[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
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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
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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,
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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.
[[Page 132]]
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.