Legislative
Scene . . .
Bill Offers New
Hope to Cities
WASHINGTON, July 27, 1981-Sup-porters
of the plan to establish urban
"Enterprise Zones" in decaying inner
cities have much to cheer about in the
newest version of the proposal now be
fore Congress, according to Dr. Stuart
Butler, one of the architects of the En
terprise Zone strategy.
Writing in a new study analyzing the
Urban obs and Enterprise Zone Act of
1981, The Heritage Foundation's urban
economist says, "The important role of
state and local governments is appreci
ated in the bill, and the measure is com
patible with the administration's view
of federalism. With only minor amend
ments, the bill should dispel many of
the fears of liberal and minority organi
zations that the Enterprise Zones may
become a tax shelter for big business,
where the benefits to the community
would be confined to a trickle-down
effect."
When Representatives Jack Kemp (R
Buffalo) and Robert Garcia (D-South
Bronx) of New York introduced the Ur
ban Jobs and Enterprise Zone Act of
1980, critics said that many blighted
areas could not meet the criterion of
having at least 4,000 people in order to
be designated Enterprise Zones; that
the bill overestimated the effect that
mere property tax reductions would
have on small businesses, whose major
bane is red tape and over-regulation;
that the various tax incentives were
heavily geared to larger, established
companies; that the rapid depreciation
allowance would lead companies to in
stall a great deal of equipment, while
employing few local people; and that
some states would be constitutionally
or financially prohibited from lowering
property taxes by the mandated 20
percent.
"There was general concern that the
goals of the Enterprise Zone would not
be achieved by the package of incen
tives in the bill. Certain minority and
neighborhood organizations, in par
ticular, feared that although the zones
probably would lead to increased eco
nomic activity, local people would be
passed over in the process. There was
also some concern that residents, and
even existing small businesses, would
be displaced by newcomers," Dr. Butler
says.
The 1981 bill has been fashioned so
as to meet these criticisms, he notes.
National Urban League President Ver
non Jordan joined the House and Sen
ate co-sponsors of the bill at their June 3
press conference, whil e the NAACP,
the National Urban Coalition, the Na
tional League of Cities, and many other
urban and business groups have en
dorsed the Enterprise Zone concept.
The bill now has 61 House co-sponsors
and 16 Senate co-sponsors.
The 1981 bill differs in important
ways from its predecessor concerning
the selection of sites. The designat
ing authority has been moved from the
Department of Commerce to the De
partment of Housing and Urban Devel
opment, and the Secretary of HUD has
been given the responsibility of coordi
nating other federal programs within
the zones. "These changes reflect the
fear expressed by some that the Enter
prise Zone might become a replace
ment for other programs, rather than a
supplement to them," the Heritage ex
pert says.
The new bill gives more flexibility to
local governments in designing their
own packages of tax incentives, but
would require both local and federal
entities to spell out their commitments
in a contract which could later be; mod
ified upon agreement of both parties,
Dr. Butler says.
In addition, the 1981 bill contains im
portant changes in the tax provisions in
order to favor small businesses, and
would exempt Enterprise Zones from
having to meet certain burdensome
federal regulations, leaving the protec
tions desired by Congress intact.
"While the 1981 Enterprise Zone bill
may have its defects, it is nevertheless a
bold attempt to set in motion a genuine
trickle up process in the depressed in
ner cities," Dr. Butler concludes.
Chisholm Shocked
by View of Apartheid
Congresswoman Shirley Chisholm
(D-New York) just returned from an 18
day Congressional study mission to six
nations on the African continent. In
cluded in the itinerary was a four-day
visit in South Africa, where she was
shocked and depressed by the condi
tion of that country's non-white resi
dents under the apartheid system of
strict racial segregation.
"I was just not prepared," the Con
gresswoman said, "for the first-hand
evidence of harsh repression and dis
crimination in South Africa. I per
sonally witnessed the desperation and
human tragedy which is so prevalent
there. I saw black women and children
forcibly evicted, in the cold rain, from
their make-shift shelters in Langa, an
area the Government has declared off
limits to black squatters."
"I could see, in a starkness we in
America are not used to, the human
cost of apartheid. Black workers travel
many hours each day from their homes
to jobs in the city, and then must rush to
leave the city's borders before sunset to
avoid being 'detained' by the police
after dark. By conscious government
13
decision, black communities are iso
lated, impoverished, neglected, and
grossly underserved by basic public
services. Anyone who protests these
conditions is followed, harrassed, ar
rested, or banned by an all-pervasive
police power."
The Members of Congress spoke
with a wide spectrum of government
and community leaders. "Because of
the weak and ambivalent U.S. policies
on South Africa," Mrs. Chisholm ex
plained, "neither side in the conflict
was happy to see an American delega
tion. Government representatives ac
cused us of meddling, and the blacks
blamed us for our country's apparent
condoning of the status quo. However,
we all came away with a sense that the
South Africa Government is resisting
reform and is perhaps even taking sig
nificant steps backward."
"Everywhere we heard," Represen
tative Chisholm revealed, "great appre
hension about the increasing chances
for violent upheaval. Many blacks are
determined that their children must not
grow up under such a system, and the
whites are equally determined to pre
serve their total domination of the
economy and society. Prospects for
peaceful change appear dim, and fad
ing." "I came back," the Congresswoman
concluded, "believing the unbelievable
about South Africa's racial system; and
more important, I came back even more
committed to ending any semblance of
American support for it."
Coca-Cola
continued rom page 4
ATLANTA, GA, Syreeta Miller (sec
ond from left) of Gary, Indiana flashes
her winning smile as she is presented
with a scholarship check from Coca
Cola USA, on being chosen Miss Amer
ica of Elkdomfor 1981.
Miss Miller was crowned during the
recent IBPOEW convention held in
Chicago, IL. Contestants in the annual
Beauty and Talent Pageant are judged
in two categories talent and beauty.
Judy Dorsey of Nashville, TN was se
lected first runnerup and Cheryl Bruce
of Richmond, VA was chosen second
runnerup and Miss Congeniality.
Congratulating Miss Miller (from left
to right) arc: Donald Wilson, Grand Es
teemed Ruling Knight of the Improved
Benevolent Protective Order of the
Elks of the World (IBPOEW); Carl O.
Dickerson, Grand Secretary of the
IBPOEW; Harold Stone, Central Area
Special Markets manager, Coca-Cola
USA; and William Patterson, Grand
Commissioner of Beauty and Talent
IBPOEW.
Coca-Cola USA has sponsored the
pageant for over 25 years and annually
presents trophies, $2,000 in scholar
ships and other amenities to the pro-gram.