News

Rural North Carolina’s jobless rate jumps to 6.9 percent in December
North Carolina’s unemployment rate is the seventh highest in the nation, according to just-released figures from the U.S. Bureau of Labor Statistics. As of late December, rural unemployment rates rose for the second straight month to 6.9 percent, up from 6.8 percent in November. The total number of people unemployed in rural counties throughout the state is estimated at 129,000. The news is only slightly better in urban North Carolina, where 5.3 percent of workers are without jobs, down from 5.4 percent in November. Overall, December 2002 saw a nearly 32 percent jump in new unemployment benefit claims compared to December 2001. There are also signs that heavy losses in the manufacturing industry over the last two years are taking a toll on North Carolinians’ personal assets, particularly among homeowners. Nearly 16,000 state residents were reported in danger of losing their homes to foreclosure in the third quarter of 2002, and there was a 19 percent increase in those declaring bankruptcy last year. To check jobless rates in your county, visit the center’s Rural Data Bank at http://www.ncruralcenter.org/databank.

Rural Center to host series of regional meetings on rural economic development
The Rural Center is partnering with the N.C. Community Foundation to host a series of five regional meetings on rural economic development this spring. The purpose of the meetings is to provide up-to-date information on the state’s economic situation, listen to the needs of rural residents and address the financial, human and technological resources available to meet those needs. The meetings will also provide an opportunity for rural leaders, including graduates of the center’s Rural Economic Development Institute (REDI) and board members of the Community Foundation, to foster relationships that will generate new ideas and stimulate economic development in these communities. Meetings will be held March 31 in Raleigh; April 7 in Roper; April 25 in Asheville; May 16 in North Wilkesboro; and May 30 in Fayetteville. To register for the meetings or to find out more, contact Kelly Tucker, event coordinator at (919) 250-4314, or email ktucker@ncruralcenter.org.

Despite dry season for tobacco, burley farmers profit at Asheville marketing center
Despite an exceptionally dry 2002 growing season, burley growers in the western part of the state received $1.93 a pound for their crop at an Asheville marketing center now in its second year. The per-pound rate is identical to the rate received at auction last year, and is comparable to the prices earned in Virginia and Tennessee warehouses. The marketing center handled an estimated 5.2 million pounds of burley tobacco from Nov. 18 through Jan.15. The center, which is funded by the Tobacco Trust Fund and is sponsored by the Rural Center’s Agricultural Advancement Consortium, handled approximately 65 percent of the burley tobacco grown in North Carolina this season. Without the center, burley growers would have to travel to out-of-state auctions or contract receiving stations.

Education the best remedy for economic recovery, say those attending education summit
University and community college officials from around the state gathered at the 15th annual meeting of the North Carolina Education Governing Boards Feb. 19 to contemplate the role that education has, and will continue, to play in the state’s economic recovery from a two-year recession. Rural Center President Billy Ray Hall gave the keynote address during the one-day summit in Surry County, citing six major educated-related challenges in the years to come if the state is to overcome a critical shortage of good-paying jobs and trained, qualified workers. The state must first make high-quality education a top priority, according to Hall, especially in rural counties where the prevalence of poverty is likely to affect children's educational opportunities as well as their ability to learn. Children must also be taught to value their communities, Hall said, and have access to the latest information technology. To read the full text of Hall’s keynote speech, click here.

Reports and Research

Study finds highly-skilled teachers not reaching the children that need them most
In their 50-state report “Quality Counts 2003: If I Can’t Learn From You,” researchers at Education Week found many states are struggling to meet a federal mandate to provide highly-skilled teachers in core subjects, as required under the “No Child Left Behind Act” of 2001. President Bush signed the act into law last year, though it won’t go into full effect until the 2005-2006 school year. Still, the report says that many states will find it very difficult to hire or train enough qualified teachers to satisfy the mandate in that time frame. The report also details the struggle of school systems in counties with high poverty rates, where as many as 32 percent of students in secondary schools study a subject with a teacher not trained in that subject area. For a summary of the full report, go to: www.edweek.org/sreports/qc03pressrelease2.pdf.

