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WYDEN AMENDMENT PROTECTS
ECONOMIC DEVELOPMENT PROJECTS IN OREGON'S SMALL COMMUNITIES
Senator wins approval of legislation
to help rural and distressed communities where jobs, economic
growth are needed most
June 23, 2004
Washington,
DC – U.S.
Senator Ron Wyden (D-Ore.) today won approval of an amendment
to keep Oregon's distressed and rural communities from losing
economic development opportunities because of burdensome financial
requirements recently imposed by the U.S. Economic Development
Administration (EDA). Earlier this year EDA informed communities
that, beginning immediately, they would need to raise $22 in
private funds for every $1 they requested in government funds – a
significant increase in the "private sector leveraging goal" used
to determine which projects are funded. Wyden's amendment, approved
by the Senate Committee on Environment and Public Works, would
keep the EDA from blindsiding communities with such unreasonable
requirements again and requires the EDA Secretary to ensure that
rural and economically distressed areas are not adversely affected
by any private sector leveraging goal.
"The proposed EDA policy was a solution for a problem that
didn't exist, and would have hurt Oregon's rural and distressed
communities at a time when so many are working extremely hard
to lift themselves up," said Wyden. "Today's action
by the Committee will help assure that the EDA continues to act
as a partner, not an obstacle, in restoring Oregon's rural economy."
The Wyden amendment requires Congressional notification of any
changes in private sector leveraging goals. It also includes
important reporting requirements to allow Congress to monitor
the use of ratio goals in dispensing Federal development funds.
When EDA announced implementation of a 22:1 private sector leveraging
goal earlier this year, Wyden wrote to David Sampson, Assistant
Secretary of Commerce for Economic Development, to express his
concern. He outlined four EDA projects that had created or would
create 800 jobs in Oregon, but that would not have met the new
22:1 ratio imposed by the agency. Sampson subsequently agreed
to reduce the high ratio goal for private dollars.
The Wyden amendment is now part of legislation reauthorizing
the EDA, which is expected to be considered by the full Senate.
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