WASHINGTON — President Bush's budget would eliminate money next fiscal year for an empowerment zone intended to revitalize some of Cincinnati's most troubled neighborhoods.

        The Bush administration determined there was “no convincing evidence” that providing grant money along with the tax breaks available through empowerment zones makes the initiatives more effective.

        Initially, the federal government promised to spend $10 million a year for 10 years in Cincinnati when the city was added as an empowerment zone in 1999. Republicans in Congress, however, challenged overall spending levels on empowerment zones and Cincinnati has received $18.9 million.

        Last year, the Bush administration recommended full funding for empowerment zones, so this new budget request represents a significant shift in policy. Cincinnati and 19 other empowerment zone communities would be effected.

        The U.S. Department of Housing and Urban Development provided no federal grant money last month when it announced seven new empowerment zones and 40 renewal communities, including one in Hamilton.

        Mr. Bush's proposals are the first step in the annual budget process. Lawmakers will draft their own budget numbers and could include grant money for the empowerment zones in the fiscal year 2003 package.

        Harold Cleveland, chief executive officer for the Cincinnati Empowerment Corp., said he hopes Congress will provide the money. The non-profit, which oversees the city's empowerment zone, has committed to $13 million worth of projects after a slow and at times rocky start. The empowerment zone covers Avondale, Over-the-Rhine, Walnut Hills, Clifton-Fairview, Corryville, Evanston, Mount Auburn, Queensgate and West End.

        “Lives are being changed,” Mr. Cleveland said. “Our hope is that (a budget cut) will not be the case.”

        Gregory Mason, who serves on the empowerment zone's board, said many of the people involved in the initiative worried about a lack of federal support given the nation's poor economy.

        “Our goal is to make the most effective use of the money we do have,” he said.

        President Bush, meanwhile, proposed a slight increase in spending for environmental cleanup at Fernald, a former uranium processing facility northwest of Cincinnati. The administration called for $296 million for cleanup and $3 million for safety and security at the site.

        Rep. Rob Portman, R-Ohio, will likely request $324 million for Fernald, the amount contractors at the site believe is necessary to finish work by the 2006 target date. Fernald will also be eligible for money in a new $800 million accelerated cleanup fund through the U.S. Department of Energy.

        The president also proposed $3.2 million for flood control along Duck Creek, $1.1 million for flood control on Mill Creek and $243,000 for flood-damage prevention in Butler County.

        A drop in federal gasoline and transportation taxes could mean an $8.5 billion decline in federal highway aid. Ohio could lose an estimated $234 million for road projects if Congress does not agree to supplement the money.

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