duction in Federal spending on many projects employing highly skilled personnel and engineers. The aerospace industry provides the prime example of the current type of unemployment. In many ways the current unemployment is affecting sectors of our economy and areas of our Nation not generally considered as poverty pockets in the Appalachian or Deep South sense. ༣ !། Unemployment in these typical areas was caused by dependence upon a single industry. In times of stable operations of those industries, those communities are healthy. In such times there is a strong tax base and there is money to build public facilities. Just as this unemployment was triggered by a reduction in Federal spending, an increase in Federal spending for aerospace and other projects would just as certainly reverse the trend and the presently high unemployment rates would vanish. The point I am making is that the formula envisioned by this legislation, since it is geometric and would create such a high-qualifying figure on the 1970 base, would have its chief thrust toward such areas, areas whose economic climates fluctuate so rapidly. Many of these areas are not areas of chronic unemployment." We need a formula to reach areas of chronic unemployment. We need to reach the many areas in Appalachia and other parts of the Nation which were never highly industrialized, which have a high concentration of elderly and disabled persons not counted in the work force which lack a strong tax base, which have never experienced the rapid growth or the sharp setbacks which are the vicissitudes of dependence upon an industry which fluctuates so much with Federal spending. We need to stimulate the kind of development to provide jobs to attract our young people, so that they will not have to leave their home areas, so that a healthy balance in ages can be created. When this is done we will have the climate for further development. It is possible that the unemployment experienced today will spread with mushrooming rates from the industrialized sections of our Nation to the rural areas. It is possible, if this trend continues, that the rural areas will have unemployment higher than the industrialized sections. But being optimistic, it is just as possible that unemployment will be checked in 2 years, that the high rates of unemployment will ebb in our industrialized sections. When and if this happens those sections currently experiencing high unemployment will be on a better footing and what is more they will still have the benefit of qualifying for Federal assistance under the public works acceleration bill, if the present formula is retained. But the areas of chronic unemployment, those areas without industrialization which are not affected so sharply by today's unemployment because they do not have the industry to be affected in the first place, would remain areas of chronic unemployment. And what's more disastrous many of these areas might not be able to qualify for Federal assistance under the present formula in the public works acceleration bill. In 1972-if overall unemployment is lower-how many areas could match the qualifying figure of 12.2 percent unemployment. Seventeen out of the 55 counties in West Virginia had average yearly unemployment rates of 8.75 or higher in 1970. These counties could qualify on the 1969 base, but only six of the counties had un employment rates of 12.2 percent or higher in 1970, so, therefore, only six counties in all of West Virginia could qualify under the proposed formula on the basis of the 1970 rate. What we need is a formula that is not relative, a formula which aids more communities than just those with the highest rates of unemployment, for although many areas are experiencing extraordinary unemployment, hardship is not relative. Let us not get so involved with a relative mathematical formula that we forget the point of this legislation and the tragedy measured by unemployment figures. This legislation should reach hardship areas and I repeat, let us do more than skim the surface. STATEMENT OF HON. DAVID PRYOR, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF ARKANSAS Mr. PRYOR. Mr. Chairman and members of the Special Subcommittee on Economic Development Programs, I appreciate the opportunity to submit a statement in support of the Randolph-McFall bill which would amend the Public Works Acceleration Act to make those benefits available to certain areas of extra-high unemployment. I have joined with my distinguished colleague, the Honorable John J. McFall in the introduction of this legislative measure because there is an urgent need for the Congress to take immediate steps to reduce the unemployment rate in certain areas of the country. This comprhensive, antirecession public works legislation would provide assistance to many redevelopment areas, some major labor market areas, and small sections known as pockets of poverty located in existing labor markets. This bill is designed to help many communities throughout the country make public facility improvements and stimulate local industrial development; more importantly, the enactment of this legislation would clearly demonstrate that the Congress is deeply concerned over the alarming rate of unemployment in this country and is eager to provide immediate and measurable relief to persons who are asking for a chance to earn an honest wage at a time when we are plagued with a stagnant economy. There are approximately 512 million jobless persons who cannot wait for new, long-range economic programs or concepts to come forth. We need a kind of crash program to offer assistance to communities with an inordinately severe unemployment problem. This proposed legislation will meet that immediate economic need. It will be a first step in the direction of economic recovery. It will provide a vital tool to aid the hardest hit areas of our Nation. Congressman McFall's research findings reveal that there are hundreds of communities across the land with unemployment rates averaging 9 percent or more. A number of areas in my own State of Arkansas would qualify for special public works assistance under the provisions of this bill. This aid will restore hope to many communities and dignity to many persons who cannot find work. Mr. Chairman, I give my unqualified endorsement to this worthy piece of legislation, and I know that you and the distinguished members of your subcommittee will act expeditiously on it. I thank you for affording me the opportunity to set forth my views on the RandolphMcFall bill. STATEMENT OF HON. JEROME R. WALDIE, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF CALIFORNIA Mr. WALDIE. Mr. Chairman, I welcome the opportunity to speak on behalf of the accelerated public works bill. There is no question but that many areas of our Nation are hard pressed for dramatic stimulation of their economy. I believe that this measure will provide that stimulus and that it should be adopted without undue delay. I would hope that recipient local agencies would put high priority on environmental projects such as water reclamation and sewage treatment plants. There is no greater need in our communities than for upgraded treatment projects, including those which would provide tertiary-treated water for reuse. The accelerated public works bill would take up the slack in Federal assistance in the construction of such plants that, regrettably, has been shown in recent years. Mr. Chairman, I would also like to caution recipient agencies about funding public works projects that have a possible adverse environmental impact. All Federal projects require submission of an environmental impact statement under the provisions of section 102 (c) of the National Environmental Policy Act of 