    [Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
    [III. Major Functions of the Federal Government]
    [10.  Community and Regional Development]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 123]]

                     10.  COMMUNITY AND REGIONAL DEVELOPMENT

      ----------------------------------------------------------------------

                     Table 10-1.  Federal Resources in Support of Community and Regional Development
                                              (Dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Percent
                                    Function 450                                     1993        2001       Change:
                                                                                    Actual     Estimate    1993-2001
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary budget authority............................................      9,600      10,997         15%
      Mandatory outlays.........................................................        760        -670          NA
    Credit Activity:
       Direct loan disbursements................................................      2,383       2,332         -2%
       Guaranteed loans.........................................................        297       3,456          NA
    Tax expenditures............................................................        850       1,400         65%
    ----------------------------------------------------------------------------------------------------------------
    NA = Not applicable.

      ----------------------------------------------------------------------
       Investing in our communities helps bring prosperity to all Americans.
    Federal support for community and regional development helps build the
    Nation's economy and helps economically distressed urban and rural
    communities secure a larger share of America's prosperity. The Federal
    Government spends nearly $11 billion a year, and offers about $1.4
    billion in tax incentives to help States and localities create jobs and
    economic opportunity, and build infrastructure to support commercial and
    industrial development. Federal programs have stabilized and revitalized
    many of these communities, allowing them to expand their economic base
    and support their citizens, particularly those in need.
       During the past eight years, the Clinton-Gore Administration has
    succeeded in promoting high-employment, low-poverty policies that have
    assisted communities in tackling the challenges of a new economy shaped
    by technological innovation and information processing. Growth in the
    technology sector accounts for more than 25 percent of all new jobs, and
    these positions are primarily located in cities and suburbs. From 1992
    to 1998, many communities registered dramatic decreases in unemployment,
    which fell in urban areas from 8.5 percent to 5.1 percent.
       The Administration's community and economic development agenda has
    been built on the following components:
      Assisting communities in making the transition to the new
              economy by increasing access of under served communities to
              the capital and technical expertise they need to take
              advantage of untapped markets for labor, retail, and land.
      Addressing the challenges of an aging and increasingly diverse
              population by helping communities address the affordable
              housing crisis one that threatens regional competitiveness and
              family self-sufficiency.
      Giving communities the tools and resources that they need to
              build safe and livable communities.

    Housing and Community Development

       The communities experiencing the greatest economic growth often have
    the most severe housing problems, affecting both low and middle income
    residents who find it increasingly difficult to obtain housing that they
    can afford. The Department of Housing and

    [[Page 124]]

    Urban Development (HUD) provides communities with funds to promote
    commercial and industrial development, enhance infrastructure, and
    develop strategies for providing affordable housing close to jobs. HUD
    also provides grants and sponsors research to reduce the hazards created
    by lead-based paint in housing.
       Community Development Block Grants (CDBG) provide funds for various
    community development activities directed primarily at low-and moderate-
    income persons. CDBG funds go to improving housing, public works and
    services, promoting economic development, and acquiring or clearing
    land. Seventy percent of CDBG funds go to more than 1,000 central cities
    and urban counties, and the remaining 30 percent go to States to award
    to smaller localities. The Section 107 set-aside within CDBG, the
    University Partnerships Program, provides grants to academic
    institutions including Historically Black Colleges and Universities,
    Hispanic Serving Institutions, and Tribal Colleges. The Indian CDBG,
    also a set-aside within the CDBG program, focuses mainly on public
    infrastructure, community facilities, and economic development on
    reservations.
       HUD's HOME Investment Partnership Program supports construction of
    new housing, rehabilitation of existing homes, acquisition of standard
    housing, home ownership counseling assistance, and tenant-based rental
    assistance.
       The 1993 to 2001 accomplishments for the CDBG, HOME, and lead-based
    paint programs include:
      producing approximately 1,495,284 units of rehabilitated and
              newly constructed housing for ownership and rental through the
              CDBG program;
      creating more than 1,103,595 jobs through CDBG;
      awarding more than $12.2 billion to HOME Participating
              Jurisdictions;
      constructing, renovating, or rehabilitating more than 600,000
              housing units with HOME funds; and,
      developing in 2000 a strategy to virtually eradicate childhood
              lead poisoning by 2010, through the President's Task Force on
              Environmental Health Risks and Safety Risks to Children (a
              group that includes HUD, EPA, HHS, and other Federal
              agencies).

