News

Center’s Economic Infrastructure Fund will keep more than 5,600 North Carolinians working and create/expand 235 businesses this year
A Rural Center program to boost jobs and economic development in rural and low-wealth counties has funded 74 projects during the last 10 months that will put 5,647 North Carolinians to work, create or expand 235 businesses and leverage an additional $86 million. The state-funded Economic Infrastructure Fund helps increase a community’s capacity for economic development by boosting the infrastructure needed to attract and sustain business development. The fund is composed of three programs to improve water and sewer infrastructure, support the reuse and restoration of vacant buildings in small towns and provide research and demonstration grants that lead to economic development. The initiative also provides funds to support the e-NC Authority in expanding Internet access across the state. Lawmakers first appropriated $20 million to the Rural Center to administer the fund in July 2004, then recapitalized the fund with $20 million for each of the next two years upon seeing its significant impact in communities dealing with economic hardships. Since its creation, the program has made grants of $29 million that have supported 500 businesses and more than 16,000 jobs. To find out more about the N.C. Economic Infrastructure Fund, click here.

House committee approves bill to establish high-risk health insurance pool for low, middle-income uninsured
About 9,000 low- to middle-income North Carolinians would be able to participate in a high-risk health insurance pool under the provisions of a bill that passed the House Insurance Committee last week. House Bill 1895 is the first in a set of recommendations of a House health care panel to receive action so far this session. The panel’s 12-point plan – aimed at making insurance more affordable in North Carolina, where 1.4 million people lack health benefits – also includes a recommendation for incentives to help small businesses provide coverage for their employees and provisions to cap county expenses for Medicaid and improve the state employee health insurance plan. House Bill 1895 calls for the state to appoint a non-profit board of directors to administer a high-risk pool that would include two health insurance plans from which members could choose. The pool would be established by a combination of insurance premiums paid by participants and a fee of up to $2 that would be billed to insurers for each of their regular customers. Committee members acknowledged the bill will make, at most, a small dent in what has become a major problem throughout the state, but say it is an important first step toward reducing the numbers of uninsured residents. Insurers are by and large supportive of the bill, but have voiced concerns that hospitals are not required to provide funding under the legislation as it is now written. To read the full text of the bill, click here.

North Carolina’s recent economic growth likely to slow down this year, state economist says
North Carolina’s economy continues to grow at a slow, steady pace five years after a devastating recession hit the state, but a UNC economist says that growth is likely to taper off this year. In his quarterly economic forecast released last week, John Connaughton said he expects a statewide growth rate of just 2.2 percent for the remainder of 2006. By comparison, the state posted a 4.8 percent economic expansion in 2005. Job growth will fall slightly this year as well, according to the forecast, which calls for a 77,800 job gain for 2006, down from 93,700 jobs last year. There is continued good news for rural North Carolina, where jobless rates fell in the majority of the state’s 85 rural counties over the last year. According to Rural Center data, rural unemployment fell to 5.7 percent in 2005, down from 6 percent in 2004. And while rural jobless rates remain higher than urban unemployment rates, data show half of the new self-employment businesses that have sprung up around the state in recent years are located in rural counties. That’s a significant finding in light of center research that finds small businesses are more likely to grow and add jobs to the economy in the long-term than are mid- to large-sized firms.

E-NC Authority receives innovation award from Southern Growth Policies Board at annual meeting
The e-NC Authority has been recognized by the Southern Growth Policies Board for its innovative approach to bridging the digital divide in North Carolina. The e-NC Authority was presented with the 2006 Innovator Award at Southern Growth’s Southern Innovation Summit in New Orleans earlier this month. The award recognizes public, private, academic and nonprofit organizations that bring a fresh approach to solving problems and creating opportunity in the South’s rural regions. Southern Growth lauded the e-NC Authority’s measurable impact on North Carolina as it has significantly expanded technology infrastructure and awareness throughout the state. The authority’s approach to its work has consistently focused on building both the infrastructure needed for Internet deployment – particularly high-speed Internet – as well as demand for the Internet in rural and low-wealth counties. The e-NC Authority has emerged at the forefront of regional and national connectivity efforts, said Southern Growth officials, who called the authority’s research and technology mapping work “unparalleled.” Today, 82 percent of all North Carolina households can purchase high-speed Internet service – thanks in large part to the efforts of the authority. To find out more about the work of the e-NC Authority, visit the website at: www.e-nc.org.

