COMMUNITY DEVELOPMENT AND HOUSING COMMITTEE

FUNDING FOR EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES

WHEREAS, the Administration has designated a second round of 40 Empowerment Zones and Enterprise Communities which were authorized by Congress; and

WHEREAS, the designated communities spent a tremendous amount of time and resources to develop comprehensive economic revitalization strategies; and

WHEREAS, the initiatives developed by the communities cannot be achieved without federal funding; and

WHEREAS, in spite of the Congress providing small amounts of funding in FY99 and FY00 the urban zones alone remain $14 million short of where the communities and their private sector partners expected they would be by FY00; and

WHEREAS, a Federal investment of $1.5 billion for the 15 urban Empowerment Zones alone, would yield an additional $17 billion in local investment, 35% of which would be contributed by the private sector; and

WHEREAS, the Administration’s FY01 budget recommends that the Empowerment Zones and Enterprise Communities be fully funded; and

WHEREAS, the Congress and the Administration are considering the inclusion of economic stimulus provisions for distressed communities as part of a tax package,

NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors urges the Administration and the Congress to make full funding of the Round II Empowerment Zones and Enterprise Communities a high tax priority, and include mandatory funding provisions for the Round II EZs and ECs in the final tax package; and

BE IT FURTHER RESOLVED that the U.S. Conference of Mayors calls on Congress to provide funding in the amount of $1.6 billion over the next eight years for the 40 Round II Empowerment Zones and Enterprise Communities.