[Congressional Record Volume 147, Number 93 (Friday, June 29, 2001)]
[Extensions of Remarks]
[Pages E1251-E1253]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


   INTRODUCTION OF ECONOMIC DEVELOPMENT INITIATIVES FOR RURAL AMERICA

                                 ______
                                 

                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                        Thursday, June 28, 2001

  Mr. McHUGH. Mr. Speaker, as a life-long resident of Northern New 
York, I have watched the 24th Congressional District thrive as a 
bustling arena of agricultural production, aluminum processing, 
automobile parts fabrication, paper-making, tourism and textile 
manufacturing.
  Regrettably, in the last decade or so, the trends have been altered 
dramatically and the manufacturing sector--particularly in the 
Northeast--has diminished considerably. Furthermore, our small family 
farmers have seen a dramatic decline in the price they receive for 
their hard-earned production, forcing many of them to abandon their 
beloved way of life. The statistics, unfortunately, bear this out; 
earlier this month it was reported that Northern New York continues to 
have the State's highest unemployment rate. While the unadjusted 
statewide unemployment rate was 4 percent and the national rate was 4.1 
percent, the rate in the ten counties in my rural Northern and Central 
New York District ranged as high as 9.1 percent.
  Mr. Speaker, we are a proud and independent people who have long 
relied on our ingenuity and integrity to make our way through life. 
While we have accomplished much through our resourcefulness, there is 
more that can, and must, be achieved to return greater prosperity to 
what we call ``God's country.'' That is why I rise today to introduce a 
legislative package of rural economic development initiatives that I 
believe will create at least the initial incentives to bring new 
business and industry opportunities--and the attendant job creation--to 
our rural communities.
  First, the use of high-speed Internet access is no longer limited to 
the wealthy or so-called computer techies. It has fast become a 
mainstay of everyday life, particularly in the business world. 
Accordingly, the first measure I am introducing, the Rural America 
Digital Accessibility Act, contains four incentives to help bridge the 
digital divide in rural America.
  The technology bond initiative would provide a new type of tax 
incentive to help state and local governments invest in a 
telecommunications structure and partner with the private sector to 
expand broadband deployment in their communities, especially 
underserved rural areas. The broadband expansion grant initiative 
complements these bonds by utilizing grants and loan guarantees in 
underserved rural communities to accelerate private-sector deployment 
of high-speed connections so that our residents can access the Internet 
with a local, rather than a long-distance, phone call. The third 
initiative targets funding for research to increase rural America's 
broadband accessibility and make it more cost-effective.
  With six four-year universities and colleges and seven two-year 
colleges within my District's boundaries, it only makes good sense for 
us to tap the expertise of our nation's educators to assist in our 
endeavors. Accordingly, the fourth incentive will help small- and 
medium-sized businesses connect with educational institutions that can 
provide technological assistance designed to improve the business' 
productivity, enhance its competitiveness and promote economic growth.
  Second, to help our farm community, I am introducing the Agricultural 
Producers Marketing Assistance Act. This measure would establish 
Agricultural Innovation Centers on a demonstration basis and provide 
desperately-needed technical expertise to assist producers in forming 
producer-owned, value-added endeavors. It would also help level the 
financial playing field for producers by providing a tax credit for 
eligible farmers who participate in these activities. In this way, 
farmers and producer groups can earn more by reaching up the 
agricultural marketing chain to capture more of the profits their 
product generates.
  Lastly, but certainly not least, I am introducing the Rural America 
Job Assistance and Creation Act. This a comprehensive measure designed 
to address a host of issues that have been identified as problematic 
for residents and businesses in rural America.
  Because many small businesses lack the financial capacity to support 
the training of highskilled workers, this legislation establishes 
regional skills alliances to help identify needed skills and develop 
and implement effective training solutions. It also encourages 
cooperation between educational institutions and entrepreneurs who have 
innovative ideas but who cannot afford the legal and consultant fees 
necessary to convert their concepts into reality.

