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88–906 PDF 2015

S. HRG. 110–1262 

ECONOMIC DEVEPLOPMENT 

ADMINISTRATION OVERSIGHT 

HEARING 

BEFORE THE

SUBCOMMITTEE ON TRANSPORTATION 

AND INFRASTRUCTURE 

OF THE

COMMITTEE ON ENVIRONMENT AND 

PUBLIC WORKS 

UNITED STATES SENATE 

ONE HUNDRED TENTH CONGRESS 

SECOND SESSION 

SEPTEMBER 9, 2008 

Printed for the use of the Committee on Environment and Public Works 

( 

Available via the World Wide Web: http://www.access.gpo.gov/congress.senate 

(II) 

COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS 

ONE HUNDRED TENTH CONGRESS 

SECOND SESSION 

BARBARA BOXER, California, Chairman 

MAX BAUCUS, Montana 

JOSEPH I. LIEBERMAN, Connecticut 

THOMAS R. CARPER, Delaware 

HILLARY RODHAM CLINTON, New York 

FRANK R. LAUTENBERG, New Jersey 

BENJAMIN L. CARDIN, Maryland 

BERNARD SANDERS, Vermont 

AMY KLOBUCHAR, Minnesota 

SHELDON WHITEHOUSE, Rhode Island 

JOHN BARRASSO, Wyoming 

JAMES M. INHOFE, Oklahoma 

JOHN W. WARNER, Virginia 

GEORGE V. VOINOVICH, Ohio 

JOHNNY ISAKSON, Georgia 

DAVID VITTER, Louisiana 

LARRY E. CRAIG, Idaho 

LAMAR ALEXANDER, Tennessee 

CHRISTOPHER S. BOND, Missouri 

BETTINA POIRIER, Majority Staff Director and Chief Counsel 

ANDREW WHEELER, Minority Staff Director 

SUBCOMMITTEE ON TRANSPORTATION AND INFRUSTRUCTURE

BAUCUS, MAX, Montana, Chairman 

THOMAS R. CARPER, Delaware 

HILLARY RODHAM CLINTON, New York 

BENJAMIN L. CARDIN, Maryland 

BERNARD SANDERS, Vermont 

BARBARA BOXER, California (ex officio) 

JOHNNY ISAKSON, Georgia 

JOHN WARNER, Virginia 

GEORGE V. VOINOVICH, Ohio 

DAVID VITTER, Louisiana 

JAMES M. INHOFE, Oklahoma (ex officio) 

(III) 

C O N T E N T S 

Page 

SEPTEMBER 9, 2008 

OPENING STATEMENTS 

Cardin, Hon. Benjamin L., U.S. Senator from the State of Maryland ................ 1 

Isakson, Hon. Johnny, U.S. Senator from the State of Georgia .......................... 4 

Inhofe, Hon. James M., U.S. Senator from the State of Oklahoma .................... 4 

Bond, Hon. Christopher, U.S. Senator from the State of Missouri ..................... 6 

WITNESSES 

Erulkar, Benjamin, Deputy Assistant Secretary of Commerce for Economic 

Development and Eda Chief Operating Officer ................................................. 12 

Prepared statement .......................................................................................... 14 

Responses to additional questions from: 

Senator Boxer ............................................................................................ 21 

Senator Cardin .......................................................................................... 24 

Senator Voinovich ..................................................................................... 27 

Zinser, Todd J., Inspector General, United States Department of Commerce ... 29 

Prepared statement .......................................................................................... 31 

Responses to additional questions from: 

Senator Boxer ............................................................................................ 40 

Senator Cardin .......................................................................................... 43 

Edgerley, David W., Secretary, Maryland Department of Business and Economic Development .............................................................................................. 51 

Prepared statement .......................................................................................... 53 

Mazer, Leanne, Executive Director, Tri-County Council for Western Maryland, President, National Association of Development Organizations ............ 61 

Prepared statement .......................................................................................... 63 

Responses to additional questions from Senator Boxer ................................ 77 

Thoma, Hon. Larry, Mayor, City of Elgin, Oklahoma .......................................... 79 

Prepared statement .......................................................................................... 81 

ADDITIONAL MATERIAL 

Statement of Hon. Betty Knight, President, National Association of Regional 

Council; Commissioner, Platte County, Missouri; Board Member, Mid-America Regional Council ............................................................................................. 91 

(1) 

ECONOMIC DEVEPLOPMENT 

ADMINISTRATION OVERSIGHT 

Tuesday, September 9, 2008 

U.S. SENATE, COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS, SUBCOMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

Washington, DC. 

The committee met, pursuant to notice, at 10 a.m. in room 406, 

Dirksen Senate Building, Hon. Benjamin Cardin (chairman of the 

committee) presiding. 

Present: Senators Cardin, Inhofe, Isakson, Bond. 

OPENING STATEMENT OF HON. BENJAMIN CARDIN, 

U.S. SENATOR FROM THE STATE OF MARYLAND 

Senator CARDIN. Good morning. The Subcommittee on Transportation and Infrastructure of the Committee on Environment and 

Public Works is conducting an oversight hearing on the Economic 

Development Administration. 

In 1965, Congress and President Lyndon Johnson created the 

Economic Development Administration for job promotion and to accelerate industrial and commercial growth in communities suffering from limited job opportunities, low per capita income levels 

or similar economic distress. An agency within the Department of 

Commerce, EDA’s stated mission is to ‘‘lead the Federal economic 

development agenda by promoting innovation and competitiveness, 

preparing America’s regions for growth and success in the worldwide economy.’’ 

As the only Federal agency focusing solely on promoting private 

sector job growth in economically under-served communities, EDA 

pursues regional comprehensive strategic development, public 

works and business loan funds. Working in partnership with State 

and local government, regional economic development organizations, public and private non-profit organizations, universities and 

Indian tribes, EDA provides grants to help communities. These investments go toward revitalization, expansion or upgrading of 

physical infrastructure in order to attract new industries, encourage business expansion and diversify local economies. 

In so doing, EDA seeks to establish foundations that enable communities to develop their own economic development programs for 

sustained development. In some instances, economic problems may 

be associated with long-term, chronic conditions. In other cases, 

communities may need economic assistance in recovering from natural disasters or unforeseen challenges. According to an independent auditor, EDA has established a proven record of success. 

2 

Using increasingly limited resources, EDA is still able to complete 

projects in a timely manner that leverage private sector investment. In my home State of Maryland, for example, EDA has supported 14 projects in the last 2 years that are credited with creating 1,875 jobs and leveraging $160 million in private investment. 

According to EDA’s congressional testimony, EDA helps create new American jobs at a cost of only $2,825 per job. And the agency’s succeeds in leveraging over $28 in private sector investment 

for every dollar we invest. In a few minutes, we will be hearing 

from the Deputy Assistant Secretary to detail EDA’s accomplishments and challenges. The Department of Commerce Inspector 

General, however, has identified problems in the management of 

EDA’s revolving loan fund. A lack of accounting controls and other 

factors led the IG to issue a number of recommendations to improve the efficiency of this key EDA program. We will be hearing 

more from the IG in a few moments about his findings and recommendations and his report will be made part of our record. 

We will be hearing from those who are in the front lines of economic development, our State and regional councils and local governments. It is here that EDA’s funded programs actually create or 

retain jobs. During our second panel, we will hear today from these 

key customers about their experiences with EDA. The current authorization for EDA expires at the end of September. So we don’t 

have a lot of time. 

Key questions must be considered during reauthorization, includ- ing the funding levels. Although we authorize $500 million annually, the EDA receives considerably less than that amount. They 

only receive about $280 million in fiscal years 2007 and 2008. This 

marks a reduction of nearly 40 percent of the 2001 levels, when 

EDA was funded at $440 million, including $287 million for EDA 

public works programs. 

For Fiscal Year 2009, the Administration proposes to cut EDA’s budget by more than half again, down to $133 million. In so doing, 

the Administration’s proposal would virtually eliminate the public 

works program altogether. I find this hard to understand, when we 

are in tough economic times and trying to create more jobs, why 

the Administration’s budget would actually reduce a program that 

is aimed at creating more jobs, particularly in difficult communities. 

The Senate Appropriations Committee recently adopted its Fiscal 

Year 2009 Commerce-Justice-Science Appropriation Bill, which included EDA funding. In its present form, the bill restores most of 

the President’s cuts, but still cuts the program by more than $47 

million. The bulk of the cuts come in the reduction of EDA’s public 

works programs. The Senate Appropriation measure maintains a 

level funding for EDA’s planning grant program at $27 million. 

This hearing will focus on reauthorization priorities, funding levels, oversight and future expectations for EDA. We will hear from 

two panels of witnesses. The first panel will consist of two witnesses, Deputy Assistant Secretary from the Department of Commerce and the Department’s Inspector General. The second panel 

will include key constituents utilizing EDA’s programs, the State of 

Maryland Secretary of Business and Economic Development, the 

President of the National Association of Development of OrganizaVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
3 

tion and the Mayor of Elgin, Oklahoma. We are anxious to hear 

their perspectives from across America. 

Before we turn to the panelists, I would first ask my colleague, 

the Ranking Member of the Subcommittee, Senator Isakson, for his 

opening comments. 

[The prepared statement of Senator Cardin follows:] 

STATEMENT OF HON. BENJAMIN L. CARDIN, U.S. SENATOR

FROM THE STATE OF MARYLAND

Good morning. 

