News

Coalition keeps state's infrastructure woes front and center as legislature winds down
About 75,000 people have moved to North Carolina since lawmakers convened the current session of the N.C. General Assembly in January, adding roughly the population of Asheville to the state's already strained roads, water systems, schools and housing supply. That statistic was one of several sobering pieces of information released during a Raleigh press conference on July 10 by the Partnership for North Carolina's Future. The coalition of state leaders is pushing lawmakers to address North Carolina's mounting infrastructure, land-use and conservation needs before they adjourn this summer. Coalition chair Ellis Hankins said the group's report, "Reality Check for North Carolina," finds that the state's booming population growth is just one cause of the problem -- tough budget cycles in recent years have exacerbated the situation, too. Hankins said North Carolina, once known as the 'good roads state,' now ranks near the top in congestion on urban and rural interstates and rural roads are in poor condition. And there's the very real concern that our environment is being broken down, too, Hankins said. Over 3,000 miles of streams and rivers in our state don't meet water quality standards, and there are currently 114 communities with inadequate wastewater treatment systems, limiting their ability to handle new growth and increasing the likelihood of groundwater pollution. To find out more about the Partnership for North Carolina's Future, click here.

More than 285 local governments, organizations sign on to support water-sewer bond issue
Local governments and leaders from across the state say North Carolina's growing population is just one of the factors threatening the state's most precious natural resource -- water. Local leaders are lining up in support of legislation aimed at funding clean water projects statewide, saying their aging water and sewer systems can't support a good quality of life for the residents they have now, much less allow for needed growth and development. Two bills currently being considered in the General Assembly would fund drinking water and wastewater disposal projects across the state through the issuance of general obligation bonds. House Bill 127 and Senate Bill 208, the Clean Water Bond Act of 2007, are being led by Sen. Walter Dalton and Reps. Bill Owens, William Wainwright and Bill Daughtridge. Both bills would set aside a portion of bond proceeds to help communities dealing with the most critical needs in the state, including moratoria, public health and environmental emergencies. Rural Center President Billy Ray Hall says recent discussions in the N.C. General Assembly and around the state indicate a high level of support for the legislation as lawmakers prepare to wind down the current session. This is clearly not an issue we can afford to put on the back burner, Hall said, as evidenced by the fact that for every year the state does not fund clean water needs, we fall another half-billion dollars behind in needed investments to install, upgrade or replace water and sewer infrastructure. If your organization would like to add its voice to the growing number of people and groups supporting the Clean Water Bond Act of 2007, click here. To learn more about the legislation, click here.

Sen. Dole sponsors Trade Adjustment Assistance bill in the U.S. Senate
Sen. Elizabeth Dole has sponsored a bill to strengthen a federal program designed to get dislocated workers back on their feet as quickly as possible. Sen. Dole's S.R. 1652, the Trade Adjustment Assistance (TAA) Reform Act, would enhance and streamline benefits for dislocated workers -- changes that would benefit workers in North Carolina more than any other state, given the number of trade-affected industries in this state. The legislation mirrors a bill introduced in the U.S. House earlier this year by North Carolina Reps. Robin Hayes and Mike McIntyre. North Carolina's congressional delegation says that, though largely successful, the TAA program has some shortcomings that prevent the program from working as well as it was designed to. TAA benefits are often used by laid-off textile, apparel and furniture manufacturing workers. Those that qualify are eligible for long-term training, extended unemployment benefits and tax credits for health insurance premiums. Under the new legislation, dislocated workers would qualify for more and better access to career training and health insurance tax credits. In addition, dislocated textile and apparel workers would receive automatic access to the program after losing their jobs. TAA reform was a key recommendation of the Rural Center's Dislocated Worker Advisory Committee in 2005. .

