News

Rural North Carolina gets boost in $17.2 billion spending package approved by state lawmakers
Rural counties will see an increase in funding to improve educational opportunities, create jobs, develop small businesses and boost technology efforts as part of a $17.2 billion state spending plan approved by lawmakers last week. The budget allocates $20 million to the Rural Center for each of the next two years to continue the N.C. Economic Infrastructure Fund, a grants and investment program established by lawmakers in 2004. Under the legislation, the center will invest in job-creating water and sewer, building reuse, and research and demonstration projects in rural communities stymied by a lack of infrastructure. The e-NC Authority will receive $500,000 to continue its work on closing the technology gap in rural and distressed areas of the state. The budget also funds key recommendations of the center’s dislocated worker action agenda, including a $2 million reserve fund for state community colleges to access when faced with emergency worker training needs. Lawmakers set aside $20 million for several rural school systems to correct a funding disparity that was the subject of a state Supreme Court case, as well as a special $22.5 million fund to aid 16 poor districts with low student achievement. The budget calls for the Rural Center and the N.C. Department of Commerce to continue a $2.25 million community block grant program to boost small business development in rural areas, and boosts funding for the center’s Community Development Corporation (CDC) Grants Program by $250,000 for the next fiscal year. To view the state budget in its entirety, click here.

2005 Rural Partners Forum Set for Nov 3-4: “Small Town, NC: Embracing Change, Taking Charge”
Join the Rural Center November 3-4 for the14th annual Rural Partners Forum at the North Raleigh Hilton. “Small Town, NC: Embracing Change, Taking Charge” will look at how North Carolina’s small towns are doing in today’s rapidly changing world, what they need to be successful now and in the future, and offer promising new strategies for their leadership, governance and financing. The center will also release details of a major new initiative to bring financial resources, technical assistance and information to North Carolina’s small towns, along with a new report that documents vital information on these rural places. Participants will see how North Carolina’s small towns are grappling with change and charting new courses for the future through a new video, and will have an opportunity to attend workshops that will showcase small towns across the state and their creative strategies for jump-starting their economies. For more information on the forum, contact the communications office at the Rural Center, (919) 250-4314. To register online, visit the center’s website.

Congress passes CAFTA, eliminates trade barriers between the U.S. and six Central American nations
President Bush has signed a controversial new free trade agreement that will eliminate tariffs and other trade barriers between the U.S. and Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republican. Three countries- El Salvador, Guatemala and Honduras- have ratified the pact, which will go into effect as soon as those countries and the United States agree on a date. The other three countries have two years to approve it. The hotly contested bill narrowly survived a House vote of 217-215, with 8th District Congressman Robin Hayes playing an instrumental role in its passing when he changed his previous ‘no’ vote after receiving assurances from the Bush administration that it would adopt tougher regulations on textile imports from China. Senators Dole and Burr voted for the bill, as did Rep. Hayes and 9th District Rep. Sue Myrick.

Easley signs extension of William S. Lee tax incentives law
Gov. Mike Easley has signed House Bill 1004 into law, extending two tax incentives laws – the Williams S. Lee Act and the Job Development Investment Grant Program – through the end of 2007. In a statement, Easley said both laws were necessary to move the state through changes brought on by an increasingly global economy. Both programs had been set to expire at the end of this year. The legislation, sponsored by Anson County Rep. Pryor Gibson, creates the Joint Legislative Economic Development Oversight Committee and charges the committee with overseeing economic development issues and strategies in North Carolina. The committee will perform a study of both programs and recommend any necessary changes to the 2006 Legislature. House Bill 1004 also extends the Lee Act for qualified projects in development zones for four years. The state added a development zone program in 1998 to enable businesses in certified high poverty areas in cities or towns to qualify for enhanced credits. The Job Development Investment Grant initiative awards up to 25 grants annually to new and expanding businesses and industrial projects. To find out more about these programs or their extension, contact the N.C. Department of Commerce at (919) 733-7651.

