News

Regional economic development meetings under way, three more dates planned this spring
The first two of five regional meetings on strengthening rural economic development in North Carolina took place in Raleigh March 31 and in Roper on April 7. The meetings are a collaborative effort among the Rural Center, the N.C. Community Foundation and the Rural Economic Development Organization and are designed to generate discussion and new ideas around the needs of rural communities as they face the challenge of creating jobs and delivering basic services during tough economic times. The meetings also offer an opportunity for the N.C. Community Foundation, which administers a collection of endowed funds through 51 local community foundation affiliates, to hear first-hand from rural leaders and residents on the unique challenges in their communities. Regional meetings will also be held in Asheville on April 25, in N. Wilkesboro on May 16 and in Fayetteville on May 30. Visit the center’s website at www.ncruralcenter.org for more details.

N.C. Commerce Department releases updated tier designations, changes affect 25 rural counties
Twenty-five counties throughout the state recently received word of a change in their tier designation, the ranking system used by state lawmakers and policy leaders to gauge a county’s level of economic distress. Richmond, Bladen, McDowell, Sampson, Burke, Cumberland, Wilkes, Davidson and Randolph counties moved down one tier level to a more-distressed designation, while Gates County moved down two tier levels. Hyde, Yancey, Cherokee, Hoke, Madison, Pamlico, Pasquotank, Pender, Haywood, Nash and Watauga all moved up one tier level to a less-distressed ranking. Davie, Clay, Camden and Ashe moved up two tiers. The five economic distress tier levels – with 1 representing the most distressed counties and 5 the least – are determined through a special statutory formula. To see the 2003 Tier Designation List and a detailed county map, click here,www.nccommerce.com/finance/tiers/#. To find out how N.C. Commerce Department officials determine a county’s economic distress ranking, click here www.nccommerce.com/publicaffairs/newsletters/2003-march.pdf.

Annual unemployment figures prove 2002 a bad year for workers in North Carolina
New statistics from the Employment Security Commission prove what state economists have been saying for months – that more North Carolinians were out of work in 2002 than in 2001. The unemployment rate in rural counties for 2002 was 7.6 percent, up from 6.5 percent in 2001. The number of people unemployed also jumped dramatically from 126,740 to 150,701. In North Carolina’s 15 urban counties, 2002 was also a difficult year for workers, many of whom lost lucrative technology jobs. The unemployment rate for urban counties rose to 6 percent in 2002, up from 4.6 percent in 2001. In January, the last month for which county unemployment figures are available, the rural jobless rate rose yet again to 7.6 percent, up from 6.9 percent in December 2002. During that same period, 5.7 percent of urban workers were without jobs, up from 5.3 percent the previous month. To contrast what is happening in North Carolina, national unemployment figures are only slightly better. The nation's unemployment rate rose to 5.8 percent in February, and national economists expect an increase in unemployment benefit claims at least through the first half of 2003.

Western N.C. counties to receive $2.6 million in federal aid for displaced workers
Nine counties in western North Carolina will receive $2.6 million in federal aid to help laid-off workers, the second installment of a two-year grant award that brought $1.19 million to the counties last year. Gaston, Cleveland, Polk, Rutherford, McDowell, Alexander, Burke, Caldwell and Catawba counties will receive the National Emergency Grants through their respective workforce development boards. U.S. Secretary of Labor Elaine Chao announced the second round of grant funding at a meeting in Gaston County in late March. The National Emergency Grants are specifically designed to help displaced workers get the training needed for future reemployment and for other needs, such as child care or transportation. The funding will assist workers laid off from 120 textile, furniture and other companies in the region that have scaled back operations or shut down completely.

Former 1st District Congresswoman Eva Clayton joins the United Nations in the fight against world hunger
Former North Carolina Congresswoman Eva Clayton is joining the United Nations in the fight against world hunger, an issue she worked to bring congressional attention to during her tenure on Capitol Hill. Clayton has accepted a position as Assistant Director-General of the UN Food and Agriculture Organization in Rome, Italy. During her tenure in the U.S. House of Representatives, Clayton worked to alleviate hunger through support and sponsorship of international aid legislation. She also wrote the Farmers to Africa and the Caribbean Basin Act of 2001, which established a grant program to facilitate information sharing between African, Caribbean, and U.S. farmers in the areas of risk management, trade expansion, credit access, and crop yields. top of page

Reports and Research

Report highlights innovative rural economic development policies
The National Governors Association recently published the report, “Innovative State Policy Options to Promote Rural Economic Development,” including case studies of successful rural development policies and programs in several states. Recommendations include adapting cluster-based strategies to rural communities and adopting agricultural policy that supports value-added products and crop diversification. The report is available online at: www.nga.org/center. Contact Paul Kalomiris, Senior Policy Analyst with the National Governors Association at 202.624.5379 or pkalomiris@nga.org for more information.