Web-based resource organization offers help for rural communities
The Rural Assistance Center (RAC) is a new national resource on rural health and human services information. Based in Grand Forks, North Dakota, the center has information specialists available to provide customized assistance, such as web and database searches on rural topics and funding resources, linking users to organizations and furnishing relevant publications from the RAC resource library. To visit the center’s website, go to: www.raconline.org.

Community, economic developers get boost from new ARC website
The Appalachian Regional Commission (ARC) has launched its new Online Resource Center, a powerful, user-friendly website that provides tools and information to help communities plan and develop economic development projects. The site includes a searchable database of county social and economic indicators, downloadable maps via region, information on grant writing and successful community development strategies. The center can be accessed at www.arc.gov.

Tax study finds low- and middle-income Americans pay more in state and local taxes than the wealthy
The Institute on Taxation and Economic Policy (ITEP) has released a report on recent trends in state and local taxation, with a particular emphasis on the effect of these taxes on low and middle-class Americans. According to the report, the average middle-class person pays about 10 percent of their earnings toward these taxes, while the taxes eat up 11 to 12 percent of a low-income person’s wages. Upper-income Americans, on the other hand, pay just over 5 percent of earnings toward state and local taxes. To read the full report, go to: www.itepnet.org/wp2000/pr.pdf.

Website details why raising assets - not just income - matters in the fight against poverty
The Corporation for Enterprise Development recently released a detailed 50-state report on asset building strategies as tools to alleviate poverty. The State Asset Development Report Card gives a state-by-state comparison of how assets are collected, distributed and protected by residents in each state, and suggests that successful anti-poverty policies will require greater focus on asset-based poverty rather than solely on poverty based on a person’s income. To read the report card in its entirety, go to: www.sadrc.cfed.org.

Growing regional assets is key to successful economic development in rural communities, study finds
A new issue brief released by the National Governor’s Association (NGA) reports that rural communities find successful economic development strategies when growing regional assets rather than relying on attracting outside investment. In their brief, researchers at NGA explore three rural development strategies in particular: cluster development; entrepreneurship; and stimulation of the agricultural sector. Among the innovative programs highlighted are HandMade in America and the Hosiery Technology Center in North Carolina, and the Rural Innovation Fund and Agricultural Development Fund in Kentucky. See “Innovative State Policy Options to Promote Rural Economic Development,” at www.nga.org/cda/files/0203ruraldev.pdf.

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Meetings and Events

Water planning seminar to be held March 6 in Greensboro
Anyone with professional responsibilities for water supply planning, dam maintenance or safety is invited to attend a one-day seminar in Greensboro on March 6. The event, held at the Radisson Inn at Guilford College Road, will focus on water supply planning, drought management, vulnerability assets and emergency action plans. Featured speakers include Jean Crews-Klein, the Rural Center’s vice-president for business and natural resource development, who will speak on securing funding for local water resource projects. The cost is $75; register online with the event’s sponsor, Schnabel Engineering, at www.schnabel-eng.com.

Workshop to offer tips on effectively using the 2000 Census
This hands-on workshop will teach participants to perform in-depth demographic studies using the recently released 2000 U.S. Census. Participants will learn how to extract, analyze and present detailed North Carolina demographic data in compelling new ways. The workshop is specially designed to meet the unique needs of community planners, municipalities, grant writers, economic development organizations, health care organizations, analysts and other individuals interested in performing detailed demographic research. The workshop includes an introduction on the power of using a Geographic Information System (GIS) to overlay data from your organization’s internal databases with detailed local demographic maps. The one-day workshops will be held in Raleigh on March 24 and 25, and in Charlotte on March 27 and 28. Registration is $225 and includes all materials. Register online at www.calmriver.com.

