Cicilline Continues Fight to Protect Funding for Manufacturers Before Congressional Appropriators

WASHINGTON, DC– Just two weeks after appearing before U.S. House Appropriators requesting full funding for manufacturing support programs, U.S. Congressman David Cicilline (D-RI) testified before the U.S. House Budget Committee this week with a similar request. Cicilline highlighted before the Budget Committee three distinct programs that can help manufacturers compete in a global economy, retool to be more efficient and effective businesses, and retrain their workforce so that skill-sets utilized in declining segments can be transferred to those that are expanding. Cicilline’s testimony, as prepared for delivery, follows:

“Thank you Chairman Ryan, Ranking Member Van Hollen, and members of the Budget Committee. The economic recovery of my District, the State of Rhode Island, and the nation as a whole demands that we work collaboratively and focus our energy and resources on those initiatives that will help spur job growth now, while providing our workers, our entrepreneurs, and our businesses – particularly smaller enterprises and manufacturers – with the tools they need to compete in the global economy.

“During this time when Congress must make the tough choices required to lower the deficit and cut spending, we must sustain those investments that help us create jobs, innovate for the future, and remain competitive in the global marketplace.

“While there are so many vital programs to defend throughout this budget, I am here today to call attention to several programs that are critically important to creating jobs and growing the economy in the near term for my state and our nation.

“Within the Department of Commerce, the President’s Fiscal Year 2012 Budget proposes $143 million for the Hollings Manufacturing Extension Partnership, $526 million for the International Trade Administration, and $325 million for the Economic Development Administration, in part, to support programs authorized by the America COMPETES Reauthorization Act.

“Employment in manufacturing shrank from 20 million jobs in 1979 to fewer than 12 million jobs today. In Rhode Island, we experienced the loss of more than 30,000 manufacturing jobs in the last decade alone. Despite these sobering statistics, the American manufacturing sector is in the midst of resurgence. Yet, if this vital economic engine is to be sustained, Congress must continue its investments in programs that help manufacturers compete in a global economy, retool to be more efficient and effective businesses, and retrain their workforce so that skill-sets utilized in declining segments can be transferred to those that are expanding.

“Through the Hollings Manufacturing Extension Partnership, small and medium sized manufacturing firms are given the tools and expertise to improve productivity and competitiveness. For every $1 of federal investment, the Manufacturing Extension Partnership delivers $32 in economic growth – it is a vital program that helps strengthen our economy, enhances our competitiveness and generates robust job growth.

“Beyond helping American manufacturers retool and increase efficiency, if our nation is going to compete in the global economy we must guarantee that manufacturers are not disadvantaged by an uneven playing field in foreign trade, and we must ensure they have the export assistance services they need in order to access foreign markets.

“If businesses, particularly manufacturers, are going to be able to compete in the global economy they must have increased access to the global market. The International Trade Administration (ITA) within the Department of Commerce provides America’s businesses with access to trade specialists and industry and market access experts through their Export Assistance Centers. Moreover, the ITA plays a critical role in monitoring the compliance of foreign countries to trade agreements with the United States, while also working to identify potential obstacles American businesses may confront in accessing foreign markets. Research from the Department of Commerce indicates that for every additional $100,000 in annual export sales, one new job is created. For Rhode Island alone, that meant 5,400 jobs created or retained in our economy in 2009.

“Additionally, I applaud the Administration’s efforts to thrust innovation to the forefront of our nation’s economic agenda. Initiatives such as the Regional Innovation Program will help assemble the many stakeholders in economic development – all levels of government, private firms, regional interests, colleges and universities, and beyond – to drive regional innovation, collaboration, and job growth. Furthermore, just as we must encourage innovative thinking among stakeholders in our economy, we must also promote innovation in the government programs that support small businesses and entrepreneurs.

“The Small Business Administration has $3 billion in authorized leverage annually through the Small Business Investment Company program. However, each year the SBA has between $1 billion to $2 billion in additional leverage authority that remains untapped.

“Through two new initiatives, the Early Stage Innovation Fund and Impact Investment Fund, the SBA will leverage existing, untapped authority – propelling much needed capital into the hands of start-ups and entrepreneurs. Both of these programs – at no additional cost to taxpayers – provide entrepreneurs with the tools and resources to support innovation and grow concepts into commercialized products, thereby creating jobs and driving economic growth. 

“Through the Hollings Manufacturing Extension Partnership and the ITA, as well as programs conducted through the Economic Development Administration and the Small Business Administration, federal funds are effectively leveraging resources from state and local governments as well as the private sector.

“I thank the Committee for their time today and their thoughtful deliberation to fund these job-creating programs. I respectfully urge this Committee to fully fund these critically important economic initiatives at the levels requested in the President’s Fiscal Year 2012 Budget.”