WASHINGTON, February 4, 2002—President Bush requested from Congress today a budget of $466.4 million to fund the Appalachian Regional Commission's (ARC) nonhighway and highway programs in fiscal year 2003. This represents funding essentially level with ARC's fiscal year 2002 appropriation.

"We're pleased by the administration's support for ARC," said ARC Federal Co-Chairman Jesse L. White Jr. "ARC is literally serving as the model for the Denali Commission and the new Delta Regional Authority, and for other proposed regional economic development programs in the nation. We've shown that our approach, which emphasizes interjurisdictional cooperation, regional strategic planning, and the encouragement of 'homegrown' entrepreneurial economies, can produce huge dividends. And while our work is not yet completely done, a majority of the ARC region today is increasingly participating in the national economy—and increasingly contributing to our national wealth, which is a benefit to every American, wherever they may reside in the nation."

"The president recognizes the important role that ARC plays in strengthening Appalachia's economy," said ARC States' Co-Chairman and Tennessee Governor Don Sundquist. "The ARC partnership amasses local, state, and federal energies to create good jobs for our people and improve education, health care, transportation, and so much more. We appreciate the president's support for the work of the Commission."

Funding for ARC's nonhighway programs, covering the areas of water and sewer infrastructure, education, entrepreneurship development, civic capacity, and health, would total $66.4 million. This also includes $5.4 million in support for Appalachia's 71 local development districts.

The ARC-administered Appalachian Development Highway System (ADHS) would be funded in the range of $400 million, the same as the present year. (Derived from revenues collected by the federal Highway Trust Fund in accordance with the Transportation Equity Act for the 21st Century, the precise funding level for the ADHS will not be known until later in the year, but it is expected to mirror the present year's. In fiscal year 2002, ADHS corridors also received an additional $200 million set-aside in construction funds. This one-time funding was above and beyond the regular ADHS federal apportionment.)

ARC estimates its fiscal year 2001 infrastructure investments and entrepreneurship programs helped create or retain nearly 60,000 jobs in the 13-state Appalachian Region. New or improved water or sewer service was provided to more than 24,000 households in fiscal year 2001, and some 50,000 Appalachian residents and students attended workforce training, leadership development, and other educational programs. Through ARC's health programs, more than 300,000 medical-care visits were logged with physicians in the Region.

According to a recent study, each dollar invested by ARC in infrastructure leverages roughly $58 in private investment. Additionally, the completed projects are generating annual state and local tax revenues that exceed the amount of original ARC's funding.

In fiscal year 2001, the 3,025-mile Appalachian Development Highway System recorded the greatest number of new miles opened in any single year since 1979. Seventy-two miles, including major sections of ADHS corridors in Alabama, Pennsylvania, Tennessee, Ohio, New York, and other Appalachian states, were opened to traffic. Presently 2,526 miles, or 83.5 percent, of the ADHS is open to traffic or under construction. Another 264 miles are in the final design or right-of-way acquisition phases, and 236 miles are in the location-studies phase.

A study conducted by Wilber Smith Associates in 1998 found that completed portions of the ADHS have produced thousands of new jobs while generating economic benefits that will exceed construction and maintenance costs by more than $1 billion. In 1999, a Federal Highway Administration safety study found substantial reductions in crash rates along modern ADHS corridors compared with unimproved two-lane Appalachian roadways.

In fiscal year 2003, the Commission will continue its long-held programmatic practice of targeting its resources to the Region's most economically distressed areas. The Commission will also continuing leveraging its funds by partnering with other federal and state agencies, while emphasizing community approaches to addressing local needs.

ARC Federal Co-Chairman Jesse L. White Jr. and 2002 States' Co-Chairman Don Sundquist, governor of Tennessee, will preside jointly at the meeting.

The other members of the Commission are Alabama Governor Don Siegelman, Georgia Governor Roy Barnes, Kentucky Governor Paul Patton, Maryland Governor Parris Glendening, Mississippi Governor Ronnie Musgrove, New York Governor George Pataki, North Carolina Governor Michael Easley, Ohio Governor Robert Taft, Pennsylvania Governor Mark Schweiker, South Carolina Governor James Hodges, Virginia Governor Mark Warner, and West Virginia Governor Bob Wise.