SENATE BILL: Appalachia Reinvestment Act (Passed)

[Devout Centrist]

https://www.arc.gov/publications/BudgetDocuments.asp

So some context

IRL the budget requested by ARC in 2018 was $152 million.

This proposal is for about 100 X the IRL request each year for 4 years.

Indeed. Stretching from Southern New York State down to Mississippi and Alabama, the ARC covers 12 states in part or in whole. This region covers some of the most economically depressed areas of the country.

The Appalachian Regional Commission has accomplished quite a few significant achievements over the course of its 54 year existence. On its budget alone, it has helped to leverage $2.5 Billion in private investment, reduced the infant mortality rate by 66%, and increased the high school graduation rate in the region to national parity. In addition, the number of counties with high or extreme poverty has fallen from over 250 in the late 1960's to just 81 today.

However, there is still much work to be done. Drug related deaths have reached catastrophic proportions in Appalachia. The coal industry continues to decline, alongside the remnants of heavy manufacturing. Many counties in Appalachia have a median income far below the National average. Infrastructure within Appalachia is aged. From roads and bridges, to sewers and water treatment, Appalachia lacks modern infrastructure.



This map shows the number of economically distressed counties in Appalachia. These counties are determined on the basis of the average unemployment rate over three years, per capita income, and  the overall poverty rate. The ARC rates counties on a sliding scale from distressed to attainment. A rating of transitional and competitive indicate that a county has a per capita income, average unemployment rate, and poverty rate on par with or above the National average. A rating of attainment indicates a county with an economic performance in the top ten percent of counties




While a good number of counties have reached transitional economic status, nearly half of all counties in Appalachia are rated as 'at risk' or distressed.

The increased funding from this act with go to an existing Federal-State partnership with a proven record of improving living conditions for people in one of America's poorest regions. This agency receives input from local communities and awards grants based on the needs of these communities. It is not the Federal Government doling out money to boondoggles.

I would be willing to amend this bill to increase the range of counties that qualify for the ARC. Recently, Youngstown, Ohio was added to the ARC after the decline of the steel industry.  

[Devout Centrist]

I notice that Cobb/Gwinett and a few other suburban Atlanta counties are considered part of Appalachia. Shouldn't they be removed? These counties have literally nothing Appalachian about them besides some fringe remains of culture and how they are located near Appalachia.

You're right. I will write an amendment that adjusts the boundaries accordingly, perhaps expanding the boundaries further into Tennessee and Kentucky.

[Devout Centrist]

Presenting the following amendment:

Appalachia Reinvestment Act

An Act

to invest in Appalachia and combat the opioid epidemic

SECTION 1.

1. This Act may be cited as the “Appalachia Reinvestment Act”.

SECTION 2.

1. Beginning on October 1st, 2019, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2020.

2. Beginning on October 1st, 2020, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2021.

3. Beginning on October 1st, 2021, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2022.

4. Beginning on October 1st, 2022, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2023.

SECTION 3.

1. The Appalachia Regional Commission (ARC) shall establish a special division on the opioid epidemic

2. Counties within the scope of the ARC shall be given a status based on the overall severity of drug related death within their boundaries

3. The status are hereby defined as-
   a. Clear: Drug related deaths of less than 4.5 per 100,000
   b. At risk: Drug related deaths of between 4.5-10 per 100,000
   c. Endemic: Drug related deaths of between 10-15 per 100,000
   d. Epidemic: Drug related deaths of between 15-25 per 100,000
   e. Crisis: Drug related deaths of greater than 25 per 100,000

4. The boundaries of the Appalachia Regional Commission shall be adjusted to exclude the counties of Gwinnett and Cobb in the State of Georgia

5. The boundaries of the Appalachia Regional Commission shall be adjusted to include the counties of Frederick, Clarke, Shenandoah, Page, Warren, Rappahannock, Rockingham, and Augusta counties, and the independent cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia, Sumner, Trousdale, Wilson, Rutherford, Bedford, Moore, and Lincoln counties in Tennessee, Mason, Bracken, Pendleton, Harrison, Bourbon, and Nicholas counties in Kentucky.

SECTION 4.

1. The Federal Government of Atlasia shall establish the Opioid Epidemic Commission (OEC)

2. This commission shall function as a voluntary partnership between the Federal Government and regional governments

3. Region can opt out of the OEC with a simple majority within their respective legislature

4. The OEC shall use the same status guidelines as the Appalachia Regional Commission

5. The OEC shall establish-
   a. A division on inpatient therapy
   b. A division on outpatient therapy
   c. A division on research
   d. A division on community grants

6. The OEC shall cease its duties exactly one fiscal year after the national drug related death rate has fallen below 4.5 per 100,000

SECTION 5.

