FY 1999 Annual Program Performance Report 5

Economic Development Administration

Overview

Mission Statement

To create a climate conducive to the development of private enterprise in America’s

distressed communities.

Strategies and Activities

The Economic Development Administration (EDA) provides long-term help to distressed

communities to overcome barriers that inhibit the growth of their local economies, and limit their

ability to compete effectively in regional, national, and global markets. Local capacity provided

by EDA’s strategic investment planning helps the local communities plan for new technologies,

job creation opportunities, and enterprise development. 

Communities with substantial and persistent economic deterioration, or significant near-term

economic dislocations brought about by sudden and severe changes in local economic

conditions are assisted by EDA’s investments. For example, EDA provides construction grants

for economic development projects in distressed communities, and provides construction and

revolving loan fund (RLF) grants to implement economic adjustment strategies in response to

sudden job loss and severe economic distress. 

EDA’s two goals are:

1. Creating jobs and private enterprise in economically distressed communities; and

2. Building local capacity to achieve and sustain economic growth.

Goal 1 is supported by budget activities for Public Works and Capital Access as authorized by

the Public Works and Economic Development Act (PWEDA) under section 201 (public works

and development facilities) and section 209 (economic adjustment infrastructure and revolving

loan fund grants). Goal 2 is supported by budget activities for Planning and Technical

Assistance as authorized by PWEDA under section 203 (District and other planning grants);

section 207 (university centers, local technical assistance, and national technical assistance,

research and evaluation grants); section 209 (strategic planning grants); and trade adjustment

assistance under Chapter 3 of Title II of the Trade Act of 1974, as amended.

The following are program activities that support EDA’s first goal:

■ Build or rebuild public infrastructure (roads, water, sewer, and other infrastructure) to

support the establishment or expansion of commercial and industrial facilities in distressed

communities

■ Help communities upgrade technology infrastructure and training facilities to prepare for a
■ Redevelop abandoned or under-utilized industrial sites and facilities, including

“brownfields,” to restore employment and private investment in distressed areas

■ Provide distressed communities with a flexible financing mechanism to modernize aging

plant and equipment, introduce new technologies, and increase productivity

■ Invest in stabilizing and diversifying the local economy

■ Provide for defense adjustment and disaster recovery

Another long-term investment by EDA is building partnerships with local, State, and regional

planning organizations that target assistance to economically distressed areas. EDA’s focus on

locally developed strategies allows EDA to make strategic investments in modern infrastructures

that are critical to a community’s economic growth. Through a national network of 320

Economic Development Districts, 64 Indian Tribes, 69 University Centers, and 12 Trade

Adjustment Assistance Centers, EDA supports strategic planning and technical assistance in

local distressed communities. These programs work in unison to provide for long-term local

capacity building for distressed communities. 

The following are program activities that support EDA’s second goal:

■ Grants to support professional staff and technical expertise required for effective planning

of economic development programs through a network of regional planning organizations

and technical assistance centers

■ Grants to support strategic planning organizations and technical assistance providers

■ A website to disseminate cutting-edge economic development research

■ Grants for cutting edge research in economic development

■ Evaluations that provide practical, up-to-date information on the effectiveness of

program tools

Long-term Outcomes

EDA’s long-term performance measures for Goal 1 document the long-term outcomes of EDA

infrastructure investments in distressed areas. For example, FY 1999 grants for construction

and revolving loan fund projects are expected to create or retain 56,983 jobs, and leverage

$2.08 billion dollars in private sector investment by FY 2008. Projections for FY 1999 funding

are for direct jobs only, with an additional discounting for external factors. These projections are

EDA’s most conservative estimates for direct jobs and private investment. 

The Job Creation graph below illustrates a snap shot of the number of jobs created by FY 1999

funding, and that will be reported by EDA grantees from FY 2002 to FY 2008. 

6 FY 1999 Annual Program Performance Report
EDA projections for the long-term outcomes are based on program evaluations conducted by

Rutgers University, completed in FY 1997. The projects used in the evaluation consisted of all

projects (205) whose last payment was received in FY 1990. The methodology for attaining

results insured that the projects used in the evaluation were complete, and the structures

associated with them were either occupied or were soon to be occupied. In terms of distress,

EDA public works projects took place in locations where levels of unemployment and

percentage of population below the poverty level are 40 percent higher than State and national

averages. These were also locations where the per capita income was typically 40 percent

lower than averages at the State and national level.

For long-term outcomes, EDA has developed a reporting system to track these performance

measures (i.e., job creation and private sector investment). EDA is requiring grantees to report

long-term outcomes at project completion; three years following completion; and six years after

completion. For example: 1999 grantees will report on long-term outcomes in FY 2002, FY

2005, and FY 2008. The methodology used by EDA to project jobs and attain results is similar

to the methodology used by Rutgers University. To supplement the long-term measures, EDA

has also developed a set of interim and process measures that are used by EDA managers on a

regular basis to set targets and track performance in critical program areas.

