News

Drought turns critical as 73 North Carolina counties declared agricultural disaster areas
North Carolina's lingering drought has become more serious in recent weeks and now holds major ramifications for farmers, water-reliant industries and the general public. The U.S. Department of Agriculture on July 23 declared 73 counties agricultural disaster areas, making them eligible for immediate help under the USDA's emergency farm loans program. So far the hardest hit crops are corn and hay; 68 percent of the state's hay crop is currently listed in poor or very poor condition with the N.C. Department of Agriculture's crop database, while about 39 percent of the state's corn stalks are wilting in the fields. The drought has also affected businesses that are especially reliant on water, including wood-pulp, textile and power-generating companies. Mounting water shortages threaten thousands of jobs and leave cities like Greensboro with enough drinking water to sustain residents for only 100 or so more days unless more rain falls soon. To see more statistics on crops affected by the drought, go to www.agr.state.nc.us/stats/cropweat/wthcrp22.htm. To find out more about how the drought is affecting people and water systems throughout North Carolina, visit the Drought Monitoring Council's website at www.dwr.ehnr.state.nc.us/Water_Supply_Planning/Drought_Monitoring_Council/.

Central Coastal Plain Capacity Use Area Rule in effect August 1
The statewide drought has also drawn greater attention to an ongoing groundwater resource problem in 15 eastern counties in the Central Coastal Plain, an area that gets most of its water from underground aquifers burdened by development and increased water usage. Through its monitoring system by the N.C. Department of Environment and Natural Resources found groundwater depletion severe enough to prompt them to create a rule limiting groundwater withdrawals. Thirty six water systems in 11 of the 15 affected counties will be required to decrease withdrawals by 13 million gallons per day over the next six years. The rule goes into effect August 1, and though actual withdrawals will not be limited beginning that day, large water users that draw 100,000 gallons of water or more a day will be required to get a permit to continue their current discharge rates. The Rural Center's executive summary of the study documenting the groundwater resource problem in the Central Coastal Plain is available on the center's web site at www.ncruralcenter.org and is available in print version for a $5 fee. To receive a copy of the executive summary report, contact the communications office at 919-250-4314.

Trade bill passes U.S. House, North Carolina lawmakers divided on textile issues
North Carolina’s congressional delegation split along district lines July 27 when the Trade Promotion Authority Act narrowly passed the House of Representatives on a 215-212 vote. The bill, often referred to as ‘fast-track’ because it would accelerate trade policy decisions and give President Bush far more negotiating power, was recently combined with legislation seen as unfriendly to the already ailing textile industry. N.C. Reps. Hayes, Coble, Jones, Taylor, Clayton, McIntyre, Price, and Watt - all from textile districts - voted against the bill because it included provisions of the Andean Trade Preference Act which authorizes duty-free treatment of goods made in Bolivia, Ecuador, Columbia and Peru. Rep. Robin Hayes made national news in December when he handed President Bush an important victory by signing onto the original bill. N.C. Reps. Burr, Myrick, Ballenger and Etheridge supported the final measure. The bill is expected to pass the Senate sometime this week and be signed by the president.

Congress passes bill including textile provision, expected to save hundreds of jobs in rural North Carolina
Before voting against the trade bill, Reps. Hayes and Coble led a successful effort to enact language favored by the textile industry to save hundreds of jobs in rural North Carolina and thousands throughout the Southeast. In a significant victory for textile state lawmakers, Congress approved a measure to protect jobs at dyeing and finishing plants in the region that otherwise could have been lost to countries with cheaper labor. The provision, included in the 2002 emergency supplemental appropriations bill boosting spending on defense and homeland security, was approved July 24 by the Senate and cleared the House a day earlier. The president has indicated he will sign the legislation, which requires Caribbean and South American apparel makers to use fabric printed, dyed and finished in the United States in order for their products to receive duty-free treatment here. There are approximately 70 dyeing and finishing plants in small North Carolina towns like Wallace, Farmville and Shelby.

Rural counties set to receive $1.4 million in grants for Internet training, access building
The e-NC Initiative, a statewide effort to connect all North Carolinians to the Internet, is awarding more than $1.4 million to groups in rural counties statewide. Of the more than $1.4 million awarded, $768,000 is given as public access site grants to help build or enhance sites where rural residents can access the Internet at no cost, while $705,718 is awarded to support projects that establish or sustain free or low-cost computer and Internet training programs. The e-NC Initiative is led by the Rural Internet Access Authority and housed in the N.C. Rural Economic Development Center. To learn more about the public access site grants go to www.e-nc.org/e_communities/e_communities_grants.shtml. For more information on the Internet training grants go to www.e-nc.org/access/DigitalLiteracyTraining.shtml.

Reports and Research

An end to recession? New report shows rural Southern economy strengthening
A new report from the Southern Rural Development Center paints a portrait of a rural economy that has undergone tremendous change in the past three to four decades and is beginning to rebound from the recession. The report finds that new industries are making progress in filling the gaps left by the dwindling numbers of manufacturing and textile plants. The report also notes that earning gaps between metro and non-metro workers have widened in the past decade and offers a number of strategies for strengthening rural America. These include expanding the quality of human resources, building an entrepreneurial spirit, enhancing the digital capacity of rural areas and promoting broad-based citizen involvement in civic life. To read the report Creating Vibrant Communities and Economies in Rural America, go to http://srdc.msstate.edu/publications/vibrant_communities.pdf.

