President Obama is slated to release his FY-2012 Budget on February 14; however, news of budget priorities is beginning to be released. Last week the White House announced that the budget would fully fund the New Markets Tax Credit program at $5 billion. In a New York Times editorial on February 5, Office of Management and Budget (OMB) director Jacob Lew noted “We cannot win the future, expand the economy and spur job creation if we are saddled with increasingly growing deficits”¦ This starts with doing what families and businesses have been doing during this downturn: tightening our belts.” The budget will call for a five-year freeze on discretionary spending. Lew also noted, “It will require tough choices since every decision to invest in one program will necessitate a cut somewhere else.” Lew noted that President Obama is proposing to cut the Community Development Block Grant (CDBG) program by 7.5 percent, or $300 million. This program is a critical source of gap financing for affordable housing in many communities. Other programs slated to be cut include community services block grants, the Great Lakes Restoration Initiative, and a number Department of Defense programs and initiatives. Read More…