To continue testing, refining, and improving EDA projections, EDA conducts pilot reviews of past

investments. The EDA GPRA Pilot I and II reports (November 1999) reviewed the long-term

outcomes of 58 construction projects completed in FY 1993, and 44 revolving loan funds

approved in FY 1993. EDA conducted the pilot not only for attaining results; but also, to provide

outreach and training for EDA grantees and staff on valid reporting methods and verification of

long-term outcomes. 

Rutgers University concluded the following for FY 1999 GPRA Pilot Reports I and II:

■ The results from the Government Performance and Results Act (GPRA) Pilot (1999) are

comparable to the results from the Rutgers earlier study (1997)

■ Virtually all of the construction and revolving loan fund projects evaluated in the FY 1999

study achieved EDA’s objective of providing communities with the necessary infrastructure

to expand their economic base and existing job base

■ EDA public-sector economic stimuli created private-sector jobs at high levels of success

and at low levels of cost

FY 1999 Annual Program Performance Report 7
Create jobs and private enterprise in economically

distressed communities

Rationale for Performance Goal:

EDA helps communities respond to severe changes in local economic conditions resulting from

a wide range of factors, including the loss of major employers, defense downsizing and base

closures, trade impacts, and natural disasters. Strategic investments in public infrastructure can

help distressed communities create and retain jobs, stabilize and diversify local economies, and

generate future growth. 

EDA public works and economic adjustment grants, including revolving loan funds, implement

comprehensive economic development strategies to address problems of substantial

unemployment, low per capita income, or other special need as authorized by Public Works and

Economic Development Act (PWEDA). These programs have long-term objectives such as to

stabilize local economies, stimulate permanent employment and private investment, and

improve incomes in economically distressed areas. 

FY 1999 Performance

Measure 1.a: 

Number of permanent jobs created or retained in distressed communities

as a result of EDA grants 

Data Validation and Verification

Data source: Grantee performance reports 

Frequency: 3, 6 and 9 years after grant award

Baseline: Program evaluations conducted by Rutgers University, et al. (1997). 

Data storage: EDA database 

Verification: The Economic Development Administration (EDA) conducted a pilot review of past investments to 

test performance projections, provide training, and improve reporting. During FY 1999, EDA

conducted a pilot review of 58 construction projects completed in FY1993, and 44 revolving loan 

fund projects approved in FY 1993.

8 FY 1999 Annual Program Performance Report
Measure 1.b:

Private sector dollars invested in distressed communities as a

result of EDA grants

Data Validation and Verification

Data source: Grantee performance reports 

Frequency: 3, 6 and 9 years after grant award

Baseline: Program evaluation conducted by Rutgers University, et al. 

Data storage: EDA database

Verification: The Economic Development Administration (EDA) conducted a pilot review of past investments to 

test performance projections, provide training, and improve reporting. During FY 1999, EDA

conducted a pilot review of 58 construction projects completed in FY 1993, and 44 revolving loan 

fund projects approved in FY 1993. 

FY 1999 Annual Program Performance Report 9
Measure 1.c: 

State and local dollars committed to EDA-funded projects (interim

measure)

Data Validation and Verification

Data source: Grantee applications and progress reports

Frequency: At time of grant award and project completion

Baseline: FY 1998 projects 

Data storage: EDA database 

Verification: EDA verifies non-Federal funds committed to projects prior to disbursement of grant funds. 

Comment: New EDA legislation introduced requirements for increased State and local matching funds.

10 FY 1999 Annual Program Performance Report

 

 

 
Percent of public works and economic development facilities,

including revolving loan fund grants awarded in areas of highest

distress (interim measure)

Data Validation and Verification

Data source: Bureau of Labor Statistics (BLS) and 1990 Census

Frequency: Annually

Baseline: FY 1998 Projects

Data storage: EDA Database

Verification: Statistical data is based on Bureau of Labor Statistics most current 24-month unemployment data,

and 1990 Census per capita income data. Every three months, EDA updates the BLS 

unemployment rate data within its database. EDA will sample projects, periodically, to ensure 

accurate reporting.

Comment: Areas of highest distress are those areas in which projects may receive a Federal grant rate of 70% 

or more. The criteria as defined by the 70% grant rate are for projects located in areas where 24-

month unemployment rate is at least 180% of national average, or per capita income is not more 

than 60% of national average. For FY 1999, based on BLS and 1990 Census data, the 70% grant 

rate statistically translated to an unemployment rate of at least 8.05 percent, or a per capita income 

of $8,566 or less. Under EDA’s regulations implementing its FY 1998 reauthorization legislation, 

Federal grant rates may be as high as 100%. 

