Testimony of Ella Wong-Rusinko
Nominee to the Position of Alternate Federal Co-Chair Appalachian Regional Commission
before the Senate Environment and Public Works Committee
June 13, 2000 9:30 a.m. 406
Dirksen Senate Office
Building Washington, DC 20510

Mr. Chairman, Senators Baucus, Warner and Hutchison, distinguished Members of the Committee and Committee staff, I am honored to be afforded the opportunity to appear before you as President Clinton's nominee to the position of Alternate Federal Co-Chair of the Appalachian Regional Commission (ARC). I thank the President for this nomination and for the professional opportunity of serving for seven years as an appointee at the Economic Development Administration (EDA), one of nine bureaus within the U. S. Department of Commerce.

Mr. Chairman, I am grateful for this hearing and for the many courtesies which Committee Members and staff have extended to me in my current federal position. In particular, I am grateful for the bipartisan collaboration that produced Public Law 105-393, The Economic Development Administration Reform Act of 1998 historic reauthorization legislation accomplished by this Committee and the leadership of Senators Max Baucus and Olympia Snowe, original sponsor and co-sponsor of the legislation. Senators Warner and Baucus please accept my gratitude and sincere appreciation for your support of my nomination. I would also like to thank House of Representatives Members who supported my efforts to secure this nomination The Honorable Jim Oberstar of Minnesota, The Honorable Bob Wise of West Virginia, and The Honorable Martin Frost of Texas.

Dr. Jesse White, Federal Co-Chairman of the Appalachian Regional Commission, is with us at this hearing. I thank you, Dr. White, for your support of my nomination and for your collaboration, guidance and leadership. I look forward to having the opportunity of working with you and the ARC staff on behalf of the Appalachian Region.

First, I am here because of the unique and special support provided to me by my family my husband, Paul Stephen Rusinko; my two sons, Christopher Paul and David Elliott; my parents Ella Guadalupe and Pete Wong; my sister, Rose Mary, and brothers, William and Jesse and their families; my aunt, Finora Fuu; my parents-in-law, Paul and Ester Rusinko; and my sister-in-law and her husband, Shirley and Peter Brauning and their two children.

Second, I would like to express my appreciation to the employees at EDA and ARC for their guidance and support. In particular, I would like to recognize the dedication and commitment of many career and tenured professionals at EDA and ARC who serve loyally and faithfully to make a difference in the Nation's distressed communities. In the time I have spent at EDA, I believe we have accomplished a great deal and more remains to be done. My thanks to EDA field and headquarters staff, and, in particular, to EDA research, analysis, web, communications and budget employees for the opportunity of working with you in a special manner. The talent of these individuals has allowed me to work on the development and implementation of innovative client-focused policies, processes and procedures at EDA.

Next, I would like to extend my sincere thanks to the many national organizations that I have had the opportunity of working with on economic development issues. In particular, I am grateful for the working relationships that I have been able to establish with the National Association of Development Organizations, the National Association of Regional Councils, the National Association of Counties, the U. S. Conference of Mayors, the Public Works and Economic Development Association, the League of Cities, the National Association of Towns and Townships, and the Council for Urban Economic Development.

When I spoke with Committee staff, I was asked to talk about "my vision." If you will indulge me, I would like to share someone else's vision and how that vision became a reality through a special partnership. It was this unique effort which has greatly influenced my commitment to public service and to the creation of tangible opportunities that can become a reality.

My mother whom we lovingly called "Mama" had a vision for her family. That vision was to pave a road of opportunity for her four children with a foundation made up of love of God, love of family, love of country and respect and understanding for your fellow man. Had she lived three years longer, she would have celebrated her 77th birthday just five days ago.

Mama had a plan for the children's future: a thoughtful and flexible master plan developed through an exceptional partnership with Dad. This special relationship involved sharing the benefits, making sacrifices and dealing with the challenges. It meant working together in a consensus and creative manner toward implementation of an overall plan. The plan had to be updated periodically to account for changing priorities or a "better way." For the plan to work, our parents realized that the children would need a "nudge" and that meant start-up capital, which was not readily accessible.