    Empowerment Zones and Economic Development Tax Incentives

       Empowerment Zones (EZs) provide tax incentives and grants to carry
    out 10-year, community-wide strategic plans to revitalize designated
    areas. Under the leadership of the Vice President and the Community
    Empowerment Board, which the Vice President has chaired, this
    Administration has enjoyed considerable success in developing and
    expanding EZs. Since the first communities were designated in 1994, the
    accomplishments for the Administration's EZ and Enterprise Community
    (EC) program include:
      leveraging more than $12 billion in additional public and
              private sector investment in community revitalization efforts;
      serving more than 319,648 EZ/EC residents through educational
              programs including Head-Start, GED and vocational education
              programs;
      providing job training for more than 200,000 EZ/EC residents;
      creating more than 120,000 jobs within the EZ/ECs; and,
      securing an additional $200 million in 2001 grant funding for
              EZs.
       In 1994, the Administration designated nine Round I EZs, two
    Supplemental EZs (which were designated full EZs in 1998) and 95 ECs.
    Three of the EZs and 30 of the ECs were in rural areas and administered
    by the Department of Agriculture (USDA). These Round I EZs and related
    ECs leverage private investment, expand affordable housing and home
    ownership opportunities, mobilize grassroots leadership, and help create
    jobs. In January 1999, the Administration designated 15 new urban EZs
    and five new rural EZs (administered by USDA) from more than 268
    distressed areas that applied for new designations. These EZs, along
    with the 20 new rural ECs, have begun implementation of their
    comprehensive strategies to redevelop

    [[Page 125]]

    their areas. Recently, the Community Renewal Tax Relief Act of 2000 also
    provided for the designation of nine additional EZs, with seven in urban
    areas and the remainder in rural areas.
       Tax benefits for EZs include:
      a 20-percent wage credit on the first $15,000 of qualified
              wages paid to zone residents working in the zone;
      higher up-front deductions for investments in equipment; and,
      special tax-exempt financing for certain zone property used by
              enterprise zone businesses.
      Enterprise Communities are eligible for the tax-exempt financing
    benefits.
       In addition, certain economically depressed census tracts within the
    District of Columbia were designated as the D.C. Enterprise Zone
    following the passage of the Taxpayer Relief Act of 1997. The benefits
    extended to the D.C. Zone include: the wage credit and up-front
    deductions, capital gains preferences for certain investments, and a
    first-time home buyer tax credit.

    Community Capacity Building

       The Department of Commerce's Economic Development Administration
    (EDA) provides assistance to communities to help build capacity and
    address long-term economic challenges through its nationwide program
    delivery network. EDA's public works grants help build or expand public
    facilities to stimulate industrial and commercial growth, such as
    industrial parks, business incubators, access roads, water and sewer
    lines, and port and terminal developments. EDA also assists communities
    in addressing sudden and severe economic downturns and in adjusting to
    downsizing and closure of defense facilities.
       Since 1993, EDA's accomplishments include:
      in total, creating and retaining 511,000 jobs, investing $3.3
              billion in grants, and generating $19.6 billion in private-
              sector leveraged investment;
      awarding 1,540 public works grants, totaling $1.4 billion, for
              infrastructure development; and,
      awarding 650 grants totaling $501 million to support disaster
              recovery efforts, and another 580 grants totaling $830 million
              to assist communities in rebuilding their economies following
              defense-related industry downsizing and base closures.