Getting Online 2.0: A Small Town Guide to Creating 21st Centuries
The National Center for Small Communities (NCSC) is distributing 10,000 copies of Getting Online 2.0: a small-town guide to creating 21st-century communities. This 74-page guidebook is available in discounted, bulk quantities to organizations and agencies, for use at conferences, training seminars and meetings. The guidebook moves small communities further along the information-technology path by providing updated, in-depth information and resources, and helps small community leaders acquire computer hardware and software, protect security and privacy and launch effective local government Web sites. The guidebook is available in single copies for $14.95 for organization members; $19.95 for non-members. The minimum bulk discount order is 80 books, for $120 total. For additional information and ordering instructions, visit the NCSC Web site at www.natat.org/ncsc/newresources.htm.

Workforce development report focuses on career strategies for the working poor
The Workforce Strategy Center, a non-profit management consulting firm based in New York and Los Angeles, has published a series of reports on moving the working poor into upwardly mobile careers. The most recent report is “Building Bridges to Colleges and Careers: Contextualized Basic Skills Programs at Community Colleges.” The report focuses on how community colleges can work with existing state agencies in creating tailor made curriculums using contextualized teaching and learning methods. To download the report, go to www.workforcestrategy.org/publications.html.

National experts on workforce, economic development urge use of intermediaries
The American Assembly has released a report that explores the possible use of workforce intermediaries to overcome inherent obstacles to workforce development and job creation that will benefit companies and workers alike. The report, “Keeping America in Business: Advancing Workers, Business and Economic Growth” was created during a recent conference of 75 national experts from business, labor, government, education, philanthropy and nonprofit organizations. The theory is that using workforce intermediaries will lead to an efficient, comprehensive approach to economic development that will address the needs of both employers and low-income workers, enhance job skills, and integrate private and public sector programs and services to streamline the overall process of matching a skilled employee to an available job. To view the full report, go to: www.opportunitiesatwork.org/.

Small business drives innovation in the American economy, SBA report finds
A recent report by the Small Business Administration (SBA) finds small businesses to be the major influence behind innovation. The study analyzes patent applications from 1996 to 2000 by large and small firms. It found that small firms produce more highly cited patents than larger firms. Smaller firm patents were cited in subsequent patent applications 28 percent more often than those of larger firms and were twice as likely to be among the one percent most cited patents. Prior research has established that highly cited patents represent economically and technically important inventions. For more information about the research, see www.sba.gov/advo/news/march03.pdf.

New website offers Census data by district for members of Congress
The U.S. Census Bureau recently launched their new "Fast Facts for Congress" Web site, allowing elected officials and their staffers easier access to census data on their districts. The launch coincides with the release of the 108th Congressional District data from the 2000 Census. Through the site, staffers can readily find demographic and economic data for their district through geographical tables and maps and can compare that information with that of other districts and regions. Census Bureau officials began designing the site by asking congressional staffers for advice last year. The Web site can be found at http://fastfacts.census.gov/homr/cws/main.html.

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Meetings and Events

N.C. League of Municipalities to host series of regional conferences throughout April
The N.C. League of Municipalities will hold a series of regional conferences this month across the state, offering local leaders an opportunity to stay apprised of current legislative issues and League-sponsored programs, as well as a special training session on issues affecting local government from the faculty of the School of Government at UNC-Chapel Hill. The meetings will take place in Charlotte on April 15, High Point on April 16, Boone on April 23, Asheville April 24, Raleigh on April 29, and Fayetteville on April 30. For more information and to register online, visit the League’s website at www.nclm.org.

International Economic Development Council to meet in Montreal June 4-6
The International Economic Development Council (IEDC) will meet June 4-6 in Montreal, providing economic developers from North America and around the globe the opportunity to share best practices and to build relationships that could lead to new opportunities in their communities. The conference will feature a unique collaboration of economic developers from Canada and Europe. Concurrent sessions will present expert knowledge on a variety of topics including financing development, visitor attraction, workforce preparedness, attracting investment to the community and the site selection process. For more information on this conference and to register online, go to www.iedconline.org/Internationalcongress/english/index.html.

FoRENC Regional Summit scheduled for May 27-28 in Greenville
The Foundation of Renewal for Eastern North Carolina, a newly-developed economic development partnership designed to bring new opportunities to North Carolina’s distressed Eastern counties, will hold its first “One East” Economic Summit, during which foundation officials will convene leaders from all over Eastern North Carolina to create a region-wide action plan for economic growth and entrepreneurship. For more details, contact Frank Dooley, director of communications, at fdooley@uncmailbox.com or visit the foundation’s website at www.forenc.com.

Building community volunteerism and service the theme of Baltimore conference June 8-10
“Building a Culture of Service: Neighbor to Neighbor” is the theme of the 2003 Conference on Community Volunteering and National Service. The conference will be held in Baltimore June 8-10 by the Points of Light Foundation and the Corporation for National and Community Service, and will include workshops on intergenerational service projects and partnerships with faith-based organizations. Speakers include Mel Martinez, U.S. Secretary of Housing and Urban Development, and baseball great Cal Ripkin, Jr.. To register online and to receive a conference agenda, click here www.pointsoflight.org/2003conference/conference.cfm.

