News

N.C. House approves bill to continue efforts to extend high speed Internet service throughout North Carolina
The work of the Rural Internet Access Authority, set to conclude later this year under state law, would move forward under legislation approved by state House lawmakers last month. Under the terms of House Bill 1194, the authority would operate under a new statute as the E-NC Authority. The bill, sponsored by Wilson County Rep. Joe Tolson, passed the House April 30 on a vote of 118-0. The legislation makes clear that for all the authority’s success in boosting access to affordable, high-speed Internet service in North Carolina there is still much to do building a technology infrastructure capable of meeting the growing demands of local governments, businesses, educational and health systems and residents. The bill provides that the Rural Center would administer the privately funded authority. The bill is now awaiting a hearing in the Senate Information Technology Committee. To read the full text of House Bill 1194, visit the N.C. General Assembly’s website at www.ncga.state.ncus/html2003/bills/currentversion/house/hbil1194.full.html. To visit the Rural Internet Access Authority’s website, go to www.e-nc.org.

N.C. Senate bill would offer jobless benefits to part-time workers
A bill that would extend unemployment compensation benefits to part-time workers passed the state Senate April 16. The bill is a departure from traditional unemployment compensation rules that require laid-off workers to seek full-time employment in order to secure a benefit check. N.C. Senate Bill 439 would allow job seekers to collect benefits even if they apply for part-time positions – jobs that are more readily available in North Carolina’s still-depressed job market. Data from the N.C. Employment Security Commission shows that more than 139,000 out-of-work North Carolinians receiving unemployment benefits last year had worked one or more part-time jobs in the recent past. Senate Bill 439 is now awaiting a hearing in the House Judiciary Committee. To see the bill in its entirety, go to the General Assembly’s website at www.ncga.state.nc.us/gascripts/BillLookUp/BillLookUp.pl.

Unemployment falls slightly across North Carolina in February
The state Employment Security Commission recorded a drop in unemployment rates in 80 of North Carolina’s 100 counties in February, the last month for which statistics are available. Rural and urban counties experienced a similar drop in the number of unemployed workers – from 7.6 percent down to 7.2 percent in rural counties and from 5.7 percent down to 5.5 percent in urban counties. However, 12 rural counties reported a rise in unemployment in February. In addition, seven rural counties and one urban county saw no change in their unemployment rate. The state Employment Security Commission now estimates the number of jobless North Carolinians at 140,960 in rural counties and 118,741 in urban counties. To check on employment information in your county, visit the center’s Rural Data Bank at www.ncruralcenter.org/databank/index.html.

Historic Homestead Act gets a new look as Congress ponders drop in rural populations
Residents of two rural North Carolina counties would be eligible for targeted tax breaks under provisions of a congressional bill that seeks to rekindle the spirit of the landmark Homestead Act of 1862 by offering incentives to keep rural populations stable. The bill is sponsored by a group of lawmakers in the Midwest, an area of the nation that has been plagued by rural out-migration for several decades. The New Homestead Act, also known as Senate Bill 602, would offer tax breaks to encourage people and businesses to live or locate in rural counties in which more than 10 percent of the population has moved away over the last 20 years. Here in North Carolina, rural Washington and Bertie in the northeast meet that requirement. Incentives include repayment of up to half of college loan amounts for recent graduates who live and work in a qualifying county for at least five years, a tax credit for home buyers of $5,000 or 10 percent of the home’s sale price, and tax-free accounts similar to IRAs in which the government would match retirement savings, in addition to a slew of business tax credits. To see a summary of the legislation and to view a map of all eligible counties in the nation, visit the Center for Rural Affairs website at www.cfra.org/resources/summary_newhomesteadact.htm.

Nation’s vulnerable furniture manufacturing industry the focus of Capitol Hill caucus
Mounting problems facing the nation’s embattled furniture manufacturers, a large concentration of which are located here in North Carolina, will get a closer look from a congressional caucus that is currently getting under way. The House Furnishings Caucus will bring together representatives from across the country whose districts are deeply affected by the industry’s growing inability to compete with other nations, particularly China. Republican Rep. Howard Coble and Democratic Rep. Mel Watt, both of whom serve as co-chairs, are representing North Carolina on the caucus. Data from the Bureau of Labor Statistics show the industry has lost more than 30,000 jobs nationwide since June 2001, 5,100 of them from North Carolina. top of page

Reports and Research

NADO report examines potential of new and existing regional development commissions
A report just released from the National Association of Development Organizations (NADO) takes an in-depth look at federal-state partnerships and how they impact economically distressed areas by implementing a regional approach. The report details the work and many successes of the Appalachian Regional Commission (ARC), which serves all of West Virginia and parts of 12 other states, as a model for the six new and emerging regional development commissions featured in the report, including the Denali Commission and the Delta Regional Authority. To view the full report, “Federal-State Regional Commissions: Regional Approaches for Local Economic Development,” visit the website at www.nado.org/pubs/rcreport.pdf.

