REMARKS AS PREPARED FOR DELIVERY - SANDY K. BARUAH, ASSISTANT SECRETARY OF COMMERCE FOR ECONOMIC DEVELOPMENT - NATIONAL CONFERENCE OF BLACK MAYORS CONFERENCE CALL

FRIDAY, DECEMBER 8, 2006

AS PREPARED FOR DELIVERY

Introduction NCBM Board President Robert L. Bowser, Mayor of East Orange, New Jersey
Thank you, Mayor Bowser, for that kind introduction, and I thank all the mayors for being on this call this morning. I am aware of the key policy initiatives of the National Conference of Black Mayors, and it’s clear that we share the same priority for strengthening the prosperity our towns and cities across the nation.

From an economic development perspective – which is where I sit in my role as Assistant Secretary of Commerce for Economic Development – we share the goal of strengthening the economic vitality of America’s cities and towns to create a bright future for their citizens.

I would like to do three things on the call this morning:

1. Set the stage;

2. Provide you an overview of the economic development investment programs at the Department of Commerce;

3. Take your questions.

President Bush believes that the Federal government can play a role in accomplishing this by creating an environment in which the economy can thrive – in which jobs can be created. Together, over the past several years, we have made progress in this direction.

Our economy is strong, and it is gaining steam. Just this morning, the government reported that the economy created 132,000 jobs in November, and has created about 2 million jobs over the past year, and 7 million since August 2003. The unemployment level is down to 4.5%, which many economists say is essentially full employment.

Overall national productivity remains strong, and minority homeownership is at an all-time high.

Despite the terror attacks of 2001, corporate scandals, the bursting of the Internet bubble, devastating natural disasters, a global war on terror, and recent high gas prices – our economy is resilient and strong.

Of course, we all know that not all communities are fully participating in the nation’s broader economic success. President Bush is committed to ensuring that no demographic sector or geographic area in the United States is left out of an opportunity to participate more fully in the American Dream.

The President believes that our competitiveness as a nation requires us to utilize all of our resources, and that we cannot afford to have portions of our society not contributing to our economic growth. As the world’s “melting pot,” our nation’s urban communities offer substantial market opportunities that promise a bright future for their citizens. Of course, to pursue these opportunities, communities need to tack action. They need the right strategy. And, of course, a little help from the Federal government never hurts.

At the Department of Commerce’s Economic Development Administration, we support the President’s vision for creating economic opportunity by investing in leading-edge, market-based economic development strategies in partnership with those economic regions that are not yet fully benefiting from our nation’s prosperity.

As you build your strategies for economic growth in your community, EDA investments can be important resources to develop and enhance the competitiveness of leading and emerging industry clusters, advance technology commercialization, and bolster critical public infrastructure such as intermodal transportation facilities or industrial and technology parks.

The EDA investment process is regionally-driven by six EDA Regional Offices in Philadelphia, Atlanta, Denver, Chicago, Seattle and Austin.

EDA investments are competitive, and are evaluated against specific investment policy guidelines and funding priorities. Our three key investment priorities are:

1. Investments in support of long-term, coordinated and collaborative regional economic development approaches;

2. Investments that support innovation and competitiveness;

And

3. Investments that encourage entrepreneurship.

In order to access EDA’s investment programs, the investment applicant must be an area of economic distress. By law, EDA defines economic distress as an unemployment level that is at least 1% above the national average or low per capita income that is 80% or less of the national average. Other criteria, such as a sudden and severe economic dislocation, can also qualify an area for EDA investments.

Cost sharing or matching is required for EDA investments, which generally may not exceed 50% of the total cost of a project.

EDA’s partnerships extend beyond other public entities. We also look for high levels of private sector participation. Unless the private sector is ready, willing and able to invest in a community, economic growth simply will not occur, regardless of how much government spends. The private sector should have not just a seat at the table, but should be actively engaged as full partners in strategies for economic growth.

All this can be summed by saying that EDA is a competitive investment program, focused on economic drivers, and stands ready to work with you to advance the economic health of your region.

I know that this has been a high-level review of EDA’s programs, but I do want to get to your questions as soon as possible. I invite you to visit the EDA website at www.doc.gov for more detailed information on EDA’s programs.

The President sees economic opportunity as vital to ensuring that this country extends hope to every neighborhood, and every citizen. And he stands ready to work with you. The Department of Commerce and the Economic Development Administration stand with the President to work with you on our shared goal of advancing economic opportunity.

I look forward to any questions you may have.