FY 1999 Annual Program Performance Report 11

 

 

 

 
Application processing time for public works and economic adjustment

construction, and revolving loan fund grants (process measure)

Data Validation and Verification

Data source: EDA database

Frequency: Annually

Baseline: FY 1998 Projects

Verification: EDA will sample projects, periodically, to ensure accurate reporting.

Comment: New EDA legislation resulted in late fiscal year project invitations and unusually compressed project 

development and processing. EDA shifted resources to achieve this level of performance under 

extraordinary circumstances, and cannot sustain project processing at this level without affecting 

other critical program and administrative functions. Baseline for FY 2000 has been revised to 

address the significant variance between target and actual decrease in processing for FY 1999. 

The new baseline (an average of FY 1998 and FY 1999) is 79.5 median days, rather than 92 

median days (original target for FY 1999 processing). The target will remain at 6% decrease from 

the new baseline. The baseline will be re-examined in FY 2000.

Note: FYs 2000 and 2001 targets reflect adjusted baseline based on FY 1999 actual performance

12 FY 1999 Annual Program Performance Report

FY 1999 Target 6% decrease 

FY 1999 Actual 38% decrease 

Analysis Target exceeded 
To complement its performance measurement system, EDA conducts systematic evaluations of

all program activities to develop, test, and refine performance measures and benchmarks. EDA

is making significant investments in program evaluation and research to improve programs and

to provide useful information to local economic development practitioners. EDA’s goal is to

evaluate programs on a regular basis (i.e., every five years). EDA sponsored evaluations unde

this goal include the following:

■ Public Works Program Performance Evaluation (Rutgers University, et al., March 1997) 

■ Defense Adjustment Program Performance Evaluation (Rutgers University, et al.,

November 1997)

■ Public Work Program: Multiplier and Employment-Generating Effects (Rutgers University

et al, 1998)

■ EDA’s Response to the Midwest Flood of 1993: An Evaluation (Aguiree International, 1998)

EDA will continue its strategy of evaluating its programs in order to serve its customers more

efficiently and effectively and to develop facts and data that will help the agency focus on

program direction. In addition, EDA sponsors research and national technical assistance

projects to evaluate the effectiveness and economic impact of programs, projects, and

techniques used to alleviate economic distress and promote economic development. EDA is

currently evaluating its Revolving Loan Fund Program. Evaluations for capacity-building

programs are reported under goal 2 of this report.

FY 1999 Annual Program Performance Report 13
Build local capacity to achieve and sustain economic growth

Rationale for Performance Goal:

Economic development is a local process as well as a broader national one. At the local level,

the Economic Development Administration (EDA) seeks to help distressed communities build

capacity to identify and overcome barriers that inhibit economic growth. EDA supports local

planning efforts to foster long-term partnerships between State and regional organizations, and

local communities. EDA grants for strategic planning and technical assistance help local

communities to set priorities, determine the viability of projects, and respond to severe changes

in local economic conditions. This results in the leveraging of outside resources to improve the

local economy and sustain long-term economic growth. Evaluations of EDA’s public works and

defense adjustment programs confirm that EDA planning and technical assistance is a critical

component to the long-term success of its infrastructure and revolving loan fund projects.

FY 1999 Performance

Measure 2.a:

Percent of sub-State political jurisdiction members actively participating in

the Economic Development District (EDD) program 

Data Validation and Verification

Data source: EDA Grantee Performance Evaluations

Frequency: Annual 

Baseline: FY 2000 grants

Data storage: EDA database 

Verification: EDA will conduct periodic performance reviews and site visits including interviews with clients.

Comment: Evaluation process was developed in FY 1999, consistent with new legislation.

14 FY 1999 Annual Program Performance Report
Percent of Economic Development Districts and Indian Tribe Planning

grantees whose Comprehensive Economic Development Strategy (CEDS)

is on time and acceptable 

Data Validation and Verification

Data source: CEDS Report

Frequency: Annual 

Baseline: FY 2000 grants

Data storage: EDA database 

Verification: EDA HQ will review OPCS database.

Comment: Database will include CEDS annual report received, acceptable CEDS, and next CEDS report 

due date.

Measure 2.c:

Percent of University Center clients satisfied with technical assistance

provided for local economic and business development

FY 1999 Annual Program Performance Report 15


Data source: Grantee annual reports

Frequency: Annual

Baseline: 2000 grants

Data storage: EDA database

Verification: OPCS procedures will require EDA regional offices to enter data within 30 days of receiving annual 

report. This data will verify annually for one-third of University Centers, as part of a three-year 

evaluation cycle.