Sustainable community development the focus of national conference March 27-28
The Federal Reserve System’s third annual research conference will be held March 27-28, 2003, at the Capital Hilton in Washington, D.C. This year’s conference, titled “Seeds of Growth – Sustainable Community Development: What works, What doesn’t and Why” will feature a speech by Alan Greenspan, chairman of the Federal Reserve System. The two-day event will focus on home ownership programs, the importance of partnerships in community development and international and cultural approaches to community development. The cost is $425 if registering prior to Feb. 28; $475 afterward. For more information on the conference, click here www.federalreserve.gov/communityaffairs/national/ca_conf_suscommdev/default.htm.

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At the Rural Center

Congress approves HUD bill, funds will aid home construction and repair in Eastern North Carolina
Congress passed an omnibus appropriations bill Feb. 13 that included an $180,000 earmark for a Housing and Urban Development (HUD) Economic Development Initiative for rural communities in the East. The funds, which will be administered by the Rural Center, will be used to complete housing construction, repair and renovation projects. President Bush signed the bill Feb. 20.

Agricultural Advancement Consortium outlines nearly $400 million in relief needs for farmers
The Rural Center’s Agricultural Advancement Consortium recently drafted a Congressional resolution detailing the need for an adequately funded disaster relief program for farmers in the wake of an exceptionally poor growing season caused by bad weather. In a letter introducing the resolution, consortium chair Lois Britt said that due to a late freeze in the western counties, a harsh summer drought across the state, and fall rains that prevented harvesting, farmers in the 89 primary disaster counties accumulated losses of nearly $400 million. Cotton, soybeans, corn and tobacco have been particularly hard hit, with yields per acre down as much as 42 percent in the case of cotton, and 41 percent for corn.

RIAA releases 100-county report, documents Internet technology statewide
The Rural Internet Access Authority recently released the first comprehensive report detailing high-speed Internet availability in each of the state’s 100 counties. The data was compiled by interviewing Internet service providers in each county and with up-to-date inventory data from KPMG. Specifically, the report looks at the availability of DSL and cable modem access in rural and urban counties, and includes a map of median household income by county. To read the report, visit the website at: www.e-nc.org/surveys/100county.shtml.

From the N.C. Press

The St. Pauls’s Review: After losing nearly all 800 of its textile jobs in the last few years, St. Paul’s continues to rebound after company relocation.
Just when it seemed that St. Pauls, once labeled “The Textile Center of Robeson County,” had lost nearly all of its 800 or so textile jobs, Paraclete Industries relocated here. So far, the design, cutting and sewing plant has created 123 jobs. And that number is expected to grow. At this time next year, according to owner and CEO Tim D’Annunzio, Paraclete will employ about 250 people. That is about half of its full potential. Paraclete, which is a biblical word meaning “comforter” or “holy spirit,” is a sewing operation that specializes in military-related items. It is a combination of old-fashioned sewing skills and the latest, state-of-the-art design and cutting computer technology. “We are looking at providing all the components of the items we sew,” D’Annunzio said. “That will give us another big push. The future looks strong and we hope to continue to offer more employment opportunities in this area as Parclete grows.”

The Mount Airy News: For Appalachian counties supposedly on the economic upswing, life remains bleak.
Thirty-two counties in the Appalachia region will be upgraded from distressed to transitional status in the 2004 fiscal year. The decision to do so was made by the Appalachian Regional Commission (ARC) ...which provides supplemental funding to help local communities meet state matching dollars for projects like job training, health clinics, building roads and water and sewer lines. But local economic officials in Appalachia were shocked to hear their counties were no longer considered distressed, or eligible for the exclusive funding. In Cherokee County, two blue-jeans companies and a furniture factory shuttered their plants within the last several years, eliminating 2,000 jobs just as the 2001 recession hit. A third of those jobs have since been regained, but mostly in retail employment that offers neither health benefits nor enough pay to support a family. To qualify as distressed, counties must exceed national poverty and unemployment rates by 150 percent, and fall short of national per capita income by 66 percent.

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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.

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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
4021 Carya Drive, Raleigh, NC 27610
(919) 250-4314 Fax: (919) 250-4325
www.ncruralcenter.org