United States Senate

Committee on Agriculture, Nutrition, and Forestry

Subcommittee on Forestry, Conservation and Rural Revitalization

Testimony of David E. Black

Deputy Secretary for Community Affairs and Development

PA Department of Community and Economic Development (DCED)

March 8, 2000

Good afternoon Mr. Chairman and members of the subcommittee. It is a pleasure to be here on behalf of rural Pennsylvania and the Administration of Governor Tom Ridge.

My name is David Black, and I am Deputy Secretary for Community Affairs and Development for the Pennsylvania Department of Community and Economic Development.

My responsibilities include oversight of Pennsylvania's development efforts in three primary areas: local government, community development -which we refer to as community building, and entrepreneurial development. Within those areas we administer a number of state and federal grant programs. I also serve as Governor Ridge's Alternate to the Appalachian Regional Commission, which as you know has a largely rural focus.

Prior to serving in state government, I served as a County Commissioner in rural Clarion County in Northwestern Pennsylvania. I also had the opportunity to serve as Chairman of the Northwest Regional Planning and Development Commission, an 8-county Local Development District that is instrumental in delivery of development services to rural counties from both the federal and Pennsylvania state government. I served in these capacities from the mid-1980's through the mid-1990's, starting at a time when the unemployment rate in my county was as high as 16%. I learned a lot, in a very short period of time.

One of the most important things that I did learn, is that economic challenges in rural Pennsylvania were due in part to a shift in the national economy, and in part due to a shift in local economic base. Much of Pennsylvania's rural economy, like many rural areas throughout the country, was based in natural resources, coal, timber and natural gas. When these industries began to fade, it was necessary to try and shift the economic base, which produced two problems:

§ First, like the steel valleys of Western Pennsylvania, helping residents face the reality that these natural resource industries would not be coming back, at least to the degree they were in the past.

§ Second, determining where the local economy would go from here.

After construction of a new industrial park and resurrection of an old industrial park, work to encourage entrepreneurial investment, refocusing and re-energizing the economic development organization with new members, identifying strengths and working with the local State University and Vocational School on workforce retraining, the economic conditions of the county did stablize.

The economic base in the county shifted to a service and manufactured housing base with other traditional industries such as wood processing, coal and natural gas continuing to play a role. It was done by building on the strengths and opportunities of the county and region, and by addressing the weaknesses and threats as well. It also included connecting with the regional economy with state and federal programs.

It was largely internally based, and did not involve attracting large industries from outside the area. It would have been much easier to do, and perhaps, produced a quicker recovery had the network established by the PA Rural Development Council been in place back then.

While the economy is obviously much stronger now, some areas of rural Pennsylvania lag behind in economic growth. However, through Governor Ridge's regional approach to economic development, and utilizing the information sharing ability of the Rural Development Council, rural Pennsylvania has been able to take advantage of programs and resources designed to help areas that are at an economic disadvantage in Pennsylvania.

The Rural Development Council in Pennsylvania dates back to 1992. Since Governor Tom Ridge assumed office in 1995, the Council was moved to the State Capitol of Harrisburg from a regional office of a state agency and elevated to one of stature within the Governor's Executive Offices. The Council now enjoys a stronger advocacy role and access to expanded resources, including approximately $180,000 in state funding.

The mission of the PA Rural Development Council is rather simple; convening, facilitating, coordinating, educating, and advocating.

The Pennsylvania Rural Development Council has sought to open lines of access and communication to rural Pennsylvania. Through the use of telecommunications technology, the Pennsylvania Rural Development Council has established a forum for the live exchange of information on federal and state initiatives. Using teleconferencing at 10 sites throughout the Commonwealth, rural Pennsylvania leaders need only travel 60 to 90 minutes maximum to hear about new or expanding initiatives, and ask questions, rather than as much as 6 hours across the state to Harrisburg.

The quarterly teleconferences allow for exchanges between executive policy-makers and rural citizens. They have increased the attention and understanding on initiatives important to Pennsylvanians. These initiatives cross the spectrum of all issues from welfare reform to economic development to transportation to name just a few. I would like to highlight some of the important topics discussed in these sessions and some very positive results for rural Pennsylvanians which are due, at least in some degree, to the outreach efforts of the PA Rural Development Council.