Greensboro economic development summit June 26-27 to focus on community, faith-based approach
The Welfare Reform Liaison Project will host its third bi-annual economic development summit in Greensboro June 26 and 27. The summit, “Economic Development – From Education to Empowerment,” will focus on revitalizing individuals, families and communities through a faith-based approach to traditional economic development issues. The event will feature breakout sessions and networking opportunities with local funders. The summit will be held at the Mt. Zion Baptist Church in Greensboro, 1301 Alamance Church Rd. For more information or to register, call (336) 691-5780 or send an email to WRLP@earthlink.net.

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At the Rural Center

Agricultural Advancement Consortium awards $120,000 in research grants to enhance farm profitability
The Agricultural Advancement Consortium’s board of directors has awarded a total of $120,000 in research grants to six projects that demonstrate potential in lowering on-farm production costs and providing access to new or existing markets. Each of the six, $20,000 grants is expected to substantially leverage other funding sources. To see which projects received funding from the consortium’s Research Grants Program this round, visit the website at: www.ncruralcenter.org/ag/grant.htm.

Rural Internet Access Authority awards $125,000 for e-learning initiative to benefit Eastern counties
The Rural Internet Access Authority announced has awarded the Carolinas Gateway Partnership a $125,000 grant to establish an e-learning project. The Gateway Technology Hub Facility will provide infrastructure for professional and technological distance learning classes for residents of Edgecombe, Halifax, Nash, Northampton and Wilson counties. The facility is planned as a 15,000-square-foot structure with four classrooms, two laboratories and one conference room. The authority’s grant will go toward state-of-the-art technology, such as high-speed DSL lines and video conferencing equipment. The Gateway Technology Hub Facility will be launched by the Carolinas Gateway Partnership, with ownership and operation of the facility eventually passing to the City of Rocky Mount. The $125,000 given by the authority is contingent upon receipt of a grant from the U.S. Economic Development Administration for which Carolinas Gateway Partnership has applied. For more information, visit the authority’s website at www.e-nc.org.

From the N.C. Press

Greensboro News and Record: The Fight to Furnish – China vs. the United States
American furniture makers – faced with a flood of foreign imports – are an endangered species and "only time will tell whether we become extinct." That sobering diagnosis comes from John D. Bassett III, past president of the American Furniture Manufacturers Association. His appraisal is all the more ominous because Bassett may be one of the few U.S. furniture executives who believes domestic furniture producers can beat back foreign competition if industry leaders act fast and act decisively. Meanwhile, that American furniture industry weighs fight-or-flight options against this backdrop: In only 10 years, Chinese imports have emerged as the top threat to topple American furniture manufacturing, much of which has been clustered within a 90-mile radius of High Point. In the past few years, China's furniture shipments are up 80 percent while shipments from U.S. plants have fallen 11 percent. Today, nearly half of all wood furniture sold in the U.S. comes from one country: China.

Courier Tribune – Asheboro: Textile industry preparing for drop of quotas in 2005
Much like the world prepared for Y2K, the textile and apparel industry is preparing for 2005, when quotas on items manufactured by these industries are lifted. Beginning in January 2005, other countries like India and China will no longer have to abide by restrictions on the number of units shipped into the U.S. Elimination of quotas on textile imports is part of the 1993 Agreement of Textile and Clothing. The goal is to facilitate free trade between nations. Experts with Unifi believe imports of men’s and boys’ coats and women’s shirts, as well as women’s and girls’ coats and knit shirts will increase dramatically.

Funding Sources

Latino funding collaborative grant deadline is May 2
The deadline to submit a letter of intent for a grants program aimed at strengthening the capacity of Latino-led nonprofits is May 2. Letters should be sent to Hispanics in Philanthropy, in care of the Z. Smith Reynolds Foundation www.zsr.org. The grant program, Funders Collaborative for Strong Latino Communities, is a national philanthropic initiative designed to benefit Latino populations at large and bring forth new leadership capable of representing the growing number of Latinos in the U.S. The Warner Foundation has invested $100,000 to the state effort, and the Z. Smith Reynolds Foundation has committed $500,000. On the national level, the collaborative hopes to raise $16.5 million toward the effort. North Carolina will be the first southeastern state to join the initiative. To find out more about the grants and how to apply, visit Hispanics in Philanthropy’s website at www.hiponline.org, or call (510) 420-1011.

Giving, volunteerism deeply affected by one’s sense of economic security
Independent Sector recently completed a survey that measured the impact of people’s concern about their economic security on their charitable giving and on their volunteer efforts. A follow up report based on survey results, “Giving in Tough Times: The Impact of Personal Economic Concern on Giving and Volunteering,” shows that when people are concerned about their personal economic situation, their charitable giving declines by as much as 50 percent. To find out more, go to the website at www.independentsector.org.

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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, 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