News

Economists predict a sluggish 2008 at annual forum in Raleigh
North Carolina’s economy probably won’t falter in 2008, but neither will it flourish. That was the consensus of a panel of economists who spoke at the 2008 Economic Forecast Forum held Jan. 2 in Raleigh. The forum, sponsored each year by the North Carolina Chamber and the N.C. Bankers Association, drew more than 1,200 participants, many of them corporate executives and state leaders. David Seiders, chief economist with the National Association of Home Builders, told the crowd that while North Carolina’s home prices are unlikely to continue falling in 2008, they probably won’t begin to rebound until late in the year. Additionally, he said, the state can expect only modest job growth in the range of 1 or 2 percent. Scott Custer, chairman and chief executive officer of RBC Centura, also predicted that the state’s economy would remain sluggish throughout 2008, in large part because of the national sub-prime mortgage crisis. The crisis will continue to affect North Carolina’s economy, Custer said, though to a lesser degree than it has such states as California and Florida.

2008 Entrepreneurship Summit to be held Feb. 26 in Greensboro
The Rural Center is among the partners set to co-host the 2008 Entrepreneurship Summit Feb. 26 in Greensboro. The summit will feature presentations from communities – some in North Carolina, some outside – that have been successful in building a business climate supportive of entrepreneurship. The keynote address will be given by serial entrepreneur and High Point University President Nido Qubein. Participants will also learn about new entrepreneurship policy directions and get an update on initiatives announced at the 2007 summit. The summit’s theme is “Doorways to Entrepreneurial Communities.” The center is joined in hosting this year’s summit by the N.C. Business Resource Alliance, the N.C. Small Business and Technology Development Center, the Small Business Network, the N.C. Department of Commerce, NC REAL and others. The fee to attend is $95, and a limited number of scholarships is available. The registration deadline is Feb. 19. To find out more or to register online, go to www.ncentresummit.org, or contact Barry Ryan at the Rural Center (919) 250-4314.

Project HOPE launched to improve conditions at rural hospitals
A new program to help rural hospitals modernize their facilities is ready to begin making investments from a $2 million fund. The program, North Carolina’s Rural HOPE (Hospital Project Enhancements), will give rural hospitals access to funding from private lending institutions through a special loss reserve fund. The fund will protect the lender and make financing both affordable and accessible for hospitals that otherwise would not be able to secure loans. Eligible loans will pay for critical upgrades and renovations to hospital facilities, clinical equipment and health information technology systems. The fund was capitalized by a $1 million investment from the N.C. Health and Wellness Trust Fund and a matching $1 million grant from the Golden LEAF Foundation. The program is limited to nonprofit, rural hospitals with an average daily census of fewer than 100 inpatients. To find out more, contact Barbara Moeykens at the N.C. Health and Wellness Trust Fund at (919) 855-6881.

Meetings and Events

NC REAL to hold youth entrepreneurship training Jan. 31-Feb. 1 in Raleigh
NC REAL is holding its Youth Entrepreneurship Camp training Jan. 31-Feb. 1 in Raleigh. The training prepares adults to organize and conduct a youth entrepreneurship camp in their community using the NC REAL curriculum. It provides an overview of youth entrepreneurship camp agendas, activities and content. A tuition fee of $450 includes the training, curriculum and meals. For questions or to register, visit the website at www.ncreal.org, or contact assistant director Melinda Todd at (919) 781-6833.

Emerging Issues Forum to focus on North Carolina’s energy future Feb. 11-12
North Carolina is in a good position to lead the southeastern United States in developing a workable plan of action to meet the global energy challenge, according to the Institute for Emerging Issues at N.C. State University. The theme for the institute’s 2008 Emerging Issues Forum is “North Carolina’s Energy Futures: Realizing a State of Opportunity.” It will take place Feb. 11-12 at N.C. State’s McKimmon Center. The two-day event will delve into the myriad of issues – such as sustainability, innovation and profitability – that will affect North Carolina’s energy agenda in both the short and long-term. Speakers include Tom Friedman of The New York Times, Amory Lovins of the Rocky Mountain Institute and Rajendra Pachauri, a Nobel Prize-winning expert on climate change. This year’s event is sold out, but respondents may be placed on the wait list.

Creating an Artistic Economy workshop to be held in Rocky Mount Feb. 29
The Creative Communities Initiative will host a workshop Feb. 29 in Rocky Mount that will focus on the potential of the arts and crafts industry to boost local economies. The Creating an Artistic Economy workshop will provide community leaders and citizens with ideas to help them identify and cultivate their arts and crafts communities. Participants also will learn about tried-and-true strategies to help them develop and nurture their local arts culture. Becky Anderson of HandMade in America will give the keynote address. The Creative Communities Initiative, coordinated by the Foundation of Renewal for Eastern North Carolina, focuses on strategies that can help sustain entrepreneurial development in the global economy. The one-day event will be held at the Imperial Center in Rocky Mount from 9 a.m. to 3:30 p.m. The fee is $25. To find out more, contact Stephanie Griffin at (252) 756-0176.

