Trump Budget Would Slash Funding for Manufacturing Extension Partnerships

Elizabeth Brotherton-Bunch

Elizabeth Brotherton-Bunch Digital Media Director, Alliance for American Manufacturing

It seems like a thousand news cycles ago now, but President Trump unveiled his proposed 2020 budget on Monday.

The $4.75 trillion budget includes major cuts to federal spending for domestic programs while increasing funding for defense and border security. Lots of people are fired up about it, but it’s important to keep in mind that Congress has the ultimate say over the budget — and lawmakers have rejected many of Trump’s budget requests in the past.

Still, the budget does offer a glimpse into the Trump administration’s priorities for the upcoming year, and as such we spent some time digging through the document for items that may impact manufacturing. One thing in particular caught our eye: Trump’s proposal to severely cut — and eventually phase out — federal funding for the Manufacturing Extension Partnership (MEP) program.

This is a terrible idea. Just terrible.

MEP runs a network of centers in all 50 states and Puerto Rico designed to help small and medium-sized manufacturers improve their businesses, including through things like product development, worker training programs, and business continuity planning.

MEP punches above its weight when it comes to achieving results. The $128 million invested in MEP during fiscal year 2017 generated almost $1.9 billion in returns to the federal treasury, according to a study by the Upjohn Institute.

Meanwhile, MEP has helped create 985,117 jobs since its founding in 1988. That’s nearly a million jobs!

That’s not all, either. When MEP celebrated its 30th anniversary last year, it noted it has worked with 94,033 manufacturers, helping generate $111.3 billion in sales and $18.8 billion in cost savings for its clients.

That is why it strikes us as foolhardy for the Trump administration to try to gut the program. Trump proposes cutting current funding levels by $125 million for fiscal 2019 — which would leave just $5 million left for the program. Eventually, the federal government would cut off all funding, according to the proposal.

Sadly, this isn’t the first time Team Trump has wanted to cut funding for MEP. When AAM’s own Scott Paul spoke at MEP’s 30th anniversary event last year, he talked about why this is so short sided:

“The taxpayer investment in MEPs, a tiny, tiny, fraction of the federal budget, is returned many, many times over in the jobs, the income, the wealth created from a thriving and growing manufacturing base. Still, MEP has its critics and skeptics. To them I say this: You can be philosophical, or you can be realistic. If we don’t fight for our makers, someone else will get the business, in China, or Germany, or Brazil, or somewhere else.”

Trump loves talking about how he’s such a big champion for manufacturing, and he’s focused most of his policy attention on rebalancing trade.

We can debate how Trump’s trade efforts have played out so far. But one thing that’s not up for debate? Even if Trump hits a home run on trade — even if he does end up getting the very best deal with China —all of it will be for naught if the United States does not take steps to strengthen its manufacturing base right here at home.

Instead of seeking to cut funding for MEP, the administration would be better served to study its success and find ways to replicate it.

Riley Ohlson contributed to this report.

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Reposted from AAM

Posted In: Allied Approaches, From Alliance for American Manufacturing

Union Matters

Get to Know AFL-CIO's Affiliates: National Association of Letter Carriers

From the AFL-CIO

Next up in our series that takes a deeper look at each of our affiliates is the National Association of Letter Carriers.

Name of Union: National Association of Letter Carriers (NALC)

Mission: To unite fraternally all city letter carriers employed by the U.S. Postal Service for their mutual benefit; to obtain and secure rights as employees of the USPS and to strive at all times to promote the safety and the welfare of every member; to strive for the constant improvement of the Postal Service; and for other purposes. NALC is a single-craft union and is the sole collective-bargaining agent for city letter carriers.

Current Leadership of Union: Fredric V. Rolando serves as president of NALC, after being sworn in as the union's 18th president in 2009. Rolando began his career as a letter carrier in 1978 in South Miami before moving to Sarasota in 1984. He was elected president of Branch 2148 in 1988 and served in that role until 1999. In the ensuing years, he worked in various roles for NALC before winning his election as a national officer in 2002, when he was elected director of city delivery. In 2006, he won election as executive vice president. Rolando was re-elected as NALC president in 2010, 2014 and 2018.

Brian Renfroe serves as executive vice president, Lew Drass as vice president, Nicole Rhine as secretary-treasurer, Paul Barner as assistant secretary-treasurer, Christopher Jackson as director of city delivery, Manuel L. Peralta Jr. as director of safety and health, Dan Toth as director of retired members, Stephanie Stewart as director of the Health Benefit Plan and James W. “Jim” Yates as director of life insurance.

Number of Members: 291,000 active and retired letter carriers.

Members Work As: City letter carriers.

Industries Represented: The United States Postal Service.

History: In 1794, the first letter carriers were appointed by Congress as the implementation of the new U.S. Constitution was being put into effect. By the time of the Civil War, free delivery of city mail was established and letter carriers successfully concluded a campaign for the eight-hour workday in 1888. The next year, letter carriers came together in Milwaukee and the National Association of Letter Carriers was formed.

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There is Dignity in All Work

There is Dignity in All Work