Tourism up 5 percent across North Carolina as five rural counties double tourism revenue in 2004
The N.C. Department of Commerce released figures last week that show tourism continuing to be a major, growing factor in the state’s economy – especially in rural areas. The industry pumped $13 billion into the state’s economy last year, up nearly 5 percent from the previous year. Brunswick, Cherokee, Iredell, Onslow and Yadkin each doubled their tourism dollars for the year, the department said. In all, 97 of North Carolina’s 100 counties showed growth in tourism spending. Commerce Secretary Jim Fain said innovative and collaborative marketing partnerships between the state tourism office, local tourism bureaus, and thousands of private businesses and non-profit organizations throughout the state have helped to position North Carolina as a premier travel destination. North Carolina’s tourism industry provides jobs to nearly 183,000 North Carolinians each year, resulting in $3.6 million in payroll. Tourism spending in North Carolina generates $710 million in state sales tax receipts and $437 million in local sales tax receipts. For more information, visit http://www.nccommerce.com/tourism

Reports and Research

CFED releases report recommending major changes to state tax system
As the current session of the N.C. General Assembly winds down and lawmakers conclude debates over how to balance the budget without major cuts to essential programs, CFED (formerly the Corporation for Enterprise Development) has released a new report that suggests an overhaul of the state’s current tax system is the best long-term solution. In its report, “Development-Enhancing Tax Reform in North Carolina: A Path to Growth with Equity," CFED offers a comprehensive analysis of the state's tax system, which it deems fairly well-structured compared to other states. But the overall system is regressive and doesn’t do enough to foster long-term economic development and create a strong business climate, according to the report. The report concludes with 12 recommendations the state should implement to modernize the state tax code, including broadening the sales tax base to cover more of the service economy, eliminating tax credits that only benefit specific companies and making the personal income tax less burdensome for lower-income families. To view the full report, click here.

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Meetings and Events

Small businesses to learn of federal contracting opportunities at HUBZone conference Aug. 18 in Lumberton
The HUBZone Empowerment Contracting Program was created in 1997 as an initiative of the U.S. Small Business Administration to encourage economic development in historically underutilized business – or HUB – zones through the establishment of preferences. In an effort to draw attention to the program and let entrepreneurs and small business officials know how they can take advantage of it, UNC Pembroke and the Carolina Commerce and Technology Center are hosting a conference Aug. 18 in Lumberton at the Southeastern Agricultural Center on Hwy. 74 East. The conference will bring together federal procurement and Small Business Administration officials with North Carolina business leaders and entrepreneurs to discuss the HUBZone Program. State business people will have an opportunity to hear strategies and information that will better prepare them to be HUBZone contractors and will also meet one-on-one with federal agencies that are in need of business contractors. Visit the website to register online.

Sustainable rural development the focus of September 23-24 conference at UNC-Pembroke
UNC-Pembroke will host its second major rural development conference Sept. 23-23, “Sustaining Rural America.” The Center for Community Action in Lumberton and UNC-Pembroke’s Regional Center for Economic, Community and Professional Development designed this year’s conference around the theme of defining common strategies for sustainable rural development. Specifically, the conference will take a close look at the need to revamp strategies that offer aggressive approaches to chasing the global market because these programs often do not include rural areas and assets. Workshops will explore how rural leaders can take steps in their own communities to implement sustainable rural development projects that promote, preserve, and protect local resources. “Sustaining Rural America” is the second annual conference focused on rural jobs loss and recovery in the U.S. At the 2004 event, more than 450 participants came together to identify key issues and obstacles facing rural communities and to build a stronger network of rural leaders and organizations committed to sustainable development practices, policies, and research. The registration fee is $125. For more information or to register, visit the website.

First-ever financial literacy and asset building conference to be held in Chapel Hill Sept. 27-28
State Treasurer Richard Moore, in conjunction with the IDA and Asset Building Collaborative of North Carolina, N.C. Cooperative Extension and others, will host the first statewide Conference on Financial Literacy and Asset Building at the Friday Center in Chapel Hill on September 27 and 28. The conference will provide valuable information and training on financial education and asset building resources available throughout North Carolina, formally launch the North Carolina Saves Campaign and assess the state’s current public policy work on asset building and financial literacy. Moore and other conference hosts cite recent statistics that 70 percent of American households live paycheck to paycheck, without a savings plan. Last year alone, more than 1.5 million Americans filed for bankruptcy. The registration fee is $55 and will include three meals. For more information and to register online, click here, or call (919) 508-5164. Pre-registration is recommended.

North Carolina’s nonprofit sector to come together for annual conference Oct. 5-7 in Charlotte
The N.C. Center for Nonprofits will hold its annual conference Oct. 5-7 in Charlotte. This year’s conference, “Radical Notions for Common Ground,” will feature working sessions on fundraising, strategic planning, board development and tips for growing a nonprofit in a difficult environment. Experienced consultants will be on hand Thursday, Oct. 6, from 3:45 to 5:45 p.m. on a first-come, first-served basis to work with individual participants on issues that are affecting their daily work. Dr. Paul Light, a senior fellow at the Brookings Institution in Washington, D.C., will give his keynote address on how to build more robust nonprofits in turbulent times. To register for the event online, click here. Online directions to the Westin Hotel, 601 South College Street, are available at their website.

