News

Center announces $14.6 million in grants as part of state-funded infrastructure investment
The Rural Center last month announced $14.6 million in grant awards aimed at shoring up rural North Carolina’s infrastructure, projects that will grow 75 new and expanding businesses around the state and put more than 4,500 North Carolinians to work. The announcement was made at the kick-off of the center’s 13th annual Rural Partners Forum in Raleigh, and marked the first and most substantial investment of a $20 million state-funded initiative designed to build the state’s rural infrastructure, create jobs and sustain business development. The center is administering the fund through four programs that will improve water and sewer facilities, add new business and technology telecenters, support the reuse and renovation of vacant buildings in small towns, and invest in major research and demonstration projects with the potential to create jobs. To find out about the 54 projects awarded funding to date, and to learn more about available grants, visit the website.

Congress passes $10 billion tobacco buyout, N.C. growers to receive $3.8 billion over 10 years
It was a little less than they’d hoped for, but North Carolina tobacco growers say they are pleased with a $10.1 billion buyout of the 1930s-era quota program that will bring them about $3.8 billion over 10 years. The buyout plan, which will be funded by the tobacco companies, will pay quota holders $7 for each pound of quota owned and tobacco farmers $3 for each pound of tobacco grown. Designed to maximize farm profits, the 70-year old quota program allotted quotas to growers that limited how much leaf could be farmed and sold each year, keeping prices artificially high. In recent years the program came under intense scrutiny, as demand fell for U.S.-grown leaf and cigarette companies bought more of their tobacco from cheaper foreign markets. Farmers say a buyout will allow many of them to continue growing tobacco, while others will be able to undertake new ventures. Under the bill that now awaits President Bush’s signature, more than 76,000 quota holders in the state will receive checks over 10 years, with the median payout at about $14,700. The legislation does not give the U.S. Food and Drug Administration authority to regulate tobacco products.

ARC approves $1 million for hurricane recovery efforts in western N.C.
The Appalachian Regional Commission has approved $1 million in relief for hurricane recovery efforts in 16 western North Carolina counties. The commission said primary consideration will be given to communities that require basic water and sewer infrastructure improvements and to projects that help resolve health, safety and environmental quality issues. The 16 counties eligible for assistance under the grant are: Avery, Buncombe, Burke, Caldwell, Haywood, Henderson, Jackson, Macon, Madison, McDowell, Mitchell, Polk, Rutherford, Transylvania, Watauga and Yancey. Various communities within the 16-county area will provide $1 million in matching funds. To find out more, call the commission’s Washington, D.C. headquarters at: (202) 884-7799.

Amendment One campaign urges support for local government self-financing bonds
A campaign to add North Carolina to the list of states with the ability to approve self-financing bonds at the local level is gearing up for the November election. North Carolinians for Jobs and Progress, a partnership of state and local political leaders, economic developers, businesses and citizens, has spent the last year getting out the word on the amendment, which would change the state Constitution and allow local governments, with the blessing of the Local Government Commission in the State Treasurer’s Office, to sell their own self-financing bonds to pay for public infrastructure that will boost the local tax base. Such projects include business and industrial buildings, commercial development, and water and sewer projects. Bonds are sold to pay for improvements within a designated development district and then paid off from the additional property tax revenue brought in by projects in the district – without raising taxes. The Rural Center is one of 300+ organizations across the state lending its support to this important economic development tool. To find out more, visit the Amendment One website.

Reports and Research

Institute of Government releases spring/summer 2004 edition of Popular Government magazine
The Institute of Government at the University of North Carolina at Chapel Hill has released the spring/summer 2004 issues of its Popular Government magazine. Featured articles include “Clusters and Competitive Advantage, Finding a Niche in the New Economy,” “Using Community Vision and Capacity to Direct Economic Change,” “North Carolina’s Global Position and Higher Education’s Role,” and “Spurring Entrepreneurship: Roles for Local Elected Leaders.” To access the complete index of articles, click here.