[[Page E1252]]

  Another incentive involves an expansion of the work opportunity tax 
credit to include small businesses located in, and individuals living 
in, communities experiencing population loss and low job growth rates 
such as those found in rural Northern and Central New York. 
Approximately 100 such communities would be designated, subsidizing 
some 8,000 jobs in each area.
  Mr. Speaker, when employees face layoffs or the shutdown of their 
place of employment, thereby losing some or all of their family income, 
the one thing that provides them some small sense of security is 
severance pay. While this is without a doubt a welcome helping hand in 
a time of need, unfortunately, the recipients often lose a third of 
their severance pay to taxes because they are pushed into a higher tax 
bracket. My legislation excludes from gross income up to $25,000 of any 
qualified severance payment, limited to payments of $150,000 or lower.
  When a company that employs 100 or more workers makes the decision 
that it can no longer stay in business or must reduce its workforce, 
the Worker Adjustment and Retraining Notification, or WARN, Act 
requires 60 days advance notice of a major layoff or plant closing. As 
part of the notification requirement, current law states that notice be 
served upon, among others, the applicable State dislocated worker unit 
and the chief elected official of the appropriate unit of local 
government. I believe we must expand the notification process to 
include, as well, the appropriate Federal- and State-elected officials, 
i.e., U.S. Representatives and Senators and State Legislators. The 
expansion included in my legislation serves two purposes: (1) to alert 
these officials to the situation and the impact it will have on workers 
and the community and (2) to provide these officials with the 
opportunity to assist in determining if State and/or Federal resources 
are available and can be utilized to prevent closure or layoffs and the 
loss of employment opportunities. As publicly-elected officials, we 
have access to many avenues that may lend assistance at this troubling 
and uncertain time.
  Mr. Speaker, my Congressional District borders the Canadian Provinces 
of Ontario and Quebec, and we consider Canadians to be not only our 
neighbors to the North, but our friends, as well. One valuable benefit 
of this association is the symbiotic relationship we have nurtured in 
the area of economic development and job creation. Unfortunately, the 
current immigration visa procedures for H-1 B professional speciality 
workers often complicate the employment related travel of Canadians to 
the United States and preclude what should be a seamless and 
unencumbered process. In September 2000, the General Accounting Office 
reported that Immigration and Naturalization Service decisions about 
the priority of H-1 B applications in comparison to other types of 
petitions handled by INS have resulted in delays of several months in 
processing employers' requests for H-1 B workers.
  Delays of this nature mean that businesses across the nation, but 
particularly in Northern New York, are placed at a disadvantage. In my 
border communities, workers oftentimes travel mere miles to cross the 
border to provide the skilled labor needed by American companies. In
  Another component of the package I am introducing will give statutory 
authority to the already-existing National Rural Development 
Partnership and State Rural Development Councils. The NRDP and its 
principal organizational component, the SRDCs, were established a 
decade ago to help rural community leaders, government policy makers, 
agency program administrators, rural development practitioners, and 
citizens address a long-standing problem--the lack of coordination in 
identifying rural community needs, planning solutions to meet those 
needs, and implementing those solutions. State Rural Development 
Councils currently exist in 40 States, including the State of New York. 
While neither the Partnership nor the Councils make policy and 
generally do not administer programs, the key to their success has 
always been collaboration--bringing together funds, knowledge and 
individuals to assist rural communities. They have helped generate 
local solutions to rural development needs and a specific authorization 
would help establish a dedicated and predictable funding source for 
their activities.
  Mr. Speaker, the U.S. travel and tourism industry is one of America's 
largest employers and my Congressional District is no exception to that 
statistic. Northern New York State contains some of the most scenic and 
environmentally-unique lands in the entire nation: The Adirondack 
Mountains, the St. Lawrence River Valley and Seaway, the Champlain 
Valley and the Thousand Islands region. Tourism is a critical component 
of our economy and is universally recognized as a significant 