My parents were raised in rural, farming areas of Mexico and China. As legal immigrants to the United States, they faced many challenges: learning another language, earning a living, making new friends, finding a place to live, and providing for their children. It was a difficult time. For them, getting started was not an easy task. Securing credit or a loan in the 1940's for business start-up purposes was an enormous challenge. Thankfully, today it is easier for more people to obtain credit as a result of the availability of state and federal programs.

Mom and Dad worked hard and saved religiously. They started out small by opening a restaurant, later they expanded and opened what we called an "ice-house" or in today's terms a "fast-stop convenience store." What is more important, they saved and invested wisely for the future. They continued to pursue their goal of providing sound educational opportunities for their four children. Eventually they purchased a mid-size business a grocery store. For them, the businesses were the vehicles they would use to pave roads of opportunity for themselves and their children.

Since education was a parental priority, the youngest would stay at home after school with my maternal grandparents who lived with us. As we got older, we would have to go to the grocery store after school. Homework was always first, then work. We stocked shelves, helped deliver groceries, and as we say today, other duties as assigned. As the eldest, I was taught to help with paperwork and bookkeeping. The grocery store was my parents' last investment together. The business did well and after decades of hard work, they sold the grocery store.

My parents' story is one of business success, but how did they do it? First, they secured technical help, from those knowledgeable about businesses. They developed and implemented a business plan that included goals and objectives. My parents took calculated risks. They initially put more than half of their money to work for them in the business. In my parents' case, each business investment required an outside financial partner. They were diligent, persevered, planned and partnered to implement their master plan.

Goals for the children and objectives for the business were interrelated and each had milestones with projected outcomes. Plans were refined or changed which often generated better results. The results showed accomplishment which provided my parents with a great sense of pride and the incentive to continue with full implementation of the plan. A child graduating from high school or college was a milestone. Witnessing your child secure a job that took her away from home was an outcome. Observing your child become independent and self-sufficient were results and measured the success of your master plan. Full implementation of the plan showed that you had a key role with the transition of a helpless, dependent child to a responsible adult.

Noteworthy is the fact that the last family business, the grocery store, was strategically located in an area of mixed economic need. To the North were about ten square blocks of Federal-government subsidized public housing. The downtown area was about two miles East and residential housing South and West. The availability of public infrastructure, the Federal government role, and the private sector investment together with my parents' commitment and initiative yielded a formula for business and personal success.

My parents' vision, how and what they accomplished, is applicable to economic development. I believe successful economic development begins with thoughtful planning that generates partnerships. Local, state, regional, and federal partnerships produce a shared responsibility for making sound investments that can transition economically fragile areas of our Nation into self-sustaining, healthy communities. Fostering partnerships that eventually produce vibrant, competitive economies are inherent to the missions of ARC and EDA.

Economic development is a local, "bottoms-up" process which results in a quality of life environment that generates jobs through community and private sector partnerships. Traditional economic development investments are critical to communities, especially those that lag behind more prosperous areas. All communities have unique developmental needs and no easy formula exists to achieve or sustain economic resilience.

Advances in technology and telecommunications have posed new challenges for our children and the places they call home. Many American communities struggle to provide essential services that include quality-of-life, sustainable economies. The new economy is globally competitive and the opportunities are greater. However, so are the barriers especially for those communities diligently working toward meeting basic living needs, such as water, roads, schools and jobs. Many areas of the Nation are out of the economic mainstream profile: high need counties of the Appalachian Region, localities along the United States-Mexico Border, remote areas of Alaska, much of the Mississippi River Delta, pockets of severe poverty in large cities like Los Angeles and New York, lesser populated tracts of Mid-Western states, and Native-American tribal units.

My view is that the strength of the country in a world economy is derived from the ability of our communities to compete in a communications-oriented environment.

The recent and remarkable economic expansion of the United States economy presents us with a unique opportunity:

To make a real economic impact faster by strategically focusing and targeting resources on the distressed areas of the country accomplished through state, Federal, and private sector partnerships.

I believe that collaboration, consensus, and non-partisan partnerships assure economic opportunities and lasting outcomes for American communities.

America is rich in new, untapped markets. Through many worthwhile Federal, state and local programs, I believe we are making a difference. I am very proud of having the unique seven-year experience of working with the EDA at the Department of Commerce. An agency with the mission of job creation and retention that stimulates industrial, technological, and commercial growth in economically-distressed rural and urban areas of the United States. Through federal efforts, such as those of ARC and EDA, I believe we are creating economic opportunities for the Nation's distressed communities in different, but complimentary ways.