Sen. Rural Center board endorses creation of a New Market Tax Credit in North Carolina
The executive committee of the Rural Center's board of directors voted last month to endorse a state version of the federal New Market Tax Credit program, a $15 billion initiative that provides incentives for investment in low-income communities. State lawmakers are now debating adding the credit program here in North Carolina, which they estimate would cost the state a maximum of $10 million a year but would likely result in $500 million in small business investments in distressed, largely rural communities. If the state does opt to pass the tax credit this session, North Carolina would become the ninth state nationally to offer a New Market Tax Credit. The federal program provides private sector investors with income tax credits for making investments in designated Community Development Entities, which then must invest the money in low-income communities. The goal of the North Carolina program would be to bring a larger share of federal New Market Tax Credits to the state. In its current form, the state's version offers no credits the first two years after investment. In the third year, investors would receive an 8 percent credit each year for five years for investments made in Tier 1 counties and 6 percent for investments made in low-income Census tracts.

Meetings and Events

Take your business online, start by registering for free e-commerce training sessions
If you're a small business owner who hasn't yet explored the possibility of e-commerce, or if you dream of someday starting a business, a series of free seminars can give you the tools you need to make that important leap. The seminars are offered through a partnership between the e-NC Authority and the Rockingham County Business & Technology Center, with funding from the Kellogg Foundation. The sessions will help entrepreneurs and small business owners better understand e-business and discover how they can implement e-commerce and web-based tools to grow and sustain their operations. The sessions will also cover information on developing a strong Web presence, finding new ways to reach customers, web advertising and e-mail marketing, and selling products and services online. The information will be presented in a technology-neutral, easy-to-understand format. Sessions will be held August 7 at the Rockingham Co. Agricultural Center in Reidsville, August 22 at the Northeast Technology and Business Center in Williamston, September 20 at Foothills Connect in Rutherfordton, and on October 24 at the North Raleigh Hilton in Raleigh. To find out more, or to register online, visit the e-NC Authority's website. For other questions, call Angie Bailey at (866) 627-8725.

2nd annual Financial Education and Asset Building Conference Oct. 8-9 in Chapel Hill
The 2nd annual Statewide Financial Education and Asset Building Conference will be held Oct. 8-9 at the Friday Center in Chapel Hill. The event is sponsored by the NC IDA Collaborative, EITC Carolinas, North Carolina Cooperative Extension and UNC-Chapel Hill. Participants will primarily learn how to help the working poor become financially independent. Last year's conference launched the North Carolina Saves initiative, information on asset building strategies, the role of public policy in helping the working poor achieve financial independence and financial literacy trainings for community development and human service professionals. Further details will be made available in the coming weeks and months. Call or visit the NC IDA Collaborative's website for more details call (919) 341-6418.

NC REAL to hold next training institute July 30-Aug. 2 in Morganton
North Carolina REAL will hold a training institute for teachers and others that work with youth between the ages of 6 and 14 July 30-Aug. 2 in Morganton. The institute uses the K-8 NC REAL curriculum to show participants how to teach entrepreneurship and financial skills as a stand alone class or as an infusion into other courses such as math, science or language arts. The entrepreneurship curriculum also works well in after school programs. The institute will be held in Morganton at Western Piedmont Community College. Teachers in attendance at REAL Institutes typically receive professional development credit from their school system. The cost is $750 and includes course materials and lunch. Lodging is not included. For more information contact Malinda Todd. To register online visit NC REAL online.

Blue Ridge Entrepreneurial Council to hold 5th annual Carolina Connect conference on Oct. 11 in Asheville
The Blue Ridge Entrepreneurial Council will hold its 5th annual Carolina Connect conference at Asheville's Grove Park Inn and Spa on Oct. 11. Again this year, the focus will be on helping entrepreneurs get more private investor capital, increase sales revenue and learn more about the process of partnering for research grants. For more details, call the Blue Ridge Entrepreneurial Council at (828) 273-9862. Check the website for details as they become available.

Reports and Research

Hold the pity: Triad area still reaping big rewards from the furniture industry
For those that thought North Carolina was no longer the dominant player in the nation's furniture industry, think again. A new study released by High Point University finds the home furnishings industry in the Triad region still rules the domestic furniture market, and has an $8.2 billion impact on North Carolina's economy, as well. The industry cluster that has grown up around furniture businesses in Davidson, Forsyth, Guilford and Randolph counties is also responsible for creating some 65,000 jobs statewide. The report details the home furnishings industry in the region as a whole, and then offers a county-by-county breakdown on related jobs in the Piedmont. Not surprisingly, the data shows Guilford County reaps the most substantial industry benefits. But the other three counties continue to generate a healthy amount of revenue, too -- challenging the perception that trade-related industry losses have left a huge void in those areas. Impact numbers include the traditional manufacturing companies as well as the support industries -- trucking, building trades and photography, to name just a few -- that supply the furniture market. The full report, "The Economic Impact of the Home Furnishings Industry in the Triad Region of North Carolina," is available on the university's website.

