L EADI NG P E O P L E . L E A D I N G P R O S P E R I T Y.
Protecting Business Interests Pushing Back Against Proposed MSA Criteria PRESENTING SPONSOR:
GOLD SPONSORS:
Your Chamber continues protecting business interests by convening
LONGVIEW IMPACT
leaders and influencers to take a stand against bad legislation and regulation. This year the White House Office of Management and Budget (OMB) published new criteria for Metropolitan Statistical Area (MSA) designation in the Federal register, which would have a damaging impact on the Longview trade area. These two areas would be hit:
If the rule is passed, the next logical progression would be to include similar thresholds in a new transportation bill. (The FAST ACT expired in December 2020 but was extended for one year.) If that occurs, the Longview MPO, Sherman-Denison MPO, Victoria MPO, San Angelo MPO, and Texarkana MPO would no longer exist. ....................................................
• Texas Community Development Block Grant Funding (CDBG) and • The Longview MPO would likely no longer exist. Think of transportation projects, and subsequent economic development projects like Dollar General Distribution Center, and GAP Customer Experience Center. • Without these improvements and projects with new revenue dollars, jobs are impacted.
BACKGROUND ON PROPOSED MSA CRITERIA CHANGE On January 19, 2021, the White House Office OMB issued a PUBLIC NOTICE stating that they were considering raising the MSA’s minimum population threshold from 50,000 to 100,000. Raising the MSA minimum population would remove this important MSA designation for 144 cities across the United States, 5 in Texas, including Longview. Comments on the OMB public notice were due March 20, 2021. It is important to note this criteria change would be implemented without the final count of the 2020 census in place and ratified.
WHAT IS AN MSA? For the last 70 years, OMB has issued geographic delineations for the Nation’s largest centers of population by drawing lines around metropolitan areas and labeling them as MSAs. Currently, each MSA must have at least one urbanized area of 50,000 or more inhabitants. There are 384 MSAs encompassing 1,180 counties.
WHY THE MSA DESIGNATION IS IMPORTANT? MSAs are used by federal agencies to analyze labor market conditions, spending patterns, and unemployment. It is also used by many federal agencies to determine which areas of the country are eligible for federal funding for such programs as the Community Development Block Grant Program (CDBG) and infrastructure funding under transportation bills. In 2004, GAO REPORTED that there are more than three dozen programs that use the MSA designations to determine federal funding eligibility. In addition to losing eligibility for federal funding, cities excluded from an MSA would lose local influence and control over regional project planning.
WHICH CITIES ARE IMPACTED? Based on the 2010 census data, OMB identified 144 cities scatter across almost every state that would lose their MSA designation if OMB raised the MSA minimum population cutoff from 50,000 to 100,000. Texas has 5 MSA designations, one of them being Longview. A MAP of the cities can be found here and a list of the cities can be found in the appendix below.
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W W W. L O N G V I E W C H A M B E R . C O M
Longview’s Urbanized Area in 2010 was 98,884. The calculation for an urbanized area factors density, not just total population. Dissolution of Longview MPO will result in: • Loss of local control and influence • Loss of Category 2 funding for regional projects • Loss of regional coordination between local jurisdictions • Loss of institutional framework for good planning between local/state governments for items such as infrastructure extensions and development. • Lack of input on transportation projects (i.e., George Richey Road) which have, or can have, significant impacts on economic development.
STRENGTH IN COLLABORATION The Chamber created a concerted effort of messaging and comment response opposing the proposed criteria change. The viewpoint was specifically from the business lens. Other impacted Texas Chambers – Texarkana Regional Chamber of Commerce, Wichita Falls Chamber of Commerce, San Angelo Chamber of Commerce, Sherman Chamber of Commerce, and Victoria Chamber of Commerce. Convened local stakeholders. City of Longview | LEDCO | US Chamber of Commerce | AEP SWEPCO Our thanks to Longview News-Journal for shedding light on this issue. [ LINK TO LNJ ARTICLE ] ....................................................
“It would be a trickle down effect, as thresholds set in transportation and housing bills and other grant sources change over time, with money going to larger areas.”