Report looks at states’ environment, commitment to entrepreneurship as a business development strategy
A recent report on entrepreneurship finds most states are trying to foster the growth of entrepreneur-owned businesses through support for new policies and programs rather than relying solely on funding mechanisms. The report, “State Entrepreneurship Policies and Programs,” was researched and written by the Kauffman Center for Entrepreneurial Leadership, in concert with the National Governors' Association (NGA) and the National Conference of State Legislatures (NCSL). The report tracks changes in the policy environment for entrepreneurs and identifies successful state programs that might be replicated on the state and national level. The report is available online in pdf format at www.entreworld.org/Bookstore/Product.cfm?DID=6&Product_ID=53&CATID=22.

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Meetings and Events

Rural Center to hold final two regional economic development forums this month
The Rural Center will host the last of five regional economic development forums this month on May 16 in North Wilkesboro at the Walker Center of Wilkes Community College and May 30 in Fayetteville at Fayetteville Tech. The meetings are a collaborative effort between the center and the N.C. Community Foundation to spur discussion on timely rural economic development issues facing communities throughout the state. The meetings are also an effort to raise awareness of the many philanthropic organizations active in North Carolina capable of matching available resources to the needs of rural people and communities. To register for the meetings or to find out more, contact Kelly Griffin, event coordinator at (919) 250-4314, or email kgriffin@ncruralcenter.org.

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 wwwforenc.com.

RTPnet to hold annual technology conference in Chapel Hill May 30
RTPnet, a web-based public information center for Raleigh, Durham, Cary and Chapel Hill, is sponsoring its 4th annual conference May 30 at the William and Ida Friday Conference Center in Chapel Hill. The theme of this year’s conference is “Joining Forces, Sharing Revenue,” and will address the technology gap still being experienced in many areas of North Carolina, as well as the policy initiatives in place to bridge those gaps. The conference will also be a good forum for developing a shared approach to accessing and utilizing technology resources. This full-day workshop is $50 on or before May 16, $75 after that date. Click here for Directions to the Friday Center. To register for the conference, download the application form: www.rtpnet.org/rtpconf/register.html.

Southern Growth Policies Board’s annual conference to look at the changing dynamics of leadership in the South
The Southern Growth Policy Board will hold its 31st annual conference on June 1-3 in Biloxi, Mississippi. This year’s conference will feature discussions on the role of leadership in the South, and will take an approach the board is calling "reinventing the wheel" of leadership to reflect the evolving culture of the South. Keynote speakers include Susan Berresford, President of the Ford Foundation, Harris Wofford, Co-chairman of America’s Promise, Pete Correll, CEO of Georgia-Pacific Corporation, Sara Melendez, former President of the Independent Sector and will feature panel discussions as well as a town hall meeting with southern governors. To register, visit the organization’s website at www.southern.org/conf.asp.

Entrepreneurial strategies for rural business development the focus of June 4 satellite meeting
The National Association of Regional Councils continues its series of satellite telecasts on economic development with a June 4th broadcast on entrepreneurial strategies for rural business development. Panelists will include Dr. David Sampson, Assistant Secretary of Commerce for Economic Development. Register by fax, mail, or online at the NARC Web site at www.narc.org, or call Peggy Tadej at (202) 986-1032.

N.C. Center for Non-Profits holds annual conference Oct. 9-10
The N.C. Center for Non-Profits will hold its annual conference at the Adams’s Mark Hotel in Winston-Salem Oct. 9-10. The 2003 statewide Conference for North Carolina’s Nonprofit Sector will feature national speaker Emmett Carson, president of the Minneapolis Foundation. The N.C. Center for Non-Profits is a resource for foundation board members and staff, volunteers and professionals who serve nonprofit organizations. This year’s conference will feature an award presentation to showcase the work of nonprofits that have taken exemplary steps to fulfill the public trust. For questions related to the conference or to register, call the center at (919) 790-1555, extension 104.

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At the Rural Center

Rural Internet Access Authority awards $250,000 to small Internet service providers for DSL lines
The The Rural Internet Access Authority commission has voted to award the N.C. Consortium of Internet Service Providers a $250,000 grant to help fund the purchase of DSL lines at a volume discount. The NCCISP will offer its members the opportunity to invest in the shared cost of the lines, which will help to lower the operating costs for many small Internet Service Providers and enable them to stay in business, retaining jobs at a critical time in rural North Carolina. For more information, visit the RIAA website at www.e-nc.org.

Public access sites soon to be established in all 100 counties, major milestone for RIAA
The e-NC Initiative, a grassroots, community-based effort of the Rural Internet Access Authority to expand access to high-speed Internet service in North Carolina, will this summer reach another significant goal – the availability of public Internet access sites in all 100 North Carolina counties. Public access sites are an important resource for residents of rural communities who do not have access to the Internet in their homes. The sites, located most often in community colleges and libraries, provide Internet access at no charge or for a small fee. To facilitate the use of the public access sites, e-NC has launched a searchable database that offers residents the ability to locate nearby sites where they can use a computer and access the Internet. The database includes a comprehensive list of all 135 public access sites receiving e-NC grant funding as well as an estimated 325 additional sites across North Carolina. The authority operates under a state law that will sunset on Dec. 31, 2003. Legislation is pending that would continue the work of the RIAA under a new name, the E-NC Authority. For more information, visit the website at www.e-nc.org/publicaccess.asp. You can also access the database by calling 1-866-NCRURAL.

