Loss of metropolitan designation could mean loss of federal funding

ALBANY — If a proposed federal rule change that would downgrade Albany and a combination of five southwest Georgia counties becomes reality, it could place the region in “limbo” — too big for a rural area and too small for a metropolitan statistical area.

It also could result in the loss of millions of dollars in federal funding for everything from transportation to economic development, according to local officials.

Albany is one of some 144 cities nationwide that would be impacted by a proposed change in MSA designation and one of more than 12 in Georgia.

At issue is increasing the number of residents of the core city in a metropolitan statistical area, or MSA, from 50,000 to 100,000. Albany has a population of about 72,000, and the MSA includes Baker, Dougherty, Lee, Terrell and Worth counties.

Currently, the recommendation from federal statistical agencies is under review by the U.S. Office of Management and Budget.

“We’d sort of be in this limbo state that I think is harmful for Albany and for (other) mid-sized communities,” Barbara Rivera Holmes, president and CEO of the Albany Area Chamber of Commerce, said. “You don’t qualify for rural status; you don’t qualify for metropolitan status.”

While the proposal is said to be purely for gathering of statistics, there is concern that it will impact funding formulas for the cities that would be affected.

“Raising the minimum MSA population cutoff from 50,000 to 100,000 would undermine the consistency in the collection and tabulation of federal statistics and interrupt the flow of federal aid to our communities,” the chamber said in a letter to the OMB. “At a time when we need federal aid and support most, the loss of MSA status and associated funding would threaten our sustainable economic recovery, remove our ability to provide input into regional and state infrastructure planning, widen the chronic transportation funding gaps, and hamper community and economic development.”

Many federal programs base funding using metropolitan designations to determine which cities are eligible for funding, the chamber said.

Among the areas where Albany and the five surrounding counties could be impacted is in loss of funding from Department of Housing and Urban Development programs and transportation, Holmes said.

Housing and transportation are critical needs in the region.

Road infrastructure is important for everyone from area manufacturers to Marine Corps Logistics Base-Albany, which supports military services throughout the Eastern U.S., she said.

“This impacts so many sectors of our community,” Holmes said. “We’re still in a pandemic, so now is not the time. Many dollars are directed through MSA designation.”

Companies often prefer to locate in communities with a metropolitan designation, Holmes said.

The chamber has requested that residents make comments to the OMB during the comment period, which extends through Friday, at https://www.regulations.gov/commenton/OMB-2021-0001-0001. Residents also can send comments to U.S. Reps. Sanford Bishop, D-Albany, and Austin Scott, R-Tifton, and Georgia Sens. Jon Ossoff and Raphael Warnock.

The members of Congress have been responsive and supportive to the chamber’s concerns, Holmes said.

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