WASHINGTON, D.C. — West Virginia Department of Economic Development Executive Director Mike Graney urged a congressional committee Wednesday to change the U.S. Economic Development Administration in ways that would help states and local governments.
The Senate Environment and Public Works Committee is considering reauthorization of the EDA and wanted to hear from those who work with the agency in various states. Graney was invited to testify by the committee’s ranking member, U.S. Senator Shelley Moore Capito.
It’s been 20 years since Congress last reauthorized the agency.
Capito said in her opening comments that any reauthorization must include:
–Reauthorizing EDA programs at fiscally responsible funding levels and reasserting congressional direction over EDA funding decisions;
–Enhancing congressional oversight of EDA activities and encouraging coordination between other federal [economic] development programs and the private sector;
–Updating EDA’s processes for program implementation and project delivery
–Preserving locally-driven economic development decisions.
Graney focused his comments on the current local share requirements for those receiving EDA grants. He said most of the grants West Virginia communitord [sic] qualify for fall under the lower 20% match but that can still be a big hurdle.
“Often those places that need the infrastructure improvement the most have the least capacity to fund the match,” Graney said. “Twenty-percent of a $4 million project is $800,000. That’s a lot of money, particularly for small impoverished counties.”
Other development officials from other states, who also testified, agreed with Graney.
“Maybe there is criteria that says if these thresholds are met we can reduce the match or eliminate the match,” Graney said.
Graney also asked any reauthorization of the EDA to consider flexibility in using funds for things like site preparation for potential economic development properties.
“I think if we can have flexibilty using US EDA funds to do that work it could be helpful. As opposed to identifying that occupant and knowing they need a 10-inch water line, post. Having a site-ready facility could mean the difference between having someone select West Virginia or not,” Graney said.
The EDA has funded 174 projects in West Virginia since 2018 totalling nearly $233 million.