News

Center releases agenda to ease plight of North Carolina’s dislocated workers
Economic restructuring will likely become a perennial issue for North Carolina in the years ahead, and the state desperately needs a system to meet the needs of affected workers, their families and their communities, according to members of the N.C. Dislocated Worker Advisory Committee. The committee, convened by the center as part of its Rural Dislocated Worker Initiative, released a 10-step plan on April 26 that will help thousands of laid-off workers in North Carolina get back on their feet in the wake of widespread industry closings and downsizings. "Gaining a Foothold: An Action Agenda to Aid North Carolina's Dislocated Workers" is a comprehensive plan to expand access to worker training programs, boost support services for laid-off workers and their families, simplify and streamline the current network of services available to workers, and establish economic disaster response plans for hard-hit communities. The center joined with the N.C. Community College System, the N.C. Employment Security Commission and the N.C. Department of Commerce in releasing the agenda. Since 2000, more than 200,000 workers in North Carolina have become 'dislocated' because their jobs have disappeared due to layoffs and business closures, and many of those jobs are not likely to return in this era of free trade and rapidly changing technologies. To read the full report, visit the center’s website by clicking here.

Center awards 17 communities planning grants to redevelop flood-damaged business areas
The Rural Center’s board of directors has approved grant awards to 17 western communities to help them redevelop flood-damaged business areas after a series of storms in 2004 caused substantial economic losses in the region. The Hurricane Recovery Business Area Redevelopment Program is the center’s $5 million initiative to redevelop commercial property and repair public infrastructure as part of a major state funded hurricane relief package. North Carolina lawmakers passed the $247.5 million N.C. Hurricane Recovery Act in February to help rural homeowners, businesses and local governments in half the counties in the state to rebound from flooding and related storm damage. The board met April 26 and approved 13 planning redevelopment grants ranging from $5,000 to $20,000 each to communities in Ashe, Avery, Buncombe, Haywood, Jackson, Madison, Mitchell, and Rutherford counties. The board previously approved four grants of $20,000 each to the hardest-hit communities of Clyde, Canton, Newland and Asheville’s Biltmore Village. All 17 communities have begun the process of assessing the structural condition of damaged buildings and infrastructure, determining restoration needs and evaluating repair costs. Once the plans are submitted in July, each community will be eligible for up to $700,000 in implementation grants to carry out their projects. Implementation grant awards will be announced in mid-August. To find out more about the projects, contact Robin Pulver, vice-president of community and human resource development, (919) 250-4314.

Southern Growth Policies Board launches task force on venture capital
The Southern Growth Policies Board, a public policy think tank serving the Southern region, has launched a multi-state task force of venture capitalists and policy makers to develop strategies to increase the flow of venture capital funds in the region. Virginia Governor Mark Warner will chair the initiative. The Southern region represents 20 percent of the nation’s economic activity but attracts only 9 percent of the total U.S. venture capital, according to Southern Growth. Membership in the task force will be capped at 100 firms, with participants primarily coming from the private sector – entrepreneurs and professionals in the venture capital industry – with the remaining members comprised of policy makers, including governors, legislators and state government science and technology directors. To view a list of current VentureSouth members, get more information, or to join, visit the website at www.southern.org. To read the press release, click here.

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Reports and Research

State task force releases report on ‘quiet, growing health insurance crisis’
Nearly one in five non-elderly residents in North Carolina lack health coverage, and the safety net organizations that serve them are increasingly unable to meet their needs, according to a report released by the N.C. Institute of Medicine. The Durham-based health policy organization convened a task force co-chaired by state Health and Human Services Secretary Carmen Hooker Odom to study the ability of safety net organizations – including community and migrant health centers, rural health clinics, free clinics, local health departments and hospital emergency rooms – to meet the needs of the uninsured. According to the report, the safety-net system – the major source of care for some 1.4 million uninsured North Carolinians – is being strained to its limit in counties across North Carolina due to reduced Medicaid payments and manufacturing and textile industry losses that have left thousands of laid-off workers without health coverage. According to the report, 13 counties have been hit especially hard – Brunswick, Columbus, Davidson, Edgecombe, Franklin, Granville, McDowell, Onslow, Randolph, Rockingham, Stanly, Vance and Wilkes. All but Davidson County are rural. To read the full report, including the task force’s short and long-term recommendations, visit the institute’s website.

Mexican-American entrepreneurship rates need boosting, according to University of California report
At least one in four Mexicans own their own business or are self-employed, yet after they immigrate to the U.S., many Mexican-Americans choose to work for someone else, often in low-paying jobs with little or no job security. According to a report by researchers at the University of California, only 6 percent of Mexicans and Mexican-Americans are self-employed, compared to 11 percent of the overall American population. Research suggests that language and legal barriers are most likely causing a lack of entrepreneurial activity among a people who are so clearly entrepreneur-minded. Why should the average American care about Mexican-American self-employment rates? Because data show that self-employment is a route out of poverty, an alternative to unemployment and can help minority groups facing possible workplace discrimination with a viable means of economy advancement. To read the full report, click here.

