WASHINGTON, DC – Today, Congressman Mike Michaud, a member of the House Transportation and Infrastructure Subcommittee on Economic Development, led an effort to retain adequate funding for federal economic development efforts. In a letter signed by 17 of his colleagues, Michaud urged the House Budget Committee to provide the Economic Development Administration (EDA) the support necessary to aid in the nation’s economic recovery. According to studies, historically, every $1 in federal EDA funding leverages approximately$10 in private investment.

“As Congress looks for ways to support economic recovery while managing the national debt, it is essential that lawmakers focus on programs with a proven record of success,” wrote Michaud. “With well over four million private sector jobs created and roughly $150 billion in private sector investment leveraged since its inception, EDA has amassed an impressive record of assisting communities struggling to overcome both long-term economic challenges and sudden economic hardships.”

EDA currently funds a number of economic development districts throughout the country, including a number in Maine: Androscoggin Valley Council of Governments (Auburn), Eastern Maine Development Corporation (Bangor), Kennebec Valley Council of Governments (Fairfield), Midcoast Economic Development District (Bath), Northern Maine Development Commission (Caribou), and Southern Maine Economic Development District (Portland).

Examples of work done by Maine’s local development districts:
In 2007, the Kingfield Water District with assistance from the Androscoggin Valley Council of Governments received $750,000 in EDA public works assistance to replace deteriorated pipelines serving a proposed “Poland Spring” bottling facility. The project supported the construction of a 200,000 square foot manufacturing facility built on 315 acres, four spring water withdrawal sites and four miles of pipeline. The LEED-Certified plant opened in 2008 and will eventually employ over 110 people. In 2009, the facility was recognized by Maine Governor John Baldacci as a model of environmentally sustainable development.
Since the Loring Air Force Base closed in 1994, the Northern Maine Development Commission (Caribou, Maine) has used its EDA-funded Defense Diversification Loan Program to make 49 loans totaling $5.2 million. These loans have resulted in the retention and creation of 2,137 jobs in this highly rural region and leveraged more than $44 million in additional funds. These investments have assisted existing businesses affected by the closure to modify their business models, stay in business, and retain and add jobs. It has also financed new businesses that have hired dislocated defense workers.

“Now is the time to refocus on strengthening our nation’s primary private sector job creation agency. Adequately funding the EDA will help ensure that our local communities are able to invest in critical job creation strategies and initiatives,” said Michaud.