    Community Development Financial Institutions

       The Treasury Department's Community Development Financial
    Institutions (CDFI) Fund seeks to promote economic revitalization and
    community development in distressed areas by increasing the availability
    of capital and leveraging private sector funds. The CDFI Fund provides
    financial and technical assistance to a diverse set of specialized,
    private, for-profit and nonprofit financial institutions known as
    community development financial institutions. CDFIs have a primary
    mission of community development and include community development
    banks, credit unions, loan funds, venture capital funds, and
    microenterprise loan funds.
       Accomplishments for the CDFI Fund include leveraging more than $3
    billion in community development loans and investments through CDFI core
    awardees. These investments have:
      supported more than 6,000 micro enterprises;
      created or maintained about 41,000 jobs;
      developed or rehabilitated more than 52,000 units of
              affordable housing; and,
      supported up to 823 community facilities, including childcare
              centers, health care centers, charter schools and job training
              centers.

    Rural Community Advancement

       Because their needs are different, no single approach will help both
    urban and rural communities. To address this, the Administration
    developed the new Rural Community Advancement Program (RCAP). RCAP
    combined 12 separate USDA rural development programs into Performance
    Partnerships in which the Federal Government provides more flexibility
    while requiring more accountability for how the money is spent. RCAP
    grants, loans, and loan guarantees help build rural community
    facilities, such as health clinics,

    [[Page 126]]

    day care centers as well as water and wastewater systems. RCAP also
    provides similar programs to assist rural businesses, including
    cooperatives, to increase employment and diversify the rural economy.
    Under RCAP, States have increased flexibility within the three funding
    ``streams'' for Water and Wastewater, Community Facilities, and Business
    and Industry. USDA State Directors have the authority to transfer up to
    25 percent of the funding between any of the programs contained within a
    stream in order to tailor RCAP assistance to the specific rural economic
    development needs of individual States.
       USDA rural development accomplishments since 1993 include:
      creating 122,000 jobs through RCAP;
      constructing 2,560 treatment facilities serving more than 15
              million rural residents through RCAP's wastewater program;
      increasing USDA assistance to rural businesses from $100
              million in 1993 to more than $1.3 billion in 2001 assistance
              that contributed to the creation of 336,000 jobs; and,
      overseeing the development of rural EZ/ECs. More than 180
              rural communities completed the strategic planning process
              needed to be considered for Round 1 EZ/ECs. To ensure
              continuing benefits for those communities not awarded EZ/EC
              status, USDA designated them as ``Champion Communities,''
              eligible to receive priority assistance when competing for any
              type of USDA housing, business or utility funds.

    Commitment to Native Americans

      The Department of Interior's (DOI) Bureau of Indian Affairs (BIA)
    helps Native American Tribes, organizations, and individuals improve
    their economies, natural resources, and communities. BIA administers
    more than 56 million acres of Indian trust lands, and assists Indian
    landowners in developing agricultural, grazing, forestry, mineral, oil,
    and gas resources. In addition, BIA helps Indian businesses secure
    private capital through its loan guarantee program and partnerships with
    other Federal agencies. BIA also assists Tribal governments in providing
    law enforcement, fire protection, employment training, housing
    assistance, and other community services. BIA provides support for 185
    elementary and secondary schools, and 25 Tribal community colleges, and
    maintains more than 7,000 buildings, including school and dormitory
    facilities, 3,000 employee housing units, and more than 200 dams and
    irrigation facilities. Working with Federal, State, and local
    transportation agencies, BIA maintains and improves nearly 50,000 miles
    of road and 770 bridges that provide access to schools, employment,
    health, and other public services.
       As part of President Clinton's Native American Programs Initiative,
    BIA accomplishments since 1993 include:
       successfully managing a 12-percent increase in elementary and
              secondary student enrollment, improving academic performance
              and daily attendance, while lowering student dropout rates;
       investing $304 million to replace 19 of BIA's most
              dilapidated schools and dormitories, and more than $467
              million to rehabilitate or repair other elementary and
              secondary schools;
       guaranteeing $369 million in private sector investments to
              create or expand Indian businesses and provide thousands of
              jobs on reservations;
       hiring more than 500 police officers, investigators,
              dispatchers, and detention personnel to improve public safety
              on Indian reservations. (With the Justice Department, BIA
              invested an additional $174 million in Indian law enforcement
              personnel, training and equipment during 1999 to 2001, the
              first three years of a four-year modernization program.)
       investing $144 million to rehabilitate 20 of the most
              hazardous dams on Indian reservations to ensure safe and
              efficient operations for residents and neighboring
              communities;
       improving the quality of life for more than 4,500 low-income
              families by repairing or replacing substandard homes on Indian
              reservations; and,