Today the Subcommittee on Transportation and Infrastructure of the Committee 

on Environment and Public Works is conducting an oversight hearing on the Economic Development Administration. 

With the Public Works and Economic Development of 1965, Congress and President Lyndon Johnson created the Economic Development Administration (EDA) for 

job promotion and to accelerate industrial and commercial growth in communities 

suffering from limited job opportunities, low per capita income levels, or similar economic distress. An agency within the Department of Commerce, EDA’s stated mission is to ‘‘lead the Federal economic development agenda by promoting innovation 

and competitiveness, preparing American regions for growth and success in the 

worldwide economy.’’ 

As the only Federal agency focusing solely on promoting private sector job growth 

in economically underserved communities, EDA pursues regional comprehensive 

strategy development, public works, and business loan funds. Working in partnership with 

• State and local governments, 

• regional economic development organizations, 

• public and private nonprofit organizations, 

• universities, and 

• Indian tribes, 

EDA provides grants to help communities. 

These investments go toward revitalization, expansion or upgrading of physical infrastructure in order to attract new industry, encourage business expansion, and diversify local economies. In so doing, EDA seeks to establish foundations that enable 

communities to develop their own economic development programs for sustained development. In some instances, economic problems may be associated with long-term, 

chronic conditions. In other cases, communities may need economic assistance in recovering from natural disasters or other unforeseen challenges 

According to an independent auditor, EDA has established a proven record of 

using increasingly limited resources to complete projects in a timely manner that 

leverages private sector investment. In my home State of Maryland, for example, 

EDA has supported 14 projects in the last 2 years that are credited with creating 

1,875 jobs and leveraging $160 million in private investment. 

According to EDA congressional testimony, EDA helps ‘‘create new American jobs 

at a cost of only $2,825 per job,’’ and the agency succeeds in leveraging ‘‘over $28 

in private sector investments for every taxpayer dollar we invest.’’ In a few minutes 

we will be hearing from the Assistant Secretary to detail EDA’s accomplishments 

and challenges. 

The Department of Commerce’s Inspector General, however, has identified problems in the management of EDA’s Revolving Loan Fund. A lack of accounting controls and other factors led the IG to issue a number of recommendations to improve 

the efficiency of this key EDA program. We will be hearing more from the IG in 

a few minutes about his findings and recommendations. 

We will also be hearing from those who are on the front lines of economic 

developmen—our states, regional councils, and local governments. It is here that the 

EDA-funded programs actually create or retain jobs. During our second panel we 

will hear today from these key customers about their experiences with EDA. 

The current authorization for the Economic Development Administration expires 

at the end of September. Key questions must be considered during reauthorization, 

including funding. Although authorized at $500 million annually, the EDA receives 

considerably less than that amount, having received about $280 million in fiscal 

years 2007 and 2008. This marks a reduction of nearly 40 percent from the 2001 

levels when EDA was funded at $440 million, including $287 million for the EDA 

Public Works Program. For fiscal year 2009, the administration proposes to cut the 

EDA’s budget by more than half again, down to $133 million. In so doing, the adVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
4 

ministration’s proposal would virtually eliminate the Public Works Program altogether. 

The Senate Appropriations Committee recently adopted its fiscal year 2009 Commerce-Justice-Science Appropriations bill, which includes EDA funding. In its 

present form, the bill restores most of the President’s proposed cuts, but still cuts 

the program by more than $47 million. The bulk of the cut comes in a reduction 

to EDA’s Public Works program. The Senate appropriations measure maintains 

level funding for EDA’s planning grant program at $27 million. 

The hearing will focus on reauthorization priorities, funding levels, oversight and 

future expectations for the Economic Development Administration. 

We will hear from two panels of witnesses today. The first panel will consist of 

two witnesses: an Assistant Secretary from the Department of Commerce and the 

Department’s Inspector General. 

The second panel will include key constituents who utilize EDA programs: 

• the State of Maryland’s Secretary of Business and Economic Development, 

• the President of the National Association of Development Organizations, and 

• the Mayor of Elgin, Oklahoma. 

We are anxious to hear their perspectives from across America. 

Let me turn to our Ranking Member, Senator Isakson, for any opening comments 

before we hear from our witnesses. 

OPENING STATEMENT OF HON. JOHNNY ISAKSON, 

U.S. SENATOR FROM THE STATE OF GEORGIA 

Senator ISAKSON. Thank you very much, Chairman Cardin. 

The Economic Development Administration is a key provider of, 

in fact was the venture capital for the development of jobs and economic development and improvement in some of Georgia’s and the 

United States’ most distressed communities. In my State of Georgia, from Dooly County to Tennille, Georgia, which is in Washington County, we have seen EDA grants have a dramatic impact 

on small communities in our State. 

I was especially proud that Paulding County Commissioner 

Chairman Jerry Shearin and the board of commissioners of 

Paulding County won EDA’s 2007 Excellence in Economic Development award for innovation in economic development surrounding 

the new airport in Paulding County. National recognition of the innovative plan was for the airport and the placement of offices, businesses, adjacent properties and economic development in Paulding 

County. 

While I could talk on and on about the importance of innovation, 

the investment in the future and providing jobs, we are here today 

to hear from each of our panelists, so I will turn it back over to 

you, Chairman Cardin. 

Senator CARDIN. Thank you. We have the Ranking Member of 

the full Committee with us today, Senator Inhofe. 

OPENING STATEMENT OF HON. JAMES M. INHOFE, 

U.S. SENATOR FROM THE STATE OF OKLAHOMA 

Senator INHOFE. Thank you, Mr. Chairman. 

I thank you for having this hearing right now. I think most of 

us, probably all of us at this table up here, would have preferred 

to do this before, to get this done. We are down to the wire now, 

but it can be done. I am particularly pleased to welcome Larry 

Thoma, of Elgin, Oklahoma. There may be some here who have 

never been to Elgin, Oklahoma, but I can tell you, it is changing 

more than any community in America today, isn’t it, Larry? 

5 

Last month, I was there for the ribbon-cutting ceremony for a 

new facility at Elgin Industrial Park that would have been impossible without an EDA grant. The EDA grant that we came through 

was relatively small, it was $2.25 million. As a result, we have 

completed, I don’t want to take your speech, but this is going to become a major military industrial park, probably the foremost industrial park anywhere in America. 

I joined EDA in August in presenting a grant to the city of Woodward, to help bring them Woodward Community campus. This 

project will lead to 192 jobs and $1.6 million in private investment. 

Mr. Chairman, I have a list here of things that we have done in 

the State of Oklahoma, and the ratios are about the same as yours 

in the State of Maryland. It is about 20 to 1. And these things 

could not have been done if it had not been for the Economic Development Administration, for EDA. That is why I think it can be reauthorized. 

I am going to ask that my entire statement be made a part of 

the record, and conclude with a conversation I had last night, with 

Jim Oberstar, who is the Chairman of Transportation and Infrastructure over in the House. He and I both agree, and Senator 

Cardin agrees, I think all of us up here agree, this can be done, 

we can get this thing done before we go into adjournment. I think 

it is absolutely necessary to do it. 

So whether the vehicle that is used is mine or somebody else’s 

is irrelevant. I think it can be done, there is time. But this is one 

of the areas, there are lots of conflicts in this Committee, lots of 

disagreements philosophically. On this, I think we all agree, and 

we agree it needs to be done. 

Thank you, Mr. Chairman. 

[The prepared statement of Senator Inhofe follows:] 

STATEMENT OF HON. JAMES M. INHOFE, U.S. SENATOR

FROM THE STATE OF OKLAHOMA

Thank you Senator Cardin for chairing this hearing on a very important topic. 

I wish we had turned to this topic earlier in the year, because I am concerned that 

this late start means we may not have time to actually enact EDA reauthorization— 

such as my bill, S. 3264—before the current authorization expires this month. Regardless of timing, though, I am glad we are having this hearing, and I am especially pleased to welcome Mayor Larry Thoma of Elgin, Oklahoma. 

I was in Elgin last month for a ribbon-cutting ceremony for a new facility at the 

Elgin Industrial Park that would not have been possible without EDA investment. 

I will let Mayor Thoma talk about the details of EDA involvement and what it has 

meant to Elgin, but I consider this to be just one of the numerous examples of the 

good work EDA has accomplished working with communities struggling with economic distress to bring in private investment and jobs in my home State of Oklahoma, as well as all across the country. 

I joined EDA in August in presenting a grant to the city of Woodward to help build the Woodward Community Campus. This project will lead to 192 jobs and $1.6 

million in private investment. Another recent EDA grant will benefit the city of 

Watts and Adair County by supporting the construction of infrastructure improvements to accommodate the development of a new state-of-the-art plastic recycling 

and composite building material manufacturing facility. 

Since the fall of 2004 when we last reauthorized the agency, EDA investments 

in Oklahoma include support for industrial park improvements in Ardmore and Hobart, intended to generate more than $6.6 million in private investment in Ardmore 

and help create 120 jobs in Hobart. 

We saved and created new jobs in Clinton with water system improvements necessary to provide fire suppression protection for residents and current and prospective businesses. We paved the way for thousands of new jobs in Oklahoma City by 

helping provide the infrastructure necessary for a new Dell service center. 

6 

EDA assisted the Choctaw Nation of Oklahoma fund construction of an assembly 

facility for a next generation tactical vehicle trailer for the U.S. Marine Corps in 

Durant, Oklahoma. Also in the Durant area, EDA funds were used to create additional space to manufacture and assemble goods in an expanded Foreign Trade 

Zone. 

