LOC News
OMB Reverses Course on MSA Designation
In a June 18 article in the LOC Bulletin we provided an update regarding an Office of Management and Budget (OMB) draft rule that would change the population trigger of a Metropolitan Statistical Area (MSA) designation. At that time, U.S. Senators John Thune (R-S.D.) and Mark Kelly (D-Ariz.) introduced the Metropolitan Statistical Area Preservation Act to protect more than 140 MSAs from losing their MSA status.
This legislation was proposed to provide additional leverage for the OMB to change their proposed rule. The good news from the National League of Cities (NLC) is that the OMB has withdrawn their proposed rule, effectively keeping the existing population threshold of 50,000 for MSA designation. The following is the OMB’s response to the NLC’s objections:
OMB Decision: OMB does not accept the initial recommendation to raise the MSA core population threshold in the 2020 standards, and has decided to leave the current threshold of 50,000 in place. A change to the fundamental criteria that determine whether an area is considered metropolitan would cause disruption to statistical programs and products, and would be difficult for the statistical agencies to implement. OMB decided that there is insufficient justification at this time to raise the threshold to 100,000 and that further research is necessary before deciding whether to change the criteria that determine whether an area is considered metropolitan. Finally, we also note the Standard Review Committee's subsequent modification of their initial recommendation recognizing the value of additional research before modifying the threshold.
For those cities that have been communicating with Oregon’s Congressional delegation about this issue, please take time to thank them for their efforts. This successful outcome was achieved through a national level grass roots effort, with the NLC taking the lead, and including the participation of more than 140 cities across the country. Here in Oregon, the cities of Albany, Corvallis, Bend, Medford, and Grants Pass would have been negatively impacted, losing federal funding and a host of other resources and tools available to communities within an MSA designation.
Contact: Jim McCauley, Legislative Director - jmccauley@orcities.org
Last Updated 7/23/21