ARC is focused on the specific needs of a region of the country with a century of historic poverty and economic distress a Region that has consistently suffered from underdevelopment, geographic isolation, and out-migration. The challenges of the Appalachian Region which includes 406 counties in thirteen states (Alabama, Georgia, Maryland, Mississippi, New York, North Carolina, Kentucky, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and West Virginia) are longer-term requiring longer-term, targeted solutions. The Commission through a unique Federal/State partnership focuses on a broad-based approach to economic development and implements solutions that include transportation, education, training, health, and entrepreneurial development.

EDA, by contrast, is focused on the needs of distressed communities nationally and responds to cyclical and structural changes in the economy, such as military base closures, declared natural disasters, Department of Energy reductions, major plant downsizing or shutdowns, Native-American needs, international trade agreements, depletion of natural resources, and brownfields, to name a few areas of need. Through a strong, flexible portfolio of transition tools and a national network of 320 planning organizations, 69 university centers, and 12 trade adjustment centers, EDA provides assistance on a cost-shared basis directly to eligible units of government and to non-profit organizations for economic development.

I believe the federal role in economic development is to provide the mechanism and "the nudge" or assistance that creates partnerships, helps build the consensus necessary for implementation of state-of-the art practices, and produces long-term, sustainable results. On a project by project by project basis, the Federal government should be a partner to deliver resources to fill the critical gap and then withdraw and allow the private sector to develop the project. American communities with good jobs, access to education and technology are becoming more proficient at competing in a world market economy. But, what about communities or regions that lack the good jobs and access to education and technology?

A November 1999 Department of Commerce updated report, Falling Through The Net, issued by the National Telecommunications and Information Administration (NTIA) focuses on the telecommunications and information technology gap in America. The report concludes that:

"The Census data reveal a number of trends. On the positive side, it is apparent that all Americans are becoming increasingly connected whether by telephone, computer, or the Internet over time. On the other hand, it is also apparent that certain groups are growing far more rapidly, particularly with respect to Internet connectivity. This pattern means that the "haves" have only become more information rich in 1998, while the "have nots" are lagging even further behind.

...It is reasonable to expect that many people are going to lag behind in absolute numbers for a long time. Education and income appear to be among the leading elements driving the digital divide today. Because these factors vary along racial and ethnic lines, minorities will continue to face a greater digital divide as we move into the next century. This reality merits a thoughtful response by policymakers consistent with the needs of Americans in the Information Age."

The NTIA report raises several questions about the federal role in economic development, especially in distressed areas like the Appalachian Region. More specifically, what policies are needed to assure those American communities already economically strained do not lag even further behind? How do we integrate technology-led economic development into the planning and investment process? In this context, the term "technology-led economic development" means incorporating into comprehensive development strategies a thinking that allows communities to transition to the next level of need that factors competing in a cyber economy. Do existing state and federal government programs have the technical capacity and understanding to provide the type of assistance communities need to survive and thrive in the new economy? For every region and community, affordable access is critical to opportunity because without access there can be no opportunity.

The questions require answers and I hope to be involved in answering some of those questions as we craft policies and approaches that will continue to effectively transition the Appalachian Region out of its historic economic distress. For some time now, I have sought out an appropriate quote that captures the essence of my views on economic development, which I believe is about creating opportunities and "a fair chance" for people. I believe I found it. On July 4, 1861, President Abraham Lincoln in a message to Congress in Special Session stated:

"This is essentially a people's contest...It is a struggle for maintaining in the world that form and substance of government whose leading object is to elevate the constitution of men to lift artificial weights from all shoulders to clear the paths of laudable pursuit for all to afford all an unfettered start, and a fair chance, in the race for life."

Mr. Chairman, in closing I reiterate my appreciation to the Committee for this opportunity and fair chance. To my husband and children, I thank you lovingly for being there for me. To my family, especially my parents, I express my heartfelt thanks for the opportunities and values that you have given me. To my professional colleagues, I look forward to the opportunity of working with you in a new capacity. Thank you.