Economic Development Coalition Talking Points
Purpose: To convene and coordinate public and private stakeholders to advocate for bolstering federal funding and opportunities in programs that support and promote nationwide economic development.
The nature of a demanding global marketplace, trade imbalances, aging infrastructure, an expanding service sector and lack of federal and state monies are being felt in all corners of and regions within the United States, particularly in distressed localities. Central to our economic competitiveness is economic and community development through job expansion, bolstering commerce, advancing the quality of life of the nation’s communities, areas, or regions through investments in people, physical infrastructure, technology and training that create jobs, wealth, sustainable environments and the workforce necessary in the global marketplace.
The formation of an Economic Development Coalition involving public and private stakeholders would allow for a strong, unified voice to advocate pending legislation and policy initiatives in Congress and the Administration to improve economic development and workforce development through sustainable strategies. One such immediate legislative effort is the reauthorization of the Economic Development Administration (EDA).
Background: The EDA is the only federal agency focused solely on private sector job growth and sustainability and serves as a vital resource for distressed communities striving to improve their local economies through bottoms-up economic development strategies with infrastructure grants, strategic planning assistance, business development capital or technical assistance. EDA has created more than four million private sector jobs and leveraged in excess of $130 billion in private sector investments in distressed communities. In 2007 alone, EDA investments are expected to create 52,124 jobs at an average cost of $4,000 per job and every dollar in taxpayer money attracts $26 in private capital investment.
The current authorization of EDA (PL 108-373) is set to expire at the end of fiscal year 2008 (September 30, 2008).
Critical Issues for the next reauthorization include:
· Increase Funding and Flexibility for EDA’s Core Programs: Public Works and Economic Adjustment Assistance programs should remain the primary focus of EDA. Since FY2002, EDA Public Works funding has declined nearly 35 percent this translates into fewer jobs created and fewer private sector dollars leveraged.
· Increase Baseline Funding for EDD Programs and Initiatives: Raise the planning grant programs from $27 million to no less than $34.4 million and allow a $20,000 annual increase for all EDDs. The additional funding is needed to develop and carry out cutting-edge comprehensive strategies, retain highly qualified professional staff, and provide the advanced technical services needed within their regions by local governments and private sector partners.
· Provide Additional RLF Resources with Increased Local Flexibility: Increase the amount of resources for the revolving loan fund (RLF) intermediaries to support new business startup and expansions in distressed regions and increase local control and autonomy after initial RLF grant money has been loaned out, repaid and fully revolved.
Other Coalition Activities: Due to the changing nature and increasing global pressure on local economic and workforce development throughout the U.S., the Economic Development Coalition has an opportunity to carefully examine the issues facing our ability to compete economically in the coming years and focus Congressional and Administration efforts on removing the barriers to American economic competitiveness and develop economic goals and paths for the future. The following are possible steps for the Coalition to undertake:
– Determine top legislative priorities that will strengthen economic and workforce development – i.e. Workforce Investment Act reauthorization (WIA), Trade Adjustment Assistance reauthorization (TAA), etc.
– Set the 2008-2009 agenda for American economic and workforce development and competitiveness.
– Rejuvenate the efforts of Congressional Caucuses around economic development and workforce issues of 21st Century with a series of briefings: the House Economic Competitiveness Caucus and the Senate Economic Competitiveness Caucus.
– Promote the development of a national study either by the Congressional Research Service (CRS) or the Government Accountability Office (GAO) to examine the effectiveness of all Federal programs that provide economic and workforce development funding for communities and businesses, determining how these monies and programs can best be leveraged and innovatively implemented.
– Refocus the efforts of and work with Congress, as well as the National Economic Council, the Council of Economic Advisers, the Department of Commerce, the Department of Treasury, the Department of Labor, etc. on emerging trends, concerns and policy issues.