Employer-provided health care benefits decline for third consecutive year, according to new report
The Economic Policy Institute has released a new report detailing the three-year decline in employer-provided health insurance. The report, “The Chronic Problem of Declining Health Coverage,” highlights the growing disparity in employer provided healthcare among high and low wage workers. From 2000 to 2003, more than 5 million people lost health insurance, according to the report, and that number is expected to increase as premiums rise faster than wages. To view the EPI report, visit the website.

Healthy Rural Communities: A Resource and Action Guide
To help rural leaders across the state deal with growth and development, the N.C. Smart Growth Alliance has released Healthy Rural Communities: A Resource and Action Guide. The guide describes how 10 fundamental smart growth principles can help guide public policy, development practices, community planning, and design. Further, the guide describes growth and development trends in rural North Carolina and provides examples, best practices and data to help rural communities guide future growth and development. The guide, which was funded in part by the Rural Center, is available at no cost on the alliance’s website. A printed copy is $9.

Study finds motorsports industry had $ 5 billion impact on state economy last year
North Carolina’s motorsports industry receives a lot of attention for its entertainment value, but should also be recognized for its economic impact on the state, according to a recent report on the industry funded in part by the Rural Center. The North Carolina Motorsports Association, the industry’s newly formed trade association, released an analysis of the motorsports industry on Oct. 5 prepared by the Sanford Holshouser Business Development Group in cooperation with the Urban Institute at UNC Charlotte. The study analyzes the stability of the motorsports industry in North Carolina and offers recommendations to grow and enhance the industry along with a series of findings on the economic impact of the industry to the state economy. Among the findings: the industry had a $5 billion total impact on the state economy in 2003; more than 24,400 jobs were generated by the industry last year; and people working in jobs directly or indirectly related to the industry are among the state’s top earners. UNC’s Charlotte Urban Institute has posted an executive summary of the report on its website.

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Meetings and Events

Western North Carolina’s Handmade in America to tout ‘extraordinary’ results at Oct. 25 conference
The University of Mississippi’s McLean Center will host a one-day conference Oct. 25 that will bring together five rural organizations that will tell of their success implementing community and economic development strategies. Among them is Handmade in America, a western N.C.-based group that supports the region’s many artisans and craft makers. Handmade’s goal is to make western North Carolina the hub for handmade work in America. The conference, “Extraordinary Results in Ordinary Places,” will also feature organizations in Morrilton, Arkansas, Colquitt, Georgia, Houston, Minnesota, and the Haven Acres neighborhood in Tupelo, Mississippi. The conference will be held at the Advanced Education Center in Tupelo. For more information, or to register for the conference, contact Vaughn Grisham, director of the McLean Institute, at (662) 915-7326 or vgrisham@olemiss.edu.

Council for Entrepreneurial Development to hold Entrepreneur ’04 conference October 30 at Duke
The Council for Entrepreneurial Development (CED) has partnered with The Fuqua School of Business at Duke University to host the Entrepreneur '04 conference on Saturday, October 30. The theme for the all-day event is “Essential Know-How and Networks,” and is targeted to entrepreneurs interested in starting their own high-growth businesses. Entrepreneur '04 will feature interactive sessions with successful entrepreneurs and business experts on new business trends and tools, sales and marketing techniques and strategies to build entrepreneurial teams. Attendees will include university researchers, corporate employees, small business owners, early-stage entrepreneurs, and undergraduate and graduate students. The Rural Center is a co-sponsor of the event. To find out more and to register, visit the CED website at www.cednc.org. or call Linsey Dyson at (919) 549-7500, ldyson@cednc.org.

