Governors Urge Congress to Fund Support for Small Manufacturers

The National Governors' Association (NGA) is urging leaders of the House and Senate Commerce-Justice-State (CJS) Appropriations Subcommittees "to maintain the federal government's share of support for the Manufacturing Extension Partnership (MEP) in the fiscal year (FY) 2003 appropriations."

Governors Mike Johanns (R-NE) and James McGreevey (D-NJ), co-chairs of NGA's Economic Development and Commerce Committee, sent a letter on behalf of the nation's governors. They point out that MEP is a partnership supported by states, federal government and small manufacturers.

"Each partner benefits from the partnership and has a responsibility to maintain it. Neither the states nor the small manufacturers are capable of replacing a loss in federal funding for MEP," the governors say. "As our economy struggles to recover, MEP is needed more than ever. It plays an important role in our state and national economies that no other entity is likely to fulfill."

MEP is a national network of centers with 400 offices across the country and Puerto Rico that provide technical assistance and business support services to American manufacturers. The program helps small and mid-sized manufacturers adopt new technologies, processes, and business practices. In FY 2000 alone, MEP clients reported that completed projects created or retained 25,000 jobs, increased or retained sales of $2.3 billion and saved $483 million in costs nationwide.

The letter to the appropriation leaders comes at a critical time. The Administration requested only $12.9 million for the $106.5 million program last February. Although MEP has bipartisan support in Congress, funding for the program remains undecided.

A copy of the letter can be found at: http://www.nga.org/nga/legislativeUpdate/1,1169,C_LETTER^D_4801,00.html