[Congressional Record Volume 144, Number 111 (Friday, August 7, 1998)]
[Extensions of Remarks]
[Pages E1572-E1573]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, AND JUDICIARY, AND RELATED 
                   AGENCIES APPROPRIATIONS ACT, 1999

                                 ______
                                 

                               speech of

                        HON. ELIJAH E. CUMMINGS

                              of maryland

                    in the house of representatives

                       Wednesday, August 5, 1998

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 4276) making 
     appropriations for the Departments of Commerce, Justice, and 
     State, the Judiciary, and related agencies for the fiscal 
     year ending September 30, 1999, and for other purposes

  Mr. CUMMINGS. Mr. Chairman, I rise today in opposition to the 
Commerce-Justice-State Appropriations bill.
  There are many reasons for my opposition to this bill.
  First and foremost, is the atrocity of this body's inability to pass 
the Mollohan amendment to restore full funding for a fair and accurate 
census.
  At this time, however, I would like to address a matter which has not 
been discussed on the floor: The dramatic reduction in funding in the 
bill for the Small Business Administration.
  The bill reduces funding for the Small Business Administration's 
regular operating expenses by 27 percent, or $75 million less than the 
President's request.
  The Committee directs that reductions should come from ``overhead'' 
functions and primarily headquarters staff.
  According to the SBA, this reduction ``would literally shut down the 
Agency.''
  The cut is so extreme that, if enacted, it would result in the 
elimination of more than 1,200 Federal employees, or 40 percent of 
SBA's workforce.
  But the situation gets worse!
  The Committee Report language on the funding cuts prohibits staff 
reductions from SBA district offices.
  However, of the approximately 3,000 Federal employees of the SBA, 
2,000 are located in district offices.
  In other words, even if the SBA eliminated every employee in its DC 
headquarters, it would still not generate the savings required under 
the legislation!
  Thus, whether intended or not, this appropriations bill will de-fund 
the SBA.
  Mr. Speaker, the many programs operated by the SBA are critical to 
the people of my district and I am sure, to those of every Member of 
this Congress.
  The SBA helps to ensure that America's small business opportunities 
are available to the majority of Americans.
  America's 22 million small businesses employ more than 50 percent of 
the private work force, generate more than half of the nation's gross 
domestic product, and are the principal source of new jobs.
  In Maryland, SBA programs to encourage the establishment and growth 
of small businesses have proven invaluable:
  In 1997, through its 7(a) program, the SBA made over 750 loans to 
Maryland small businesses, totaling over $145,000.
  The SBA's Small Business Investment Company program financed over $19 
million for Maryland small businesses in 1997, and
  The SBA microloan program in Maryland financed over $190,000 for 
African American small businesses and $160,000 to 100% women-owned 
small businesses in 1997.
  I hope that the Appropriations Committee did not actually intend to 
de-fund this vital agency and that this funding situation will be 
addressed in conference committee.
  In addition to my concerns regarding the general operating budget, I 
am deeply troubled by the low funding levels for several key SBA 
programs.
  Two of these programs, the National Women's Business Council and the 
Women's Development Projects, have been addressed by my colleagues 
Representatives Millender-McDonald and Sanders in two amendments which 
receive my full support. I thank my colleagues for their efforts.
  However, there are at least two additional programs that were under-
funded in this bill that are of particular concern to me and my 
constituents:
  The 7(j) Minority Enterprise Development program, for which the 
President requested $9.5 million, was provided just $2.6 million; and
  The HUB Zone program, enacted last year, for which the President 
requested $4 million, was provided only $2 million.
  Just two weeks ago in Baltimore, Aida Alvarez, Administrator of the 
SBA, signed an agreement with the Maryland Minority Contractors 
Association reaffirming SBA's commitment to double the number of SBA-
guaranteed loans to African Americans.
  Alvarez joined Allan Stephenson, Baltimore SBA District Director, and 
Arnold Jolivet, President of the Maryland Minority Contractors 
Association in Baltimore, in the signing of a partnership agreement 
between the two groups.
  The agreement represents each organization's commitment to work 
together to increase the participation of Maryland's minority 
contractors in SBA's financial and technical assistance programs.
  I ask my colleagues, what purpose does it serve for SBA to promise to 
work more closely with the people of my district if there is no money 
in the programs for which my constituents apply?

[[Page E1573]]

  Additionally, Baltimore is the home of dozens of HUB Zones or 
``Historically Under-utilized Business Zones.''
  The HUB Zone Empowerment Contracting Program was enacted into law as 
part of the Small Business Reauthorization Act of 1997.
  The program encourages economic development in distressed communities 
through establishment of preferences for award of Federal contracts to 
small businesses located in these areas.
  Such a program has immense potential to aid the residents of my 
district--both business owners and the employees they hire.
  I would hate to think that after my colleagues demonstrated their 
wisdom in enacting the HUB Zone legislation, that just one year later 
they would provide inadequate funding to fully enact the program.
  My constituents contact my office daily to learn of SBA programs that 
can assist them in their attempts to gain financial self-sufficiency 
and independence.
  I urge the conference committee to fully fund both the Minority 
Enterprise Development and the HUB Zone Programs.
  Mr. Speaker, I am not sure what the Republican majority meant to 
accomplish when it so dramatically under-funded the SBA and restricted 
those funds in a manner that would cause the elimination of virtually 
the entire SBA headquarters' staff.
  I therefore urge the members of the conference committee to act with 
a clear head and a clear conscience when they consider restoring full 
funding to the SBA.

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