Additionally, many of the economic development districts in Oklahoma have received EDA grants to provide valuable planning and technical assistance to help 

communities build local capacity to focus on long-term economic and social challenges. These planning grants can be critical in particular to small, rural communities which often cannot otherwise afford to maintain this professional and technical capacity. 

Taken all together, EDA’s public works and economic adjustment grants awarded 

in my home State over the past five and a half years have resulted in almost 9,000 

jobs being created or saved. With an investment of about $24.6 million, we have leveraged almost 29 million in State and local dollars and more than 433 million in 

private sector dollars. I would call that a wonderful success story. 

These numbers are backed up by studies that show that EDA uses Federal dollars 

efficiently and effectively, creating and retaining long-term jobs at an average cost 

that is among the lowest in government. Today’s hearing gives us an opportunity 

to discuss possible tools to improve performance even further during the reauthorization process. 

The EDA’s authorization is set to expire just three short weeks from today, on 

September 30, 2008. I am concerned that allowing this authorization to lapse will 

result in uncertainty for this very successful agency and the struggling communities 

that depend on its assistance. I recently spoke with Congressman Jim Oberstar, 

Chairman of the House Transportation and Infrastructure Committee; we both 

agreed that we need to work together to get this done before Congress recesses or 

adjourns this month, and we both believe that we can get it done if we work quickly 

and together. I look forward to working with my colleagues here on the Committee 

and in the House, as well as with the Administration and interested stakeholders, 

to reauthorize EDA as soon as possible. 

Senator CARDIN. Thank you for your comments. I know that Senator Baucus and Senator Boxer both are very anxious to see whether we can get this done before the authorization expires. I thank 

you very much for your comments. 

Senator Bond. 

OPENING STATEMENT OF HON. CHRISTOPHER S. BOND, 

U.S. SENATOR FROM THE STATE OF MISSOURI 

Senator BOND. Thank you very much, Mr. Chairman and Ranking Member Isakson, and our witnesses coming today to talk about 

a very important subject. Your perspectives on the importance of 

understanding the economic impact that EDA has had across the 

Country and how best to craft the reauthorization that improves 

EDA efficiency while continuing to make the United States competitive in this changing economic environment will be very important. 

I believe the EDA has been successful over the years because it 

has remained true to its main guideline, and that is that distressed 

communities must be empowered to develop and implement their 

own economic revitalization strategy. I have had the pleasure of 

working with many of those communities, and where we can get an 

EDA grant, that has made a tremendous difference. In Missouri, 

EDA grants have been essential to local investment in economic 

growth. For instance, over the last 8 years, EDA has implemented 

over 170 projects, and invested more than $38 million in Missouri. 

During that time, EDA funds have led to the creation of over 

11,000 jobs in my State and leveraged an additional $1.29 billion 

in private sector funds. It has worked to diversify our job base, focusing on high tech, high growth industries. This refocusing has alVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
7 

lowed Missouri to compete globally for private investment that attracts and maintains high-paying jobs. 

For example, Mr. Chairman, EDA awarded a $2.9 million grant 

as seed capital for the Center for Research, Technology and Entrepreneurial Experience in St. Louis. The funds helped immediately 

leverage over $30 million to create a life science research and commercialization district that focuses on transforming scientific innovation into new companies to create jobs in St. Louis’ urban core. 

In the long run, this research center is expected to encourage over 

$400 million in investment by concentrating essential life science 

resources in one community. Not a bad return on a $2.9 million investment. 

In 2005, the Southwest Area Career Center in Monett received 

a $1.25 million EDA grant to build a new facility in the career center to accommodate expanding enrollment and offer students additional training programs, the type of technical and vocational education provided at SWACC is essential in creating a well-trained 

work force and attracting business to rural Missouri, and should 

ensure that southwest Missouri and the United States continue to 

lead in the global economy. 

In the Senate, we are asked to make difficult decisions. However, 

too often we make straightforward decisions difficult. We must reauthorize EDA. We must give them the tools and the resources 

necessary to generate good jobs in the areas that need them the 

most, to keep the United States competitive. 

Again, I thank the Chair and the Ranking Member. I look forward to hearing and reading the testimony and to working together 

to ensure that EDA continues to be a vital tool to help empower 

economic development. 

Mr. Chairman, I will spare you reading the entire statement, and 

ask that that it be accepted into the record. 

[The prepared statement of Senator Bond follows:] 

STATEMENT OF HON. CHRISTOPHER S. BOND, U.S. SENATOR

FROM THE STATE OF MISSOURI

First, thank you Chairman Baucus and Ranking Member Isakson for holding this 

hearing today. I am pleased to be here to discuss a subject vital to the State of Missouri and the country, the reauthorization and oversight of the Economic Development Administration. 

In addition, thank you to all the witnesses for appearing before us today. Your 

perspectives on this issue are important to understanding the economic impact the 

EDA has across the country and how best to craft a reauthorization that improves 

EDA efficiency while continuing to make the United States competitive in this 

changing economic environment. 

The Economic Development Administration was established nearly forty-five years 

ago under the Public Works and Economic Development Act of 1965. During those 

years, our economy has enjoyed significant economic growth and has weathered 

through some tough times. But regardless of the times, there will always be distressed regions across our country that lack the necessary resources to share in the 

greater economic success of our Nation. 

The EDA has been successful over the years because it has remained true to its 

guideline that ‘‘distressed communities must be empowered to develop and implement their own economic revitalization strategies.’’ The EDA works in partnership 

with State and local governments by providing Federal grants to public and private 

nonprofit organizations, regional economic development agencies and Indian tribes. 

This type of approach not only gives distressed communities a voice in Washington 

but also instills the community responsibility and accountability that has allowed 

the EDA to be successful. 

8 

In Missouri, EDA grants have been essential to local investment and economic 

growth. For instance, over the last 8 years EDA has implemented over 170 projects 

and invested more than $38 million in Missouri. During that time, EDA funds have 

led to the creation of over 11,000 jobs in my State and leveraged an additional $1.29 

billion in private sector funds. 

The EDA investment in economic development initiatives across Missouri has 

worked to diversify our job base by focusing on high-tech, high-growth industries. 

This refocusing has allowed Missouri to compete globally for the private investment 

that attracts and maintain higher paying jobs in the area. 

For example, EDA awarded a $2.9 million grant as seed capital for the Center 

of Research, Technology and Entrepreneurial Expertise in St. Louis. The Federal 

funds helped immediately leverage over $30 million to create a life science research 

and commercialization district that focuses on transforming scientific innovation 

into new companies to create jobs in the St. Louis urban core. In the long run, this 

research center is expected to encourage over $400 million in investment by concentrating the essential life science resources in one community. 

In 2005, the Southwest Area Career Center in Monett received a $1.25 million 

EDA grant to build a new facility in the career center to accommodate expanding 

enrollment and offer students additional training programs. The type of technical 

and vocational education provided at the SWACC is essential in creating a welltrained workforce and attracting business to rural Missouri and will ensure that 

Southwest Missouri and the United States continue to be a leader in the global 

economy. 

Here in the Senate we are asked to make difficult decisions. However, too often 

we make straightforward decisions difficult. We must reauthorize the EDA and give 

them the tools necessary to generate good jobs in the areas that need them the most 

to keep the United States competitive. 

Again, I thank Senators Baucus and Isakson and the witnesses for their hard 

work. I look forward to hearing your testimony and working together to ensure that 

the EDA continues to be a vital tool to help empower economic development. 

Senator CARDIN. Without objection, all the opening statements 

will be included in the record. 

I also ask unanimous consent that the statement of Lawrence 

Molnar, President of the Education Association of University Centers, be made part of our record. 

[The prepared statement of Mr. Molnar follows:] 

9 


88906.043
10 


88906.044
11 


88906.045
12 

Senator CARDIN. Without objection, the statements from our witnesses will also be included in the record. 

I want to first welcome our first panelists, two distinguished public servants, and we very much appreciate your being before our 

Committee. Benjamin Erulkar is the Deputy Assistant Secretary 

for Economic Development and Chief Operating Officer at the 

United States Department of Commerce Economic Development 

Administration. And Tom Zinser is the Inspector General of the 

Department of Commerce. 

Mr. Secretary, we will hear from you first. 

STATEMENT OF BENJAMIN ERULKAR, DEPUTY ASSISTANT 

SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT 

AND EDA CHIEF OPERATING OFFICER 

Mr. ERULKAR. Senator Cardin, Ranking Member Isakson and 

members of the Committee, thank you for having me here today to 

testify on behalf of the Administration and the Economic Development Administration. 

I am proud of the accomplishments we have achieved at EDA, 

and I look forward to continuing to work closely with Congress and 

our stakeholders to reauthorize EDA and to improve its effectiveness even more in the coming years. EDA’s mission is to lead the 

Federal economic development agenda by promoting innovation 

and competitiveness, preparing American regions for growth and 

success in the worldwide economy. 

Our investments create the conditions in which jobs are created, 

often in the midst of economic hardship or adjustment. For example, in Garrett County, Maryland, EDA investments totaling $2.4 

million made between 2004 and 2008 have enabled that region to 

launch the transformation from an economy based on heavy manufacturing and coal mining to an economy based on tourism, light 

manufacturing and technology. I am proud that at EDA, we live 

our mission statement and are actually achieving it, committed to 

both rural and urban America, with our forward-looking and innovative approach to economic development. 

