Regional Economic development Bill Testimony today Presented to the Chairs of the Joint Committee on Community Development and Small Business This would help our district when passed. Chairwoman Donoghue, Vice-Chairman Chan, and Members of the Joint Committee: Thank you for your consideration of H.3418, “An Act to Regional Collaboration and Long-term Economic Development in Small Communities of High Need and Opportunity.” This legislation proposes to expand upon the successful Mini-entitlement Communities concept of Community Development Block Grants program, by extending the opportunity for smaller communities of high need, the same opportunity to receive predictable allocations of CDBG funding. The primary objective of the federal CDBG program is: “…to develop viable, urban communities by providing decent housing and suitable living environment and expanding economic opportunities principally for low- and moderate-income persons.” We currently work toward this objective, by funding infrastructure, housing, and social service projects through different designations based upon size and degree of need. The “mini-entitlement” designation, created by the administration about six years ago is a targeted program aimed at smaller cities and is achieved based upon three factors – population above 12,000, poverty rate above the state average, and a community-wide needs score over 28. Currently, there are nine such small cities and towns qualified to participate in the program, each of which receive from the commonwealth a standard CDBG allocation each funding cycle similar to those of the larger “entitlement” communities, which receive their allocation directly from the federal government. The purpose of creating a new “mini-entitlement region” designation is principally to encourage small communities with very similar socio-economic indicators to work together strategically to challenge the persistent poverty within their communities. By providing a stable and predictable funding source to these smaller communities, we have the opportunity to incentivize a regional approach to redevelopment, within regions that are in many cases already interdependent as employment centers, transport hubs, and other social services. Mini-entitlement regions are defined in this legislation as formally established groups of contiguous or near contiguous communities, with a combined population larger than 12,000 residents, with an average poverty rate above the state average, and an average community-wide needs score above 28. This is exact criteria currently used to define mini-entitlement communities. Once designated, these regions would remain so for a period of three years after which the communities would be able evaluate the success of their collaborative approach and choose to continue on or to rejoin other individual communities within the community development fund program. This bill does not propose additional resources, only seeking to re-allocate existing investments from the CDBG program toward a more targeted investment. Similar to mini-entitlement communities, the smaller towns that might participate in this regional entitlement program exhibit higher poverty rates than the state average and higher community-wide needs scores. Higher community-wide needs scores indicate higher numbers of low and moderate-income persons, higher unemployment rates, as well as higher individual housing cost burdens, older housing stock, and higher tax levy relative to per capita income. As prescribed in this legislation, participation in the new designation would be voluntary, requiring interested communities to actively seek the joint designation. Using available data and the criteria proposed in H.3418, there is currently the potential to designate at least five regions across the state. In many cases, residents of these regions lack adequate access to knowledge centers, cultural institutions, and the transportation networks necessary for economic opportunity. Working alone and without the infrastructure to attract and sustain a dynamic, vibrant middle class economy, sufficient progress toward sustained economic development is difficult to achieve. This legislation is important as it advances equity in the distribution of economic and community development resources, and the advantages that come with being able to plan, scale, and collaborate as a regional entity. Currently, these communities, almost all of which exhibit the same socio-economic indicators as mini-entitlement communities, are forced to compete against each other for limited investment resources. Progress toward sustainable economic development is not really possible in an environment where the predictability of investment is so volatile. Massachusetts should be bold, advancing economic prosperity and wealth creation across this Commonwealth. We can do more to ensure fair investment and opportunity to the neediest areas of the state by expanding the mini-entitlement concept to help target and turn around other distressed communities. Over time, these sustained public investments would stimulate broader economic revitalization, leveraging private sector economic activity and job creation. Thank you very much for your consideration of my remarks and of this legislation. I hope that you and your fellow committee members give H.3418 a favorable report. Respectfully, DENISE ANDREWS State Representative Second Franklin District
Posted on: Thu, 18 Jul 2013 15:07:25 +0000
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