Alexandria relies on federal funding for a lot of projects, from housing and pre-k programs to transportation improvements. But with the new administration spearheading an effort to slash that funding, local leaders say the city is watching closely to see how those cuts will affect Alexandria projects.
The discussion took place on Tuesday night during the City Council’s discussion of the Long-Range Planning Interdepartmental Work Program.
“We’re still in some ways absorbing the immediate impacts,” said Karl Moritz, director of planning and zoning. “Some of those right up front are going to be grant supports that we had expected or federal funding for a variety of implementation efforts. For example, the Duke Street corridor plan which was – is, I should say – the recipient of a substantial grant from the federal government to support that effort.”
As the city heads into a budget season, staff indicated that Alexandria is trying weather the storm and see what comes next.
“That’s something where we’re in a position of following rather than knowing,” Moritz said.
Moritz said that situation applies across the board to various City departments. The Department of Community and Human Services, for example, received $16.4 million in federal funding last year.
More broadly, Moritz said the current situation also creates difficulty for Alexandria’s efforts to reach out to disadvantaged communities around the city.
“We’re in an environment where people justifiably feel concerned about showing themselves, particularly to government, and distinguishing us from others is challenging,” Moritz said. “Those most afraid are the ones we want to talk to the most because they’re the ones whose future local government intervention is most important for.”
The swath of layoffs and government downsizing could also hamper Alexandria’s economy and push the city to pursue more redevelopment.
“There are a couple other elements here,” said City Manager Jim Parajon. “Should [this] have a detrimental effect on our office market beyond what we saw in our assessment, which continues to drop, there will be an emphasis on redevelopment opportunities. You’ll see some of these elements in our proposed budget.”
The economic downturn could force the city to pivot away from economic reliance on proximity to Washington D.C., similar to
or, at the very least, force the city to pivot away from economic reliance on proximity to Washington D.C., similar to the economic shift after Base Realignment in 2005.
“We’re trying to make ourselves as competitive as possible for our future commercial growth that doesn’t rely on the federal government,” Parajon said. “The heavy planning has already been done — what can we do to separate ourselves from other regional players out here in a competitive market? While we will never be the most affordable, compared to the rest of the country, we have high talent and workforce development opportunities, as well as opportunities to maximize what we can offer.”