Reports and Research

North Carolina continues to make gains on high-speed Internet availability, according to new e-NC Authority report
With 82 percent of its residents able to connect to high-speed service, North Carolina is now 11th in the nation in the number of high-speed lines. The findings were released last week by the e-NC Authority as part of its annual 100 County Report, which ranks counties by the percentage of households with the ability to connect to high-speed service. North Carolina’s technology gains come even as the nation as a whole fell to 16th in the world on broadband penetration, according to the Economic Strategy Institute report, “America’s Technology Future at Risk,” which can be found at www.econstrat.org. Among the other findings of its 100-county report, the e-NC Authority finds that: only five of the state’s 100 counties have less than 50 percent access to high-speed service, compared to nine counties in 2004; and 21 counties have between 50 and 69.99 percent access to high-speed service, compared to 27 counties in 2004. The five counties with less than 50 percent access to high-speed service are Gates, Green, Jones, Madison and Warren. To read a full summary of the report findings, click here.

Southern Growth releases 2006 report on the future of the American South
The Southern Growth Policies Board has released its new report, Innovation with a Southern Accent, which focuses on creating a Southern culture of knowledge where learning and innovation are primary social values essential to the region’s global competitiveness. The report’s recommendations include strategies for building the innovation capacity in the South through the creation, accumulation and application of knowledge. The report presents the Southern Innovation System (SIS) as a mechanism for individuals, communities, states and the South to support and cultivate innovation. The report also outlines several regional initiatives to grow emerging industries in the region. Innovation with a Southern Accent includes regional and state-level data on educational attainment, venture capital, an overview of state policies on research and development, including survey results about the South’s attractiveness for R&D and profiles of innovative programs. Reports are $20 can be ordered by sending an e-mail to ngos@southern.org with complete mailing and contact information. To download a publication order form, click here. To view the report introduction, click here.

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Meetings and Events

Rural Center to hold second E² Energizing Entrepreneurship workshop June 27-29 in Ridgecrest
The Rural Center’s Institute for Rural Entrepreneurship and state business service providers will lead a three-day training retreat to prepare rural leaders to stimulate entrepreneurship development in their communities. “Energizing Entrepreneurship in Rural North Carolina” will be held June 27-29 at the Lifeway Ridgecrest Conference Center in western North Carolina. The workshop is part of a two-year initiative by the W.K. Kellogg Foundation to build an effective entrepreneurship development system in the state. The center held the first E² workshop in eastern North Carolina last fall, where participants reported the training to be highly valuable for their communities. Participating communities are asked to send a team of four-to-eight people who will work together to learn about comprehensive entrepreneurship development strategies and then take that knowledge home and help put it into action. The fee to register is $400 and includes meals, housing and course materials. To find out more or to register for the training, contact Michelle Hall at the Rural Center, (919) 250-4314.

Grantsmanship Training Program is coming to Hamlet, July 17-21
The Foundation for Richmond County and The Cole Foundation are hosting an intensive five-day training program by The Grantsmanship Center (TGCI), July 17-21, that will cover all aspects of fund development – researching grants, writing grant proposals and negotiating with funding sources. In addition to practicing advanced techniques for pursuing government, foundation, and corporate grants, participants will develop grant proposals for their own organizations. Upon completion of the training, participants receive free follow-up, including professional proposal review, access to TGCI’s online funding databases and other benefits. Tuition for the program is $825 ($775 for each additional registrant from the same organization). Class size is limited to 30 participants. To register online, to learn about scholarship opportunities for qualifying organizations, or for more information, click here. Or call the TGCI Registrar at (213) 482-9860.