Comment: Data is based on a survey approved by OMB and will be submitted to EDA as part of the University 

Center Annual Report.

Measure 2.d:

Percent of clients satisfied with assistance provided for trade adjustment

assistance to firms (interim measure)

Data Validation and Verification

Data source: Grantee annual reports

Frequency: Annual

Baseline: FY 2000 grants

Data storage: EDA database 

Verification: EDA will conduct periodic performance reviews and site visits to review and verify data.

Comment: Trade Adjustment Assistance Centers will summarize client satisfaction ratings in their annual reports.

16 FY 1999 Annual Program Performance Report
Number of research and national technical assistance results published or

presented nationally each year

Data Validation and Verification

Data source: Grantee Reports

Frequency: Annual

Baseline: 5, based on FY 1997 reports published or presented.

Data storage: EDA’s Research & National Technical Assistance Program office

Verification: EDA will verify by obtaining publications and monitoring national presentations.

Comment: Program evaluations and performance measurement are priorities for EDA’s research and national 

technical assistance program. 

FY 1999 Annual Program Performance Report 17

 

 

 
Percent of local technical assistance and economic adjustment strategy

grants awarded in areas of highest distress (interim measure)

Data Validation and Verification

Data source: Bureau of Labor Statistics and 1990 Census

Frequency: Quarterly

Baseline: FY 1998 Projects

Data storage: EDA Database

Verification: Statistical data is based on Bureau of Labor Statistics (BLS) most current 24-month unemployment 

data and 1990 Census per capita income data. Every three months, EDA updates the BLS 

unemployment rate data within its database. EDA will conduct periodic reviews of projects to 

ensure accurate reporting.

Comment: Areas of highest distress are those areas in which projects may receive a Federal grant rate of 70%

or more. The criteria as defined by the 70% grant rate are for projects located in areas where

24-month unemployment rate is at least 180% of national average, or per capita income is not more

than 60% of national average. For FY 1999, based on BLS and 1990 Census data, the 70% grant 

rate statistically translated to an unemployment rate of at least 8.05%, or a per capita income 

of $8,566 or less. Under EDA’s regulations implementing its FY 1998 reauthorization legislation, 

Federal grant rates may be as high as 100%.

18 FY 1999 Annual Program Performance Report

 

 

 

 
Reduction of certification processing time for tradeimpacted firms

(process measure)

Data Validation and Verification

Data source: Program Officer in charge of program

Frequency: Quarterly

Baseline: FY 1998 Projects – 56 Mean Days

Data storage: Planning and Development Assistance Division, EDA-Headquarters

Verification: EDA will sample projects periodically to ensure accurate reporting.

Comments: In FY 1999, an 18 percent reduction in certification processing time was achieved while a 4 percent 

reduction was targeted. This is partly due to a streamlined certification process that was initiated in 

January of 1997. The implementation of process took longer than anticipated with many of the 

benefits not achieved until FY 1999. Additionally, the Trade Adjustment Assistance (TAA) program 

authorization lapsed on June 30, 1999, and it was not reauthorized until November, 1999. The

results collected for FY 1999 includes data up to the 3rd quarter of the fiscal year, this data

collection reflects the lapse in authorization. However, the Trade Adjustment Assistance Centers

continued to work with firms interested in being certified and submitted petitions on their behalf to

EDA. The firms, however, could not be certified until the program was reauthorized. For FY 2000,

EDA proposes to maintain a 4 percent reduction from the FY 1998 baseline in certification

processing time. EDA will re-examine the target based on results from FY 2000 certification

processing time.

FY 1999 Annual Program Performance Report 19

 

 

 
To complement its performance measurement system, EDA conducts systematic evaluations of

all program activities to develop, test and refine performance measures and benchmarks. EDA

is making significant investments in program evaluation and research to improve programs and

provide useful information to local economic development practitioners. EDA’s goal is to

evaluate all of its programs on a regular basis (i.e., every five years). The following is a listing

of EDA-sponsored program evaluations: 

■ Select Practices for Economic Development: EDA University Centers (National Association

of Manufacturing & Technical Assistance Centers, 1998)

■ Effective Aid to Trade-Impacted Manufacturers (Urban Institute, 1998) 

EDA will continue its strategy of evaluating its programs in order to serve its customers more

efficiently and effectively and to develop facts and data that will help the agency focus on

program direction. In addition, EDA sponsors research and national technical assistance

projects to explore policy and program issues affecting distressed communities. EDA is

currently evaluating its University Center Program. EDA plans to initiate an evaluation of its

local technical assistance and planning programs in FY 2000.

20 FY 1999 Annual Program Performance Report