From Fiscal Year 2004 to date, EDA has awarded over $1.29 billion in investments, including construction investments that are expected to create over 392,000 jobs at an average cost of $2,500 per 

job. On average for this timeframe, every dollar in taxpayer money 

invested by EDA is expected to attract $33 in private capital investment. 

Since 2004, EDA has honed its expertise in responding swiftly 

and effectively to sudden and severe economic dislocations. We 

have invested in redevelopment and rebuilding following plant closures in Groveton, New Hampshire, Graniteville, South Carolina, 

and Wilmington, Ohio. We have invested in the redevelopment 

strategies of 11 States affected by this summer’s floods, part of the 

$100 million appropriated to EDA in June for this purpose. 

Finally, EDA has invested over $34 million in regular program 

funds to rebuild the Gulf Coast following the 2005 hurricanes that 

ravaged that region. And the agency is once again mobilizing to address economic redevelopment needs in the wake of Hurricane Gustav. 

13 

As EDA has celebrated its successes, we have also aggressively 

confronted our challenges; more specifically, the administration of 

its revolving loan fund program. In response to the Department of 

Commerce Inspector General’s 2007 report on revolving loan funds, 

EDA developed an action plan consisting of 30 elements, on which 

we are in the home stretch toward completion. It has also implemented five of the seven IG recommendations and is in the final 

stages of implementing the remaining two. 

The President continues to support EDA and our economic development agenda. The President’s budget request for Fiscal Year 

2009 enabled EDA to continue helping distressed communities, although it does reflect tough fiscal choices. Given these choices, 

EDA plans to allocate the majority of its funds to its economic adjustment assistance program, our most flexible assistance program. 

We also plan to fund fully the partnership planning program which 

supports our network of economic development districts nationwide. 

EDA’s stakeholders have ideas about how to improve this agency 

and we have been listening. We have made a concerted effort to encourage feedback over the past 18 months, resulting in the introduction of the Administration’s reauthorization legislation this past 

May. We have taken note of ideas offered in meetings by 232 economic development districts from 32 States during this time and 

have included in our proposal provisions that give economic development professionals more local control and flexibility in their use 

of EDA investments. 

Senator Cardin, Ranking Member Isakson and members of the 

Committee, thank you for your time today and for inviting me to 

address the issues relevant to EDA’s reauthorization. Since 2001, 

the President, Congress and EDA have showed a commitment to 

advancing this agency and economic development throughout 

America. I believe that EDA will continue to be a driver for innovation, entrepreneurship, growth and competitiveness in distressed 

areas of our Country. I therefore look forward to working closely 

with Congress on reauthorization and urge that an EDA reauthorization bill be acted upon this year. 

I look forward to answering any questions you may have. 

[The prepared statement of Mr. Erulkar follows:] 

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Senator CARDIN. Thank you very much for your testimony. 

Mr. Zinser. 

STATEMENT OF TODD J. ZINSER, INSPECTOR GENERAL, 

UNITED STATES DEPARTMENT OF COMMERCE 

Mr. ZINSER. Thank you, Mr. Chairman, Ranking Member 

Isakson, Senator Inhofe, Senator Bond. We appreciate the invitation to testify today on our oversight of the Economic Development 

Administration. 

EDA is one of six grant-making agencies in the Department of Commerce that together typically dispense between $1.5 billion and 

$2 billion a year to support a variety of economic, scientific and 

technological initiatives. In Fiscal Year 2007, EDA grants totaled 

approximately $250 million. 

For the past 7 years, we have focused our work on EDA’s two 

largest programs, grants for public works and the Revolving Loan 

Fund program. During that period, we audited 50 individual Revolving Loan Funds, and in 2007, issued a report on EDA’s overall 

management of the program. The revolving loan fund program established in 1975 represents a significant Federal investment. EDA 

estimates there are currently 584 entities operating revolving loan 

funds with combined portfolios worth approximately $850 million. 

But at the time of our March 2007 review, staff assigned to monitor and manage the program averaged only one person in each of 

EDA’s six regions. 

As part of our 2007 review, we looked at what actions EDA has 

taken to address the problems we had raised in our audit reports 

over the years and that EDA had itself recognized. We found that 

EDA had not made sufficient progress in strengthening management of the revolving loan fund program. Specifically, we found 

that , No. 1, EDA did not have a useful central data base containing current, accurate information on revolving loan fund balances or an adequate tracking and oversight system, something an 

EDA task force recommended the agency implement in 1999. 

No. 2, recipients were still maintaining excess cash. EDA requires grantees to ensure that a substantial percentage of EDA 

loan funds, typically 75 percent, is loaned out at all times. We determined that 236 of the reporting funds had a combined total of 

$70 million in excess cash, roughly $57 million of that amount represented the Federal share. EDA did not have clear guidance for 

their regions to ensure the revolving loan funds did not accumulate 

excess cash. 

No. 3, the recipients were not meeting reporting requirements. 

Revolving loan funds are required to file annual or semi-annual reports with EDA. We found that approximately 39 percent of the active funds that had filed reports filed them late. Nearly 40 percent 

of the late reports were filed more than 90 days beyond the due 

date. Thirteen percent did not file reports at all. In addition, we 

found many of the reports that were filed were inaccurate. 

No. 4, EDA was not effectively using single audit reports to manage fund assets. We found that nearly 25 percent of 197 grantees 

had not filed single audit reports. Single audit reports are required 

by law for revolving loan funds with annual Federal expenditures 

of $500,000 or more. These audit reports are important oversight 

30 

tools and EDA officials should ensure that one, grantees have audits conducted and filed with the Federal clearinghouse, and two, 

regional staff use the information in the reports to help manage the 

program. 

We recommended that EDA develop a comprehensive strategy 

and action plan that has specific, measurable goals and milestones 

built on strong oversight from the top down. In response, EDA developed a 30-point action plan and has met or is making good 

progress in meeting its milestones. 

The most significant outstanding action item is the development 

and implementation of a central automated data base that provides 

current, reliable information on the entire revolving loan fund portfolio. Such a data base is under development and is now scheduled 

to be in place by the spring of 2009. In our view, EDA’s new system 

will be a significant step forward and EDA needs to follow through 

and make sure it happens on time. 

Finally, Mr. Chairman, with respect to our oversight of EDA’s 

public work grants, we have conducted ten audits of public work 

grants over the past several years. In that same period, we have 

also conducted several criminal investigations of EDA recipients. 

Admittedly, our work covers only a very small fraction of the EDA 

projects across the country. Public works projects account for the 

bulk of EDA’s program spending with more than $2.8 billion in 

awards for more than 1,000 active grants. While our audit and investigative work is not sufficient for us to project conclusions about 

the entire portfolio of public works grants, our results do underscore the need for strong oversight of these projects. 

Mr. Chairman, that concludes my statement. I would be pleased 

to answer any questions that you or the members of the Subcommittee might have. 

[The prepared statement of Mr. Zinser follows:] 

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Senator CARDIN. Again, thank you for being here today. 

Mr. Secretary, I would like to get your assessment. We are going 

through high levels of unemployment, highest in at least recent 

years. The challenges for communities to find funds in order to 

move forward on economic development programs are becoming 

more difficult with local budgets, particularly. The credit problems, 

we know what just happened recently with the takeover of Fannie 

Mae and Freddie Mac, and the credit issues are difficult, so the revolving funds become even more important as it relates to those entities that otherwise could not get the capital they need for business expansion. 

Do you share the view that the EDA programs are even more important today because of the current economic conditions? 

Mr. ERULKAR. I do share the view that EDA programs continue 

to be vitally important and that is why we make the statement 

today that it is vitally important to reauthorize EDA. Anticipating 

your next question, in terms of the current problems that our economy is confronting today, EDA is not a short-term stimulus agency. 

We recognize these issues and we incorporate them into our strategic investment plans that go out a number of years. 

So the funds that we invested today will not even begin to show 

results until three or six or 9 years down the line. That is when 

we do our reporting of them. I do share your view that EDA is vitally important for our economy. 

Senator CARDIN. And you point out that you are leveraging 33 

to 1, I think the number I used for Maryland was 28 to 1. But impressive numbers that you are leveraging in private capital. And 

your strategic plan, I take it, is based upon the funds that have 

been made available to Congress, by Congress. 

Mr. ERULKAR. Our strategic plan goes out for 3 years. So we 

have a limited window. In fact, actually it is the basis for our budget call. So we look at the economic conditions in each of our service 

areas in developing the projected demand for EDA programs. 

Senator CARDIN. So let me get to the part of your statement with 

which I strongly disagree, and I think there is bipartisan support 

for my position. This program has been supported in the Appropriations Committee and the Authorizations Committee. Actually, 

the Authorizations Committee at a $500 million level. The appropriators have consistently appropriated about $280 million, which 

has not been on a partisan basis. 

And yet you are defending a cut to $133 million, if I understand 

correctly, most of the money would come out of the public works 

side of it, in your strategic long-term plan. I don’t understand that. 

Maybe you can try to help enlighten me as to why you believe a 

program that you tout as being so successful, that depends upon 

getting capital out in the community, should be cut by that number. 

Mr. ERULKAR. There is no doubt that the budget numbers proposed by the Administration will result in fewer projects being invested. However, this is a very tough budget environment all 

around. The Department and the Administration have been forced 

to make some very difficult choices in crafting its budget proposal. 