§ The development and implementation of a statewide transportation plan. Council members and attendees were able to ask questions and provide feedback on the state plan plus the ongoing development of TEA-21.

§ A presentation by the Director of Governor Ridge's Washington Office. This formal presentation and question and answer led to a better understanding of the relationship between the state and federal government for rural Pennsylvanians.

§ A presentation, which led to ongoing input on the development of one of Pennsylvania's leading economic development initiatives, the creation of Keystone Opportunity Zones. These zones waive state and local taxes for a period up to twelve years. In just the first year of the program, over 3,000 new jobs were created, over 2,000, or sixty percent, of the new jobs created in these economically-depressed zones were in rural areas.

§ A discussion with staff from EPA and PennVest, the PA Infrastructure Investment Authority on the new Federal Safe Drinking Water Law and its potential impact on rural water systems.

§ Updates from the PA Public Utility Commission on Pennsylvania's Electric Choice program. Since Pennsylvania was one of the first states to deregulate this industry, there were many questions about what this meant for consumers and rural businesses. The Council was able to provide timely and energetic speakers.

§ Discussion on the advancement of the Link to Learn program between the state and local school districts. Created by Governor Ridge and spearheaded by the state Department of Education, this 3-year, $121 million program gets at the heart of the digital divide in rural areas by bringing computers, computer networks and training for teachers to all Pennsylvania school districts.

You can see the extensive outreach and access provided by the PA Rural Development Council. Establishing a network and providing access are keys to capacity building in rural areas which, in turn, is the key to development.

The PA Rural Development Council does not do the development work, but it helps to enable it to happen. It increases the opportunity to share experiences across rural Pennsylvania on a peer-to-peer basis, increases accessibility to federal and state government officials on programs to aid development, and creates a sense of camaraderie among rural Pennsylvanians that they are not alone and they are not forgotten.

Thank you for the opportunity to be with you this afternoon.

ATTACHMENTS

§ List of PA Rural Development Council Presenters

§ Teleconference Sites

List of presenters from previous Full Council meetings:

September 22, 1995

Peter Kay - Advisor to the Governor for Economic Development

Mr. Kay discussed the Ridge Administration's initiatives regarding economic development and share insights on how these initiatives are being implemented. Council members were able to ask questions of Mr. Kay, and also to provide feedback.

Richard Peltz, Deputy Secretary, PA Department of Transportation

Mr. Peltz gave a presentation on the Pennsylvania Transportation Policy Plan.

December 15, 1995

Rebecca Halkias, Director, Governor's Washington Office

Ms. Halkias provided a year-end wrap-up of federal legislation affecting rural areas. Her review included issues as diverse as federal rural development policy and the federal budget to welfare and Medicare reform. She also discussed the role and operation of the Governor's Washington Office.

Larry A. Olsen - Deputy Secretary, Office of Administration

Mr. Olsen spoke of his role as the Commonwealth's Chief Information Officer, being charged by Governor Ridge with the task of coordinating the development of a unified information technology/telecommunications policy, both for state government and - more broadly - for Pennsylvania as a whole. He also discussed his efforts and explained how the Rural Development Council is involved in them.

March 22, 1996

Martha Lester Harris - Deputy Secretary, PA Department of Commerce

Ms. Harris made a presentation on Pennsylvania's new tourism and economic development marketing program.

Steve Smith - Associate Professor of Agricultural Economics, and

Director, Center for Economic and Community Development

PA State University

Jeremy Nowak, Executive Director

Delaware Valley Community Reinvestment Fund

Mr. Smith and Mr. Nowak discussed the use of community reinvestment funds as a tool to promote economic development activities.

Daniel Hoffmann, Acting Secretary, PA Department of Health

Secretary Hoffman discussed the Ridge Administration's State Health Center Initiative.

September 27, 1996

David E. Black - Deputy Secretary

PA Department of Community and Economic Development

Mr. Black discussed the new department's mission and operations and responded to Council members' questions.

John Bailey - Special Assistant to the Secretary

PA Department of Education

Mr. Bailey discussed the goals of the $121 million Link-to-Learn Program, which will bring computers and computer networks to Pennsylvania schools and provide training for teachers. The process by which Link-to-Learn grants will be allocated was also covered.