1969. I would hope, Mr. Chairman, that all public works projects assisted with Federal funds under this legislation, H.R. 4400, would carry the same requirement. STATEMENT OF HON. GUY VANDER JAGT, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. VANDER JAGT. Mr. Chairman, I would like to insert into the hearing record a letter I have received from officials of the city of Muskegon, Mich., in my congressional district. The letter provides strong endorsement for the Public Works Acceleration Act Amendments of 1971. I would also like to add my own personal emphasis to the need for such legislation. Unemployment levels in much of my district are considerably above 10 percent. I have issued a statement in this regard which would be inserted into the record with your permission, Mr. Chairman. Muskegon County is in a unique position of need and at the same time is uniquely prepared to benefit from an accelerated public works program. The county and its local units of government have been involved in long-range planning for many years. In this planning a solid foundation has been laid for building a new and sound base of economic activity to cure the chronic ills that have been our burden through the years. This planning has evolved around two concerns: the need to build an agriculture industry which would provide some assistance in stabilizing overall economic conditions (the county has a great deal of marginal land providing little or no economic activity at the present time); and, because of the natural environment of the area, we're blessed with Lake Michigan on the west and three dune-impounded lakes and several rivers, the need to develop a substantial secondary tourist industry. Serious water pollution problems have prevented the development of the tourist industry in the past. Lack of moisture retentive capacity and organic matter and nutrient content have retarded agriculture development. Both of these problems stand to be solved with the establishment in the county of an innovative wastewater treatment system utilizing a lagoon-spray irrigation concept. This sewage treatment system is in the final stages of engineering design and should be under construction this summer. It offers extremely interesting probabilities in solving both major problems in the county. About 6,000 acres of land will receive nutrients and water in the spray irrigation system so that a major agriculture enterprise will evolve. At the same time, the system will totally eliminate the discharge of municipal and industrial wastewater in the area to surface waters resulting in substantial improvement of the local environment. This reduction in water pollution will help create conditions necessary to the establishment of an attracive tourist and resort complex in the county. Tied in with the sewage treatment system is the need for substantial additions to sewer lines in the urban areas many of which are now served only by septic tank systems. A marina-convention center development is planned as a basic part of the tourist and resort complex. Unifying the entire shoreline will be a dunes parkway. All of these projects are in the advanced planning stages. All have the potential for immediate job opportunities to the unemployed. But perhaps most important, all are projects which will help lay the groundwork for sound future economic development in the county. We're not talking about make-work projects. We're talking about well conceived, well planned construction programs that are part of the determination of Muskegon citizens to lift themselves from economic doldrums and build a better region for themselves and their children. Mr. Chairman, I strongly urge your committee's support for this leg islation which will provide jobs today and economic health in the future for western Michigan. (The letter and statement referred to follow :) CITY OF MUSKEGON, MICH., March 29, 1971. Re: Public Works Acceleration Act Amendments of 1971-H.R. 5376. DEAR GUY: Chronic unemployment and under-employment continue to blight the future of the community of Muskegon. Throughout the 60's unemployment in our town was far greater than the nation as a whole, only once in eleven years being below the nation's mark (see attached chart). In the past several years we have ranked with the top four or five cities in terms of numbers not working. The economy of Muskegon has historically been tied to forces outside of local control (economic spoilation and exploitation, periods of boom and bust, war and depression). Long term economic malnutrition has had its effect on Muskegon and has negated much of the fine efforts of local citizens to improve their community. The proposed legislation, Public Works Acceleration Act Amendment of 1971, (H.R. 5376) will enable Muskegon to commence immediately on $2.179,260 worth of projects-$4,306,800 worth of projects can be started within twelve months with a grand total of 42 million dollars worth of projects under construction within 24 months. (See attached list of projects.) The projects listed here and the dollar value of construction are in addition to works proposed on a county-wide basis. (These were submitted in testimony to the Special House Sub-Committee on Economic Development Programs.) The city : (a) has a firm plan for badly needed permanent public facilities; (b) is able to finance the local share (20% of Group I, II, III, IV or 2.6 million local share); (c) can guarantee that a high percentage of the construction cost will be labor and that new people will be brought into the construction industry (Muskegon County Minority Equal Opportunity Plan). The work here, if accelerated, will provide for immediate employment and training opportunities. The jobs generated could be estimated as follows: 150 percent dollar value for labor; labor estimated at $5 per hour or 100,000 man-hours per 1,000,000 construction. 2 Allocation of generated man-hours: 50 percent to building trades-employed; 30 percent to building trades-unemployed (no training needed); 20 percent to nonbuilding trades personnel-unemployed (training needed). Note: Above formula checked with Muskegon County building trades and their Washington research staff. The five million dollar annual cost to Muskegon's payroll would generate additional economic activity that coupled with other accelerated public works within the county and on-going local and Federal efforts of community and economic development would provide the strengthened basis over several year's time span necessary to synergistically change basic economic conditions in the community. Jobs for 2,967, including putting back to work 891 people and providing for the entry of 593 new workers into the construction industry would provide job opportunities for a substantial number of Muskegon's disadvantaged. These job opportunities are assured in Muskegon by a unique agreement between the area's building trades, contractors, organizations with minority group interest, and contracting agencies. Entry to the construction trades and journeyman status is guaranteed by three routes: apprenticeship, on-the-job training, and performance on the job. These guarantees are part of Greater Muskegon Equal Opportunity Program Construction Agreement which also provides for manpower recruiting and training and is administered by professional staff. Muskegon has a strong program of community development. It has organized well to provide job opportunities as they develop locally to further generate improved local economic conditions. An accelerated public work program in Muskegon could be immediately instituted and have long lasting beneficial effects. I urge the adoption of this legislation. Sincerely, EDWARD J. STEWART, Mayor. |