EDA is a scalable agency. That is to say, it can operate on widely 

varying levels of program appropriations. Given competing priorVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00050 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
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ities, the decision was made to ramp down slightly EDA for the 

forthcoming year, while preserving its institutional capacity fully so 

that it can be ramped up by future Administrations. 

Senator CARDIN. Well, that is not slightly, that is a significant 

reduction. I feel more comfortable if you do what we all do, just 

blame OMB rather than—your programs are vitally important. We 

know that. And we know that this type of cut would be extremely 

damaging and would take away a lot of capacity. The Inspector 

General’s report is very serious. I have read this report, these are 

very serious issues. We have money sitting around that could have 

been put back into the community, perhaps create more job opportunities and could be put to the use that Congress intended. We 

are not exactly clear of the status of some of these funds as far as 

the value of some of the assets that are in there. 

As I read it, it seems like at least one of the concerns is that perhaps you don’t have the personnel to properly do this, the number 

of people. I don’t know. So I see from your testimony that you have 

responded and accepted the Inspector General’s report. Let me just 

ask the Inspector General, if I might, are you satisfied with the replies that you have gotten from the agency in regard to the recommendations that you have made? 

Mr. ZINSER. Yes, sir. My take on the agency’s response to our 

2007 report is that it was a sea change in how EDA responded to 

our previous audit findings. I think they are taking the report seriously. They did jump on the recommendations. They did develop 

their action plan and they have made significant progress on it. 

Senator CARDIN. Thank you. 

Senator ISAKSON. 

Senator ISAKSON. Thank you, Mr. Chair. 

Following up on that, your IG report, one of the things that was 

pointed out was maintaining excess cash in reserve for long periods 

of time rather than ensuring the funds were being utilized to make 

loans as required. Would you elaborate on that just a little bit, 

what you meant by that? 

Mr. ZINSER. Yes, sir. Once the revolving loan funds are capitalized, EDA requires that a substantial portion of those funds, typically 75 percent, are always out on the street working. And what 

we found when we went out and audited these revolving loan funds 

is that in many cases, they had excess cash that was not being 

loaned out. 

And I am not entirely clear on why that happens. I think there 

is a variety of reasons. One of the things I would do is try to find 

out what the various factors are. Some have been suggested to us. 

But when the cash sits in the account of the revolving loan fund 

and earns interest, then the revolving loan fund can use that 

money that they earned for operating expenses. And I think that 

is one of the reasons why excess cash may sit around. So EDA has 

certain tools that they can use to incentivize, so to speak, the revolving loan fund to move that money. I think there is some work 

to be done on improving that situation. 

Senator ISAKSON. Mr. Secretary, as a former developer, many 

loans are staged in their funding. You don’t deploy all the cash 

upon the origination of the loan, but it is staged and conditional. 

48 

I would guess the revolving loan fund works that way, is that correct? 

Mr. ERULKAR. I believe that is correct, the scheduled disbursements. 

Senator ISAKSON. So was it the interest earned on the money 

that was the inducement to have more in reserve, or were you just 

holding in reserve money for future commitments that had been 

made but not yet funded? 

Mr. ERULKAR. Well, it is the RLF itself that is withholding the 

money. It is not EDA. We invest in the fund, we fully capitalize it. 

The question is how efficiently do they use it. 

Mr. ZINSER. If I could just add, the calculation on excess funds 

includes the type of scheduling that you are referring to. This is 

above and beyond the normal—— 

Senator ISAKSON. This was over and above the retained funds for 

future deployment based on commitments that had already been 

made? 

Mr. ZINSER. Yes, sir. 

Senator ISAKSON. OK. 

Mr. Secretary, in my State of Georgia, we have a county known 

as Sumter County. It is where Americus, Georgia is. It has a hospital, Sumter Regional Hospital, which was completely destroyed 

by a tornado. This is a huge hospital that serves 17 rural counties 

in Georgia, as well as a significant part of the downtown business 

district was destroyed in its entirety. Many of the doctors have left 

to go to other hospitals. The community is in dire need of a lot of 

help, which I am trying to give them. One of the things they are 

seeking is emergency funds through EDA. And it is my understanding they have requested, through the Atlanta office, a statement of eligibility or determination of eligibility for them to participate in your disaster funds. Atlanta has told them they are waiting 

to hear from Washington as to whether or not Sumter County 

would be eligible. 

So my request is, if you would followup on that for me and see 

what the Atlanta EDA office, and if there is anything EDA can do 

to get the information to Sumter County and Americus as to what 

they would need to do to be able to qualify, I would greatly appreciate it. 

Mr. ERULKAR. I will certainly followup on that. And I will say that EDA has acted pretty quickly to allocate funds from the $100 

million supplemental that it received in late June. Our Atlanta regional office received around $9 million of that $100 million for 

FEMA disaster-declared areas within its service area. So I will certainly followup to determine the status of that. 

Senator ISAKSON. I would appreciate it very much. 

And just out of curiosity, do you know what the mix is between 

the funds you deploy, urban versus rural? 

Mr. ERULKAR. Yes. We have a historic commitment to maintaining our presence, our investment presence in rural America. The 

most recent funds I have for construction projects last year indicate 

that a majority of EDA’s construction funds were invested in rural 

areas, upwards of 63 percent. I would be happy to get back to you 

with more detailed figures on that. But EDA’s commitment to effective investments in rural America remains unchallenged. 

49 

Senator ISAKSON. Thank you very much for your testimony. 

Mr. ERULKAR. Thank you. 

Senator CARDIN. Senator Inhofe. 

Senator INHOFE. Mr. Secretary, I don’t have any specific requests 

on followup. It has been working very, very well. You hear so much 

criticism of Government in general, EDA has been, I think, has historically been operating very, very well. 

Something that Senator Isakson just asked about, rural versus 

urban, I don’t know what the ratio is, I had to ask my staff, almost 

all of ours in Oklahoma is rural. We have a couple of projects, but 

it is probably, I would say, ten to one. And that might be indicative 

of, representative also of some of the rest of the States. 

In my opening remarks I talked about my strong feelings as to 

why this reauthorization should take place before adjournment. 

And I know that you are nodding in agreement, as is I think everyone at this table up here, Democrats and Republicans. Let me just 

ask you one question. Tell me, what would be the consequences of 

not doing it before adjournment? 

Mr. ERULKAR. I think the main consequence would be, honestly, 

a message of uncertainty about the Government’s commitment to 

putting best practice economic development tools in place in the 

distressed areas of America that need them most. That is, I think, 

the real consequence. 

My unvarnished opinion is that given what EDA does, it should 

be, in our Government, a no-brainer to reauthorize it, given its results, given the reaction of the communities that they have in receiving our investments, in putting together effective projects that 

build economic prosperity. I think that the message of uncertainty 

would leave a real question mark about Government’s commitment 

to this kind of program, especially given the change of Administration. 

Senator INHOFE. The uncertainty is a concern that we would 

have. I know in my State of Oklahoma, we had one case where the 

application was made, I won’t mention it, I wouldn’t want to do 

that because it would be pointing fingers, but the application was 

made, and then the money, when it came in, was going to be used 

for a different purpose. And we turned it around and returned it. 

Because to me, the integrity of something that is working well is 

important to protect. I would hate to go back to southern Oklahoma and some of the areas that were previously pretty impoverished parts of the State and tell them that the program that they 

are probably most proud of, of everything that the Government 

does, is not reauthorizing. It would be very hard to sell. So we will 

work together to try to make that happen. 

I don’t have any more questions. 

Senator CARDIN. I have one or two more questions, then if my 

colleagues have some additional questions, they will have an opportunity to ask them. 

Mr. Secretary, the Administration’s reauthorization program 

seeks to divert 2 percent of the program’s funds to administer a 

new revolving loan fund tracking and management program. Could 

you clarify whether those funds would come out of the EDA program or would they come out of the revolving fund? How do you 

anticipate that operating? 

50 

Mr. ERULKAR. The 2 percent of funds for administration of the 

RLF program would come out of the Economic Adjustment Assistance program appropriation. I will underscore that those funds for 

administration are needed because of the unique nature of the RLF 

program within EDA. There are 584 separate RLF operating units 

today that manage over $849 million of assets. The program itself, 

capitalizing funds, administering and monitoring loans, is just a 

different and fairly large animal within EDA’s program portfolio. 

We need those extra resources to devote the special attention that 

the program requires to keep it operating effectively. 

Senator CARDIN. And you are seeking increased authorization for 

salaries and expenses accounts. Is that consistent with what you 

just said or is that a separate area that you are asking for additional funds? And where do those funds come out of? 

Mr. ERULKAR. The salary and expenses budget request of the Administration is a separate account from the Economic Adjustment 

program account. 

Senator CARDIN. So you are seeking additional administrative 

support there, also? 

Mr. ERULKAR. Our budget request for 2009 is level with that of 

2008, the amount appropriated in 2008. That is $30.8 million. 

Senator CARDIN. So you are not seeking additional funds for salaries? 

Mr. ERULKAR. No, sir. 

Senator CARDIN. I have no additional questions. Senator 

Isakson? 

Senator ISAKSON. No further questions, thank you. 

Senator CARDIN. Senator Inhofe, any additional questions? 

Senator INHOFE. No, thank you. 

Senator CARDIN. Thank you very much. 

We will now turn to our second panel. We are pleased to welcome 

Secretary David Edgerley, who is the Secretary of the Maryland 

Department of Business and Economic Development; Leanne 

Mazer, the Executive Director of the Tri-County Council for Western Maryland, on behalf of the National Association of Development Organizations; and Hon. Larry Thoma, Mayor, city of Elgin, 

Oklahoma. We are particularly pleased to have all three of you 

here, but I am particularly pleased that two of my fellow Marylanders are on this panel. They both have a distinguished record. 

