[Congressional Record (Bound Edition), Volume 151 (2005), Part 4]
[Extensions of Remarks]
[Pages 5408-5409]
[From the U.S. Government Publishing Office, www.gpo.gov]




  INTRODUCING THE REGIONAL ECONOMIC AND INFRASTRUCTURE DEVELOPMENT ACT

                                 ______
                                 

                         HON. JAMES L. OBERSTAR

                              of minnesota

                    in the house of representatives

                       Wednesday, March 16, 2005

  Mr. OBERSTAR. Mr. Speaker, today Congresswoman Norton and I have 
introduced the ``Regional Economic and Infrastructure Development 
Act''. A detailed summary of the bill's provisions is attached.
  The bill organizes four regional commissions under a common 
framework, thereby providing a more uniform method for distributing 
economic development funds throughout the regions most in need of such 
assistance. It reauthorizes the Delta Regional Authority and the 
Northern Great Plains Regional Authority and creates two new regional 
commissions: the Southeast Crescent Regional Commission and the 
Southwest Border Regional Commission. Both of these latter commissions 
have been proposed in legislation introduced in the previous Congress 
and are designed to address problems of systemic poverty and chronic 
underdevelopment in those regions. Every county or parish that is 
currently included in a commission through enacted or proposed 
legislation is similarly included in that same commission under this 
bill. While the bill follows the successful organizational model of the 
Appalachian Regional Commission (ARC), it does not include the ARC or 
the Denali Commission (a wholly intrastate commission) in its 
framework.
  Regional commissions provide vital assistance to the development of 
the Nation's most chronically poor and distressed regions. They are 
true federal-state partnerships, bringing together federal, state, and 
local governments to expand the economic and development opportunities 
of a chronically distressed region. These regions typically experience 
rates of poverty and unemployment that are more than 150 percent of the 
national average. Further, some of these areas lack the transportation 
and basic public infrastructure necessary to support business 
development, and importantly, create jobs in the region.
  The regional commissions are designed to assist areas in overcoming 
chronic economic distress by focusing on the distressed region as a 
whole. By recognizing that systemic economic distress follows 
geographic and natural resource realities, rather than arbitrary state 
or political subdivision borders, the commissions are able to 
concentrate their efforts over the entire region--regardless of state 
lines. One way that federally designated regional commissions work 
within the region to overcome the effects of chronic underdevelopment 
is through investment in infrastructure, including transportation, 
telecommunications, and other basic public infrastructure. The 
commissions also assist the region in obtaining job skills training, 
entrepreneurship, technology, and business development. Through these 
efforts, commissions work to improve the economic development of these 
systemically distressed regions.
  Regional commissions also supplement the state share of other federal 
programs to ensure that areas that do not even have the economic means 
of meeting a required state or local funding share are not denied the 
opportunity to participate in these programs. Regional commissions 
assist in local development planning by helping provide local 
development districts with the resources and expertise necessary to 
formulate and follow a comprehensive, strategic regional development 
plan. Often it is the local development planning that is the key for 
the successful implementation of economic and infrastructure 
development programs.
  The Regional and Economic Infrastructure Development Act is modeled 
after the statute authorizing the ARC. The ARC has demonstrated that 
regional commissions are successful in fighting chronic 
underdevelopment and poverty. Since the ARC's creation in 1965, 
employment in the thirteen-state region has grown by nearly 66 percent. 
In contrast, in the decade preceding its creation, employment in the 
region had declined by 1.5 percent. Further, the poverty rate of the 
region has been cut by more than one half--from 31.1 percent in 1960 to 
13.6 percent in 2000.
  As the Nation continues to suffer through a weakened economy, the 
need for these commissions becomes even more important. In February 
2005, the national unemployment rate reached 5.4 percent. Further, 
since January 2001, the number of people unemployed increased from 6 
million to 8 million--an increase of 2 million people, or 33 percent. 
Moreover, workers who have lost their jobs are having more trouble 
finding new jobs. The average length of unemployment is now almost 20 
weeks, and more than one in five unemployed workers have been out of 
work for more than six months.
  As the economy continues to struggle, it is these historically 
depressed regions--the regions that have already been struggling--that 
suffer a disproportionate share of the burden. Now, perhaps more than 
ever, there is a greater need for these regional commissions. This bill 
recognizes the importance of the regional commissions to these 
chronically distressed areas. The bill strengthens the commissions by 
establishing a uniform organizational structure, under which an 
affirmative vote of a commission requires a majority of state members 
plus the affirmative vote of the federal cochairperson. With this 
voting structure, the bill ensures that the federal and state roles in 
a commission are equal and interdependent, thereby promoting a true 
federal-state partnership.
  In addition, the bill establishes a coordinating council for the 
regional commissions consisting of representatives from all the 
commissions, including the Appalachian Regional Commission and the 
Denali Commission. The coordinating council is directed to meet 
biannually to discuss issues facing regions that suffer chronic 
distress and successful strategies for promoting regional development. 
While the council will assist the commissions in promoting regional 
development, it has no decision-making authority over any of the 
commissions.
  Finally, the bill authorizes sufficient funds for each commission so 
that a commission will have the means available to fulfill its mission 
of promoting economic and infrastructure development. The bill 
authorizes $30 million for each commission in fiscal year 2006 (the 
amount currently authorized for the Delta and Northern Great Plains 
Regional Authorities) and increases that authorization by $5 million 
for each successive year through fiscal year 2010.
  Frankly, I am concerned about this Administration's lack of funding 
for existing regional commissions and lack of interest in promoting 
economic development programs that create jobs and improve communities. 
In its fiscal year 2006 budget proposal, the Administration proposes $6 
million for the Delta Regional Authority and only $1 million for the 
Northern Great Plains Regional Authority. Further, the Administration's 
budget proposes to dismantle 18 different economic development programs 
and instead ``consolidate'' these programs into a formula-based program 
housed in the Department of Commerce. Presently these 18 programs 
include funding for grants and other economic development activities 
that total $5.5 billion. The new program will be funded at $3.7 
billion--a reduction of nearly $2 billion in economic development 
program funds!
  It is time that we affirm our commitment to regional economic 
development by authorizing these commissions and providing the funding 
necessary from them to break the cycle of chronic distress in these 
regions. I believe this bill will help us do that.