Dale Long - Small Communities Advocate

US Environmental Protection Agency

Paul K. Marchetti, Executive Director

Pennsylvania Infrastructure Investment Authority (PennVEST)

Mr. Long and Mr. Marchetti discussed the newly enacted Federal Safe Drinking Water Law and its potential impact on rural water systems.

December 11, 1996

Sherri Z. Heller, Deputy Secretary, Office of Income Maintenance, Pennsylvania Department of Public Welfare

Ms. Heller discussed the potential impacts of welfare reform on rural areas.

Otto F. Hofmann, Deputy Executive Director, PA Public Utility Commission

Mr. Hofmann discussed electric utility competition, telecommunications deregulation, and other issues that were before the Pennsylvania Public Utility Commission.

Julia Eckert, Executive Director, Regional Vision: Leadership Development for Northwest Pennsylvania.

Ms. Eckert discussed rural leadership training in Northwest Pennsylvania.

March 21, 1997

Greg White - Policy Director, PA Department of Education

Mr. White discussed educational reform in Pennsylvania.

Deborah Pontzer, Former Executive Director

Elk/Cameron Community Education Council

Ms. Pontzer discussed community education councils, and how they are a local response to educational needs.

Dr. Dan Paul - Project Director, New Vision/One PA

Dr. Paul discussed The Northern Tier Distance Learning Consortium, and how it brought the world of education to rural communities.

Arnold Hillman - Consultant, Pennsylvania Association of Rural & Small Schools (PARSS)

Mr. Hillman provided perspectives on education in rural Pennsylvania.

Ed Geiger - Executive Policy Specialist

PA Department of Community and Economic Development

Mr. Geiger provided an overview of the Project for Community Building and discussed how it benefits rural communities.

Duane Tuttle - Program Director, USDA/Rural Development

Mr. Tuttle provided an overview of the draft rural development plan for Pennsylvania.

June 27, 1997

The Honorable Samuel E. Hayes, Jr. - Secretary

PA Department of Agriculture

Secretary Hayes discussed new directions for agriculture in Pennsylvania.

Randall Cooley, President, Allegheny Heritage Development Corporation

Mr. Cooley discussed tourism and economic development in Western Pennsylvania.

Cheryl Cook - State Director, USDA/Rural Development

Ms. Cook reviewed the Pennsylvania Rural Development Strategic Plan.

Nevin Mindlin, Policy Director, PA Department of Labor & Industry

Mr. Mindlin discussed the Ridge Administration's workforce development initiatives.

Walt Whitmer, Pennsylvania State Cooperative Extension

Mr. Whitmer provided an update on the PRDC Pathways from Poverty initiative.

September 26, 1997

Debra Kriete, PA Public Utility Commission

Ms. Kriete discussed the status of the implementation of the Telecommunications Act's universal service provisions.

Nicholas Giordano, Director of Telecommunications Policy,

Office for Information Technology

Mr. Giordano discussed the importance of universal service to the Ridge Administration's telecommunications strategy for rural Pennsylvania.

John S. Brenner, Executive Director, Pennsylvania Fire Services Institute

Mr. Brenner reported on a Fire Services Institute study, which indicated that the number of volunteer fire and emergency service personnel in Pennsylvania continues to decline while demand for emergency services continues to increase. The study also indicated that volunteer fire companies are having an increasingly difficult time raising the money necessary to purchase state-of-the-art equipment.

The Honorable Bradley L. Mallory - Secretary

PA Department of Transportation

Secretary Mallory discussed PennDOT's plans for improving the transportation infrastructure of rural Pennsylvania, his vision for an integrated transportation system for the Commonwealth, and the pending federal transportation legislation (ISTEA).

December 19, 1997

Robert Steele - Dean, College of Agricultural Sciences

Pennsylvania State University

Dean Steele shared his vision for how Penn State's College of Agricultural Sciences and the Cooperative Extension Service can help to meet the changing needs of Pennsylvania's agricultural economy and the challenges facing the Commonwealth's rural communities.

