News

Farm bill becomes law; includes $1 billion for rural economic development
President Bush signed the 10-year, $170 billion farm bill May 13, shoring up support for farm commodities and substantially expanding conservation spending. The legislation also earmarks $1 billion for rural economic development and will bring millions to rural North Carolina counties through expanded broadband access, value-added market development grants, rural business venture capital, and training for rural firefighters and emergency personnel. North Carolina Congresswoman Eva Clayton voted in favor of the bill, but called the rural development provision "paltry," saying it didn't do nearly enough in the area of sustainable development initiatives. To read a complete review of the provisions contained in the farm bill, go to http://agriculture.house.gov/fbconfsum.pdf.

Fast Track legislation passes Senate with amendment to help displaced workers sought by Sen. John Edwards
The U.S. Senate on May 20 passed free trade legislation sought by the Bush administration on a 66-30 vote. The legislation was dubbed fast track because it would broaden the president's power to negotiate trade deals with other nations without congressional approval. The bill passed the U.S. House of Representatives on a more narrow 215-214 vote last December. An amendment by Sen. John Edwards, aimed at helping workers displaced due to free trade agreements, reportedly swayed several key votes. The amendment assists laid-off workers three ways. It extends trade adjustment assistance from 18 months to two years, provides emergency grants to community colleges in areas most affected by plant closings, and instructs U.S. trade negotiators to seek more balanced and open conditions for trade in textiles and apparel. The amended Senate bill now goes to a House and Senate conference committee for compromise language.

Rural local governments already struggling through depressed economy, plant closings, now face loss of millions in state payments
Rural local governments were sent reeling when they learned Gov. Mike Easley's proposed budget for fiscal year 2002-2003 would be balanced in part by withholding nearly $85 million in rural franchise and excise tax revenues and state reimbursement payments. This month, local leaders face writing their own budgets, and many will be hard pressed to find the money they need to maintain services in light of the withholdings. Under Easley's plan, rural counties will receive $40,376,963 less than expected, while municipalities will have $44,348,079 withheld. Easley has made local governments a peace offering: the ability to raise a half-cent, local option sales tax on their own. Meanwhile, local leaders are working with lawmakers on three bills that would prevent future withholdings by changing the scope of the governor's powers in the state Constitution.

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Meetings and Events

Central Coastal Plain Capacity Use Area regional meeting to be held June 6 in Greenville, results of compelling groundwater studies to be introduced
Representatives from 15 counties in North Carolina's Central Coastal Plain will come together June 6 to hear the results of two studies on emerging water resource problems in eastern counties and to discuss alternatives for affected water systems in the region, which includes Beaufort, Carteret, Craven, Duplin, Edgecombe, Greene, Jones, Lenoir, Martin, Onslow, Pamlico, Pitt, Washington, Wayne and Wilson counties. The Central Coastal Plain Capacity Use Area regional meeting will be held Thursday, June 6, from 7 p.m. to 9 p.m. at the Pitt County Agricultural Center. There is no cost to attend the meeting, but seating is limited. For more information, call the Rural Center at 919-250-4314.

Southern Growth Policy Board - 30th Annual Conference on the Future of the South
Southern Growth will hold its annual conference June 9-11, 2002, at Crowne Plaza Resort on Hilton Head Island. The theme of this year's conference is Human Capital Strategies for the Next Economy. The group will release its annual report focusing on workforce strategies from the business perspective. Conference attendees will also receive a Human Capital Strategies for the Next Economy resource book with information on workforce programs from across the South. (more info)

Nonprofit Center to hold statewide conference in September
The N.C. Center for Nonprofits will hold its annual conference entitled "Voices with Values: Nonprofits Lead the Way" at the Sheraton Imperial in the Research Triangle Park on September 19-20. Special features will include training sessons on fund raising by Raising More Money founder Terry Axelrod and on ways to design a new board model. Special early bird rates are available until July 5. (more info)

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Reports and Research

Greenville, Goldsboro, Jacksonville ranked among the best places to work in the nation
The California-based Forbes/Milken Institute recently released a report detailing the best large and small cities in which to do business and advance a career. Three rural North Carolina cities - Greenville, Goldsboro and Jacksonville - made the list as numbers 14, 29 and 45, respectively, out of the 96 small cities ranked. San Diego, Ca., was ranked the best large city for business and career growth out of 200. The tri-city area of Raleigh, Durham and Chapel Hill came in at number 20 and was the highest ranked large municipality in North Carolina. In conducting the rankings, the institute considered job, wage and salary growth along with how cities handled the stagnant economy. To read the complete list of 296 large and small towns that made the list, go to www.milkeninstitute.org/ranking/rank.cfm.