Study finds North Carolina in the dark on its high-school dropout problem
A new study by the N.C. Center for Public Policy Research reveals what may be the most disconcerting news yet on North Carolina's high-school dropout problem: the fact that no one knows for sure how many of them there are. At issue is the fact that, until recently, the state relied on an out-of-date tracking method to determine the number of students that graduate in four years. The state Department of Public Instruction updated its data collection method for 2007, and the results showed that some 32 percent of high school students in North Carolina did not graduate in four years. What the data needs to show, according to the report, is how many of those students went on to finish school in five years or earn an equivalency degree. Still, one thing is clear, according to center spokesperson Mebane Rash Whitman: no matter how you cut it, a 68 percent drop-out rate is a devastating problem for a state struggling to adapt and compete in the global economy. Nationally, 75 percent of high school freshman go on to graduate four years later. To read the full report, visit the center's website.

Research shows high rate of return on investment in incumbent worker training programs
While there will always be a need for workforce programs targeting the unemployed, a new study by the Upjohn Institute suggests those investments should be on par with incumbent worker training programs. Boosting the skills of the already employed has proven effective in helping states retain vulnerable businesses and industries, yet most states have steadily cut funding for such programs over the last five years. The Upjohn Institute also finds that, of the $50-60 billion a year the private sector invests in training, only about 1 percent of that is publicly subsidized. The institute conducted an evaluation of a statewide incumbent worker-training program in Massachusetts, where workers reported a 5 percent rate of return after participating in training and employers experienced a 17 percent rate of return. But the biggest winner was Massachusetts, which reaped a 38.9 percent rate of return on its state-funded investment through increased tax rolls and a stimulated economy. The brief, "Evidence About the Effectiveness of Public Training Programs for Incumbent Workers," is available online.

Center prepares to launch Rural Venture Fund with series of regional meetings
The Rural Center is preparing to launch a first-of-its-kind rural investment capital fund with a series of regional meetings set to kick off in late August. The center's $3.5 million Rural Venture Fund was announced earlier this year as part of a broader effort to stoke the entrepreneurial fires in North Carolina, where securing working capital to grow and build a business are difficult tasks for any business owner, but prove especially difficult for those struggling to get a business to thrive in rural, distressed areas of the state. The Rural Venture Fund will target existing businesses in Tier 1 counties that have the potential to grow and create jobs in areas of the state that desperately need them. The fund is not intended as seed capital, and investments will be geared to businesses with a history of sound management that require financing in the range of $50,000-$350,000, with a repayment schedule of five to 10 years. Funding options will include equity financing and secondary loans, both of which will have terms that are easier to meet than traditional financing methods. Virtually all of the venture capital firms in North Carolina today are located in urban counties and almost exclusively do business with urban-based businesses. The regional meetings, the dates and locations for which are still being coordinated, will be open to the public and will target local and regional economic development organizations, chambers of commerce, local governments and the banking community. The Rural Venture Fund will begin making investment decisions in the fall. To find out more, contact Ashley Crane in the center's Business Development office at (919) 250-4314.

Center's executive committee meets, approves $4.7 million in rural community investments
The executive committee of the Rural Center's board of directors approved $4,738,542 million in grant awards on June 25. The awards will help rural and distressed communities across the state improve their infrastructure and test new research and development strategies through projects that will create nearly 650 jobs over the next two years. Grants ranged from a $20,000 award to Cherokee County for a new wellness center to $500,000 to Moore County for water and sewer extensions to serve a new golf course community. Funds were awarded from the Economic Infrastructure Fund, the Research and Demonstration Grants Program, and the Water and Sewer Grants Program. Through these awards, the executive committee voted to improve and upgrade aging water and sewer systems; extend water and sewer service to businesses that are creating jobs in rural areas; restore and reuse vacant commercial property in small towns; and test new development initiatives with the potential to improve quality of life in rural and distressed areas. For more information, visit the center's website.