    [[Page 127]]

       working with DOI's Special Trustee for American Indians to
              install modern trust fund accounting and management systems to
              provide more accurate and timely information on payments to
              more than 262,000 Tribal and individual accounts.
       DOI is often perceived as the lead agency on Indian policies and
    programs. However, more than a dozen Federal agencies participated in
    the President's Native American Programs Initiative, which raised
    Government-wide funding for Indian Programs from $5.4 billion in 1993 to
    $9.4 billion in 2001 (increases of $1.1 billion, or 14 percent, over
    2000, and 75 percent over 1993). The 2001 Budget requested an increase
    of $1.2 billion over the 2000 enacted level, the largest single-year
    increase ever requested for Native American programs. Among the agencies
    with the largest increases between their 1993 and 2001 appropriations
    for Indian programs are: the Indian Health Service in the Department of
    Health and Human Services (an additional $777 million, or 42 percent,
    over the 1993 level), BIA ($496 million, or 30 percent), the Department
    of Education (nearly $1.4 billion, or 302 percent), HUD ($326 million,
    or 81 percent), and the Department of Transportation ($66 million, or 33
    percent).
       There are four basic categories of programs and services provided by
    the Federal Government to Native American Tribes, as well as to
    individuals and families residing on, near, and in some cases off
    reservation: health care, education, economic and infrastructure
    development, and other basic services (see Table 10-2). Major
    accomplishments under the Native American Programs Initiative include:
      ----------------------------------------------------------------------

                 Table 10-2.  Selected Native American Programs
                 (Budget authority, dollar amounts in millions)
    ------------------------------------------------------------------------
                                                                    Percent
                                      1993      2001     Change:    Change:
                                     Actual    Enacted  1993-2001  1993-2001
    ------------------------------------------------------------------------
    Health Care:
      Indian Health Service--BA        1,858     2,635        777        42%
       only (HHS).................
      Indian Health Service            2,022     3,194      1,172        58%
       Program level, including
       receipts...................

    Education:
      BIA School Construction,            90       293        203       226%
       Repair, Maintenance (BIA/
       DOI).......................
      School Construction For              4        75         71     1,775%
       Public Schools Serving High
       Concentrations of Native
       Americans (Education)......
      BIA School Operations (BIA/        343       489        146        43%
       DOI).......................
      Indian Education Assistance         81       116         35        43%
       for Public and BIA Schools
       Serving High Concentrations
       of Native Americans
       (Education)................
      Support of Tribal Community         24        72         48       200%
       Colleges (Multiagency).....

    Economic Development:
      New Markets and Other                3        17         14       467%
       Activities--Economic
       Development Administration
       (Commerce).................
      Digital Opportunity and              *        10         10         NA
       Other Activities (NSF).....
      Small Business Development           *         2          2         NA
       (SBA)......................
      Community Development                *         5          5         NA
       Financial Institute
       (Treasury).................
      Rural Community Advancement          *        24         24         NA
       Program/RCAP (USDA)........
      Commercial Code                     35        46         11        31%
       Implementation and Other
       Activities--Administration
       on Native Americans (HHS)..

    Infrastructure and Other Basic
     Services:
      Indian Reservation Roads and
       Bridges:
        Road/Bridge Construction         200       263         63        32%
         (DOT)....................
        Road/Bridge Maintenance           30        27         -3       -10%
         (BIA/DOI)................

