In 1994 Loring Air Force Base closed, greatly affecting the area's economy, creating a loss of more than 5,500 civilian and military jobs and driving the unemployment rate in the area to as high as 15%. Based on the unique of circumstances and needs of the community, the Air Force entered into an Economic Development Conveyance (EDC) agreement with LDA. The agreement stated that the Air Force would provide the LDA up to $3 million per year for the next 10 years to assist with caretaker expenses and encourage re-development in the area. The agreement, to be reviewed by the Air Force Base Conversion Agency (AFBCA), expires September 30, 2004.
"It is my expectation that the Air Force will live up to its agreement with caretaking expenses at the LDA-requested funding levels," said senator Collins. "In the 1994 agreement, specific performance criteria were outlined and were to be used to judge if the LDA would continue to receive caretaker assistance. It is my understanding that all of these criteria have been met."
This year, the LDA requested $2 million in FY 2003 caretaker funding. The AFBCA has agreed to only $1,668,000, which is a financial loss that the LDA cannot afford.
"The LDA's long-range financial plan was built around the Air Force living up to its financial obligations and the loss of this funding will, no doubt, jeopardize its ability to create a self-sustaining organization."