Special Federal Budget Issue: Regional Commissions and Authorities

There are three federally established regional commissions and authorities that are dedicated to improving the economic opportunities within specific geographic regions. Two - the Appalachian Regional Commission and the Delta Regional Authority - are dependent on annual appropriations and are looking at reductions in FY 2006. The Tennessee Valley Authority, the oldest and largest of the three, generates its budget primarily through power generation revenues. TVA still requires the government to approve or set its annual spending level.

• Appalachian Regional Commission (ARC) - $65.5 million ($528,000 decrease) to assist the 13-state, 410-county Appalachian Region in achieving socioeconomic parity with the nation through four goals, including increasing job opportunities and per capita income, strengthening the capacity of citizens to compete in the global economy, improving the region's competitiveness through development of key infrastructure, and reducing the region's isolation through the Appalachian Development Highway System (ADHS). ADHS receives an additional appropriation for road construction and maintenance.
• Delta Regional Authority - $6 million direct appropriation ($48,000 decrease) to assist an eight-state, 240-county region of demonstrated distress in obtaining the transportation and basic public infrastructure, skill training, and opportunities for economic development essential to strong local economies. An additional $1 million the authority received from the Department of Agriculture is deleted in FY06.
• Tennessee Valley Authority (TVA) - $8 million ($252,000 increase). Established in 1933, TVA is a government-owned corporation for the unified development of a river basin comprised of parts for seven states. The agency finances its program primarily from proceeds available from current power operations and borrowings against future power revenues. TVA operates a series of 49 dams and 47 reservoirs to reduce the risk of flooding, enable year-round navigation, supply affordable and reliable electricity, improve water quality and supply, provide recreational opportunities, and stimulate economic growth.