Secretary Edgerley is our principal economic person for Maryland 

under the O’Malley administration, does a great job. And Ms. 

Mazer, who comes from the western part of our State, one of the 

most beautiful spots, that has benefited greatly by EDA partnerships. 

It is a pleasure to have all three of you with us today. Mr. 

Mayor, you have been acknowledged by Senator Inhofe, it is a 

pleasure to have you with us here today. 

We will start with the Secretary. Mr. Secretary. Your statements 

will be included in their entirety in the record. 

51 

STATEMENT OF DAVID W. EDGERLEY, SECRETARY, MARYLAND 

DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT 

Mr. EDGERLEY. Thank you very much. Good morning again, 

Chairman Cardin, Senator Isakson and distinguished members of 

the Subcommittee. 

I would just like to say that I am particularly and personally 

honored to have been asked to be with you today to offer my perspective in the Economic Development Administration and what 

the assistance has meant to not only all of Maryland, but more particularly the distressed communities in areas of Maryland. Most 

importantly, I would like to express my full support for the reenactment at the level that is supported by my colleague, Leanne 

Mazer, and the National Association of Development Organizations. I think we will talk about that a little bit. 

But just in the last 5 years, I can let you know that EDA has 

approved investments in Maryland which totaled well in excess of 

$13 million, leveraging a quarter of a billion dollars in private sector investment and thousands and thousands of jobs for Marylanders that don’t just speak to the numbers. If you think about the 

areas that these jobs reside in, those areas sometimes of geographic 

isolation, of histories of losing significant portions of the employment infrastructure to foreign competition, product obsolescence 

and the lack of reinvestment in major plant and equipment by 

American industry, I think EDA offers a remarkable kind of foundation in its efforts to rebuild and jump start those areas needing 

a nimble agency’s help more than others. 

There are phenomenal numbers and there is concrete evidence, 

I think, that EDA has done a good job, continues to work with important communities throughout the Nation and creates jobs, boosting local economic vitality. I really commend the work that they 

have done. 

In my brief time with you this morning, I would like to share 

with you my personal experience with EDA on a couple of projects. 

And I stand ready to answer any questions that you might have. 

But I would like to start with an event, many years ago, as a 

young professional leaving college, working in the middle of Appalachian Maryland, as an employee of a community action agency 

with all of 6 months’ tenure, I wrote my first grants under Title 

10 of the Job Opportunities Program with EDA, which put essentially 1 percent of the people that were unemployed at the time 

back to work for a year. I saw first-hand the value of creating each 

and every job and why it was important to families that needed 

help so desperately. 

We also had experience in the early days of revolving loan funds, 

and I would offer that in revolving loan funds, having a cash balance is a good thing, that you have money to lend in important 

times of heightening credit issues with financial institutions that 

it is nice to have money to lend so that you don’t have to wait for 

payments to be made before new loans can be put out. 

EDA invested in six of the seven business parks that are within 

the boundaries of Allegany County, where I guided economic development for almost 20 years. Those parks today house about 10 to 

15 percent of the entire work force of Allegany County, if they were 

52 

all Maryland residents. You may know that is a narrow part of 

Maryland with regional boundaries that involve three States. 

For counties that don’t have the tax base or bonding capacity to 

take advantage of many Federal programs, EDA stands ready to do 

its important work in partnership with State government and local 

entities, bridging digital divides, working with rural broadband, 

working with the infrastructure needed to build technology parks 

around the State. We currently are working with the development 

of a new park in Dorchester County at Cambridge to lay the important groundwork for jobs to be created on the Eastern Shore of 

Maryland. And very importantly, a strategic project at East Baltimore Development, Inc., or EBDI, as it is known, is taking investments from the State, the city and EDA to new levels to build a 

technology-rich biopark adjacent to the Johns Hopkins medical 

campus in Baltimore, which is a cornerstone of building new economy jobs for our significant cities. 

States relying on EDA funding across the Country are enjoying 

the benefits of having these selective public investments move our 

economy forward. I would suggest that it is not time to pull back 

on any funding to EDA. Thank you very much. 

[The prepared statement of Mr. Edgerley follows:] 

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Senator CARDIN. Mr. Secretary, thank you very much. 

Ms. Mazer. 

STATEMENT OF LEANNE MAZER, EXECUTIVE DIRECTOR, TRICOUNTY COUNCIL FOR WESTERN MARYLAND, PRESIDENT, 

NATIONAL ASSOCIATION OF DEVELOPMENT ORGANIZATIONS 

Ms. MAZER. Good morning, Mr. Chairman, Ranking Member 

Isakson. 

My name is Leanne Mazer. I currently serve as President of the 

National Association of Development Organizations, and Executive 

Director of Tri-County Council for Western Maryland, an EDA-designated economic development district serving the three westernmost counties in the State. I want to thank you for the opportunity 

to testify today on issues related to the reauthorization of EDA. 

Before I get started, I wanted to note that NADO is working with 

a coalition of national groups that includes the National Association of Counties, the American Public Works Association, The National Association of Regional Councils, University Centers and 

others to proactively promote the reauthorization of EDA. First, 

Mr. Chairman, EDA has proven time and time again, both in independent evaluations and in jobs created and private sector dollars 

leveraged, that its programs work effectively. Now is the time to 

ensure its funding reflects its accomplishments. In other words, 

EDA works, and now it needs the resources to excel. 

As the only Federal agency focused solely on private sector job 

growth, EDA is a vital resource for localities striving to improve 

their economies. Whether it is through infrastructure grants, strategic planning assistance, business development capital, EDA investments are uniquely positioned to promote economic development in impoverished areas and to help local communities improve 

their connections to the national and global economies. Since its inception, EDA has helped create over four million jobs and leveraged in excess of $130 billion in private sector investments in more 

than 8,000 communities. This is an incredible record for an agency 

with a modest annual budget of under $300 million. 

However, since 2001, as you stated earlier, EDA’s funding has 

declined 36 percent and if enacted, the Administration’s 2009 budget request would impose a 53 percent cut below that current fiscal 

year. The Administration’s proposed cut could potentially result in 

the loss or delay of $3.8 billion in new private sector investment 

and the loss of more than 36,000 jobs in distressed areas. We urge 

Congress to enact a multi-year reauthorization bill for EDA that 

supports the highest funding level possible for the agency’s economic development assistance programs. 

Second, Mr. Chairman, NADO urges Congress to increase funding for EDA’s planning program from $27 million to $34.4 million 

and provide additional resources for the nationwide network of 375 

economic development districts. This proven program provides essential seed capital and matching funds for the national network 

of EDDs to foster regional cooperation and implementation of 

projects at the local level. Without the assistance and expertise of 

economic development districts, most of our local communities, parVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00065 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
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ticularly those in small metropolitan rural areas, would not be able 

to package infrastructure and development deals. 

EDDs have established an impressive record of facilitating comprehensive development strategies that serve as the backbone of 

EDA’s success. EDA’s on-time project completion rate and high 

rates of leveraging private sector investment in job creation would 

not be possible without the direct involvement and participation of 

the EDDs. We are thankful that this Committee recognized the 

critical value of EDA’s planning program in the 2004 reauthorization measure and provided a minimum level of support for that 

program of $27 million, which was an increase of $3 million over 

the program’s existing appropriation level at that time. Increased 

funding now would provide EDDs with the flexibility needed to 

pursue effective job creation strategies, comply with increased Federal regulations and mandates and ensure that our under-served 

communities across the Nation are better positioned to overcome a 

new generation of obstacles brought on by global economics. 

Third, Mr. Chairman, we urge Congress to strengthen local controls at the EDA’s revolving loan funds program. The RLF program 

is one of the most successful and powerful economic development 

tools for addressing credit needs in distressed and under-served 

areas. Locally managed RLFs have provided business capital to 

thousands of new and existing companies that had difficulty securing conventional financing. Over the years, EDA has provided 

grants to nearly 600 RLFs with net assets approaching the $850 

million. 

EDA’s RLF program has the unique distinction of being the only 

Federal grant program that never loses its Federal identity. The 

initial RLF grant and any income or interest that is derived from 

it is considered Federal property. RLF operators are forced to continually comply with expensive and burdensome reporting and 

audit requirements. Ownership of EDA’s RLF should be fully transferred to the local intermediaries once all of the initial funds have 

been loaned out, repaid and fully resolved. This would also significantly reduce the oversight and management burdens on EDA, 

which they have been unable to fulfill, while still ensuring local accountability is maintained. 

Finally, Mr. Chairman, we believe there is a need to provide 

stronger and broader incentives to foster regional collaborations 

and partnerships among local governments, the private sector and 

educational non-profits and philanthropic institutions through the 

national network of EDDs. The 2004 reauthorization bill did establish two new performance award programs. Those initiatives are 

very limited in scope and have demonstrated little impact. 

Congress is urged to buildupon the existing set of multi-jurisdictional EDDs to encourage, facilitate and reward regional development activities. Mr. Chairman, members of the Subcommittee, 

thank you again for the opportunity to testify. I would also welcome any questions. 

[The prepared statement of Ms. Mazer follows:] 

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Senator CARDIN. Thank you very much for your testimony. 

Mayor Thoma. 