      Indian Housing:
        Housing and Urban                401       727        326        81%
         Development..............
        Housing Improvement               20        20  .........  .........
         Program (BIA/DOI)........
      Joint Indian Country Law
       Enforcement:
        Department of Justice.....         4       219        215     5,375%
        BIA/DOI...................        93       153         60        65%
                                   -----------------------------------------
          Subtotal, Law                   97       372        275       284%
           Enforcement............

      Capacity Building and Other
       Basic Services:
        Environmental Protection          38       196        158       416%
         Agency...................
        Improved Trust Services           84       104         20        24%
         (BIA/DOI)................
        Operation of Indian            1,364     1,742        378        28%
         Programs (BIA/DOI).......
                                   -----------------------------------------
    Total Government-wide Funding      5,360     9,387      4,027        75%
     for Native American Programs.
    ------------------------------------------------------------------------
    * Less than $500 thousand.

    NA = Not applicable.

    Note: Columns are not additive.

      ----------------------------------------------------------------------

      Health Care: The Indian Health Service received a $777 million
    increase since 1993 to address major health problems affecting Native
    Americans and Alaska Natives. This funding enabled IHS to improve the
    quality of, and access to, basic medical care. IHS targeted health
    problems that disproportionately affect Native Americans, such as
    diabetes and alcohol and substance abuse. As a result of IHS's
    monitoring, prevention education, and treatment activities, IHS diabetic
    patients' average blood sugar levels decreased by eight percent between
    1994 and 1999.
      Education: In 2001, the Department of Education received an increase
    of about $35 million from the 1993 level for Indian Education Programs.
    These programs serve students attending BIA-administered schools or
    public schools with high concentrations of Native American students, and
    are designed to address the unique academic and cultural needs of Native
    American children. In the last two years, American Indian Teacher Corps
    and the American Indian Administrator Corps were established to increase
    the number of skilled professionals in classrooms with high
    concentrations of Native American students.
       Since 1993, BIA was provided an increase of more than $140 million
    for the operation of its elementary and secondary school system. In
    2001, BIA received a record total of $293 million, $160 million over
    2000, for the repair, rehabilitation, and maintenance of these schools.
    Also in 2001, the Department of Education received $1.2 billion to
    rehabilitate elementary and secondary schools across the country,
    including a $75 million set-aside for public schools with high
    concentrations of Native American students.
      Four Federal agencies (DOI, Agriculture, Education, and HUD)
    contributed to 28 Tribal Colleges and Universities (TCU) to help improve
    and expand TCUs capacity to serve Native American students. Three new
    institutions were established between 1993 and 1997. In 1993, total
    operating funding for these institutions was $24 million, with BIA as
    the sole provider of these funds. Appropriations for 2001 allowed the
    four agencies to provide a total of $72 million, or 27 percent over
    2000, for core operations, curriculum development, student recruitment,
    student services, professor training, research capacity-building, Tribal
    outreach, technical assistance, and facilities construction and
    renovation.

       Economic and Infrastructure Development: Since 1993, the Economic
    Development Administration (EDA) in the Department of Commerce provided
    660 grants to Indian Tribes and organizations totaling $96.5 million.
    These funds were matched by more than $41 million in local share and
    were expected to leverage about $25 million in private sector
    investment. The combined investment led to

    [[Page 128]]

    the preservation and/or creation of more than 5,600 jobs over the life
    of the projects. Of the EDA grant amounts, about $21.6 million supported
    63 ongoing Native American planning programs throughout the Nation. EDA
    anticipates awarding an additional $17 million in grants in 2001.
      USDA's loan and grant program activity to Native American communities
    and individuals increased from approximately $10 million in 1993 to
    approximately $95 million in 1999. Funds were provided through the Rural
    Housing Service, Rural Utilities Service, and the Rural Business and
    Cooperative Service. In 2001, additional funds are available for
    economic development through the $24 million appropriated to Tribes from
    USDA's Rural Community Advancement Program.

