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House Slashes MEP Funding While Manufacturers Face Uncertain Future
As the economy struggles, unemployment rates rise to a nine-year high, and manufacturing continues to shed jobs, the Modernization Forum reports the House Commerce, Justice, State and Judiciary (CJS) Appropriations Subcommittee appropriated just $39.6 million for the Manufacturing Extension Partnership (MEP). The FY 2004 funding would slash the program's funding from the FY2003 level of $106.6 million, a 63 percent cut.
MEP, a public-private program, provides small manufacturers with support to bolster domestic production and keep manufacturing jobs in the U.S. The House CJS Subcommittee chose to restore some but not all funds for MEP. The Administration had proposed funding MEP at $12.6 million, effectively eliminating the national program.
The House Subcommittee action on Wednesday reverses a position taken by the House and Senate earlier this year when the 108th Congress approved $106.6 million for MEP in FY 2003. The action also belies support from a majority of legislators for full MEP funding. The leaders of the House CJS Appropriations Subcommittees received letters signed by a total of 246 fellow House members supporting $110 million for MEP in FY 2004.
U.S. manufacturing has experienced 33 consecutive months of net job loss, according to the Bureau of Labor Statistics. A recent House Small Business Committee found manufacturing-related jobs in information technology and management have also started to move overseas to be located closer to production facilities.
In a study by the U.S. Census Bureau, researchers found MEP clients experience productivity gains more than four times greater than comparable firms. MEP clients report strong bottom-line impacts including over $636 million in new sales, $680 million in new investment, and 25,500 retained or new jobs during FY 2001.
While the House bill must be approved first by the full Appropriations Committee, full House consideration is expected to take place next week. The Senate has yet to consider the FY 2004 CJS Appropriations bill.