Conference to celebrate state’s 20-year anniversary on business incubation
The North Carolina Business Incubation Association (NCBIA) will host its annual conference Oct. 6-7 at Carolina Beach at the Courtyard Marriott. The two-day event will celebrate the 20-year history of business incubation in North Carolina. NCBIA is a non-profit member-based association that brings together business resource professionals and entrepreneurs to support the growth of business incubators as an effective job and business development tool in North Carolina. For more information on this conference contact Nancy Blackman at nancyblackman@earthlink.net.

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At the Rural Center

Center’s NOW program helps 72 laid-off workers prepare to open their own small businesses
Over the next six months, the center’s New Opportunities for Workers (NOW) program will help 72 laid-off workers get back on their feet by opening their own business ventures. The program, which is offered at 22 community colleges around the state, provides workers the chance to first assess their ability to go into business for themselves, then apply for entrepreneurial training and start-up financing to help make their self-employment dreams a reality. The program is geared toward those who lost their jobs because of plant closings and layoffs. Other NOW participants are using the training and technical assistance component of the program to help make their existing part-time enterprises more profitable. To date, 340 people have taken courses or received technical assistance through the program. To find out more about NOW, contact Leslie Scott, director of the Institute for Rural Entrepreneurship, at (919) 250-4314, mailto:lscott@ncruralcenter.org or Malinda Todd, outreach coordinator for the Microenterprise Loan Program, at the above number or by email, mailto:mtodd@ncruralcenter.org

Center’s Microenterprise Loan Program accepting group lending site proposals
The Rural Center is soliciting proposals from qualified applicants interested in serving as a group lending site for its nationally recognized Microenterprise Loan Program. Group lending sites provide intensive small business training and facilitate peer lending groups. Site grants of up to $35,000 will be provided to build the organization’s capacity to become a successful lender. To be considered, applicants must be a non-profit, a unit of local government, a Council of Government, or an educational institution and be located in a rural county. Applications must be received by Aug. 30. For questions or to receive an application, contact Carolyn Perry, director of the Microenterprise Loan Program, at (919) 250-4314, mailto:cperry@ncruralcenter.org or Malinda Todd, program outreach coordinator, at mailto:mtodd@ncruralcenter.org

Microsoft awards $50,000 to e-NC Authority in support of business and technology telecenters
Microsoft Corp. last month announced a $50,000 grant to the e-NC Authority to support the expansion of business and technology telecenters in North Carolina. The four existing telecenters, which act as a catalyst for economic development in their respective regions, helped to create 289 jobs in 2004 alone. Four new telecenters are in the works for Anson/Union, Northampton/Halifax, Rutherford and Rockingham counties, initiated by a $2 million appropriation made by the N.C. General Assembly last year. Microsoft awarded the grant as part of its Unlimited Potential Program, which has brought more than $60 million in cash and software to community organizations throughout North Carolina since 2000. For more information, contact Angie Bailey with the e-NC Authority at (919) 250-4314, mailto:abailey@e-nc.org

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Funding Sources

Grants of up to $50,000 to help small communities improve water quality
The Southeastern Regional Technical Assistance Center (SE-TAC) is offering grants to local governments, colleges and universities, public agencies, and non-profit organizations in the Southeast to help small public water systems improve the quality of their drinking water. Grants of up to $50,000 are available, with preference given to communities of fewer than 3,300 people. There is no limit on the number of proposals an organization may submit, but awards are limited to one funded project per grant cycle. Pilot and demonstration projects are encouraged to apply, along with training and technology transfer programs. Priority will be given to projects that address one of more of five key areas: training or technology transfer; capacity development; source water protection; security and natural disaster response; and distribution system operation and maintenance. Applications must be received by October 3. For more information or to submit a proposal, visit the website, or contact Kim Steil at kims@gri.msstate.edu, (662) 325-7355.

Rural schools located within 25 miles of a Best Buy eligible for interactive learning grant program
Best Buy's te@ch program is a national effort to reward K-12 schools that are using interactive technology to make learning fun for kids. In the past two years, more than 2,000 schools across the nation have been awarded nearly $6 million through the te@ch program to help expand or enhance existing programs that use the school's available technology to make learning more enjoyable for children. Te@ch awards are not based on the sophistication of technology in the schools, but rather reward programs that use all levels of interactive technology in ways that engage students in the process of learning. In 2005, there will be three levels of te@ch awards: up to 1,200 Best Buy te@ch gift cards valued at $2,500 will be awarded; up to 36 schools will receive additional te@ch awards valued at $15,000 each based on the creativity of the award-winning programs; and in February 2006 a request for proposals will be presented to public school districts that have $15,000 te@ch award winners. From those respondents, one school district will receive a te@ch award valued at $250,000. Te@ch applications must be completed and submitted online and be received by Aug. 30. Accredited, public and private nonprofit elementary, middle, and secondary schools located within 25 miles of a Best Buy store are eligible to apply. To download an application, visit the website at http://www.bestbuy.com/