Save the Date! Rural Center’s annual partners forum, “Creating Rural Advantage,” to be held Sept. 13-14 in Raleigh
The Rural Center will hold its annual Rural Partners Forum in Raleigh Sept. 13-14 at the North Raleigh Hilton. The theme of this year’s event is “Creating Rural Advantage: Small Places, Big Ideas, Global Reach.” The event will examine rural North Carolina’s role in the global economy, highlight innovative approaches to globalization both here at home and across the nation and explore how North Carolina can capitalize on the opportunities ahead. Erskine Bowles, newly-elected president of the University of North Carolina system, will give the keynote address at the banquet on September 13. Speakers include Mark Drabenstott, vice president and director of the Center for the Study of Rural America at the Federal Reserve Bank of Kansas City, who will speak on the nation’s current climate for foreign trade and domestic policy, how economic restructuring will reshape local and state economies in years to come, and the critical role of regionalism and entrepreneurship in pulling economies out of distress and into a position of advantage. For more information on the 2006 Rural Partners Forum, contact Courtney Kilpatrick in the communications office by phone at (919) 250-4314 or e-mail at ckilpatrick@ncruralcenter.org.

Funding Sources

Communities with fast-growing Hispanic populations eligible for national literacy program
The National Center for Family Literacy (NCFL) is seeking five school districts in communities across the United States with high or fast-growing Hispanic and other immigrant populations to implement the Toyota Family Literacy Program. The program uses a family literacy approach to increase basic language and literacy skills as well as provide Hispanic and other immigrant parents with the specific skills they need to help their children succeed. Selected communities will receive grants for direct funding, training, and technical assistance. Rural and urban communities are encouraged to apply. Interested school districts must complete and return a capability survey by June 30. To find out more about the program and eligibility, or to download an application, click here.

From the N.C. Press

Asheville Citizen-Times: More burley growers quitting after buyout than expected
About half of western North Carolina's burley tobacco growers have quit in the wake of a 2004 buyout program. Aaron Martin, the U.S. Farm Service Agency's district director for Western North Carolina, said he expected more growers to take a wait-and-see approach on the buyout and that the number of growers quitting is more significant than he expected. The buyout ended a price support program in place since 1938 and provided a lump payout to tobacco growers spread over 10 years, with the first payment going out last fall. Still, many farmers are leaving the business due to increasing fuel and fertilizer costs. Charles Zink, executive director of the Farm Service Agency office in Madison County, says the small growers got hit particularly hard after the buyout. To secure a contract, tobacco companies usually want growers to put in at least five acres, which eliminates smaller growers unless they want to sell at auction in Asheville. Zink estimated Madison County, the largest burley-growing county in North Carolina, probably had 200 to 300 growers last year, compared with 698 in 2004, the last year the tobacco program was still in place.

The Insider: House passes bill to reign in local governments’ use of eminent domain
The state House unanimously approved legislation June 6 barring local governments from using condemnation procedures to take land for economic development purposes. The bill, which now goes to the Senate, comes in response to a U.S. Supreme Court decision last year which upheld a Connecticut town's taking of private property for other private development. The 116-0 vote in the House took place with little debate. It would only allow eminent domain to be used under circumstances already prescribed by law – the construction of government buildings and roads, easements for railroads, creation of parks and the building of water and sewer lines. The bill would repeal the nine limited uses of condemnation for economic development granted to local governments by previous legislatures. Still, many lawmakers argue that the bill doesn't go far enough and want a constitutional amendment to stop future legislatures from altering the law. Rep. Paul "Skip" Stam, R-Wake, says he has 88 co-sponsors to a bill that would create a constitutional prohibition.

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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 Kilpatrick, UPDATE production manager
Elaine Matthews, vice president for communications and development
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org