    [[Page 129]]

      In 1999, the Smithsonian Institution dedicated the site for the
    National Museum of the American Indian (NMAI) on the National Mall, in
    Washington, DC. The Administration worked closely with the Congress to
    secure both the authorization and the funding for this proposal. Located
    at the foot of Capitol Hill, the Museum will provide excellent exposure
    for Native American artifacts and related museum activities. The
    Smithsonian Institution also operates the George Gustav Heye Center of
    the NMAI at the U.S. Custom House in New York City, and the Cultural
    Resources Center in Suitland, Maryland.
      Since 1993, the Department of Transportation has constructed 2,100
    miles of roads, maintained 22,000 miles, and replaced or rehabilitated
    225 bridges under the Indian Reservation Roads Program (IRR). The
    Administration also worked to expand public transportation services for
    residents of Indian communities.
      HUD worked with the Congress to pass the Native American Housing
    Assistance and Self-Determination Act of 1996 (NAHASDA). The Act was an
    important affirmation of Tribal self-governance because it provided
    funding for housing directly to Indian Tribes and Alaska Native
    Villages. The legislation set up a housing block grant program that
    promotes both flexibility and accountability. The appropriation for the
    block grant increased by 24 percent between 1997 and 1998, the first
    year after NAHASDA's enactment. Annually, more than 500 Tribes received
    housing funds through the block grant.

      Other Basic Services: The Departments of Justice and the Interior
    worked together to address rising crime rates on Indian reservations.
    The agencies contributed $281 million in 1999, $336 million in 2000, and
    $372 million in 2001 toward Indian Country law enforcement. This funding
    was used to hire, train, and retain additional officers and dispatchers,
    provide additional equipment, replace high-mileage vehicles, construct
    detention and court facilities, and ensure improved law enforcement
    services and protection on or near Indian reservations.
      In October 1994, the Environmental Protection Agency established the
    American Indian Environmental Office to oversee the development and
    implementation of the EPA's Indian policy and programs. Funding for
    Tribal environmental issues and programs increased fivefold from 1993 to
    2001, from $38 million to $196 million. In 2001, Tribes received $53
    million in General Assistance Program Grants, supporting Tribal
    environmental program capacity building. In 1999, 270 Tribes were
    operating environmental programs, an increase from 90 Tribes in 1995.
      The Department of the Interior implemented several efforts to improve
    Indian trust fund management systems and procedures to ensure more
    timely and accurate information and revenue payments to more than
    350,000 Tribal and individual landowners.

    Regional Development Programs

       Federal efforts have been instrumental in shaping the economic
    development and prosperity of many U.S. regions through targeted
    assistance programs. Two areas in which longstanding efforts have been
    underway are the Tennessee Valley and the Appalachian Region. More
    recently, this Administration also has leveraged Federal resources to
    provide substantial financial and technical assistance to the District
    of Columbia and the Mississippi Delta Region, both of which have
    struggled with unique financial and economic problems.

      Tennessee Valley: The Tennessee Valley Authority (TVA) contributes to
    the economic prosperity of the seven-State Tennessee Valley region by
    supplying it with economical electric power and through its management
    of a complex river system, an integrated effort consisting of
    navigation, flood control, water supply, and recreation programs. TVA
    pays for its river management program through proceeds from the agency's
    $6.8 billion power program, user fees and sources other than
    appropriations. TVA's vision statement, Generating Prosperity in the
    Valley, established three clear goals for the agency: 1) supplying low-
    cost reliable power; 2) supporting a thriving river system; and, 3)
    stimulating economic growth.