Southern cities alive, well and growing despite recession, study finds
The Brookings Institute recently released a set of findings on growth among Southern cities based largely on the 2000 Census. According to the institute, mid-sized Southern cities are growing even more rapidly than they did in the 1980s. In fact, only two of 27 Southern cities studied - Savannah, Georgia and Portsmouth, Virginia - lost population in the 1990s. The growth of mid-sized cities in the South, as in the nation, depended largely on an influx of minority residents. The Asian population in the South's mid-sized cities grew by 99 percent in the 1990s, the Hispanic population by 79 percent and the black population by 22 percent. In contrast, the white population declined by 1 percent over the decade. To read more about these findings and the challenges these trends present, read the report titled Demographic Change in Medium-Sized Cities: Evidence from the 2000 Census at www.brookings.edu/dybdocroot/es/urban/publications/veyformanmedcities.pdf.

New report gives in-depth look at dislocated workers in North Carolina, offers strategies for getting people back to work
The North Carolina Justice and Community Development Center has teamed up with the Corporation for Enterprise Development to study the dynamics of failing economies that lead to dislocated workers. Their report offers recommendations for getting people back to work, including tools for economic development and worker retraining efforts. To read the report Dislocated Workers in North Carolina - Aiding Their Transition to Good Jobs, go to www.ncjustice.org/LivingWage/DislWkrSum.pdf.

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Meetings and Events

North Carolina Association of County Commissioners Annual Meeting
The North Carolina Association of County Commissioners will hold its annual conference August 22-25 in Winston-Salem at the M.C. Benton Convention Center. An exhibit show will be held on Thursday, Aug. 22, and Friday, Aug. 23. To find out more about the conference, go to www.ncacc.org.

NCEDA 2002 Fall Conference
The North Carolina Economic Developers Association will host its fall conference September 11-12, 2002, at the Grandover Resort in Greensboro. The meeting will include updates from the N.C. Department of Commerce and the N.C. Economic Development Board and include sessions on small business development strategies, agribusiness and the wine industry. The fee for members is $155, $290 for non-members. To register call 1-888-246-2332.

Voices with Values: Nonprofits Lead the Way
The N.C. Center for Nonprofits' statewide conference takes place September 19-20 at the Sheraton Imperial in RTP. This year's conference features a presentation from Terry Axelrod, founder of Raising More Money®, on September 19. Gov. Mike Easley is scheduled to speak on September 20. Participants will also have the chance to speak with foundation, business and government leaders as well as attend individual sessions with experienced consultants. Register before September 3 for the best rates. To register online, go to www.ncnonprofits.org/conf02.html.

National Association of Development Organizations Annual Conference
The National Association of Development Organizations will hold its annual conference September 28, 2002, at the Reno Hilton in Reno, Nevada. Participants can choose from four tracks: innovating infrastructure; building wealth in rural communities; enhancing regional organizations; or perfecting communication skills. Registration is open through August 22. For more information, go to www.nado.org.

Housing Forum 2002
The North Carolina Housing Finance Agency will host a statewide conference on affordable housing October 15, 2002, at the Sheraton Imperial in RTP. The event provides hands-on information and offers opportunities to meet industry leaders and to network with housing professionals from across the state. Morning and afternoon workshops give participants the chance to learn more about tax credits, the agency's community-based home ownership programs, housing special populations, the 2003 Qualified Allocation Plan, technical assistance for non-profits or join in a roundtable discussion with lenders, builders, non-profits and local government officials. The day-long conference is $90 including meals. For questions or to register call LaWanda Hall-Davis at 919-877-5608 or e-mail lhdavis@nchfa.com.

Rural Center gears up for 2002 Rural Partners Forum
The Rural Center will host its annual meeting of state and local leadership in Raleigh on October 30-31. The theme for the forum is the Rural-Urban Connection: Shared Prosperity for the 21st Century. Details about the forum will be distributed in this newsletter as well as on the center's website, www.ncruralcenter.org, as they become available.

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From the N.C. Press

From the Associated Press
Counties in eastern North Carolina, a region plagued by hard weather and hard times, have the state's lowest rates of income and education, according to 2000 Census figures. The lack of one worsens the lack of the other, said Windsor Mayor Bob Spivey. "Money has always been the real problem for us as long as I can remember," he said. Most of the state's wealthiest and best-educated residents live between Raleigh and Winston Salem, the data show. Nine of the 10 counties with the highest poverty rates border or are east of Interstate 95.

From the Asheville Citizens - Times
With layoffs doubling and salaries dropping, North Carolina should improve jobless benefits and better target incentives for rural areas, a report by advocacy groups said Wednesday. "These jobs are gone and they're just not coming back," said Chris Estes, a policy analyst at the N.C. Budget and Tax Center, one of the report's authors. The study found the state needs to change significantly how it trains workers and help communities devastated by plant closings, especially in rural areas. Displaced manufacturing workers who made on average $26,300 at their previous jobs found work within six months that only paid 53 percent of their earlier wages in 2001. Re-employment wages were about 72 percent in 1999 and 2000, the report said.

From the Gaston Gazette
Belmont Middle School was the only Gaston County middle school to meet state expectations for improvement last year. More than 80 percent of its students passed the end of year tests the state gives, and the state has labeled it a 'school of distinction.' But by new federal standards, it's failing, as are most other Gaston County schools. The new standards spring from last year's federal education bill, dubbed "Leave No Child Behind" by President Bush. Educators say the standards could become more important than the state's own standards, the ABCs of Public Education. The changes are dramatic, educators said, because they require progress from all types of students. The federal plan tries to address the achievement gap - the problem of minority and poor students lagging behind the student population as a whole. And schools could face penalties under the new law as soon as the school year starting in the fall.

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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