Whirlpool offers award to innovative start-ups owned by mothers
August 14 is the deadline to apply for the 2005 Whirlpool Brand Mother of Invention grant award, an annual program that provides one winning mom with business resources, including seed money and expert advice, to bring a business dream to fruition. The program offers one female-owned business $15,000 in funding and other perks, in addition to expert advice from the Fortune 500 company. The winner will be a company whose business idea or product provides a compelling consumer solution to a current problem, is unique from other products on the market, is profitable and has an interesting story around the creation or development. In addition to the grant, the winner will receive a new home office, a washer and dryer, and a new kitchen appliance suite. The winner will also attend a one-day business boot camp to leverage Whirlpool expertise from product development and marketing. For more information, visit the website.

From the N.C. Press

Island Gazette: Carolina Beach named among the nation’s cleanest beaches for third year
Visiting a beach is among the top activities of summer travelers, according to the Travel Industry Association of America. This is one reason why Carolina Beach, a coastal North Carolina town that welcomes visitors year-round, is especially pleased to announce that it has once again received designation as a Clean Beaches Council (CBC) Blue Wave Beach. 2005 marks the third consecutive year that Carolina Beach is among the CBC’s annual list of beaches that have been officially certified as ‘clean and healthy’ according to the organization’s standards and criteria. The annual list of Blue Wave Beaches shines a spotlight on our nation’s cleanest beaches. Now in its seventh year, the non-profit Clean Beaches Council runs the most comprehensive, national environmental beach certification program in the country. The Blue Wave Campaign is a voluntary program open to rural and resort beaches and helps beach communities provide cleaner, healthier environments for families and tourists who vacation there. Certified Blue Wave beaches must meet a set of rigorous health and safety standards that includes criteria for water quality, beach and inter-tidal conditions, safety, services, habitat conservation, erosion management, public information and education.

Elizabeth City Daily Advance: Origins of Corolla wild horses in dispute
Controversy over the historic pedigree of the wild horses of Corolla has sparked a debate between at least one local politician and a contingent of horse supporters. The importance of the horses to the northern Outer Banks has been called into question as an increased interest in residential and commercial development threatens their habitat. Some people, like Currituck County Commissioner Ernie Bowden, doubt whether the horses are descended from Spanish mustangs, as local lore has it. Others, however, will not let go of the idea that the Corolla herd has been grazing through the area for 400 years and point to both scientific and historical evidence to support their cause. "They are important because the community feels they are important," says Wild Horse Advisory Committee Chairman Tim Cooper. "They are something associated with the way the Outer Banks used to be." As a trained biologist, Cooper is skeptical about claims of Spanish heritage. As a member of the local community, he understands the value of the horses and works to preserve their presence. Although Cooper admits the horses are important to locals and visitors, he sides with the federal government when it says the animals are feral and do not qualify for protection. And he says their place in distant Outer Banks history may be questionable as well.

Outer Banks Sentinel: Watermen form new trade group
Charter boat captains stand with one shoe in the business of fishing and the other planted in the recreational fishing world, a juxtaposition that isn't always a smooth fit in fisheries management. Fisheries bureaucrats find these working watermen, who are engaged in commercial fishing operations that rely on a customer base made up of recreational fishermen, difficult to peg. Although charter boat captains haven't suffered any sort of collective identity crisis, policy-makers in North Carolina have many of them wondering exactly how they fit into fisheries management. That question first rose to the surface in 1997 when the state passed the Fisheries Reform Act and eliminated the requirement that charter boats purchase a commercial fishing license. The recreational fishing license debate in North Carolina over the past year has heightened the industry's concern. Under several versions of the license bill, a captain would purchase a blanket license to cover all the anglers fishing on his boat. Now, three captains have initiated a grassroots effort to influence, if not repeal, the recreational fishing license bill. The men came to feel compelled to broaden the scope of their efforts, and by April, they devised a plan for a statewide organization uniting the charter boat industry and the commercial fishing industry. North Carolina Watermen United (NCWU) is organized as a non-profit corporation. A temporary executive board soon will be replaced by a board of directors with elected officers. The board will consist of 15 members -- four from the northern coast, four from the central, four from the southern, and three at-large. Board members will come from the charter boat industry and the commercial fishing industry.

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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
http://www.ncruralcenter.org/