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Harvard Award Names MEP One of Government’s Best and Brightest – As Federal MEP Funding Cuts pass in Omnibus Bill

Harvard’s Institute for Government Innovation
selected the Commerce Department’s Manufacturing Extension Partnership (MEP)
as one of the nation’s "most creative, forward thinking, results-driven
government programs."

The Ash Institute for Democratic Governance and
Innovation, part of Harvard University’s John F. Kennedy School of
Government, included MEP in its list of semifinalists for the 2004
Innovation in American Government Awards announced late last week.

MEP is one of 50 programs chosen from nearly 1,000 applicants as the best
and brightest in government by the Ash Institute, founded by the Ford
Foundation to identify and promote excellence and creativity in the public
sector. The Montana Manufacturing Extension Center (MMEC), based at Montana
State University-Bozeman, is one of 60 centers that make up the MEP across
the U.S. and Puerto Rico that work directly with small manufacturers to
boost productivity, sales, employment and investment in modernization.

This recognition comes at a critical turning point for the MEP program. MEP
has earned widespread support in Congress and previously secured $106
million annually for the past six years. Under pressure from the
Administration, Congress provided only $39.6 million for MEP in the recently
passed FY 2004 budget, a 63% cut from the program’s traditional funding
level. The Administration included MEP in its manufacturing strategy
earlier this month but is again recommending only $40 million in its FY 2005
budget request released today.

"If Congress does not override the Administration recommendation of only $40
million for MEP, the system will die a slow death. Montana manufacturers
benefit from having manufacturing consultants out on the factory floor,
clearly understanding the issues and difficulties they face. It is that real
and relevant assistance that makes the MEP infrastructure of public and
private partnerships work. Last fall, a National Academy of Public
Administration (NAPA) study stated that MEP is the only federal program
positioned to help create an infrastructure of support to small
manufacturers as the U.S. economy moves through enormous economic
transition," said MMEC Director Steve Holland.

"MEP has consistently been recognized as an excellent resource for small
manufacturers. The September 2003 NAPA study, the prestigious BizBest
recognition of MEP as a "star performer." And now this. The irony between
these commendations and the Administration’s lack of support for continuing
this assistance for manufacturers should be a red flag to Congress."

"MEP has set the bar for state and federal cooperation and earned Harvard’s
selection with a proven performance record of bolstering America’s
manufacturing competitiveness," says Mike Wojcicki, President of the
Modernization Forum. "Our small manufacturers urgently need MEP assistance,
but these funding cuts will severely hamper MEP’s ability to serve these
companies."

In response to the current fiscal uncertainty, some MEP Centers have already
started to lay off workers, limit outreach to new manufacturing clients, and
close regional offices. The Montana center has stretched its current staff
to continue serving clients in northwestern Montana, delaying replacement of
an engineer in that area there until future funding levels are resolved.

MEP made the Ash Innovations Awards list from four evaluation criteria used
by the selection committee: novelty; effectiveness in addressing important
problems; significance; and the potential for replication by other
government entities. The applicant pool covers a wide variety of government
programs. Five winners will be chosen after site visits and formal
presentations from a group of 15 finalists. At the end of the selection
process, winners receive grants of $100,000.

The 17th annual Innovations in American Government Awards is a program of
the Ash Institute for Democratic Governance and Innovation at Harvard
University’s Kennedy School of Government. The award is administered in
partnership with the Council for Excellence in Government. You can see the
Awards announcement at the Council for Excellence in Government website:
<http://www.excelgov.org/displaycontent.asp?keyword=aiHomePage>.

CONTACT:

Mike Wojcicki, Modernization Forum,
734-779-2370

or

Steve Holland, Montana Manufacturing Extension Center
406-994-3812

Deborah Nash

Montana Manufacturing Extension Center

Montana State University, P.O. Box 174255

Advanced Tech Park, 960-A, Suite 185

Bozeman, MT 59717-4255

Phone 406-994-3812

Fax406-994-3391

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