Empowering Neighborhoods Via Increased Citizen Participation or a Trojan Horse from City Hall: The Neighborhood Strategic Planning (NSP) Process in Milwaukee, Wisconsin

Abstract

This study examines the distribution of federal funds in Milwaukee, Wisconsin between 1988–2008 under a new Neighborhood Strategic Planning (NSP) process designed to increase citizen participation and empower neighborhoods residents by giving them an increased role in the distribution of federal urban renewal funds used for the period 1998–2008. It was then compared it to the old Community Development Block Grants (CDBG) funding allocation process used between 1988–1997. This study documents that while citizen participation in the distribution of federal CDBG funds increased under the NSP process, federal funding to low-income communities decreased because city officials had the power to restructure funding priorities and allocations patterns. Also, federal funds distributed to low-income neighborhoods via community-based organizations (CBO) decreased under the NSP because the city government created new policies to increase its share of CDBG dollars to finance city services and staff funded by tax levy dollars. In effect, the city used federal funds designed to help low income communities to pay for city services and staff instead of raising its middle class residents’ property taxes to pay for them.