[Congressional Record Volume 146, Number 73 (Tuesday, June 13, 2000)]
[Extensions of Remarks]
[Page E990]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REGARDING THE SMALL BUSINESS SUBCOMMITTEE HEARING ON EMPOWERMENT ZONES

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                          HON. DAVID D. PHELPS

                              of illinois

                    in the house of representatives

                         Tuesday, June 13, 2000

  Mr. PHELPS. Mr. Speaker, I rise today in support of Empowerment 
Zones, and strongly encourage my colleagues to support this worthwhile 
program. Recently, the Small Business Subcommittee on Rural 
Enterprises, Business Opportunities and Special Small Business 
Problems, of which I am a member, held a hearing to discuss the 
benefits of Empowerment Zones and the need to authorize funding for 
Round II EZs.
  The EZ and Enterprise Communities (EC) program, target federal grants 
to distressed urban and rural communities for social services and 
community redevelopment, and provide tax and regulatory relief intended 
to attract and retain businesses in these areas. The enacting 
legislation designated 104 communities as either EZs or ECs. As a part 
of this program, each urban and rural EZ receives $100 million and $40 
million, respectively, in flexible Social Service Block Grant (SSBG) 
funds. In addition, qualifying EZ employers are entitled to a 20% 
credit on the first $15,000 of wages paid to certain qualified zone 
employees.
  The district I represent in Southern Illinois is home to the 
Southernmost Illinois Delta Empowerment Zone (SIDEZ). SIDEZ, is one of 
only eight rural empowerment zones in the United States, and provides a 
much needed economic boost to Southern Illinois. Currently, SIDEZ is 
working on community and economic development in seven areas. Those 
seven goals are, Infrastructure, Economic Development, Tourism 
Development, Stronger Unity/Sense of Community, Life-long Learning and 
Education, Housing and Health Care.
  The enactment of EZ/EC legislation brought about an innovative, 10-
year program to reduce urban and rural poverty and distress. I have 
seen how effective and well utilized these programs have been and I 
urge my colleagues to support full funding of current and future 
Empowerment Zones.

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