[Congressional Record Volume 145, Number 82 (Thursday, June 10, 1999)]
[Extensions of Remarks]
[Page E1219]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF THE EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES 
                        ENHANCEMENT ACT OF 1999

                                 ______
                                 

                         HON. CHARLES B. RANGEL

                              of new york

                    in the house of representatives

                        Thursday, June 10, 1999

  Mr. RANGEL. Mr. Speaker, I rise today to introduce bipartisan 
legislation to revitalize low-income communities throughout our Nation. 
The bill would provide grant funding for the communities recently 
designated as Round II Empowerment Zones, Enterprise Communities and 
Strategic Planning Communities. In combination with various tax 
incentives, this direct funding will help stimulate job growth and 
economic revitalization in inner-city, rural, and Native American 
communities that have yet to benefit from our Nation's growing economy.
  As the result of a bipartisan collaboration between myself and Jack 
Kemp in 1993, Congress created nine Empowerment Zones (6 urban/3 rural) 
and 94 Enterprise Communities (65 urban/29 rural), which provided 
several tax incentives for businesses to invest and locate in 
economically depressed inner-city and rural areas. OBRA 1993 also 
provided these same communities with approximately $1 billion in direct 
Social Services Block Grant funds, which are being used to address 
particular barriers to increased employment and economic development, 
such as shortages in job training, child care, housing, and 
transportation. By 1997, the Round I EZs and ECs used their grant funds 
and tax incentives to create nearly 20,000 new jobs for people who 
previously had little or no economic opportunity.
  A second round of 20 Empowerment Zones (EZs) was authorized by the 
Taxpayer Relief Act of 1997 to build on the success of the original 9 
EZs. However, unlike the original EZs, Round II Zones have not yet been 
provided with Social Services Block Grant funding.
  To provide Round II designations with the same advantages as the 
original EZs, the Empowerment Zone Enhancement Act would provide $97 
million over 9 years for each urban Empowerment Zone, and $38 million 
over 9 years for each rural Empowerment Zone. In addition, the bill 
would provide one-time allocations for other needy rural and urban 
areas: $3 million in FY 2000 for each of the 20 new Rural Enterprise 
Communities and $3 million in FY 2000 for each of the 15 urban 
Strategic Planning Communities. Along with the tax incentives and 
bonding authority already approved by the last Congress, this new grant 
funding is expected to help create and retain about 90,000 new jobs and 
stimulate $20.3 billion in private and public investment over the next 
ten years.
  Mr. Speaker, the Empowerment Zone concept, which emphasizes business 
development and community renewal, is a clear success story. In my home 
town of Harlem, I have witnessed first hand the ability of Empowerment 
Zones to help renew investment and economic development. Other regions 
of the country are waiting for a similar economic revival. I therefore 
strongly urge my colleagues to join me in this effort to provide 
increased economic opportunity for more Americans.

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