[Congressional Record Volume 152, Number 135 (Friday, December 8, 2006)]
[Senate]
[Page S11741]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. SNOWE (for herself and Ms. Collins):
  S. 26. A bill to establish the Northern Appalachian Economic 
Development Commission, and for other purposes; to the Committee on 
Environment and Public Works.
  Ms. SNOWE. Mr. President, today I am introducing the Northern 
Appalachian Economic Development Commission Act of 2006 with Senator 
Collins because the people of the Northern Forest region have not 
shared in the economic prosperity of many parts of the rest of the 
United States. The bill establishes a Federal-State partnership 
commission for the purpose of promoting economic development in the 
communities in the northern forest area of Maine, New Hampshire, New 
York and Vermont through the development of public policy tools and 
grants designed to build local capacity.
  The legislation calls for a collaborative regional effort to achieve 
real progress to enhance not only the forest products industry to 
preserve the traditional industries of the region, but to catalyze new 
rural economic and small development and job growth, and slow out-
migration.
  Today, small businesses are fueling the economic growth of the 
Nation, producing over 50 percent of the gross domestic product and 
creating three-fourths of all new jobs. Entrepreneurship is a critical 
element in the establishment of self-sustaining communities that create 
jobs and contribute broadly to economic and community development. The 
bill authorizes appropriations of $40 million for economic development 
grants for fiscal years 2008-2012 that will support existing 
entrepreneur and small business development programs and projects and 
support projects for small business innovation research. Funding will 
also assist the region in obtaining job training, employment-related 
education and business development and assist in community development. 
Assistance will be provided to severely distressed and underdeveloped 
while maintaining the integrity of the region's resources.
  Many residents of the Northeast region live below the poverty level, 
in areas of significantly higher than average unemployment rates, with 
limited access to capital, and with low per capita personal income. 
Maine's economy has long been based on the bounty of its natural 
resources--fishing, farming, forestry, and tourism. The very nature of 
these industries has meant that a significant portion of employment 
opportunities are seasonal and overall earnings lag behind national 
averages. Currently, Maine leads the country with the fastest growing 
poverty rate, tied with Arkansas and Mississippi. As a matter of fact, 
in 2005, according to the Federal Reserve Bank of Boston, Maine was the 
only State other than Louisiana that experienced a decline in economic 
activity. The entire northern forest region shares many of these common 
challenges, and as a result, local and State economic development 
leaders have been receptive to considering other means to create jobs.
  Currently, there are several independent entities focused on regional 
economic development, such as the Appalachian Regional Commission, the 
Denali Commission, the Delta Regional Authority, and the Northern Great 
Plains Regional Authority. However, there is currently no single 
regional economic development entity focused on the needs of the far 
Northeast region. Our Northern Appalachian Economic Development 
Commission is expected to complement existing efforts, and I plan to 
pursue these efforts in the 2007 Farm bill.
  The Appalachian Regional Commission--ARC--developed in 1965 has 
proven to be a success and has help transform a region once solely 
dependent on mining, agriculture and heavy industry to one more reliant 
on the service and retail industries. Since its creation, the ARC has 
reduced the number of distressed counties from 219 to 100. It has cut 
the poverty rate from 31 percent to 15 percent and has helped 1,400 
businesses create 26,000 new jobs since 1977. This is the type of 
assistance that could also be very effective in Northern Appalachian 
area.
  I look forward to fostering the rich potential of the northern forest 
States of Maine, New Hampshire, Vermont and New York, with its 
abundance of natural resources and entrepreneurship, and hard working 
people through the Northern Appalachian Economic Development Commission 
to obtain vigorous self-sustaining growth throughout the region.
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