  Summary of the Regional Economic and Infrastructure Development Act

       The Regional Economic and Infrastructure Development Act 
     organizes four regional commissions under a common framework, 
     thereby providing a more uniform method for distributing 
     economic assistance throughout the regions most in need of 
     such assistance. It reauthorizes the Delta Regional Authority 
     and the Northern Great Plains Regional Authority and creates 
     two new regional commissions: the Southeast Crescent and the 
     Southwest Border Regional Commission. Both of these latter 
     commissions have been proposed in legislation introduced in 
     the previous Congress and are designed to address problems of 
     systemic poverty and chronic underdevelopment in those 
     regions. Every county or parish that is currently included in 
     a commission through enacted or proposed legislation is 
     similarly included in that same commission under this bill. 
     While the bill follows the successful organizational model of 
     the Appalachian Regional Commission (ARC), it does not 
     include the ARC or the Denali Commission (a wholly intrastate 
     commission) in its framework.


                                purpose

       To organize the regional commissions in the lower 48 states 
     (with the exception of the Appalachian Regional Commission) 
     under a common framework, providing a more uniform 
     organization structure among the commissions and a more 
     uniform method for distributing economic assistance 
     throughout the country.


                              commissions

       The bill reauthorizes the Delta Regional Commission and the 
     Northern Great Plains Regional Commission, and creates the 
     Southeast Crescent Regional Commission and the Southwest 
     Border Regional Commission. The Delta Regional Commission and 
     the Northern Great Plains Regional Commission are composed of 
     the same states, counties, and parishes included in the 
     existing

[[Page 5409]]

     Delta Regional Authority and Northern Great Plains Regional 
     Authority. The Southeast Crescent Regional Commission and the 
     Southwest Border Regional Commission are composed of the same 
     states and counties proposed in legislation introduced in the 
     108th Congress to create a Southeast Crescent Regional 
     Authority and a Southwest Border Regional Commission.
       Each commission is authorized to receive appropriations of 
     $30 million for fiscal year 2006; $35 million for fiscal year 
     2007; $40 million for fiscal year 2008; $45 million for 
     fiscal year 2009; and $50 million for fiscal year 2010.
       Currently, some counties qualify for membership in more 
     than one regional commission. The bill does not change that. 
     However, the bill provides that an individual county may only 
     receive economic assistance from one regional commission. 
     Therefore, if a county is eligible for membership in more 
     than one commission, it must select one commission in which 
     it would like to participate and be eligible to receive 
     funds. A county or parish can change its selection 90 days 
     before the start of the fiscal year.
       The Denali Commission and the Appalachian Regional 
     Commission are not included in this statute.


                              Composition

       Each commission includes a Federal cochairperson and a 
     state cochairperson, who is selected from among the state 
     members. Like current law, the Northern Great Plains 
     Commission also includes a tribal cochairperson.
       An affirmative vote of a commission requires an affirmative 
     vote of the federal cochairperson plus a majority of state 
     members.
       Like the current laws authorizing regional commissions, the 
     bill sets forth provisions for the salaries of commission 
     members, the appointment of alternatives, and the hiring of 
     additional staff, including an Executive Director.
       The bill establishes a coordinating council for the 
     regional commissions consisting of representatives from all 
     the commissions, including the Appalachian Regional 
     Commission and the Denali Commission. The coordinating 
     council is directed to meet biannually to discuss issues 
     facing regions that suffer chronic distress and successful 
     strategies for promoting regional development. The council 
     has no decision-making authority.
       Also like current law, each state must develop a 
     comprehensive economic development plan and each commission 
     must develop an economic and infrastructure development plan.
       Commissions are required to designate distressed, 
     transitional and attainment counties, and isolated areas of 
     distress within attainment counties, within their region and 
     must allocate at least 50 percent of the appropriations made 
     available to the commission to projects in distressed 
     counties and isolated areas of distress.


               Economic and Community Development Grants

       Commissions have the authority to make grants to State and 
     local governments, and public and nonprofit organizations, 
     for economic development projects, with an emphasis on 
     infrastructure projects, including transportation, basic 
     public, and telecommunications infrastructure projects.
       The bill provides for a commission share of 50 percent of 
     the costs of projects; that percentage increases to up to 80 
     percent for distressed counties. These shares are increased 
     by 10 percent (to 60 percent and 90 percent, respectively) 
     for those projects that have a significant regional impact, 
     including projects that involve 3 or more counties or more 
     than one State.
       Commissions have the authority to make grants to local 
     development districts to assist in the payment of the 
     administration of the district. The commission of these 
     grants is limited to 80 percent of the administrative 
     expenses of the local development district receiving the 
     grant.
       Commissions have the authority to supplement part of the 
     basic Federal contribution to projects authorized under other 
     Federal grant programs and to increase the Federal 
     contribution above the fixed maximum part of the cost. The 
     federal share is the same for projects (50 percent and 80 
     percent for distressed counties, with a 10 percent bonus for 
     regional projects), with the stipulation that the total 
     federal contribution cannot exceed 80 percent.

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