John Russell - President & CEO

The Institute for Healthy Communities

Mr. Russell discussed how Pennsylvania's rural communities can work to provide adequate and affordable health care for their citizens by aggregating and more efficiently using existing health and human service resources during a time of great change in the health care sector.

Carol Collier - Executive Director

Pennsylvania 21st Century Environmental Commission

Ms. Collier discussed activities at the state level to help rural communities deal with land use planning issues, development pressures, economic viability concerns, and competing demands for limited public resources.

Karen Fleisher, Director of the Governor's Office of Citizen Service (PennSERVE)

Ms. Fleisher discussed her agency's 1998 planning effort and solicit ideas to assure that rural areas' needs are addressed.

March 20, 1998

Cheryl Cook - Director, USDA/Rural Development

Karen Miller - HUD Secretary's Representative for Pennsylvania

One of the goals of the Pennsylvania Rural Development Council (PRDC) is to promote coordination and collaboration among government agencies in order to better deliver services to rural communities in a time of shrinking resources. One of the outcomes of a 1997 "summit" of federal and state housing and community development agencies hosted by the Council is this memorandum of understanding between the US Department of Agriculture Rural Development Mission Area (USDA/RD) and the US Department of Housing and Urban Development (HUD) which provides for HUD to handle all fair housing complaints received by USDA. Cheryl Cook and Karen Miller signed the agreement in the presence of those who attended the meeting.

John Palmer - Manager, Allegheny National Forest

James R. Grace - Pennsylvania State Forester

Messrs. Palmer and Grace discussed sustainable timber management practices being pursued on public lands in Pennsylvania and how these practices are compatible with the multi-use goals of economic development, tourism, and outdoor recreation. Mr. Grace also discussed the efforts to encourage sustainable timber management practices by private landowners in Pennsylvania.

Philip L. Calhoun, Deputy Secretary for Strategic Economic Sectors

David E. Black, Deputy Secretary for Community Affairs & Development

PA Department of Community and Economic Development (DCED)

Mr. Calhoun provided an overview of the Technology 21 Project, which authorized by Governor Tom Ridge, and its relevance to rural Pennsylvania. The Tech 21 Report, which was received by the Governor on January 21, 1998, includes strategies for attracting additional high-tech, high-wage jobs to Pennsylvania. DCED is responsible for coordinating this multi-agency, public/private partnership. Mr. Black discussed the Governor's Keystone Opportunity Zone Initiative and other DCED initiatives.

June 26, 1998

Frank Gerry - Assistant Vice-Chancellor, State System of Higher Education

Dr. Gerry reviewed the recent SSHE study, which quantified the positive of the State System on Pennsylvania's economy.

Beverly Mackereth, Deputy Director

Governor's Community Partnership for Safe Children

Lynn Cromley, Executive Director, Center for Schools and Communities

Ms. Mackereth and Ms. Cromley discussed the growing problem of youth violence in rural areas, how to identify the warning signs parents and schools should be aware of, and how to focus on strategies communities can undertake to lessen the chances that they will be the victim of youth violence.

James C. Kearney, Special Assistant to the Administrator

USDA Farm Service Agency

Marion Bowlan, PA Representative for the National Commission on Small Farms

Mr. Kearney and Ms. Bowlan discussed the recent report of the National Commission on Small Farms and provided information on the eight recommendations that it contains. They also discussed the relevance of the report to the future of agriculture in Pennsylvania.

Pete Tartline, Deputy Director, Governor's Policy Office

Mr. Tartline gave a PowerPoint presentation that outlined the Ridge Administration's initiatives that will reform the delivery of workforce development programs in Pennsylvania. He also discussed the link between more responsive workforce development programs and welfare reform and educational reform.

September 25, 1998

Dennis Lebo, PA Department of Transportation Planning Office

Mr. Lebo discussed the benefits rural communities should expect to receive from the recently enacted federal transportation legislation (commonly known as TEA-21) and provided information on how rural residents can participate in PennDOT's current 25-year transportation planning process.

Robert J. Barkanic, 21^st Century Environment Commission

Mr. Barkanic reviewed the findings and recommendations included in the Commission's recently completed report to the Governor and also discussed how the Commission's work will influence development in rural areas.

