News

Rural North Carolina not sharing in national economic recovery, more layoffs possible
While the recession has left no state unaffected, it has become increasingly clear that North Carolina, in particular rural North Carolina, has paid an especially high price. The state ranked 12th for the lowest rate of unemployment just three years ago and now stands 47th in the nation. Last year alone more than 63,000 North Carolinians lost their jobs; the majority of those workers, more than 42,000 people, came from the manufacturing sector. And while the news is good for many states whose economies are rebounding from the recession, the news is not as positive here, where rural unemployment levels remain high. Many recently laid-off workers find themselves with a skill no longer in demand in their community and a lengthy retraining process ahead of them. Why is the rural North Carolina economy different from other areas of the country? There is no single answer, but changes in international trade policies have played a significant role, to be sure. Those changes have made it more difficult for manufacturing and textile companies to compete with foreign imports, leading many to move production outside U.S. borders or close their businesses altogether. To learn more about the economic uncertainty facing rural North Carolina, go to www.ncruralcenter.org/databank/factsheet.pdf

Sen. Edwards rolls out ambitious plan to help rural communities hit hard by recession, layoffs
North Carolina's rural communities and workers devastated by scores of textile and manufacturing layoffs may find relief from a $400 million economic stimulus plan announced by Sen. John Edwards and backed by Gov. Mike Easley. The plan, crafted by Edwards and announced at a Raleigh news conference April 15, would confront rural economic woes here at home and in other states from three directions: by providing immediate relief to laid off workers and communities facing major job losses, by spurring economic development in these communities through tax credits and establishing economic revitalization zones, and by revamping international trade agreements that currently make it hard for textile and apparel companies to compete in the global marketplace. For more information on Sen. Edwards' plan, go to http://www.senate.gov/~edwards/.

General Assembly prepares for short session fraught with big challenges, shrinking revenue
Lawmakers return to Raleigh May 28 to what will likely be one of the most difficult short sessions in many years. Faced with a $1.2 billion budget shortfall, alarmingly high rural unemployment and cuts in funding to local governments, lawmakers will spend much of their time debating state spending cuts that could top 13 percent for many state agencies and non-profit organizations.

Gov. Easley intercepts trust fund payments to cut budget shortfall
Administrators of the state's Tobacco Trust Fund and Health and Wellness Fund are also feeling the pinch of hard economic times, now that Gov. Easley has intercepted $60 million in payments to their accounts to help cover the state's growing budget deficit. Though there has been some dissent from officials at both funds, which were designed to be insulated from politics and the state budget, they have publicly recognized that Easley has few viable options remaining. The Health and Wellness Fund has a $100 million balance, much of it earmarked for a prescription drug plan for seniors. The Tobacco Trust Fund, established to offset losses to farmers and businesses brought on by the decreasing demand for tobacco, currently contains $57 million to be used for grantmaking.

N.C. Congressional delegation sees long-term benefit for eastern North Carolina through creation of SouthEast Crescent Authority
North Carolina Reps. Mike McIntyre and Richard Burr are leading an effort in Washington to establish a SouthEast Crescent Authority to provide investments in poverty-stricken areas of seven Southeastern states, including North Carolina. The legislation is built in part on a 1998 study conducted by the Regional Development Institute at East Carolina University, which linked the growing economic success of western North Carolina to economic and infrastructure investments made by the Appalachian Regional Commission. The ECU study called for the creation of a similar body to address needs in the eastern part of the state. If the bill is approved on Capitol Hill, it would take about two years for the authority to be up and running. For more on the bill to create the authority, visit Rep. McIntyre's website.

Court decision on public education funding could lead to increased support for rural schools
On April 4, 2002, Judge Howard Manning issued his fourth ruling in the Leandro decision, the 8-year-old suit contesting how the state funds public schools. Previously, Manning ruled that North Carolina was not meeting its obligation to provide a sound, basic education to at-risk children and identified pre-kindergarten services for 4-year-olds and a coordinated, effective educational strategy as key remedies. In his latest ruling, Manning said that classrooms must have "a competent, certified, and well-trained teacher" and schools must have competent leadership and needed resources. Manning placed responsibility upon the state to ensure that the constitutional guarantee is met with aggressive intervention, if necessary. The ruling may mean more resources and support services for rural schools with high numbers of at-risk students. To read more about the background of the Leandro suit, go to the North Carolina Public Schools website.

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Reports and Research

Corporation for Enterprise Development president delivers speech on new asset approach to entrepreneurship
In remarks to the Illinois Institute for Rural Affairs at the Local Community Economic Development Conference on March 5th, CFED President Brian Dabson spoke on "Entrepreneurship: A New Generation of Economic Development Tools." Dabson’s speech highlighted an asset approach to rural economic development, examined current strategies to encourage rural entrepreneurs and focused on the unique challenges faced by rural economies. To read the full text of Dabson’s speech, go to www.cfed.org.

Dislocated workers face unique needs, barriers to reemployment
Dislocated workers should not be lumped into the same category as other unemployed people, according to a new report titled Dislocated Workers: A Literature Review. The report offers a comprehensive review of the literature, theory, practice, and lessons learned from the reintegration of displaced workers. To read the full report, go to www.cfed.org.