STATEMENT OF HON. LARRY THOMA, MAYOR, 

CITY OF ELGIN, OKLAHOMA 

Mr. THOMA. Thank you, Mr. Chairman, Ranking Member 

Isakson, Senator Inhofe and members of the Subcommittee, for the 

opportunity to testify today in support of the Economic Development Administration. 

My name is Larry Thoma, and I am the mayor of Elgin, a small 

community in southwest Oklahoma, located north of the Fort Sill 

community. I am the immediate past president of the Oklahoma 

Municipal League. 

My main point today, Mr. Chairman, is that the EDA is an essential funding resource and partner for small towns and rural 

communities across the United States that are working on longterm regional and local economic development strategies and 

projects. Without the gap financing and seed capital for infrastructure projects, our economic development blueprints would never get 

off the drawing board. 

We have truly benefited from the great staff at EDA, especially 

with the Austin regional office and their regional director, Pedro 

Garza. These folks have been great public servants who understand 

the needs of our Nation’s rural communities. 

In addition to its valued project funding, EDA provides vital 

matching funds for a nation of economic development districts such 

as the Association of South Central Oklahoma Governments in my 

region, known as ASCOG. These multi-county organizations provide our small communities with much-needed staff support and 

economic development know-how. 

I want to use just a couple of minutes to give you a first-hand 

story of how EDA helps small communities like Elgin, Oklahoma. 

Such examples as ours is the reason Senator Inhofe is seeking a 

multi-year reauthorization of EDA in his legislation, Senate Bill 

3264. In our region, Lawton is the primary commerce hub and job 

center, with a population of more than 90,000. Yet, a lot of people 

choose to live in surrounding communities such as Elgin, where 

there is a low crime rate and an excellent school system, and a 

small town atmosphere with large city amenities nearby. 

But due to the BRAC, which Senator Inhofe has worked very 

diligently to help us with, Fort Sill in our area is expected to gain 

over 10,000 people just in the next few years. As a result, Elgin is 

also planning to see a large surge in its population. This presents 

both great opportunities as well as challenges from a local government perspective. 

Within the economic development arena, we are building the 

Fort Sill Industrial Park in Elgin. The park has a great access to 

the interState, State highway and rail line. It even has a live fire 

artillery range which is important for attracting military service 

forms working with Fort Sill. With EDA’s assistance, this property 

will soon become one of the largest economic development projects 

in southwest Oklahoma. BAE Systems already occupies a recently 

constructed 10,000 square foot building in the park. 

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Plans are being finalized for construction of a much larger facility that the company plans to start leasing in October 2009. The 

building and facilities are expected to cost in excess of $21 million 

and BAE Systems plans to invest another $9 million in specialized 

equipment. Within the first 36 months of operation, the firm plans 

to employ at least 41 people with an estimated payroll of $1.7 million. They will continue to hire incrementally until they reach their 

production capacity with a total work force of 150 to 200 people. 

These numbers may not raise eyebrows in large metropolitan 

areas, but for a rural community of 1,210 people, that is a significant development. Without EDA’s public works and planning funding, Elgin could not even consider shouldering the cost of this kind 

of project by itself. We also could not implement a project like the 

Fort Sill Industrial Park without the technical and organizational 

support provided by ASCOG and their help, people like Blaine 

Smith and Ronnie Ward. 

As with any project, planning is the key to any successful endeavor. But it also takes experts to implement the plan. Elgin lacks 

sufficient revenues to hire a full-time city manager, maintain an 

adequate staff responsible for grant activities and to hire a project 

manager for the development of an industrial park. EDA and its 

local planning partners are critical to small metropolitan and rural 

America. We must continue to invest more resources in these important institutions. 

If America does not adequately invest for our future, our children 

and grandchildren will never enjoy the America that we all know 

and love. Jobs and trades continue to leave for foreign markets at 

an alarming rate. Communities such as Elgin are proving that with 

the proper strategic planning, local leadership, intergovernmental 

partnerships and community infrastructure improvements, we can 

compete on the global stage. 

I urge this Committee and the Congress to fully fund the U.S. 

Economic Development Administration and adopt a 5-year reauthorization bill to provide the stability and policy direction needed 

for EDA. Thank you again, Mr. Chairman, Senator Inhofe and 

members of this Committee, for the opportunity to testify. I would 

welcome any questions. 

[The prepared statement of Mr. Thoma follows:] 

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Senator CARDIN. Thank you, Mayor Thoma. We again appreciate 

your being here and your testimony. 

Each of you has given testimony as to the importance of the EDA 

programs in your community. In Maryland, we have urban areas 

and rural areas. The importance of EDA in Western Maryland has 

been well documented here today. Similar testimoneys could be 

given about the Eastern Shore of Maryland or Southern Maryland. 

Ms. Mazer, you talked about getting the necessary planning and 

development assistance, particularly in the rural communities 

through the EDDs, the economic development districts. Other than 

increasing modestly the authorization level for the EDDs, do you 

have any other specific recommendations on how we can help rural 

communities better plan for international competition and the challenges of globalization as far as economic development is concerned? 

Ms. MAZER. I think really it goes to two things. Obviously, having the resources to have professional planning and the CEDS 

process in place in the rural regions. But also, it really goes to how 

do we incentivize our partners in economic development to work together. I think a lot of it goes to, it is not a natural thing for some 

of those partners to work together. We bring them to the table 

when we are looking at setting regional priorities. 

In Western Maryland, it never ceases to amaze me, when we sit 

down and look at the needs assessment through the CEDS process 

and we look at which communities have the biggest needs and 

which communities have projects that are ready to go, the regional 

consensus is very easy to come to. But when you look at the resources that are there, I think the performance awards programs 

that are present at EDA today probably just are not, very little impact is being seen from those incentive performance award programs. If we could do something through those performance award 

programs to give an incentive for those local governments to work 

together, that goes directly to their ability then to do projects that 

then translate to opportunities for businesses to compete globally. 

Senator CARDIN. Mr. Secretary, Cumberland is a wonderful area. 

I have worked with their economic development people about specific programs. Is there a way that the economic development district could be better utilized to help a community such as Cumberland, which is struggling to keep jobs in competition with urban 

areas, and then are losing opportunities internationally? Is there a 

way that we can better strategize by the use of the EDA programs 

to help you in what you are doing in Maryland to help communities 

such as Cumberland? 

Mr. EDGERLEY. I think there are a couple of things that could be 

done. First, the reauthorization will give stability and certainty, 

hopefully, and some expectation of the ability to plan for longer 

range projects that offer either infrastructure or some public work 

that is a locational incentive to outside investment. As Leanne 

said, giving the opportunity for the planning process to be robust 

and active gives those local officials, opinion makers, the opportunity to come together and prioritize where those investments 

should go. 

Linkages much like ARC does with its regional funding are also 

important for the State of Maryland to step up and join with EDA 

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in co-funding revolving funds, co-funding important projects. We do 

this as a matter of course now. Formalizing that process is one 

thing I would commend to you, requiring that three-way partnership as opposed to just the two-way partnership for municipal, 

county, State and certainly Federal participation in the process. 

Senator CARDIN. Thank you for that response. 

I want to give each of you a chance to respond to my final question, which is that the Administration’s budget would reduce the 

EDA budget by, I think somewhere around 40 percent. That is 

somewhat misleading, because most of the cuts would come out of 

the public works program projects. They would be the ones that 

would get the largest single reduction. 

What impact would that have if we saw that type of a reduction 

in the Federal Government’s commitment under EDA, what impact 

would that have in Maryland or in Oklahoma, in your city? I would 

welcome your comments on that. I think Ms. Mazer commented directly on it in her testimony. But if any one of you wanted to add 

more, I think it would be helpful. We are looking at an authorization level that will allow the appropriators the ability to appropriate the necessary funds. 

Mr. Mayor. 

Mr. THOMA. Sir, we opened bids today on our industrial park. 

Today is a landmark day in Elgin, because we opened bids on our 

industrial park, Senator Inhofe. It is a $5 million project. So not 

only is it a $5 million project when you look at the EDA funds, it 

is a $2.25 million, $2.5 million project. So not only is it a $5 million 

project on the industrial park, you can’t just separate the $2.5 million on EDA, but you also have to look at the impact on our city. 

Because you have all those construction jobs. You are not even just 

looking at the impact of the industrial jobs that will come to the 

park two or 3 years down the road, you have to look at the impact 

today. In less than 30 days we could have construction jobs coming 

to our community. We are not talking about two to 3 years down 

the road. We are talking about 30 days down the road we could 

have construction jobs coming to Elgin. 

My community exists off of, our sales tax base is $40,000 a 

month. That is a small community. We are talking about rural 

communities, 63 percent of their budget deals with rural communities. When you start talking about the impact, really does it affect it much, it really does. With all due respect, it really does, because these moneys begin to affect the small communities, when 

you start talking about the construction costs of these parks. I will 

start seeing the impact almost immediately. I won’t see it two or 

3 years down the road when the park is done, I will see them within 30 to 90 days. 

So it does affect us. It affects us almost immediately. The cuts 

aren’t 3 years down the road. They are soon. 

Senator CARDIN. I appreciate that. 

Mr. EDGERLEY. I was going to say some similar things, so I echo 

the comments of the mayor. I also would suggest that, as the Secretary mentioned earlier, that EDA offers the opportunity for 

scalability with respect to its programs. It is no time to think about 

scaling down anything that EDA does in our economy. I have been 

working with the agency for 32 years. I have seen it in all of its 

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forms except the early period. I am fortunate that the program predated me. 

