Statement of Administration Policy: H.R. 2015 - Public Works and Economic Development Act

(House Rules)
(Savage (D) Illinois and 43 others)

If H.R. 2015 were presented to the President in its current form, the Secretary of Commerce and the Federal Co-chairman of the Appalachian Regional Commission (ARC) would recommend that the bill be disapproved.

H.R. 2015 is highly objectionable because it would authorize appropriations totaling $828 million during FYs 1991-1993 for the Economic Development Administration (EDA). The President's 1991 Budget proposes to terminate EDA. H.R. 2015 also authorizes appropriations totaling $555 million during FYs 1991-1993 for ARC, compared to the $155 million proposed by the Administration for those years.

EDA programs have been ineffective in stimulating economic development. Decisions to undertake economic development projects with only local benefits are more appropriately made and financed by private investors or State and local governments. The goals of EDA programs can be better met at the Federal level through the Administration's national policies of fostering economic expansion and job creation. In the case of highly distressed areas, incentives such as those in the Administration's Enterprise Zone proposal would be more effective than the EDA programs.

The Administration would not object to the enactment of H.R. 2015 if it were amended substantially to:

—  Delete the appropriations authorizations for EDA and retain only those provisions that would improve EDA program management in the event funds are appropriated for EDA.

—  Limit the appropriations authorizations for the ARC to $50 million in FY 1991, $52 million in 1992, and $53 million in 1993.