2000 Census shows North Carolina in period of dramatic change
The Rural Center recently completed the first in a series of reports on the 2000 Census, offering a glimpse of how life in North Carolina was reshaped in the 1990s. As the U.S. Bureau of the Census releases more complete information over the next 18 months, the center will continue to analyze the data that comes in and release its findings. In early 2003, the center will publish the complete findings in a comprehensive North Carolina Rural Profile. To read the first report in the series on the 2000 Census, go to the Rural Center's website.

Manufacturing layoffs signal troubled times for rural communities, long-term damage yet to be revealed
North Carolina is one of the top three states in the nation for employment in the manufacturing industry, and today that industry has suffered losses unimaginable just a few years ago. Thousands of rural workers are out of work, and perhaps worse, many are without hope of finding comparable work in their communities. The effects on the rural economy have already been felt, but the true and lasting damage may not be realized for some time to come. To read the Rural Center's report on manufacturing layoffs and how the situation has impacted rural workers and communities, go to the Rural Center's website.

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Funding

Charitable giving on the rise, despite recession and rising unemployment
The recession has not put a damper on the spirit of giving, as evidenced by two recent surveys that show charitable contributions rose slightly in 2001. According to the Foundation Center's research, private foundations increased their contributions by 5 percent in 2001, community foundations by 4.6 percent and corporate foundations by 2.6 percent. To read more about their survey, go to the Foundation Center's website. A survey of non-profit organizations conducted by the Association of Professional Fundraisers shows that 60 percent of charities received more in 2001 than they did in 2000, with the largest increases reported by social service and religious based organizations. For more information visit www.afpnet.org.

Newly formed Rural Funders Collaborative selects award finalists
The Rural Funders Collaborative (made up of the following members: Mary Reynolds Babcock, Annie E. Casey, Fannie Mae, William Randolph Hearst, F. B. Heron, William and Flora Hewlett, and W. K. Kellogg Foundations) has selected 20 projects as finalists for funding or inclusion in its learning network. A North Carolina group, the Resourceful Communities Program Collaborative of Eastern North Carolina, did not receive funding this round but will participate in the learning network. The Rural Funders Collaborative was created in 2001 to expand the resource base for rural American communities and rural families, especially in areas affected by persistent poverty. The collaborative's goal is to leverage $100 million in public and private funding over 10 years.

Warner, Z. Smith Reynolds pledge support for national initiative on Latino non-profits
Latino non-profit groups are the target of a national initiative getting support from two North Carolina charitable foundations, the Z. Smith Reynolds Foundation in Winston-Salem and the Warner Foundation in Durham. The initiative seeks to raise $16.5 million for the Collaborative for Strong Latino Communities, whose goal is to leverage resources and create partnerships within the Latino community. The two North Carolina foundations are the first in the Southeast to join the collaborative effort; Warner has pledged $100,000 and Z. Smith Reynolds will contribute $500,000. For more information go to http://philanthropyjournal.org/more.asp?ID=2157.

Duke Endowment launches $10 million rural children and families program
The Duke Endowment, Charlotte, in conjunction with MDC Inc., a Chapel Hill-based non-profit think tank specializing in rural development in the South, has launched a $10 million project designed to strengthen 26 rural communities in North and South Carolina. Awards will be announced after the endowment's board of directors meeting the first week of June. Up to six grant awards will be used for large-scale community development projects that have the ability to revitalize rural economies. The other 20 will be awarded for smaller projects with long-term development potential. The project is designed to encourage collaboration and strengthen community resources to support children and families.

Kellogg Foundation seeks information about rural America
The W. K. Kellogg Foundation in Battle Creek, Michigan, is undertaking a major survey of life in rural America. Its first report, Perceptions of Rural America, features comments from people in rural, urban and suburban areas, including survey respondents in the Raleigh-Durham suburban area. To read the report online, go to the Kellogg Foundation's website.

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Meetings and Events

N.C. Rural Water Association - OUTLOOK 2002: Charting The Course
The 25th annual conference of the N.C. Rural Water Association will be held May 21-23 at the Koury Center in Greensboro. The conference will focus on security, recruitment and retention, wastewater collection systems and office/administration personnel issues. Additional sessions on water resources and the Central Coastal Plain Capacity Use Area Rule will be held on Wednesday. (more info)

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)

NCCBI 2002 Legislative Conference
North Carolina Citizens for Business and Industry will host their annual legislative conference May 30 at the Hilton North Raleigh. As the short session of the General Assembly approaches, lawmakers face tough issues in tight economic times. This conference will give business leaders an opportunity to hear first hand from elected officials on topics including transportation, economic development, Medicaid and the state budget. The registration fee is $100. (more info)

AEO 2002 - Microenterprise: An Ocean of Opportunity
Twelfth Annual Conference and Membership Meeting of the Association for Enterprise Opportunity will be held Sunday, May 19 through Wednesday, May 22, 2002, in Fort Lauderdale, Florida. Participants may choose from a variety of offerings in 14 training tracks, including two new tracks: internal operations and management, and rural initiatives. AEO will also offer a pre-conference Microenterprise Training Institute for an additional fee. (more info)

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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