Washington, DC - Senator Hillary Rodham Clinton today joined a bipartisan effort lead by Senators George V. Voinovich (OH) and John D. Rockefeller (WV) to retain vital funds for the Appalachian Regional Commission (ARC). Signing on to a bipartisan letter to the Chairman and Ranking Member of the Senate Appropriations Subcommittee on Energy and Water Development, Senators Pete Domenici (NM) and Harry Reid (NV), Senator Clinton reiterated her support for the ARC and called for $88 million in funding for the Commission so that it can continue its important work for New York's Southern Tier and other parts of the Appalachian Region.

"Now more than ever, we must ensure that the Appalachian Regional Commission is fully funded so that New York's Southern Tier can continue to receive the valuable economic revitalization tools that it needs to promote development and job creation," Senator Clinton said.

"Working locally with input from business and community leaders, the Appalachian Regional Commission plays a vital role in revitalizing communities in need. The Federal government needs to fully fund the Commission so that it can continue its valuable work. An investment in the ARC is an investment in job growth and economic development for the Southern Tier and a statement of belief in the future of Upstate New York," Senator Clinton said.

Unfortunately, the President's fiscal year 2004 budget only requested $33.1 million for the ARC, which is 62% less than the authorized amount for fiscal year 2004 and represents a 54% cut from the amount provided for fiscal year 2003. Earlier this year, Congress appropriated $71.3 million for the ARC in the Omnibus Appropriations Act for Fiscal Year 2003.

Last year, President Bush signed into law the Appalachian Regional Development Act Amendments of 2002 (P.L. 107-149), which Senator Clinton worked on as a member of the Senate Environment and Public Works Committee. For fiscal year 2004, the law authorizes funding for the ARC at a level of $88 million. Senator Clinton, along with her colleagues on both sides of the Senate, is calling on Congressional appropriators to fund the ARC in the amount of $88 million as authorized by the newly passed law.

In particular, Senator Clinton and her colleagues are requesting full funding for the Telecommunications and Technology Initiative carried out by the Commission. Funding for the initiative would help provide telecommunications access, offer education and training in the use of technology, encourage e-commerce activities by Appalachian businesses, and help foster the creation of Appalachian jobs in the information technology sector.

The Appalachian Regional Commission (ARC) provides communities in the Appalachian Region with tools to help bolster businesses and spur local economic development. Several counties in New York's Southern Tier, including Allegany, Broome, Cattaraugus, Chautauqua, Chemung, Chenango, Cortland, Delaware, Otsego, Schoharie, Schuyler, Steuben, Tioga, and Tompkins, are contained within the region.

Last year Senator Clinton worked with her colleagues on the Environment and Public Works (EPW) Committee, in particular Senators George Voinovich (OH) and Jim Jeffords (VT), to pass The Appalachian Regional Development Act Amendments. The new law included two programs successfully added by Senator Clinton in Committee based on key elements of her upstate economic revitalization package: Regional Skills Partnerships and the Entrepreneurship Initiative.

[A copy of the letter is attached]

April 11, 2003

The Honorable Pete Domenici, Chairman Subcommittee on Energy and Water Development Committee on Appropriations United States Senate Washington, DC 20510

The Honorable Harry Reid, Ranking Member Subcommittee on Energy and Water Development Committee on Appropriations United States Senate Washington, DC 20510

Dear Senators:

We respectfully request that you include funding in the amount of $88 million for the Appalachian Regional Commission (ARC) in the fiscal year 2004 Energy and Water Development Appropriations bill.

Last year, President Bush signed into law the Appalachian Regional Development Act Amendments of 2002 (P.L. 107-149). The law reauthorizes the non-highway programs of the ARC for five years. For fiscal year 2004, the ARC is authorized at a level of $88 million. Of that amount, $5 million is specifically authorized for the Telecommunications and Technology Initiative. The law also requires states to spend at least half of their ARC funding on projects benefiting economically distressed counties and areas.

As you know, Congress appropriated $71.3 million for the ARC in the Omnibus Appropriations Act for fiscal year 2003. The President's fiscal year 2004 budget request of $33.1 million for the ARC would represent a 54 percent cut from the amount provided for fiscal year 2003 and would be 62 percent lower than the authorized amount for fiscal year 2004.

There are currently 410 counties in the 13-state region that makes up the ARC, including 121 counties that currently qualify as distressed on the basis of low per capita income and high poverty and unemployment rates.

Full funding for the ARC will allow the agency to continue its important work to improve the quality of life in Appalachia, especially in the region's poorest and underdeveloped counties.

It is particularly important to the states that Congress provide full funding for the Telecommunications and Technology Initiative. A recent study by the University of Texas documents the fact that many parts of Appalachia have lower penetration rates of home computers, Internet access, and even basic telephone service than the national average. The funding would help provide telecommunications access, offer education and training in the use of technology, encourage e-commerce activities by Appalachian businesses, and help foster the creation of Appalachian jobs in the information technology sector.

The ARC is important partner in fostering economic development and improving the quality of life in Appalachia. Full funding of $88 million for the ARC in fiscal year 2004 would be leveraged with additional federal, state, and local money and would go a long way in making a real difference in the region.

Thank you for your consideration of our request.

Sincerely,

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