[Congressional Record Volume 148, Number 88 (Thursday, June 27, 2002)]
[Senate]
[Page S6253]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CORZINE (for himself, Mr Torricelli, Mr. Durbin, and Mr. 
        Nelson of Florida):
  S. 2692. A bill to provide additional funding for the second round of 
empowerment zones and enterprise communities; to the Committee on 
Finance.
  Mr. CORZINE. Mr. President, today I am introducing legislation, ``The 
Round II Empowerment Zone/Enterprise Community, EZ/EC, Flexibility Act 
of 2002,'' to provide funding for the Round II Enterprise Zone/
Enterprise Community program. I want to thank and acknowledge Senators 
Torricelli, Durbin and Nelson of Florida for their cosponsorship of 
this bill.
  This legislation would encourage economic development throughout the 
EZ/EC program, particularly to the 15 Round II urban and 5 rural 
empowerment zones that were designated in 1999. Each of those 
communities has put together strong strategic initiatives to promote 
economic growth.
  The legislation would help ensure that these Round II communities 
will be provided with the funding they have been promised. The bill 
also would authorize the use of EZ/EC grants as a match for other 
relevant Federal programs. This would provide the EZ/EC program with 
maximum flexibility to implement initiatives at the local level.
  The Enterprise Zone/Enterprise Community program was created to 
provide Federal assistance over ten years in designated urban and rural 
communities that would fuel economic revitalization and job growth. The 
program does so primarily by providing federal grants to communities 
and tax and regulatory relief to help communities attract and retain 
businesses.
  Unfortunately, an inequity now exists between the way Round I and 
Round II EZs and ECs have been funded. Those communities that won EZ 
designations in the initial round, in 1994, received full funding from 
the Congress, which made all grant awards available for use within the 
first two years of designation. However, EZs and ECs designated in 
Round II did not receive this same funding authority.
  Federal benefits promised to the Round IIs included funding grants of 
$100 million for each urban zone, $40 million for each rural zone and 
about $3 million for each Enterprise Community over a ten-year period 
beginning in 1999. In reliance on those ``promised'' funds, Round II 
zones prepared strategic plans for economic revitalization based on the 
availability of that funding. However, unlike Round I designees, who 
received a full funding up front, Round II zones have received a mere 
fraction of the funding promise.
  The lack of a certain, predictable funding stream will ultimately 
undermine the ability of Round II EZs/ECs to effectively implement 
their economic growth strategies in their designated communities. And 
that's a shame, because the EZ/EC initiative has produced real results.
  In fact, I'm proud to say that one of the best Round II EZs is 
located in Cumberland County, NJ. The Cumberland County Empowerment 
Zone, a collaborative effort of the communities of Bridgeton, 
Millville, Vineland and Port Norris, has been a model EZ, and committed 
all the funds made available to it by HUD.
  Since the creation of the EZ, Cumberland County has witnessed more 
than 100 housing units rehabbed, renovated or newly built. A $4 million 
loan pool has been created to fund community and small business 
reinvestment. The EZ also has led to the funding for over 60 economic 
development initiatives, utilizing more than $11 million in funding to 
leverage $120 million in private, public and tax exempt bond financing.
  These, are real results. And if the Federal commitment to the EZ 
continues, over 1,100 new jobs will be created in the County over the 
next year and a half alone.
  Cumberland County is just one example of how the EZ/EC initiative has 
brought hope and promise to communities throughout America. We need to 
do more to support and build on these initiatives. Now is the time for 
Congress to fulfill the promise made to Round II EZs and ECs.
  I urge my colleagues to cosponsor this legislation, and hope the 
Senate will expedite its consideration.
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