Community Colleges in Creative Economies conference to be held Nov. 4-6 in Asheville
A two-day conference in Asheville will explore the role that community colleges can and often do play in spurring creative regional economies. The conference, to be held Nov. 4-6, will feature notable speakers from the BBC London and others from Great Britain, as well as U.S. leaders in education and economic development. The event is sponsored by Regional Technology Strategies, Inc. in conjunction with Trans-Atlantic Technology and Training Alliance. The conference will explore ways that technical and community colleges can use art and design to improve educational outcomes that attract non-traditional learners, educate and support entrepreneurial artisans, provide amenities and promote heritage to attract talent and retain youth and work more effectively with local community organizations and non-profits. For more information and to register, click here.

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At the Rural Center

Dec. 15 is deadline for center’s Economic Innovation Grants Program
The Rural Center has established a $2 million grants program to fund innovative research and development projects with the potential to stimulate job growth in rural and low-wealth communities. The Economic Innovation Grants Program is part of a $20 million state-funded investment aimed at stimulating the economy and generating new jobs. Local governments, regional and statewide organizations, nonprofits and educational institutions are eligible for the grants, which will be awarded under three project categories: Economic Stimulus Demonstration grants, awarded up to $150,000 for large-scale economic development projects; Shared-Use Agricultural Facilities Demonstration grants, awarded up to $100,000 to plan or construct shared-use processing facilities for area farmers; and Community Innovations Fund grants, awarded up to $50,000 to jump-start or expand innovative development projects that show potential for diversification and sustainability. Applications are due by 5 p.m. on December 15, 2004. Requirements will be posted on the Rural Center's web site. Questions relating to the program should be addressed to Darlene Deberry at 919-250-4314 or by email at ddeberry@ncruralcenter.org.

From the N.C. Press

Raleigh News and Observer: Easley appropriates up to $10 million in additional funding for poor schools
Gov. Mike Easley is directing that up to $10 million in additional state funds be spent on struggling students in school districts with poverty, high teacher turnover and low achievement. The money nearly doubles the $12 million that Easley allocated this summer for the same purpose -- a first step in satisfying a Wake judge's order that the state do more to help disadvantaged students across the state. News of the second installment comes as the judge, Howard Manning Jr., is set to hold a hearing on the state's efforts to comply with his 2002 ruling in the Leandro legal battle over public school funding. This summer, Manning endorsed a proposal from the State Board of Education to spend $22 million in 16 school districts. But the legislature adjourned in July without funding the plan. Easley's latest allocation funds the board's entire request for this year. However, the total cost of paying for what Manning's order requires is expected to exceed $200 million. Eleven school districts were promised extra funding from the initial $12 million. Five more will now benefit: Elizabeth City-Pasquotank and the Robeson, Franklin, Montgomery and Hyde county school systems. The funds are being directed for a wide range of uses intended to strengthen classroom instruction, including recruiting and retaining well-qualified teachers, reducing class size and improving training for current teachers. In exchange for the extra support, the school systems will work closely with the Department of Public Instruction to develop plans for using the money.

Wilmington Star News: Hurricanes prompt lawmakers to create commission on coastal evacuation
Legislative leaders have created a commission to study how ready North Carolina is to evacuate coastal residents should a major hurricane threaten. But the commission will have a relatively short time -- less than five months -- to prepare its report for the governor and General Assembly. Co-Speakers Richard Morgan and Jim Black last week appointed three representatives to the Hurricane Evacuation Standards Study Commission: Rep. Danny McComas, R-New Hanover; Rep. Jean Preston, R-Carteret; and Rep. Arthur Williams, D-Beaufort. McComas and Williams were named co-chairmen. Senate leaders will appoint three senators to the commission. The commission must make its report before Jan. 15. No meeting dates have been set. The commission was created as part of the legislature's "study bill," which also requires that the state director and chief of logistics of the N.C Division of Emergency Management, the state's chief roadway design engineer and the N.C. Department of Transportation regional engineers who have responsibility for the coast attend commission meetings. The evacuation study commission is to "study the development and establishment of hurricane evacuation standards for North Carolina and make recommendations for legislative action" to the governor and the legislature.

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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
Kelly Tucker Griffin, 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