Why the census matters eh?
But it actually gets to the core of an issue in public finance economics over the impact of what is called the “flypaper effect”. In this case the question is whether federally provided CDBG funds targeted at poorer communities actually increases spending in those communities. One argument at the heart of the story is that such funding merely displaces other funding and results in no additional expenditures where targeted. To the degree money 'sticks' to where it lands you get the term.
That’s a big issue in itself, but there is a much bigger issue not mentioned in that. We believe pretty strongly that when new data is plugged into the calculation of CDBG areas there are parts of the city that will be dropped from qualifying altogether. It is a good story unto itself. Places like the South Side flats have been designated CDBG areas for decades and will most likely lose that designation in the future. What other areas are potential CDBG losses is debatable. The issue is that it will mean less money coming in. It's not just the division of those resources within the city, but if we lose enough areas it could be a net loss for the city overall.
And it might not be just a city issue. Other areas in the county qualify for CDBG money.