Funding Sources

May 9th is the deadline to apply for grants rewarding successful collaboratives
The deadline for community partnerships to apply for a grant through the Pathways to Collaboration workgroup, funded by the W. K. Kellogg Foundation, is May 9. The program will give up to 12 community partnerships from across the United States an opportunity to explore what makes collaboratives successful. Applications are encouraged from community partnerships that have a good track record of using a team and resource-building approach to solving problems in their communities. Rural and urban partnerships are eligible for the $50,000 grants, which will provide funds each year for three years to enable the partnership to participate in the workgroup experience. Click here to download the grant application. Visit the foundation’s website at www.wkkf.org/knowledgebase/grants/ to find out more about the Kellogg Foundation and its various grants programs.

U.S. Department of Labor offers grants for grassroots effort to help community disadvantaged
The U.S. Department of Labor has announced its 2003 solicitations for grant applications for “Grassroots Faith-Based and Community Organizations.” The program asks applicants to work with One-Stop Career Centers and others in the workforce development system to help disadvantaged people find, retain and advance in employment. “Grassroots Grants” of $20,000 to $25,000 will be awarded to 10-12 grassroots organizations to implement mentoring programs, job readiness training, pre-/post-placement mentoring and job translation services. The deadline to apply is May 9. Applications can be downloaded at: www.dol.gov/cfbci/funding.htm.

Philanthropic foundations form Racial Justice Collaborative, effort to break down existing social, political barriers for minorities
The Rockefeller and Ford foundations are heading up a new collaborative that will address civil rights issues that threaten the social, economic and political prosperity of minorities across the nation. The foundations took a serious look at the issue of racial inequality and its pervasive climate in the U.S. after the release of the Rockefeller Foundation report, "Louder Than Words: Lawyers, Communities and the Struggle for Justice," that found the implementation of federal civil rights laws and protections have accomplished little in the way of breaking down barriers to opportunities and resources for minorities. The collaborative will begin providing grants totaling $2 million a year for the next three years to national and community-based organizations beginning later this year. For more information and to register, visit the collaborative’s website at www.racialjusticecollaborative.org.

From the N.C. Press

Winston-Salem Journal: March 14 flood brings end to historic mill on Yadkin River
The Grimes-Cotts Mill on the Yadkin River in Reedy Creek withstood decades of floods, storms, and whatever else nature threw at it. On March 14, the toll became too much. The old building came tumbling down into a pile of wood and bricks, bringing an end to the last water-powered mill in Davidson County. “It just fell right straight down,” said Samuel Clapp, who owns the property on Clapp Farm Road off Old Mill Farm. “We hated to lose it, and everybody in this whole area is sad about it because it meant so much to them.” County Commissioner Billy Joe Kempley tried several years ago to persuade the county to apply for grants to restore the mill. Kepley thought it could draw tourists, but other commissioners were not interested, he said.

The Robesonian: County officials lament economic-stress rating
Empty buildings across Robeson County, a county unemployment rate of more than 10 percent and a poverty rate of 22.8 percent – nearly double the state average of 12.3 percent – indicate the county needs all the economic help it can get. So, Robeson County must be near the top of the state’s list of counties to receive incentives to attract industry, right? Wrong. Although Robeson County is the 14th most-economically distressed county in the state, its population prevents it from being listed among the 20 Tier 1 counties the state has designated to provide the greatest tax-credit incentives to businesses locating or expanding here, according to Tad Boggs, director of Public Affairs for the state Dept. of Commerce. With a population of nearly 124,000, Robeson is far larger than the 20 Tier 1 counties, which range in size from 4,000 to 57,000 people.

Fayetteville Observer-Times: Rules slow effort to draw industries
A strategy designed to get federal money to attract industry has one catch: The new company has to move in before Washington, D.C. will send a penny. On March 10, Fluor Global Location Strategies, a consulting firm based in Greenville, S.C., completed an economic development plan for the 8th Congressional District, which includes parts of Cumberland, Hoke and Scotland counties. Robeson County was included in the study but was moved out of the 8th District after redistricting. Fluor’s objective was to find manufacturing industries to replace disappearing textile and furniture plants. “The cold, hard facts are that in order to be eligible for additional incentives, we had to have a comprehensive economic development study in place,” said Rep. Robin Hayes during a presentation of the report during a Feb. 20 meeting. The study recommended that Hoke County, which has the lowest per capita income in the state, improve water and sewer lines, pave roads and build an industrial park. But before Hoke can receive federal money for the improvements, it needs what officials call a “bird in hand.” A new industry must come in, or an existing industry must be in jeopardy of closing before Hoke would have a real chance of receiving the grant.

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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
www.ncruralcenter.org