The word itself really isn’t the biggest problem.
Sure, changing a city’s status from “metropolitan” to “micropolitan” sounds like a downgrade. The prefix “micro” connotes tiny things, seen through a microscope, like microorganisms. Of course, many would contend that microbrews are an upgrade in the beer world. Still, their fans probably wouldn’t order one in a micro-sized mug.
Besides, a city deemed metropolitan seems bigger, more sophisticated and busier.
Yet, a proposal by the federal government could have an impact on American cities like Terre Haute beyond mere reputation.
A federal technical advisory committee has recommended to the U.S. Office of Management and Budget a change in the population threshold for metropolitan statistical areas, or MSAs. If the proposal is enacted, a metro area’s core city would need to have at least 100,000 residents. That’s double the current level.
The population cutoff for MSA core cities has been 50,000 for the past 70 years, The Associated Press reported.
Terre Haute is one of 144 cities that would drop from MSA status to the micropolitan statistical area level. The city’s population stood at 60,673, according to the U.S. Census Bureau’s 2019 estimate. The full Terre Haute MSA includes Vigo, Clay, Sullivan and Vermillion counties, with a combined population of 186,367. It’s the 230th largest MSA among 384 in the U.S.
Four other Indiana cities would slide from metropolitan to micropolitan — Columbus, Kokomo, Michigan City and Muncie.
Why does that matter?
Reimbursements to cities through federal housing, transportation and Medicare programs are based on a community’s status as a MSA. The federal advisory committee’s representatives say the change from metro to micro status is meant only for streamlining statistics across various agencies, and isn’t intended to be used by agencies for funding formulas. Federal agencies also aren’t required to use the Office of Management and Budget (or OMB) statistical designations for funding formulas.
Regardless, statistical uniformity or convenience doesn’t seem like a compelling reason to dismantle a seven-decade-long system.
The OMB won’t decide on the change until after a public comment period ends March 19 (Folks wishing to do so can go online to: https://bit.ly/3vdJfFv.) If accepted, it wouldn’t take effect until 2023.
Despite the feds’ assurances that such a change is purely statistical, Hoosier mayors are concerned that losing metropolitan status kicks the door open to a future loss of federal program funding. It could also make it harder for cities to recruit businesses and, thus, skilled workers and professionals.
Duke Bennett, Terre Haute’s four-term mayor, has been talking with federal officials about the proposal and its potential effects.
“My biggest concern is that it could mean a possible elimination of existing formula-based transportation, [Community Development Block Grant], [Housing and Urban Development], etcetera, federal funding that is awarded annually to Terre Haute,” Bennett said. “The information I’ve received so far does not clearly answer that question.
“I will continue to research this and work hard to maintain these funding sources for our community,” Bennett added. “There’s just a lot of unknowns.”
Matt Greller, CEO of Accelerate Indiana Municipalities, also cautions that the change “certainly seems to set the stage for more concerning changes down the road.” City officials need specifics about what could happen.
“This is a decision that shouldn’t be made without significant input from impacted community leaders and access to clear data regarding potential future impacts,” Greller said.
In southern Indiana, Columbus Mayor Jim Lienhoop shares such concerns. Lienhoop said he’s been talking with leaders of other Hoosier cities facing the predicament.
“Those conversations are ongoing, and I’m hopeful we’ll be able to coordinate our responses,” Lienhoop said.
Lienhoop’s also polling his city department staffers to assess the potential impact to Columbus, and then relay those concerns to decision makers in Washington.
An email request for comment from Eighth District Rep. Larry Bucshon wasn’t answered, but Rep. Greg Pence — whose Sixth District includes Columbus and Muncie — said in a statement to the Tribune-Star that he’s challenging the change in city designations.
“I wholeheartedly opposed this recommended MSA reclassification and have joined a number of my colleagues in Congress in expressing that opposition to the Acting Director of the federal Office of Management and Budget,” Pence said by email. “Should the Biden Administration follow through on this proposal, Hoosier cities like Muncie and Columbus would lose out on significant federal resources. We must protect working class cities that are the bedrock of America.”
It should be noted that the federal technical advisory committee submitted its recommendation to change those 144 cities from metro to micro status on Jan. 19, according to the notice posted on the Federal Register, overseen by the National Archives. That’s the day before Joe Biden’s inauguration as the 46th president. President Donald Trump’s administration was still in office then.
If cities as large as Terre Haute fall into the micropolitan statistical area category, they could become eligible for federal funds targeted for rural areas, which metros can’t access, Mayor Bennett speculated. Terre Haute would become a big fish in that pond, but the competition would be heavy for a pot of funding that’s likely to remain static.
Mayors can take some solace in knowing that it’s possible there would be no change made.
If that happens, this all becomes a metro-size tempest in a micro-size teapot.
Mark Bennett is a columnist at the (Terre Haute) Tribune-Star. Send comments to [email protected].