N.C. Sustainable Energy Conference to be held April 8-9 in Raleigh
The 5th annual North Carolina Sustainable Energy Conference will be held April 8-9 at N.C. State University’s McKimmon Center in Raleigh. The conference will cover energy efficiency, alternative energy, infrastructure, carbon emissions and new technologies that are making sustainable energy resources available and affordable. Breakout sessions on April 8 will cover public buildings, mass transit and infrastructure, new trends and issues in residential efficiency, and the use of schools to further energy sustainability. The April 9 session will feature targeted technical sessions for public agencies and industry. To find out more or to register, click here.

Community Development Academy’s next six-day course to take place in February, March
The UNC-Chapel Hill School of Government and the N.C. Department of Commerce, Division of Community Assistance, will sponsor a session of the Community Development Academy in February and March. The academy is a six-day course that covers the concepts, methods and strategies of community development. With emphasis on the administration of Community Development Block Grants for both small cities and entitlement jurisdictions, the course provides perspective and practical skills related to the regulations and legal responsibilities surrounding community development in North Carolina. Sessions will be held Feb. 26-28 and March 25-27 at the School of Government in Chapel Hill. The course fee is $455, including materials and meals. The registration deadline is Feb. 18. To find out more or to register online, visit http://www.sog.unc.edu/programs/cednc/trainingCDA.htm.

Reports and Research

High school dropouts costly, according to new report
North Carolina pays dearly for its high dropout rate, according to researchers with the Friedman Foundation. In their new report, “The High Cost of Low Graduation Rates in North Carolina,” the researchers estimate that the 38,000-plus students who left school in 2005 will cost the state about $169 million annually – or $4,437 per student. Over a 50-year span, one year’s class of dropouts will cost state taxpayers $8.5 billion, they say. Figures in the report are based on three sources: lost revenue from taxes and fees, increased Medicaid costs and increased incarceration costs. Considering the limitations of the formula, they say, the actual cost is likely much higher. The report goes on to advocate for greater school choice. The authors estimate the state would have more than 5,000 fewer dropouts each year if parents had more educational offerings beyond public schools. Recent statistics by the N.C. Department of Public Instruction reveal that only about two-thirds of high school freshman in North Carolina will go on to graduate. To read the full report, visit the foundation's website. The report was cosponsored by the Milton and Rose D. Friedman Foundation, which advocates for school vouchers, and Parents for Educational Freedom in North Carolina.

UNC School of Government releases fall 2007 issue of Popular Government
The School of Government at UNC has released the fall 2007 issue of its Popular Government magazine. The current edition of the quarterly publication contains articles on financial forecasting for local governments, what retirees are now being told about their state retirement benefits and how to supervise workers of different generations effectively. Popular Government is available online.

At the Rural Center

Leadership institute’s class of 2008 to usher in new era of leadership development at Rural Center
Since 1989, the center’s Rural Economic Development Institute (REDI) has given more than 740 men and woman the tools to lead their communities through economic and social challenges. As the 18th annual leadership institute approaches, the center is embarking on a new era of leadership development – one that will broaden the leadership base in North Carolina and encourage innovative approaches to development. The effort begins with the spring 2008 REDI class, which will be tailored to the needs of small town leaders. The nine-day session will be held at the center March 26-28, April 16-18 and May 14-16. Beginning in 2009, the institute will offer two classes each year and will feature a revised curriculum that incorporates the latest innovations in economic development. For REDI graduates and other leaders who want to deepen their knowledge on critical issues, the center will offer advanced training opportunities starting in summer 2008. The first advanced training sessions will include a three-day seminar on innovation and creative thinking and a one-day workshop designed to give leaders practical tools to broaden understanding of their community’s needs, assets and opportunities. In addition, the center will hold leadership summits in the spring and summer of 2009 to investigate the specific leadership development needs of women and youth. For questions about the leadership institute, or to learn how to apply for the spring 2008 session, contact Robin Pulver at (919) 250-4314.

