144 Cities Risk Losing Status as Metro Areas

Those cities in North Dakota and Wisconsin, respectively, are two of 144 that the federal government is proposing to downgrade from the metropolitan statistical area designation, and it could be more than just a matter of semantics. Officials in some of the affected cities worry that the change could have adverse implications for federal funding and economic development.

Under the new proposal, a metro area would have to have at least 100,000 people in its core city to count as an MSA, double the 50,000-person threshold that has been in place for the past 70 years. Cities formerly designated as metros with core populations between 50,000 and 100,000 people, like Bismarck and Sheboygan, would be changed to “micropolitan” statistical areas instead.

A committee of representatives from federal statistical agencies recently made the recommendations to the Office of Management and Budget, saying it’s purely for statistical purposes and not to be used for funding formulas. As a practical matter, however, that is how it’s often used.

Several housing, transportation and Medicare reimbursement programs are tied to communities being metropolitan statistical areas, or MSAs, so the designation change concerns some city officials.

In Corvallis, Oregon, the state designates certain funding sources to metropolitan statistical areas and any change to the city’s status could create a ripple effect, particularly when it comes to transportation funding, said Patrick Rollens, a spokesman for the city that is home to Oregon State University.

“I won’t lie. We would be dismayed to see our MSA designation go away. We aren’t a suburb of any other, larger city in the area, so this is very much part of our community’s identity,” Rollens said in an email. “Losing the designation would also have potentially adverse impacts on recruitment for local businesses, as well as Oregon State University.”

If the proposal is approved, it could be the first step toward federal programs adjusting their population thresholds when it comes to distributing money to communities, leading to funding losses for the former metro areas, said Ben Ehreth, community development director for Bismarck.

www.foxbusiness.com/economy/bye-bismarck-144-cities-could-lose-status-as-metro-areas

 

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