    [[Page 130]]

      Highlights of TVA's accomplishments since 1993 include:
       Supporting the creation of thousands of jobs and billions of
              dollars of investments in the Valley's economy over the past
              decade as a result of TVA's stable power rates. TVA's 10-year
              financial plan adopted in 1997 is designed to ensure that
              TVA's price of power remains stable and competitive.
       Establishing a Regional Resource Stewardship Council in 1999
              a 20-member citizen's advisory body to provide input to
              improve TVA's management of the natural resources of the
              Tennessee Valley. TVA's Clean Water Initiative also has helped
              build partnerships with local residents, business and
              industry, and government agencies for watershed protection and
              improvement. TVA's Constructed Wetlands Initiative has helped
              to remove hazardous materials from water that must be returned
              to nearby streams and rivers.
       Expanding an existing manufacturing credit to industries and
              establishing an economic development loan fund to help launch
              new businesses, grow existing businesses, and stimulate
              economic growth throughout the region. TVA's $300 million
              annual payments to State and local governments in lieu of
              taxes provide additional benefits to the region.
      The energy programs of TVA are discussed in Chapter 5, ``Energy.''

      Appalachian Region: The Appalachian Regional Commission (ARC) targets
    its resources to highly distressed areas, focusing on critical
    development issues on a regional scale, and making strategic investments
    that leverage other Federal, State, local, and private participation and
    resources. These investments have paid off in this region, which
    historically lags behind the rest of the Nation in economic performance.
       Since 1993, ARC-supported activities throughout Appalachia have been
    responsible for:
       creating nearly 160,000 jobs;
       providing more than 185,000 households, and nearly 6,000
              businesses, with access to new or improved water, sewage, or
              waste management systems;
       providing educational and worker training programs to more
              than 415,000 students; and,
       placing nearly 1,200 physicians in health professional
              shortage areas.

      District of Columbia: In response to the District of Columbia's
    financial crisis in the early 1990's, this Administration worked with
    the Congress to establish the District of Columbia Financial
    Responsibility and Management Assistance Authority (the Control Board)
    to assist the District in regaining financial stability. In 1997, the
    comprehensive plan proposed by President Clinton to revitalize the
    District and allow for home rule was passed by the Congress as the
    National Capital Revitalization and Self-Government Act (the
    Revitalization Act). Through the Revitalization Act and other financial
    and management reform acts, this Administration succeeded in:
       providing more than $2 billion in savings to the District
              over the next five years;
       increasing the Federal match rate for Medicaid in the
              District from 50 to 70 percent;
       assuming responsibility for funding State justice functions,
              such as incarceration of adult felons, supervision of
              parolees, and financing of the D.C. Courts; and,
       relieving the District of $5 billion of unfunded pension
              liability that D.C. had inherited from the Federal Government
              in the late 1970s.
      In addition to securing passage of the Revitalization Act, this
    Administration:
       initiated further changes to the D.C. Medicaid formula,
              saving the District an addition $9 million per year;
       supported the Taxpayer Relief Act, which provided $1.2
              billion in tax relief over five years to District residents
              and businesses; and,
       proposed the College Access Act, which provides $17 million
              per year for D.C. high school students to attend out-of-State
              colleges at in-State tuition rates.
      ----------------------------------------------------------------------

                           Table 10-3.  Delta Regional Authority and Associated Agency Funding
                                       (Budget authority, in millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                 2001
                      Agency                   Enacted                                 Description
    ----------------------------------------------------------------------------------------------------------------
    Delta Regional Authority.................       20               The newly created Delta Regional Authority will
                                                                      use funds for area development and technical
                                                                      assistance.

    Department of Transportation.............      226               Funds will support a variety of highway
                                                                      infrastructure and transportation projects.

    Department of Health and Human Services..        7               Funds will support new Rural Health Outreach
                                                                      grants in the Delta, which will provide
                                                                      services like primary care, dental care,
                                                                      mental health services, and emergency care.

