
DeMicco also mentioned the program serves as a guide for members who might not be fortunate to have the proper guidance to learn and grow. Its an important part of the community, she said.
As Democrats and Republicans continue to engage in a stand-off as the Aug. 2 deadline approaches to raise the debt ceiling, local officials say if an agreement isnt reached by then, it could mean some dire consequences for local governments and their constituents.
The City of New Rochelle would also take a hit through the funding it receives from the Community Development Block Grant and Housing Choice Voucher Program (Section 8).
If they are reduced, it would have a negative impact on programs for seniors, young people and the most needy of our community, said New Rochelle City Manager Charles Strome.
While its been widely reported that if Tuesdays deadline isnt met, the government will default, thats technically not true, officials say. Default happens when interest on loans is not paid, however, officials say there will be enough money from tax revenue to cover those payments.
I agree that the definition of default is more technically detailed than used in common parlance, said Congresswoman Nan Hayworth (R Mount Kisco), of New Yorks 19th district. The treasury will still be able to pay our sovereign debt obligations.
That, Hayworth, said, includes treasury bonds, Social Security, and Medicare. Those debt obligations will be taken care of, she said.
Hayworth also noted that while everyone is focused on the Tuesday deadline, she said knowledgeable observers say it could be a few days longer before the impact of the failure to raise the debt ceiling is felt.
It could be a few more days (past Aug. 2), she said.
However, if those days do pass without any resolution, Hayworth said the local governments and organizations in Westchester County will most likely to feel the pinch with things such as Community Development Block Grants. She said the treasury department would have to prioritize its payments and items such as Social Security, Medicaid and military paychecks would likely be at the top of the list and not grants.
Some might have to give an IOU to their local contractors if theyre willing to take one, she said.
Congresswoman Nita Lowey (D - Harrison), of New Yorks 18th district, said in addition to a possible delay in Social Security benefits and other services, failure to raise the debt ceiling could result in higher interest rates that could impact the cost of mortgages and credit card payments.
"Families could lose thousands of dollars from retirement savings and investments, she said. It is clear that Congress and the president must agree to a plan that ends the default crisis and includes responsible spending reductions that do not balance the budget on the backs of the most vulnerable Americans.
New York State Senator Greg Ball (R, C Patterson) said the fallout would be especially trying for the state because he feels New York does not rebound quickly from fiscal crisis.
Historically, New York State takes twice as long to recover from an economic downturn, he said. So, any recovery caused by this would be doubly hard. It would go beyond lost grant money. It would cause a problem balancing the state budget. Its odd that Washington is making Albany look good right now. But all I can say is this would be devastating at both the state and local level.
The lack of money could hurt the Boys and Girls Club on the national scale as funding for Passport to Manhood, depends on grants through the United States Department of Justice.
A default could decrease the amount of opportunity for the program that educates young men on important aspects of life such as fatherhood and family, diversity, and employment and careers to advance.
According to the New Rochelle Boys and Girls Club of America directors, $35,000 was allocated to the program last year out of an overall $40 million given to the organization as a whole. The nonprofits New Rochelle location is expecting another $8,000 more from the grant no later than September.
The amount that the organization will receive this year cannot be determined until Tuesdays decision.
The Boys and Girls Club of America is working very hard with members in the House and Senate to secure funding for the 2011-2012 programming year, said Boys and Girls Club of New Rochelle Director of Operations Anthony Johnson.
Were concerned that the funding will be cut or eliminated, but were hoping (the United States Government) will recognize the value of what we do in saving and changing lives, he said.
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