Printer
Friendly Version
SENATE APPROVES WYDEN AMENDMENT
TO PROTECT ECONOMIC DEVELOPMENT PROJECTS IN OREGON’S SMALL
COMMUNITIES
Legislation helps rural and distressed
communities where jobs,
economic growth are needed most
October 6, 2004
Washington, DC – U.S.
Senator Ron Wyden (D-Ore.) today announced Senate approval of
his 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). Wyden’s amendment was included in
the EDA reauthorization legislation passed by the Senate today.
Earlier this year EDA told 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 would keep
the EDA from blindsiding communities with such unreasonable requirements
in this way, and requires the EDA Secretary to ensure that rural
and economically distressed areas are not adversely affected by
any private sector leveraging goal.
“I am very pleased that
the Senate has acted to ensure that the EDA helps – not
hinders – Oregon’s rural communities, many of which
are hurting right now,” said Wyden. “This amendment
will help Oregon’s rural economy by keeping burdensome and
unreasonable financial requirements from being enacted while rural
Oregonians are working very hard to make ends meet.”
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 legislation reauthorizing
the EDA now moves to the House of Representatives for its consideration.
# # #