HOUSE BILL REPORT

HJM 4030

BYRepresentatives Wineberry, Vekich, Holm, Heavey, Cantwell, Hargrove, Kremen, Braddock, Rasmussen, Appelwick, Anderson, P. King, Leonard, K. Wilson, Lux, Spanel and Basich

Requesting Congress to establish a state economic development block grant program.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (10)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Beck, Cantwell, Fox, Grant, Heavey, Holm, Kremen and Rasmussen.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Amondson, McLean and Schoon.

House Staff:Stephen Hodes (786-7092)

AS PASSED HOUSE FEBRUARY 3, 1988

BACKGROUND:

The back-to-back recessions of 1980 and 1981-2 resulted in dramatic increases in unemployment and economic distress in a number of regions of the nation. The dramatic shifts in federal budget priorities of the early 1980's, and the limits they imposed on domestic spending programs led state governments to play the major role in designing, implementing, and funding the wide range of economic development programs which were developed following 1982. Virtually every state increased the resources devoted to economic development programs, and most expanded the areas addressed by such programs.

While state governments developed a broad range of new initiatives to increase the responsiveness of state government to the changed economy, the federal government did not engage in major initiatives in this field during the period.  The constraints of altered budget priorities and a lack of confidence in governmental competence combined to ensure that the initiative in the field remained with state governments.  Despite the vigor of state efforts, however, the most state programs operated with restricted budgets. States would create a wide variety of programs which lacked the the scale to impact the problems they were designed to address.  This problem continues, with all but a few state efforts severely underfunded.  The exceptions, such as Massachusetts, Pennsylvania, or Michigan, have developed programs which are far more ambitious.

SUMMARY:

The President and Congress are requested to authorize the establishment of a state economic development block grant program.  The proposed program would provide funding for state initiatives for economic revitalization and sustainable development.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.