But I have also seen it used throughout its history for economic 

stimulus attributes, job creation attributes, strategic planning attributes, and now more than ever, EDA serves as either the opportunity or the barrier to allowing important, needy areas of our 

Country to compete with the outside world for important investments by the private sector. What I mean by that is that many 

rural areas and many needy areas lack the infrastructure to level 

the playing field. We have to do something that make sure that 

this balance comes into play. 

I left Western Maryland to go to Montgomery County and participated with others in the creation of 120,000 jobs in 10 years. So 

I have seen the remarkable benefits of high growth, technology-rich 

areas, yes, supported by the Federal infrastructure in significant 

part, but I have also worked in those challenged areas that need 

this help to level the playing field. 

Now, it doesn’t stop there, because companies, despite what we 

might think about getting ready for development, companies in our 

Country still make their own locational decisions. If we don’t have 

the right investment in infrastructure, business parks, broadband 

and others, we will foreclose on the opportunity for rural America 

to be at the table as our jobs enter the new economy. 

Senator CARDIN. Thank you. 

Senator Isakson. 

Senator ISAKSON. Echoing on that point, if you build it they will 

come is absolutely critical in economic development. If you don’t 

have the infrastructure, both in broadband, as you mentioned, the 

infrastructure in terms of water and sewer, the park like you are 

developing, then you are not going to get the economic development 

and the investments. I want to echo that wholeheartedly. 

Second, I appreciate your comment on the question about the excess funds in reserve as not necessarily a bad thing. It is a bad 

thing if you are using the revenue to underwrite the department. 

But it is a good thing to have to deploy for economic development 

at a moment’s notice, almost. 

Ms. Mazer, you made a comment I want to make sure I understood. You talked about strengthening local control and then you 

referred to EDA’s continuing audit and reporting requirements on 

fully revolved funds. Are they requiring you to continue to report 

after the money has been deployed and repaid? 

Ms. MAZER. Absolutely. Those grants are open forever. And we 

report semi-annually or annually forever. 

Senator ISAKSON. Forever as in it never stops? 

Ms. MAZER. Yes. 

Senator ISAKSON. Well, that raises an interesting issue. I was 

reading the audit report and the IG was talking about inadequate 

reporting in part of what they said. Then you are talking about reporting ad infinitum, I guess, once a loan has been made. I think 

there is a happy balance somewhere in between. So I will look into 

that for you. 

Ms. MAZER. Thank you. 

Senator ISAKSON. That is a lot of redundancy. 

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Mr. Edgerley, you referred to the East Baltimore, Inc. biopark. 

Talking about the multiplier effect, is that thing under development now, the biopark? 

Mr. EDGERLEY. It is indeed. It comprises about 80 acres that 

were acquired in partnership with the city, the State and the private sector. An RFP was done to attract a private developer to the 

area, so essentially, that land, dozens and dozens of blocks north 

of Johns Hopkins Medical Center, were acquired, many people relocated and that area of blight was eliminated to create an epicenter 

for the Hopkins campus to grow and contribute to the community 

as an employment center, strategically located in Baltimore around 

Hopkins. 

The first building is up, there are tenants in that building. It has 

had, as is normal in a sophisticated project, a few struggles. But 

we continue to heavily invest in it. We are looking forward to it 

building an incubator in various communities serving kinds of commercial enterprises as time goes on. 

Senator ISAKSON. How much was the EDA investment originally? 

Mr. EDGERLEY. I don’t have the answer to that question, but I 

will be happy to get it for you and the Committee. 

Senator ISAKSON. Were you around when Rouse re-did the area 

of Baltimore? The Rouse Corporation? 

Mr. EDGERLEY. The mall area? Yes. 

Senator ISAKSON. Was EDA any seed money in that redevelopment, do you know? 

Mr. EDGERLEY. That I don’t know. I was around, not as Secretary 

of DBED, but I was in Montgomery County. 

Senator ISAKSON. Mayor Thoma, I would just say that one of the 

important things in the success stories of EDA and economic development is good leadership. It is very obvious you are providing that 

for Elgin, Oklahoma. Senator Inhofe has bragged about you on numerous occasions. I am glad we had a chance to meet you in person. 

Thank you, Mr. Chairman. 

Senator CARDIN. Senator Inhofe. 

Senator INHOFE. Thank you, Mr. Chairman. 

First of all, Ms. Mazer, I know that you are interested in a reauthorization that would expand local participation in all this. You 

are probably familiar with my bill, perhaps, the 5-year reauthorization, which doesn’t go as far as you would like, I am sure. But is 

it a step in the right direction? 

Ms. MAZER. Absolutely. We were very appreciative of your dedicated leadership and support of EDA. We think the bill is a great 

place to start. We are particularly pleased, obviously, to see the increased authorization levels over that of the Administration’s proposal and we absolutely, sincerely appreciate your attention to and 

support of the planning program part of the bill. 

Senator INHOFE. Good. Thank you very much. As you know, 

there isn’t time to get in to do this the normal way we would, 

where we would be able to sit down and go over these things. You, 

Mr. Secretary, have already made some statements about some of 

the improvements that you would like, and those will be all noted. 

So Larry, welcome again. I think that you stated it very well, you 

have a community of about 1,200 people. There are lots of commuVerDate Aug 31 2005 09:17 May 06, 2015 Jkt 000000 PO 00000 Frm 00092 Fmt 6633 Sfmt 6633 S:\_EPW\DOCS\88906.TXT VERN
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nities in Maryland and throughout America that are that way. I 

think that the smaller the community, the greater the impact is of 

something like this. I remember when you and I talked about the $2.25 million that 

it would take to accomplish what we are now accomplishing. You 

didn’t mention the size of this new park. It is 150,000 square feet. 

Mr. THOMA. It has actually been bumped up. The size has varied 

over the last little while. It has gone from 150,000 to 160,000 

square feet. 

Senator INHOFE. Has it? That is just since last week when I was 

there. 

Mr. THOMA. Yes. They fluctuate with the money. They have kind 

of gone from 150,000 to 175,000, I think they are back down to 

165,000 square feet. It may change tomorrow. 

Senator INHOFE. But the point is this: I don’t think you can sit 

there and tell us the economic impact of this thing, what it is generating, what the future will be. We don’t know, when you look at 

the first element of the SCS system being assembled there what 

impact that would have on future elements. But I think it would 

be very positive. I don’t see any way that we won’t be in real serious competition as a result of the great asset that is being built 

there. 

While you are the mayor of Elgin, Oklahoma, nearby Lawton, 

100,000 people or so, all the communities around there are affected 

to a greater or lesser degree. Is there anything else that you, since 

you came a long way, the longest of anyone on this panel to be with 

us today, that you would like to share with us concerning the impact of this EDA grant that started this whole thing, and what the 

future looks like for Elgin, Oklahoma as a result of the EDA? 

Mr. THOMA. Communities my size, we are a small community 

and we struggle. I have a full-time job, very part-time mayor. I 

can’t hire a full-time city manager. I spend a lot of time being 

mayor. There is no way that we can do this by ourselves. ASCOG 

has graciously, with Blaine Smith’s approval, has loaned us Ronnie 

Ward, who is a planning coordinator over at ASCOG. He has effectively become our city manager through EDA’s assistance. 

So with their help, we have actually planned this park. We have 

had to hire an engineer. But all this is wrapped up through EDA 

funds. There is no way that this Fort Sill Industrial Park, and you 

have been there, Senator, on several occasions, there is no way any 

of this could have gone off successfully without EDA funds. We 

have since passed a TIF, a tax increment financing district, we 

have gotten some ODOT money. There is some Commerce money 

involved. But all of this started with the seed from EDA. 

Senator INHOFE. And an greater extent is the private sector investments, now, it overshadows all the public funds for this, county 

or State or Federal, in this project. 

Mr. Chairman, I could have used, you were kind enough to let 

me choose my witness here, I could have used a number of other 

projects that are successful in Oklahoma. But I think this one is 

unique, in the size of the community, the effect on the entire part 

of the State, southwest Oklahoma. I have said several times, in 

fact, I said even when I addressed the chamber convention way up 

northeast of you in Tulsa, that that is singularly perhaps the best 

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thing that has happened to the State of Oklahoma. Because that 

is the kind of impact it has. So I thank you, all of our witnesses, 

but particularly you, Larry, for coming up here and sharing your 

story with us. 

Mr. THOMA. Thank you, Senator. 

Senator CARDIN. Senator Inhofe, you chose well. 

Senator INHOFE. Thank you, Mr. Chairman. 

Senator CARDIN. We very much appreciate all three of the witnesses. I think that you have really underscored the point that 

Senator Inhofe made, and that is that we need to get this reauthorized before Congress adjourns, for the predictability of the program. 

But also, there is really not any disagreement here. We have a few 

areas, I am sure, we will have to negotiate. 

But there is a clear desire to make sure that these programs continue. I think, Mr. Mayor, you pointed out that this is not about 

3 years’ planning, it is about jobs today and economic growth today. 

I think also the three of your testimoneys underscore the importance of maintaining, and I hope expanding, the EDA’s presence in 

our community, certainly not cutting it. 

I thank you all for your testimony. It will be helpful to us in trying to get this issue resolved before Congress adjourns. With that, 

if there is nothing further, the Subcommittee will stand adjourned. 

[Whereupon, at 11:20 a.m., the subcommittee was adjourned.] 

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