[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]


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                 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,

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   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

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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.

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  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.
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