contributor to the region's visibility, economic development, and 
overall quality of life. But the full potential of the industry remains 
untapped. Some of the factors that have limited the benefits to be 
realized from the tourism industry include the vastness of the region, 
the compartmentalization of its assets and resources and, perhaps most 
importantly, the lack of regular data upon which to base policy or 
marketing decisions.
  While considerable effort has been undertaken at the State and local 
levels to promote development and jobs for the region, as well as to 
market and promote the abundance of tourist related attractions and 
events, we continue to lack integration of current economic development 
efforts with the tourism potential of the region.
  It is for these reasons that I am proposing establishment of the 
Northern New York Travel and Tourism Research Center at the William C. 
Merwin Rural Services Institute at the State University of New York at 
Potsdam, New York. The Center would fill the critical deficiency we 
face and play a crucial role in the economic revitalization of Northern 
New York.
  The final element of my job creation and assistance legislation 
mandates the General Accounting Office to examine and report to 
Congress on how best to address the long-term problems resulting from a 
lack of infrastructure and a lack of venture capital in rural areas. 
The study will focus on the need for expanding existing economic 
development and small business loan/grant programs and will include 
tourism and agriculture-related projects. The study will help us better 
identify the problems that presently exist and evaluate how 
infrastructure, venture capital and federal programs can be better 
utilized to enhance rural areas.
  Mr. Speaker, during the nearly nine years I have been honored and 
privileged to represent the residents of Northern and Central New York 
in the U.S. House of Representatives, I have joined in a wide variety 
of efforts to help revitalize rural America--from tax relief for 
individuals and the business community, protection and enhancement of 
the environment and addressing our energy problems to preserving our 
health care system, promoting fair international trade and enhancing 
transportation opportunities.
  Most recently, since the start of the 107th Congress in January, I 
have spearheaded several efforts to help rural America and its 
citizens. I am involved in legislative initiatives that would assist 
our communities recover and develop property known as brownfields, and 
are designed to complement broader, more comprehensive brownfields 
legislation moving through Congress. The Brownfields Redevelopment 
Incentives Act provides direct federal funding, loans and loan 
guarantees, and tax incentives to increase the amount of support 
available to assess and clean pieces of abandoned, idled, or underused 
property where expansion, redevelopment, or reuse is complicated by 
environmental contamination or perceived contamination.
  I have also joined with several of my House colleagues from New York 
in introducing the Acid Rain Control Act. By reducing sulfur and 
nitrogen emissions, the measure would result in more than $60 billion 
in annual benefits by providing improvements to human health, 
visibility, aquatic and forest ecosystems, and buildings and cultural 
structures. At the same time, the EPA estimates costs associated with 
implementation of the Act to be about $5 billion. I think it is safe to 
say that this is the kind of cost-effective legislation we strive to 
achieve, with 12 times the benefits for the costs involved.
  A third initiative I introduced earlier this year, the Self-Employed 
Health Affordability Act, provides for the full deductibility of health 
insurance costs for the self-employed. Current law provides for 100 
percent deductibility in 2003, but we need to make the change 
immediately in order to bring relief to the many hard-working small 
business and farm families who must pay their own health insurance 
premiums. Coupled with estate tax reform, rate reductions and pension 
improvements, among other tax code changes recently enacted into law, 
this is another step toward helping our taxpayers keep more of their 
hard-earned money and decide for themselves how it should be spent.
  Mr. Speaker, as I stated earlier, my constituents are proud and 
resourceful. They, too, have continued to take the initiative to help 
themselves and their communities develop the tools necessary to fulfill 
our mutual goals.
  The economic development package I am introducing today is simply one 
more step, albeit of a more comprehensive nature, that I

[[Page E1253]]

am taking in a long line of legislative initiatives designed to assist 
our communities manage the wide-ranging challenges faced by rural 
America in the 21st century.

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