1. Beginning on October 1st, 2019, the Opioid Epidemic Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2020.

SECTION 7.

1. Income tax rates in the four highest brackets shall be increased by 1 percentage point until FY 2023.

SECTION 6.

1. This law shall go into effect on October 1st, 2019

[Devout Centrist]

Does this include the independent cities within Frederick and Rockingham?

I have edited the amendment to include those cities.

[Devout Centrist]

It's been 24 hours since I proposed the above amendment. Without objections, the amendment is adopted.

If there's no further objections, I motion for a final vote. Here's the text we'll be voting on:

Appalachia Reinvestment Act

An Act

to invest in Appalachia and combat the opioid epidemic

SECTION 1.

1. This Act may be cited as the “Appalachia Reinvestment Act”.

SECTION 2.

1. Beginning on October 1st, 2019, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2020.

2. Beginning on October 1st, 2020, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2021.

3. Beginning on October 1st, 2021, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2022.

4. Beginning on October 1st, 2022, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2023.

SECTION 3.

1. The Appalachia Regional Commission (ARC) shall establish a special division on the opioid epidemic

2. Counties within the scope of the ARC shall be given a status based on the overall severity of drug related death within their boundaries

3. The status are hereby defined as-
   a. Clear: Drug related deaths of less than 4.5 per 100,000
   b. At risk: Drug related deaths of between 4.5-10 per 100,000
   c. Endemic: Drug related deaths of between 10-15 per 100,000
   d. Epidemic: Drug related deaths of between 15-25 per 100,000
   e. Crisis: Drug related deaths of greater than 25 per 100,000

4. The boundaries of the Appalachia Regional Commission shall be adjusted to exclude the counties of Gwinnett and Cobb in the State of Georgia

5. The boundaries of the Appalachia Regional Commission shall be adjusted to include the counties of Frederick, Clarke, Shenandoah, Page, Warren, Rappahannock, Rockingham, and Augusta counties, and the independent cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia, Sumner, Trousdale, Wilson, Rutherford, Bedford, Moore, and Lincoln counties in Tennessee, Mason, Bracken, Pendleton, Harrison, Bourbon, and Nicholas counties in Kentucky.

SECTION 4.

1. The Federal Government of Atlasia shall establish the Opioid Epidemic Commission (OEC)

2. This commission shall function as a voluntary partnership between the Federal Government and regional governments

3. Region can opt out of the OEC with a simple majority within their respective legislature

4. The OEC shall use the same status guidelines as the Appalachia Regional Commission

5. The OEC shall establish-
   a. A division on inpatient therapy
   b. A division on outpatient therapy
   c. A division on research
   d. A division on community grants

6. The OEC shall cease its duties exactly one fiscal year after the national drug related death rate has fallen below 4.5 per 100,000

SECTION 5.

1. Beginning on October 1st, 2019, the Opioid Epidemic Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 2020.

SECTION 7.

1. Income tax rates in the four highest brackets shall be increased by 1 percentage point until FY 2023.

SECTION 6.

1. This law shall go into effect on October 1st, 2019

[Devout Centrist]

Can we confirm this passes Paygo?

I'm using the numbers found here on the CBO's website.

Raise ordinary income tax rates in the four highest brackets by 1 percentage point

FY 2019 Revenue:
$13.5 Billion

FY 2020 Revenue:
$20.6 Billion

FY 2021 Revenue:
$22.0 Billion   

FY 2022 Revenue:
$23.3 Billion

FY 2023 Revenue:
$24.7 Billion

This would raise $104.1 Billion over five years; the cost of this program is $50 Billion. The additional revenue could be used for deficit reduction or for future efforts to combat the opioid epidemic.

[Devout Centrist]

Thank you Deputy GM.

I am withdrawing my motion for a final vote. I will propose an amendment to fix the fiscal year issue later today.

[Devout Centrist]

Proposing the following amendment:

Appalachia Reinvestment Act

An Act

to invest in Appalachia and combat the opioid epidemic

SECTION 1.

1. This Act may be cited as the “Appalachia Reinvestment Act”.

SECTION 2.

1. Beginning on October 1st, 20192020, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 20202021.

2. Beginning on October 1st, 20202021, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 20212022.

3. Beginning on October 1st, 20212022, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 20222023.

4. Beginning on October 1st, 20222023, the Appalachia Regional Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 20232024.

SECTION 3.