Barbara Cole, Assistant Director

PA Department of Education, Commonwealth Libraries

Glen Miller, Executive Director, PA Library Association

Ms. Cole and Mr. Miller will report on the findings of a recent study, which quantifies the contributions libraries make to the Commonwealth and also discuss the status and future of rural libraries.

December 18, 1998

Kim Coon, Director, Governor's Center for Local Government Services

Coordinator for Census 2000

Mr. Coon discussed how his office is working to assure an accurate count of Pennsylvania's citizens and how the public can become involved. An accurate census count is important to rural areas because population numbers are used to determine legislative reapportionment, program funding formulas, and other purposes.

Martha Harris, Chief Operating Office

PA Human Resources Investment Council

Ms. Harris provided an overview of the structure and activities of the newly created HRIC and its relationship with local job training and workforce development agencies. She also discussed how the newly enacted federal Workforce Investment Act will change the way job training and workforce development services will be delivered in rural Pennsylvania.

Information Exchange:

State Health Improvement Plan - the Newly released State Health Improvement Plan is intended to provide a framework within specific strategies can be developed to improve public health in PA. An official of the PA Department of Health will explain how SHIP will affect rural PA and how rural communities can become directly involved with the implementation of SHIP.

Stand up for Rural America - You'll learn how to sign up for this national campaign which seeks to increase awareness of challenges facing rural communities and potential responses to those challenges.

Welfare reform in PA: Pathways to self-sufficiency - You will receive a preview of this statewide conference, which is sponsored by the League of Women Voters Citizens Fund and scheduled for March 17, 1999.

March 19, 1999

Sherri Z. Heller, Deputy Secretary for Income Maintenance

PA Department of Public Welfare

Ms. Heller provided an update on how welfare reform is working in rural PA, as a result of the welfare reform process.

Captain Robert P. Hague, PA State Police Heritage Affairs Office

Captain Hague provided an overview of the Police Heritage Affairs Office and the Commonwealth's laws related to hate crimes, explained how communities can determine if hate groups are active in their area, and suggested how rural communities can combat this problem.

Philip Horn, Executive Director, PA Council on the Arts

Mr. Horn discussed the Art Council's commitment to encouraging arts programming in rural PA. He also provided information about the many arts programs available to rural schools and communities and how interested groups could apply for funding. Local arts groups were present to showcase their contributions to their communities.

Information Exchange:

Thomas G. Paese, Secretary of Administration

Governor's Office of Administration

Secretary Paese provided an update on the allocation process and how interested citizens can participate in the process.

Denise I. Robison, Deputy Secretary, PA Department of Aging

Ms. Robison provided information about the Department's coordinating role for The International Year of Older Persons, an initiative of the United Nation's General Assembly.

Mary-Jo Langston, Network Coordinator, PA Nutrition Education Network

Ms. Langston discussed local and statewide initiatives to improve the nutritional health of rural Pennsylvanians and what rural communities can do to meet the nutritional needs of their citizens.

June 18, 1999

Charles Gerhards, Pennsylvania's Chief Information Office

Frederick D. Loomis, Executive Director

Pennsylvania's Y2K Educational Outreach Program

Mr. Gerhards and Mr. Loomis described efforts by governmental agencies and the private sector to prepare for the so-called "Y2K computer bug," discussed what rural residents can do in order to protect themselves and their comities, and speculated about what - if anything - will happen at 12:01 AM on January 1, 2000.

Peter S. Fader, Associate Professor of Marketing

Wharton School of the University of Pennsylvania

Mr. Fader explained what rural Pennsylvanians should expect from the Commonwealth's Electric Choice program and what will have to happen in order for a vibrant electricity marketplace to develop.

The Honorable Mary Jo White, Pennsylvania State Senator, 21^st District

Senator White shared her vision for meeting rural residents' aspirations for advanced telecommunications services. She also talked about how "rank and file" citizens can become involved in Pennsylvania's current telecommunications debate.

Information Exchange:

Michael Poliakoff, Deputy Secretary for Post Secondary & Higher Education

PA Department of Education

Dr. Poliakoff discussed the new Alternative Teacher Certification Program and its goal of bringing more qualified teachers to the classrooms that need them.

