Commerce, Justice, Science Appropriations

Floor Speech

Commerce, Justice, Science Appropriations

ECONOMIC DEVELOPMENT ADMINISTRATION

Mr. BROWN. Madam President, I would like to engage my colleague, the Senator from New York, in a colloquy.

I would first like to take this opportunity to commend Senator Mikulski and Senator Shelby and their hard working staff for crafting a responsible, commonsense funding measure, the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2010.

I would like to highlight one piece of this bill, and that is the funding allocation for the Economic Development Administration. Madam President, the country is facing the highest unemployment rate we have seen in more than 20 years. There are too many hard-working Americans without a paycheck.

Mrs. GILLIBRAND. That is true in my State, as I know it is in the Senator's. Last week, the Labor Department reported 263,000 more jobs lost in September, leaving 15.1 million workers unemployed. The number of underemployed is even greater.

Funds for EDA are critical to our economic recovery, especially funds for Economic Adjustment Assistance, which is more flexible spending that enables EDA to respond quickly and forcefully to regions hit with an economic catastrophe.

Mr. BROWN. I agree with Senator Gillibrand that the Economic Adjustment Assistance account is critical for responding to sudden and severe economic hardship in a region. One proven strategy for economic development in these regions is business incubators.

In Ohio, there are more than 30 business incubators that help foster regional economic development and spur small business expansion. Recent studies show that business incubators are an effective public-private approach that produces new jobs at a low cost to the government.

Mrs. GILLIBRAND. Yes, I thank the Senator. In fact, a 2008 study conducted for the Economic Development Administration found that for every $10,000 in EDA funds invested in business incubators, an estimated 47-69 local jobs are generated. In rural areas, business incubator projects are the most effective type of EDA project.

The National Business Incubation Association, NBIA, estimates that in 2005 business incubators supported more than 27,000 start-up companies providing full-time employment to more than 100,000 workers--generating more than $17 billion in annual revenue.

NBIA also points to research showing that every dollar of Federal funds devoted to a business incubator generates approximately $30 in local tax revenue.

Mr. BROWN. I was proud to introduce with the Senator the Business Incubator Promotion Act last month, which defines the types of incubator services proven to be most effective, and targets Federal funds to the most economically distressed regions.

It is my understanding that the CJS appropriations legislation provides $200 million to EDA, with $90 million of that to Economic Adjustment Assistance. I would like to see an additional $20 million in this account to promote the revitalization of economically distressed communities and encourage the development of business incubators. This increase would mean jobs--for Ohio, New York, and for other States with high unemployment.

Mrs. GILLIBRAND. I understand the administration would also like to see these funds increased. In fact, in the Statement of Administration Policy issued for the CJS Appropriations measure, the administration urges Congress to provide increased funding to fully implement the administration's proposals to promote regional innovation clusters and create a business incubator network.

Mr. BROWN. I would like to join Senator Gillibrand in working with Senator Mikulski and Senator Shelby in boosting these funds. Now more than ever, Congress must give EDA the tools to help entrepreneurs drive the economic revitalization of towns, cities, and regions all across Ohio, New York, and the country. The CJS Appropriations is an important step, one upon which to build.

Again, I commend the work of Senator Mikulski and Senator Shelby and look forward to working with them to increase funding for EDA in conference.

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