Economic development publication looks at factors behind rural local government collaboration
An article in the May 2002 issue of "Economic Development Quarterly" examines the factors influencing local government cooperation in rural areas, based on experiences in the Tennessee Valley Authority region. It finds that a number of factors serve as barriers to collaboration, including a lack of strong advocates for cooperative projects, time constraints, a lack of trust and working relationships between neighboring communities, and mismatches in community size and fiscal capacity. Common elements in successful collaborations included support of local officials, the involvement of only a small number of governments, open communication and state support. To read the full report, go to http://www.sagepub.co.uk/.

Annual summit produces recommendations to improve Appalachian air quality
Incentives for alternative fuels, a regional mass transit program and new building codes that promote utility efficiency are a few of the recommendations of the fourth annual Governor's Summit on Mountain Air Quality. The summit was held May 10 in Charlotte, and focused on what could be done to improve air quality in the Southern Appalachian Mountains of North Carolina, South Carolina, Tennessee and Georgia. To see the full list of recommendations, go to http://daq.state.nc.us/quick/summit/sap_full_2002.pdf.

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Funding Sources

U.S. Dept. of Agriculture makes grants of up to $1 million available for rural development
Rural non-profits and economically distressed communities have until July 2 to apply for grants being made available through the U.S. Department of Agriculture. The department will award a total of $6 million in grants, each ranging from between $50,000 and $1 million for projects to improve housing, community facilities, and community and economic development in rural areas. Congress made the funds available for Fiscal Year 2002 as a part of the Rural Community Development Initiative program. For more information, go to http://www.rurdev.usda.gov/rhs/rcdi/index.htm.

Z. Smith Reynolds reclassifies grant programs, readies online submission form
Z. Smith Reynolds Executive Director Tom Ross, along with program officers of the foundation, held a series of eight meetings across the state in May to discuss the results of the year-long strategic planning process to better define the grant-making role of the foundation. The foundation will now make grants available with special focus on the following areas: community building and economic development; environment; governance; public policy and civic engagement; pre-collegiate education; social justice; and equity. The foundation's grant cycles are Feb.1 and August 1. Check the foundation website at www.zsr.org in the coming weeks for a new electronic submission feature allowing grantees to fill out forms online.

New study finds companies with active giving programs receive the loyalty of shareholders, employees and customers
A new study released by the Council on Foundations shows that charitable giving has a positive impact on the loyalty of a company's shareholders, employees and customers. Among shareholders surveyed for the report, 78 percent of those happy with the company's charitable giving activities say they will continue to invest in the company as a result. To read the complete survey, go to www.cof.org/newsroom/cofpress/pr051702.htm.

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At the Rural Center

Rural Center recognizes 2002 REDI graduates
The Rural Center congratulates recent graduates of its 12th annual Rural Economic Development Institute (REDI). The institute offers intensive training in the area of rural economic development, and uses a comprehensive approach that teaches skills necessary for participants to affect long-term change in their communities through sustainable development initiatives, as well as relationship building techniques. The course is open to those already serving in leadership capacities in their communities, such as elected leaders, policy makers, grassroots community leaders, business people and religious leaders. To read more about this year's REDI class, go to www.ncruralcenter.org/news/news.asp.

e-Communities submit connectivity plans, RIAA prepares for new round of grant awards
Eighty-five rural North Carolina counties and the Eastern Band of the Cherokee have completed e-community plans for their communities and submitted them to the Rural Internet Access Authority. Earlier this year, the authority provided each of the counties with $10,000 in funds to develop local plans for extending high-speed Internet service and training to underserved areas. The authority has also set June 21 as the deadline for receiving applications for two other kinds of grants: public access site grants for counties participating in the e-communities program and digital literacy training grants, open to any eligible organization. For information on the public access site grant or to download an application, go to www.e-nc.org/e_communities/e_champ_info/implement_grants.shtml. To learn more about the digital literacy training grants or to download an application, go to www.e-nc.org/access/DigitalLiteracyTraining.shtml.

Upcoming dates for microenterprise loan program meetings
Representatives of the Rural Center's microenterprise loan program will hold two meetings around the state this month. The program helps rural entrepreneurs who do not qualify for bank loans start their own business ventures with loans of up to $25,000 and also offers business planning and technical assistance. The first meeting is June 7 at Lenoir Community College to discuss professional development. The second meeting is June 25 at Bladen Community College and features a technical assistance workshop. For more information on these meetings or on the microenterprise loan program, contact the Rural Center at 919-250-4314.

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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