Funding Sources

Tobacco Trust Fund Commission announces 2007 grants cycle
The Tobacco Trust Fund Commission is now accepting grant applications for its 2007 grants cycle. The commission awards grants each year that have the capacity to boost jobs and cut unemployment in tobacco-dependent communities. The commission is putting out a call for projects that support the agricultural economy in North Carolina, especially in areas affected by changes in the tobacco industry, and is specifically looking for projects that fall under one of the following categories: diversification initiatives, natural resource and farmland preservation, skill and resource development, increasing farm profitability and community economic development. The maximum grant amount available this year will be $300,000. Priority will be given to projects based on the size of area and number of people affected. The deadline to apply is August 1. For more information, contact the commission at (919) 733-2160 or by email.

From the N.C. Press

Fayetteville Observer: BRAC Task Force awards $1.1 million contract
A consulting firm based in Laurinburg has been awarded a $1.1 million contract to oversee the development of a regional growth plan for the 11-county area around Fort Bragg. The board of the BRAC Regional Task Force awarded the contract to Training and Development Associates. The Scotland County firm was selected from 12 that submitted bid proposals. Fort Bragg and the region are expected to experience extensive growth due to the move of two large Army headquarters to Fort Bragg. The plan that Training and Development Associates will prepare is intended as a guide for growth as the region gets 25,000 to 40,000 new residents. The plan should help the counties and the 73 municipalities in the area get ready for the expected influx of military personnel and civilians. Wayne Freeman, founder and president of Training and Development Associates, said his company has a core staff of 15 people and a wide network of subcontractors in North Carolina and other states.

Raleigh News & Observer: After the buyout, tobacco production up in some counties
While the number of tobacco farmers in North Carolina has declined due to the elimination of federal price supports and a decline in smoking, production of tobacco in some counties has increased. Johnston County leads the state in production with 22.3 million pounds of leaf in 2006, a 25 percent increase since the price supports ended in 2004. Price supports stopped after a federal buyout of the quotas that had supported the tobacco farming industry for decades. The number of tobacco farmers in the state dropped from 10,000 in 2004 to 5,000 last year, says the Tobacco Growers Association of North Carolina. But North Carolina still is the largest domestic producer of tobacco, growing about 70 percent of the U.S. leaf. While many farmers retired from tobacco with their buyout checks, others saw a new freedom to grow leaf where they wanted instead of commuting by tractor to small, scattered plots they rented. Agriculture experts say the change also means tobacco is grown in the areas where the sandy soil best supports it along the Interstate 95 corridor. The top 10 counties last year were Johnston; Sampson, 19.2 million pounds; Nash, 19 million; Wilson, 18 million; Wayne, 15.6 million; Pitt, 15 million; Lenoir, 14.6 million; Harnett, 14 million; Robeson, 13.8 million, and Greene, 13 million.

N.C. Associated Press: Rural land sale approved
Two state agencies have purchased more than 30,000 acres of land from The Nature Conservancy, the group said Monday. Most of the land, 28,802 acres, was sold to the N.C. Wildlife Resources Commission. That land, located in Halifax, Hertford, Northampton, Bertie, Warren, Franklin and Nash counties, will be added to the state's Game Lands program. The remaining 1,507 acres was sold to the Division of Parks and Recreation and will be added to Medoc Mountain State Park. "The lands are in priority conservation areas where The Nature Conservancy and the state have worked for many years. Many connect to previously protected lands, so this purchase creates protected corridors for wildlife and provides exceptional outdoor recreation opportunities for the people of North Carolina," said Fred Annand, the conservancy's associate director. Funding for the sale came from the state's Clean Water Management Trust Fund and Natural Heritage Trust Fund and the Wildlife Resources Commission.

Copyright by N.C. Rural Economic Development Center, Inc. 2002. We encourage you to share this UPDATE with interested individuals, organizations, or agencies. Material may be reproduced in electronic or print form. We ask that you please cite the Rural Center as the source.

Your subscription to this electronic newsletter is for Rural Center use only. We will not distribute or share your email identification with others. To be removed from this mailing list, please send an email to ruralpartners@ncruralcenter.org with unsubscribe in the subject line.

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