September 17, 1999

Bill Shuffstall, Penn State Cooperative Extension Community Development Agent

Mr. Shuffstall discussed the initiative designed to help rural communities organize so that they can fully participate in the "Information Technology Age." In addition to relating efforts to "test" this initiative in Potter County, he also suggested how other rural communities can participate in this initiative and where community leaders can obtain assistance.

The Honorable James M. Seif, Secretary

Pennsylvania Department of Environmental Protection

Secretary Seif shared his vision for why Pennsylvanians should become more engaged in the sound land use planning debate. He also explained the Growing Greener and other Ridge Administration environmental initiatives.

Glen Thomas, Senior Policy Analyst, Governor's Policy Office

Mr. Thomas reported on the 53 sound land use forums the Administration held throughout the state this summer and provided an update on the potential legislative and administrative actions that took place to give local government officials expanded land use planning options.

Eric Menzer, Director of Economic Development, City of York

Mr. Menzer provided information regarding York's experience with the Green Communities Program of the US Environmental Protection Agency. The goal of the Green Communities Program is to help protect and enhance environmental resources, while promoting economic growth.

Gary Alt, Statewide Deer Management Coordinator

Pennsylvania Game Commission

Mr. Alt presented information on the scope of the deer management challenge in Pennsylvania and discussed the potential strategies for dealing with this challenge. (Deer herd management is an important issue for sportsmen, farmers, foresters, and others who live and spend time in rural Pennsylvania.)

December 17, 1999

Kim Coon, Director of the Governor's Center for Local Government Services, Census 2000

Mr. Coon provided an update on plans to conduct the most complete census count possible. He also discussed how local governments, non-profit organizations, and individuals could contribute to this effort.

Tammy McElfresh, Executive Policy Specialist

PA Department of Transportation

Ms. McElfresh provided an update on the agency's efforts to expand transportation options for persons with disabilities. Her special focus was on increasing accessible and affordable transportation options in rural areas. She urged participants to become involved in this effort.

Lawrence A. Biro, VA Network Director for Pennsylvania, West Virginia, Delaware, Maryland, New Jersey, Ohio and New York

Michael Moreland, Director of the Butler VA Medical Center

Mr. Biro and Mr. Moreland discussed changes the US Veterans Administration has made to provide quality medical care for veterans and their families, including the deployment of a state-of-the-art telemedicine system. A majority of the VA's Pennsylvania medical centers are located in rural areas.

Joe Kelly, Executive Director of the Pennsylvania Humanities Council

Jean H. Cutler, Executive Director, Pennsylvania Federation of Museums

Mr. Kelly and Ms. Cutler reviewed their organizations' programs and explained how rural communities can take advantage of them. They also discussed grants and funding programs that are available to groups in rural areas.

Pennsylvania Rural Development Council

Video Conference Sites

(Two-way, fully interactive)

The Center for Advanced Technologies

Altoona Area School District

Greater Altoona Career & Technology Center

1500 Fourth Avenue, Second Floor

Altoona, PA

Site information - 814/946-8524x101

Department of Veterans Affairs

Medical Center

325 New Castle Road

Building #1, Room 111 WN

Butler, PA

Site information - 724/285-2404

Dixon University Center

Administration Building

2986 North Second Street

Harrisburg, PA

Site information - 717/720-7001

Keystone College

Hibbard Campus Center

President's Dining Room

One College Green

LaPlume (Wyoming County), PA

Site information - 570/945-5141

George J. Barco Center

Haskell Memorial Library, Room G-7

University of Pittsburgh

504 East Main Street

Titusville, PA

Bloomsburg

Bloomsburg University

Magee Center

Front Living Room

700 West Main Street

Bloomsburg, PA

Site information - 570/389-4420

University of Pittsburgh at Greensburg

Millstein Building, Room 250

1150 Mt. Pleasant Road

Greensburg, PA

Site information - 724/836-9872

Kutztown University

Beekey Education Center, Room 109

Main Street

Kutztown, PA

Site information - 610/683-1543

Community Education Council

of Elk & Cameron Counties

Four Erie Avenue, Suite 200

St. Marys, PA

Site information - 814-781-3437

Pennsylvania College of Technology

The North Campus

US Route 6

Wellsboro, PA

Site information - 570/724-7703