Sen. Coons: “In all my time in the private sector and the public sector, I haven’t seen any comparable program that provides anything like the kind of significant, effective, hands-on help to small and medium manufacturers like the MEP does.”

WASHINGTON – U.S. Senator Chris Coons (D-Del.), a member of the Senate Appropriations Committee, this morning joined CNBC’s Squawk Box to discuss President Trump’s budget proposal and, in particular, the proposed elimination of the Manufacturing Extension Partnership (MEP) program.

“First, I'm someone who spent eight years in manufacturing before I went into local government, and I’ll tell you that, in my seven years in the United States Senate, I’ve visited dozens of small and medium manufacturers up and down the state of Delaware and heard from them directly the impact that the Delaware chapter of the Manufacturing Extension Partnership has had with them,” said Senator Coons. “This is about a $120 million program where it has a remarkable return on investment. The latest studies suggested that it grew $18 in new sales and $27 in new investment for every federal dollar spent. It also has a match. So, this is a public-private partnership that I think has really demonstrated its effectiveness, and I'm struck by the administration's justification for its elimination. Because, in all my time in the private sector and the public sector, I haven’t seen any comparable program that provides anything like the kind of significant, effective, hands-on help to small and medium manufacturers like the MEP does.”

Full audio and video available here.

Excerpts from the interview:

Senator Coons on the MEP program: First, I'm someone who spent eight years in manufacturing before I went into local government, and I’ll tell you that, in my seven years in the United States Senate, I’ve visited dozens of small and medium manufacturers up and down the state of Delaware and heard from them directly the impact that the Delaware chapter of the Manufacturing Extension Partnership has had with them. It’s a lot like Ag extension – it connects folks who are on the cutting edge of research about how to improve manufacturing, who have skills in value-stream mapping and just-in-time inventory management, in quality control, and it makes them available as a training resource, a consulting resource to help small and medium manufacturers improve their bottom line, improve their workforce skills and training, and improve their competitiveness. This is about a $120 million program where it has a remarkable return on investment. The latest studies suggested that it grew $18 in new sales and $27 in new investment for every federal dollar spent. It also has a match. So, this is a public-private partnership that I think has really demonstrated its effectiveness, and I'm struck by the administration's justification for its elimination. Because, in all my time in the private sector and the public sector, I haven’t seen any comparable program that provides anything like the kind of significant, effective, hands-on help to small and medium manufacturers like the MEP does.

More on the MEP program: The only previous signal was that it was specifically eliminated in the Ryan budget a couple of years ago. But, I thought that was an outlier. This is a program that frankly has enjoyed bipartisan support. I’m someone who likes to legislate here in a bipartisan way, and it's enjoyed support from Republicans and Democrats on the Small Business Committee on which I serve, and it’s got successful programs in states across the country represented by both Republicans and Democrats. And given the focus that President Trump put on manufacturing and restoring and strengthening American manufacturing in his campaign, I was generally surprised to see it completely eliminated. There are other programs that help manufacturing in other ways that are significantly cut in this budget: Manufacturing USA by 70%, workforce innovation and opportunity by 40%. But, those don't do the same thing. That MEP was targeted for complete elimination genuinely surprised me. 

Senator Coons on the budget: Well, I think it presents really stark choices. To look at the budget as a whole, it makes significant cuts in entitlement programs, Medicare and Medicaid, it reduces taxes, and it makes dramatic cuts across the board in lots of domestic programs.

More on the budget: I frankly think in many of the subcommittees on which I serve in appropriations, it will be completely ignored. The Republicans and Democrats will sit down and hammer out an understanding about what we think are the programs that should be sustained and which are cut.

Senator Coons on senators ignoring the presidents’ budgets: His most recent budgets were largely or, in the last case, completely ignored, that’s right. But I don't think that's a healthy process. I think we should have consultation between the executive and the legislative. The executive branch runs these programs and, in our very large and very complicated government, I think it would be a much healthier process if we had a budget that was seriously entertained by the legislative branch and a budget that deserved to be taken seriously. 

More on the MEP: Let’s be clear. The Manufacturing Extension Partnership in this budget is completely eliminated. It’s not slowing the rate of growth, it is elimination, which I oppose.

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