    Department of Agriculture................        6               Funds were provided for technical assistance
                                                                      grants and to finance intermediaries that re-
                                                                      lend to rural businesses and community
                                                                      development corporations.
    ----------------------------------------------------------------------------------------------------------------

      ----------------------------------------------------------------------

    [[Page 131]]

      Mississippi Delta Region: This Administration also has been committed
    to bringing economic prosperity to areas such as the Mississippi Delta
    Region, an area comprising some of the most distressed communities in
    the Nation. In the Delta region, poverty remains at 175 percent of the
    national average. Per capita income in the Delta's distressed counties
    is only 53 percent of the national average. In 2001, the Congress
    supported the President's request to create and fund the Delta Regional
    Authority (DRA) to promote economic development in the region. The DRA
    will provide a framework for coordinated Federal, State, and local
    government efforts to meet the development challenges in this region.
    The Congress also supported the President's request to boost funding in
    the region for transportation and other development-related activities
    (see Table 10-3 for the DRA and associated agency funding summary).

    Disaster Relief and Insurance

       The Federal Government provides financial help to cover a large share
    of the Nation's losses from natural disasters. Since 1993, the two major
    Federal disaster assistance programs--the Federal Emergency Management
    Agency's (FEMA) Disaster Relief Fund and the Small Business
    Administration's (SBA) Disaster Loan program have provided more than $32
    billion in emergency assistance. The Federal Government shares the costs
    with States for infrastructure rebuilding; makes disaster loans on
    uninsured losses to individuals and businesses; and provides grants for
    emergency needs and housing assistance, unemployment assistance, and
    crisis counseling.
       This Administration has shifted much of FEMA's focus to preventing
    disasters, an effort that has garnered nationwide support. Since 1993,
    FEMA has provided $2.3 billion to States and communities following
    disasters for hazard mitigation projects, efforts to reduce the costs of
    future disasters. Recent Stafford Act changes, enacted in 2000, will
    ensure that a higher percentage of the assistance provided following
    future disasters will be for hazard mitigation activities. In addition
    to these post disaster response activities, FEMA has worked to establish
    ``disaster resistant communities'' across the country. Participating
    communities assess their risks from earthquakes, floods, hurricanes and
    other disasters, and adopt prioritized mitigation plans.
       Communities participating in FEMA's flood insurance program, which
    provides the only source of affordable flood insurance to property
    owners, must mitigate future losses by adopting and enforcing floodplain
    management measures that protect lives and new construction from
    flooding. FEMA is also modernizing its inventory of flood plain maps and
    taking measures to mitigate properties experiencing repetitive flood
    damages.

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       The 1993 to 2001 accomplishments for FEMA include:
       Providing more than $22 billion in disaster relief and grants
              to families and individuals, as well as State and local
              governments, to help communities rebuild following natural
              disasters. While dispensing this assistance, the agency has
              revamped its programs, delivering disaster assistance much
              more quickly and effectively than in the past.
       Leading successful responses for the more than 350 disasters
              declared by the President during this Administration in
              partnership with SBA and other Federal agencies, as well as
              State and local emergency response agencies. FEMA assistance
              and leadership paid off in helping communities recover from
              the 1993 Midwest floods, the 1994 Northridge earthquake, the
              1995 Oklahoma City bombing and numerous hurricanes, tornadoes,
              and floods.
       Undertaking a nationwide initiative, Project Impact, to make
              communities aware of their disaster risks and more disaster
              resistant. Since the program was begun in 1997, FEMA has
              signed up nearly 250 communities and 1,500 business partners.
      Overseeing tremendous growth in the number of policies issued
              by the National Flood Insurance Program, which has grown from
              2.7 million to 4.2 million policyholders, with insurance
              coverage worth more than $500 billion.
       The 1993 to 2001 accomplishments for the SBA Disaster Loan Program
    include:
       Offering disaster loan assistance under 606 Presidential and
              SBA disaster declarations and 823 agriculture disaster
              declarations in the United States, its territories, and
              possessions. SBA has approved 386,000 disaster loans totaling
              more than $10.6 billion for homes, businesses, and nonprofit
              institutions.
       Reducing the paperwork burden for loan applicants and
              simplifying the loan application process. SBA also has speeded
              loan processing by introducing automated loan documentation
              and approval systems.