[Congressional Record Volume 144, Number 40 (Wednesday, April 1, 1998)]
[Extensions of Remarks]
[Page E542]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               THE EMPOWERMENT ZONE ENHACMENT ACT OF 1998

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                        Wednesday, April 1, 1998

  Mr. RANGEL. Mr. Speaker, today, we have the opportunity to take 
another step closer to a goal that is close to our hearts--renewing 
investments in our cities and communities. Working closely with the 
administration, the leadership of numerous Federal agencies, State and 
local governments, and community residents, I am introducing the 
Empowerment Zone Enhancement Act of 1998.
  The Empowerment Zone Enhancement Act expands on the successful 
empowerment zone (EZ) initiative we began in the Omnibus Budget 
Reconciliation Act (OBRA) of 1993. In 1993, OBRA created nine 
empowerment zone demonstration projects and 95 enterprise communities. 
In the 1997 Taxpayer Relief Act, we went one step further by 
authorizing the designation of 20 additional EZs and provided for tax 
incentives for these zones. However, the 1997 Act did not provide the 
flexible grant funding critical to assist distressed urban and rural 
communities develop and implement holistic revitalization programs. The 
bill I am introducing today would fulfill this major goal of the 
Empowerment Zone/Enterprise Community (EZ/EC) Initiative. Specifically, 
this bill provides for $1.7 billion in grant funds over a 10-year 
period, $1.5 billion for the urban zones and $0.2 billion for the rural 
zones. The funds are channeled through the Title XX social services 
block grant and are in addition to current Title XX resources.
  Despite the short existence of the EC/EZ Initiative, various elements 
for success have been identified. This initiative has not produced the 
intended benefits of creating economic opportunity, broad-based 
community partnerships and sustainable community development, but has 
also proven to be one in which local neighborhoods are encouraged to 
seek solutions to the problems of their community, rather than wait for 
Washington solutions.
  Leveraging public sector resources to enable private-sector community 
investment is a fiscally responsible means of promoting community 
development and prosperity. The Empowerment Zone Enhancement Act is the 
next logical step in permitting the private sector to actively 
participate in this process of developing and implementing solutions. 
It is important and appropriate that we continue this process of 
rebuilding our communities.

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