News

Rural Center looks back on the state of the rural economy in 2006
As 2006 draws to a close, there is good reason to be optimistic about the rural economy-- jobs are once again on the rise and unemployment is down in many counties. Yet 46 rural counties and eight urban counties still have fewer private sector jobs today then they did in 2001 prior to the recession-- a reminder that recovery from recession is a painfully slow process. And rural areas, in particular, are still reeling from the decline of the state s once-vibrant manufacturing sector. Between 1990 and 2005, rural counties lost 147,143 manufacturing jobs, compared to 103,798 in urban counties. Stimulating job growth in depressed rural areas will depend heavily on how the state and rural regions are able to prepare rural workers and economies for the knowledge-based jobs of the future. Those jobs will require more than a high school education, yet nearly 60 percent of the rural population has at most a high school diploma, and last year more than 35 percent of students statewide did not graduate from high school on time. Still, key economic initiatives are ramping up in rural areas that have the potential to transform local and regional economies on a major scale. Such initiatives include the development of entrepreneurial networks, continued growth in the biotechnology sector, the emergence of biofuels development, and the stimulation of cottage industries in areas where traditional business development is unlikely.

N.C. Department of Commerce releases 2007 county tier rankings under new tax credit formula
State lawmakers last summer overhauled the economic incentive program it uses for industrial recruitment, and now the state Department of Commerce has released county distress rankings that set the level of incentives in each of the state s 100 counties. Lawmakers felt an overhaul of the 10-year-old William S. Lee Act was in order amid concerns that the tax credit program was too complicated and not reaching distressed counties. The new law reduces the number of tiers that describe a county s economic distress ranking from five to three, and offers a new real property investment tax credit to encourage companies to locate or expand in the most distressed counties. Under the new law, the state s 40 most economically distressed counties are designated as Tier 1 counties, the middle 40 counties are classified as Tier 2 and the top 20 counties are now Tier 3 counties. Rankings are based on an assessment of each county's unemployment rate, median household income, population growth and assessed property value. Counties with populations of less than 12,000 and those with a population of fewer than 50,000 residents with 19 percent or more living below the federal poverty level are automatically ranked among the 40 most distressed counties. The law both increases the types of companies eligible to receive tax credits and stipulates fiscal and environmental requirements for companies to receive credits. To be eligible for tax credits, eligible companies will now be required to offer employees health insurance and pay at least 50 percent of the premiums, prove that they do not owe back taxes and that they have not received a significant environmental violation notice from the state Department of Environment and Natural Resources. The new law also provides for extra tax credits for companies that locate in high poverty urban areas and new Agrarian Growth Zones. To see the complete list of county tier rankings for 2007, click here.

Center to host 2007 Entrepreneurship Summit Feb. 27 in Raleigh
The Rural Center and statewide partners will host the second annual Entrepreneurship Summit Feb. 27 at the North Raleigh Hilton." Framing our Economic Future: An Entrepreneurship Agenda for North Carolina will feature the announcement of new initiatives designed to stimulate growth of small businesses and establish an entrepreneurship support system in communities throughout North Carolina. On hand to make the announcements will be state and national officials, business leaders and leaders from the educational community. National radio talk show host Jim Blasingame will give the summit s keynote address. Blasingame was recently recognized by Fortune Magazine as being one of the most influential people representing small business interests in America today. North Carolina entrepreneurs will also share personal stories of their path to success. Sponsors include the North Carolina Business Resource Alliance, Rural Entrepreneurship Development System, North Carolina Entrepreneurial Association and the Rural Economic Development Center. For more information, Michelle Hall at the Rural Center, (919) 250-4314.

Meetings and Events

2007 Economic Forecast Forum to be held Jan. 2 in Research Triangle Park
The North Carolina Bankers Association and North Carolina Citizens for Business and Industry (NCCBI) will host the 2007 Economic Forecast Forum at the Sheraton Imperial Hotel in Research Triangle Park on Jan. 2. The annual forum will feature presentations from key state leaders and economic analysts who will provide insight into the economic trends and issues that will impact North Carolina and the nation throughout the year. This year s event will be preceded by a special session led by FoRENC and the Rural Center on the transformation of Eastern North Carolina into a globally competitive economic region. To find out more or to register, contact Blair Wicket at (800) 622-7044.

First annual Southeast Venture Conference to be held Jan. 31-- Feb. 1 in Research Triangle Park
The first-ever Southeast Venture Conference will be held Jan. 31-Feb.1 at the Umstead Hotel and Spa in Research Triangle Park. The conference will be an opportunity for technology firms, entrepreneurs and venture capitalists to network. The event will feature investor/executive panels and keynote speeches from Jim Goodnight, founder and CEO of SAS Institute, and Ryan Wuerch, CEO of Motricity. The fee to register is $470 if completed prior to the event, $560 the day of. To find out more about the conference or to register, click here.

Reports and Research

North Carolina is middle-of-the-road among 50 states on economic competitiveness, annual report finds
An annual report on economic competitiveness finds North Carolina right in the middle at number 26 among the nation s 50 states. The State Competitiveness Report is the sixth annual survey by the Beacon Hill Institute at Suffolk University. The Boston-based think tank ranks states according to eight categories-- security, infrastructure, human resources, technology, business incubation, openness, environmental policy and government and fiscal policy. For the third consecutive year, Massachusetts was ranked first overall. North Carolina did very well on business incubation, coming in 9th in that category, and on infrastructure, for which the Tar Heel State was ranked 16th. Interestingly, North Carolina received its lowest score on security. The report defines security for the purposes of the report as one in which public officials are trustworthy and crime is low. To read the full report, click here.

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Funding Sources

Blue Cross Blue Shield of NC accepting grant applications for its Health of Vulnerable Populations program through Feb. 15
Blue Cross Blue Shield of North Carolina will accept applications to its Health of Vulnerable Populations grants program through Feb. 15. The program is designed to improve access to health care in communities with high numbers of the working poor, minorities, and/or chronically ill individuals. The program is open to communities that are served by health care safety net organizations, such as community and migrant health centers, rural health centers, local health departments, free clinics and health outreach workers. The program also seeks to help these communities improve the way in which they go about receiving and using health care services, such as reducing the number of visits to local emergency departments for non-urgent care, and helping them take steps to prevent illness and disease. Grants of between $10,000 to $100,000 are available for eligible applicants. To read the grant guidelines or to apply online, click here.

Cost-share grants of up to $18,000 available in tobacco-dependent communities
The Rural Advancement Foundation International (RAFI USA) announced it will accept applications to its Tobacco Communities Reinvestment Fund through Jan. 26, 2007. The grant program will make cost-share grants to farmers, farm organizations, and community groups in Alamance, Carteret, Franklin, Granville, Hoke, Jones, Onslow, Robeson, Rockingham and Stokes counties for demonstration of new alternatives to replace lost tobacco income. Cost-share support will be up to $10,000 for individual producers and up to $18,000 for group projects. To be eligible, a farmer must be engaged in full or part-time farming and have earned income from tobacco at the time of the Master Settlement Agreement in 1997-1998. Eligible community projects must directly benefit eligible farmers and have farmers in the leadership of the project. For more information or to learn how to apply, contact Jason Roehrig at (919) 542-1396.

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The mission of the North Carolina Rural Economic Development Center is to develop, promote, and implement sound economic strategies that improve the quality of life of rural North Carolinians, with a special focus on individuals with low to moderate incomes and communities with limited resources.

N.C. Rural Economic Development Center
Michelle Taylor, UPDATE editor
Courtney Tieman, UPDATE production manager
Elaine Matthews, senior vice president
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org