1. The Appalachia Regional Commission (ARC) shall establish a special division on the opioid epidemic

2. Counties within the scope of the ARC shall be given a status based on the overall severity of drug related death within their boundaries

3. The status are hereby defined as-
   a. Clear: Drug related deaths of less than 4.5 per 100,000
   b. At risk: Drug related deaths of between 4.5-10 per 100,000
   c. Endemic: Drug related deaths of between 10-15 per 100,000
   d. Epidemic: Drug related deaths of between 15-25 per 100,000
   e. Crisis: Drug related deaths of greater than 25 per 100,000

4. The boundaries of the Appalachia Regional Commission shall be adjusted to exclude the counties of Gwinnett and Cobb in the State of Georgia

5. The boundaries of the Appalachia Regional Commission shall be adjusted to include the counties of Frederick, Clarke, Shenandoah, Page, Warren, Rappahannock, Rockingham, and Augusta counties, and the independent cities of Harrisonburg, Staunton, Waynesboro, and Winchester in Virginia, Sumner, Trousdale, Wilson, Rutherford, Bedford, Moore, and Lincoln counties in Tennessee, Mason, Bracken, Pendleton, Harrison, Bourbon, and Nicholas counties in Kentucky.

SECTION 4.

1. The Federal Government of Atlasia shall establish the Opioid Epidemic Commission (OEC)

2. This commission shall function as a voluntary partnership between the Federal Government and regional governments

3. Region can opt out of the OEC with a simple majority within their respective legislature

4. The OEC shall use the same status guidelines as the Appalachia Regional Commission

5. The OEC shall establish-
   a. A division on inpatient therapy
   b. A division on outpatient therapy
   c. A division on research
   d. A division on community grants

6. The OEC shall cease its duties exactly one fiscal year after the national drug related death rate has fallen below 4.5 per 100,000

SECTION 5.

1. Beginning on October 1st, 20192020, the Opioid Epidemic Commission shall receive a budget of $10,000,000,000 for the fiscal year ending on September 30th, 20202021.

SECTION 7.

1. Income tax rates in the four highest brackets shall be increased by 1 percentage point until FY 2023. 2024.

SECTION 6.

1. This law shall go into effect on October 1st, 2019

[Devout Centrist]

Are there any other concerns or potential issues on this bill? I don't want us having to cancel a final vote if we can avoid it ahead of time?

What are your thoughts on this bill, Senator?

[Devout Centrist]

Are there any other concerns or potential issues on this bill? I don't want us having to cancel a final vote if we can avoid it ahead of time?

What are your thoughts on this bill, Senator?

For some reason I thought I had already made a post in that regards here.


I am supportive of the concept, we have to do something to address this. I do have two concerns though, one is that this is titled Reinvestment Act and yet it deals with the opioid epidemic almost exclusively, not saying that it is unimportant but when I first saw this I presumed it would be an infrastructure bill or something broader based on the title. The other thing is that I would like to get some idea as to what one can expect in terms of results from the amount of money spent here.

In many respects, this is an infrastructure bill. The Appalachia Regional Commission is responsible for providing crucial infrastructure grants in Appalachia, including transportation, water, and energy. The ARC oversaw the construction of the Appalachia Development Highway System in the 1960's. While the money allocated to the agency doesn't specify how it should be spent, the ARC will use the lion share of this money to build infrastructure and create economic opportunities for local communities. A good amount will be spent on the opioid epidemic, but certainly not the majority.

As for results, the ARC managed to reduce the number of distressed counties from 295 in 1960 to about 91 today.



All of this achieved on a modest annual budget. One final push will help eradicate extreme poverty in Appalachia once and for all.

[Devout Centrist]

Yes I saw the map of reduced counties on the previous page but my point is how that translates today and whether or not the same results can be expected. For instance we are facing uphill battles in terms of the decline of Coal that weren't necessarily the case for the first few decades of the program.

I wish I could be more descriptive but I am up against a hard departure time for work right now.

It will definitely be an uphill battle in the region and I will try to find some information on what kind of success we should anticipate should this bill pass. The ARC operates by providing local communities and counties with grants to help. At this moment, the ARC is participating in the POWER Initiative, a partnership that is addressing the current decline of the coal industry in Appalachia.

In 2019 alone, ARC announced 36 POWER investments, totaling $26.2 million. These investments are projected to create or retain over 1,100 jobs, benefit over 5,200 students and workers, and leverage more than $22.8 million in private investment into manufacturing, agriculture, technology, substance abuse recovery, broadband development, and other industry sectors across coal-impacted communities in nine Appalachian states.

Since 2015, ARC has invested over $148 million in 185 projects touching 312 counties across Appalachia through the POWER Initiative. Together, these investments are projected to create or retain more than 17,500 jobs, create or improve more than 7,200 businesses, and leverage more than $772 million in additional private investment into Appalachia's economy.

So this should give you a clearer picture on what the ARC can do with its current budget. In terms of future success, I think an investment of $10 billion over four years should be able to leverage a significant private sector investment, while also providing substantial opportunities for infrastructure spending and economic opportunities.

[Devout Centrist]

Aye