Public-private partnership will boost high-speed connectivity in Gates, Greene, Jones and Warren counties
The e-NC Authority has awarded EMBARQ Corp. a $1.21 million incentive grant to expand high-speed Internet service in rural Gates, Greene, Jones and Warren counties. Less than 50 percent of homes in those counties currently have access to high-speed service, far below the state average of 83 percent. The award, which establishes a public-private partnership between the e-NC Authority and the telecommunications company, was made possible by funding from the 2007 N.C. General Assembly. As a condition of the funding, EMBARQ will match the grant on a dollar-for-dollar basis. The partnership’s efforts will boost high-speed access in Warren County by more than 38 percent. Gates, Greene and Jones counties will see an increase of approximately 25 percent. According to the e-NC Authority’s latest annual survey of telecommunications providers, 83.5 percent of North Carolina households have access to a high-speed Internet connection. Statewide, more than 20 counties are considered critically underserved by high-speed access, with less than 70 percent of households able to connect to a high-speed line.

Local governments awarded PEG channel funds under the e-NC Authority’s newest grant program
The e-NC Authority has awarded more than $572,000 in grants to 30 local governments to help them boost public, educational and government (PEG) access channel programming. The N.C. General Assembly created the Capital Expenditure Grant Program for Qualified PEG Channels to help replace cable franchise fee revenues that were lost as a result of recent changes in the state video franchise system. Many applicants plan to use the grant for equipment and software necessary to convert to a digital signal by Feb. 17, 2009, as required by federal law. Awards of up to $25,000 each were made to the following counties and municipalities: Alamance County, Alleghany County, City of Asheville, Buncombe County, Cabarrus County, Camden County, Currituck County, Town of Carrboro, Town of Cary, City of Charlotte, Cleveland County, Dare County, City of Durham, City of Fayetteville, City of Jacksonville, McDowell County, Nash County, Onslow County, Orange County, Pasquotank County, Pitt County, City of Raleigh, City of Rocky Mount, Rowan County, City of Salisbury, Scotland County, Union County, City of Wilmington, City of Winston-Salem and the Town of Zebulon. The e-NC Authority will award more PEG channel grants this spring. To find out more, visit the e-NC Authority’s website at www.e-nc.org.

Funding Sources

N.C. Community Development Initiative receives $10 million investment
The N.C. Community Development Initiative has received $10 million from State Farm Insurance Co., money it will use to boost its capacity-building work on affordable housing, job training, career readiness and other programs for low-income residents across North Carolina. Abdul Rasheed, chief executive of the initiative, said his organization will use the State Farm investment to leverage other funds for the community development corporations (CDCs) it serves across the state. The work of the initiative parallels that of the Rural Center’s CDC Grants Program, which funds new and emerging community development corporations while they build organizational capacity. More established CDCs generally receive support through the N.C. Community Development Initiative. To find out more, visit the website.

From the N.C. Press

Virginian Pilot: Agriculture officials break potato trade barrier with Canada
North Carolina and Virginia agriculture officials have broken through a long-standing trade barrier with Canada that often prevented U.S. potatoes from crossing the border. For years, a Canadian governmental exemption was required to ship American potatoes across the border. That meant that if there were still potatoes left from the huge crop Canadians typically produce, a wall went up to U.S. spuds. The law had a huge impact a few years ago, said Tommy Fleetwood, agricultural marketing specialist with the North Carolina Department of Agriculture. Anticipating a good Canadian market, farmers in North Carolina produced a large crop. When Canada also ended up with an overabundance of the vegetable, many farmers in both North Carolina and Virginia were left with potatoes rotting in the fields. "Canadians love potatoes," Fleetwood said. "But if they still had potatoes in storage, they couldn't allow American potatoes to come into the country." While about 1,000 loads of Irish potatoes from North Carolina go to Canada in a normal year, only 117 loads made their way there in 2004. A new agreement, signed last month by Canadian and U.S. officials, will open new opportunities for American potatoes in Canada. At its full potential, the "technical working agreement" will modify the limitation previously put on potatoes and will be more a system of supply and demand.

Asheville Citizen-Times: N.C. legislators speak out on business incentives
State Reps. Phillip Frye and Pryor Gibson want their counterparts to end the "bidding war" among states to lure businesses, calling for an end to the use of economic development incentives like tax credits or cash grants. At a meeting (recently) in Phoenix, they gauged support for an interstate pact or a crackdown by Congress that would end the use of such incentives. "If we can address this thing on a national level, we would have a chance to get rid of incentives without hurting any one state," said Frye, R-Mitchell. Frye saw potential for some kind of agreement among states, nationally or in the Southeast. Lawmakers at the fall meeting of the National Conference of State Legislatures agreed to return to their spring meeting with ideas, said Frye, who led the conference's workshop on incentives along with Gibson, D-Anson. As much as states may not like paying companies millions of dollars to bring jobs, any agreement will be difficult to achieve. "I didn't run across anybody who thought that had any chance at all," Iowa state Rep. Philip Wise, who attended (the) workshop, said of a 50-state pact.

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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
Cynthia Spencer, UPDATE production manager
Elaine Matthews, senior vice president
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org