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Meetings and Events

Join Agriculture Commissioner Troxler in Asheville May 23 to tour Blue Ridge Food Ventures LLC
Western agricultural entrepreneurs interested in producing value-added food products such as apple cider, baked goods and sauces are invited to attend the opening of the Blue Ridge Food Ventures LLC facility on the Enka campus of Asheville-Buncombe Technical Community College on May 23. The facility houses an 11,000 square-foot commercial kitchen designed as a community resource for food entrepreneurs and family farmers who need specialized equipment and services to produce value-added food products. Agriculture Commissioner Steve Troxler will lead a tour of the facility for area organizations and local entrepreneurs interested in learning about the facility and its capabilities. Contact Pam Lewis at AdvantageWest at (828) 687-7234 for more information and to sign up for the event.

Golden LEAF to hold ‘how-to’ session for potential grantees June 6 in Elizabeth City
There will be an informational session for organizations interested in applying for a Golden LEAF Foundation grant on June 6 in Elizabeth City. The deadline for the next annual grants cycle is August 1. A foundation representative will be on hand with information on the application process, eligibility requirements, managing a previously funded grant and to answer questions. The session will be held from 10 a.m. to noon at the North Carolina Agricultural Extension Service office at 1209 Mcpherson Street. To find out more about the next grants cycle, or about the informational session, contact Pat Cabe or Courtney Mills at the Golden LEAF Foundation at (888) 684-8404 or pcabe@goldenleaf.org or cmills@goldenleaf.org.

USDA’s Economic Research Service to hold “Globalization and Restructuring in Rural America” conference June 6 in Washington, D.C.
The U.S. Department of Agriculture’s Economic Research Service will hold a one-day conference June 6 in Washington, D.C. titled, “Globalization and Restructuring in Rural America.” The conference will look at the multitude of changes to hit the U.S. economy in recent years and will discuss ways to help industries adapt to meet those changes. The conference will focus on the challenge of helping industries adapt to rapid-fire technological advances in times of economic restructuring that demand quick action to prevent widespread job losses. The conference brings together policy officials, researchers and program administrators working on rural economic issues to draw attention to the fact that rural areas are generally more reliant on trade-sensitive industries and have less diversified economies than urban areas. There is no charge to attend the conference, but space is limited to 100 participants. For more information and to register click here.

Southern Growth hosts "Rising Together: The Summit on the Rural South" June 12-14 in Point Clear, Alabama
The Southern Growth Policies Board will host its annual conference, “Rising Together: The Summit on the Rural South,” which will be held this year in Point Clear, Alabama, June 12-14. This year’s conference will feature successful rural development initiatives in the Southern region and explore new strategies for creating rural prosperity. The conference will gather rural experts, leaders from government, the private sector and economic and community development to share ideas and strategies for creating rural prosperity in a uniquely Southern way - through storytelling. Panel and keynote presentations will address the future of the Southern workforce, the business of the rural South, and an opportunity to share success stories and best practices. To find out more, or to register online, visit the website.

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At the Rural Center

e-NC Authority: North Carolina ranks above national average for Internet usage, with fastest increase in rural counties
Internet penetration rates now exceed the national average, according to a summary by the e-NC Authority of citizen surveys conducted over the last five years. The authority recently released North Carolinians Online: Trends from the Citizens Surveys, 1999-2004, which reveals that 71 percent of adult North Carolinians use the Internet either at home, work or elsewhere, compared to a national average of 64 percent. More than half of rural North Carolinians are using the Internet at home today, compared to just 27 percent in 1999. The summary also includes information on the gap in computer ownership between whites and African-Americans, which has narrowed dramatically in the last five years from a 30 percentage-point difference in 1999 down to just five points in 2004. Today, 32 percent of people living in non-metro communities in North Carolina connect to the Internet via high-speed access, compared to 15 percent in mid 2002. The report compares data from three North Carolina Internet surveys to national data compiled by the Pew Internet and American Life Project. A copy of the report is available online.

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Funding Sources

Local Initiative Funding Partners program to provide support for community-based health projects
Local Initiative Funding Partners, a partnership program between the Robert Wood Johnson Foundation and local grantmakers, supports innovative, community-based projects designed to improve the health and healthcare for society's most vulnerable people. To be eligible for this program, projects must offer collaborative, community-based services that are new and innovative. Significant program expansions - such as a major expansion into new regions or to new populations - may also be considered. Applicants may be either public entities or nonprofit organizations. Projects must be nominated by a local grantmaker interested in participating as one of the funding partners. Local funders must be willing to work with grantees to obtain sufficient dollar-for-dollar matching funds throughout the grant period. Up to $6 million is available for the 2006 grant cycle, in which up to 18 matching grants of $100,000 to $500,000 will be awarded for each project. Visit the website for more information or to apply online.

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From the N.C. Press

Goldsboro News Argus: Wayne ready to get back to business
After hearing Seymour Johnson Air Force Base escaped the Pentagon's ax, local business leaders quickly turned their attention to the future. "I was expecting good news, and got it," said Henry Smith, chairman of the Wayne County Chamber of Commerce. "But you're always glad when it's here, particularly when it's out of your control. You just want to see it, and we saw it (Friday) in print." Smith said the effect of the good news on the local economy will be immediate. Existing businesses that had held off expanding or hiring additional workers will likely feel safer about their investments. Businesses considering moving to Wayne County might be more inclined to proceed. "People that may have hesitated now don't have any reason to hesitate any longer," he said. "It relieves a lot of stress for all of us," said Chuck Allen, city councilman and developer. "Although we're not out of the woods yet, this is just a great win for Goldsboro and the county." He said he delayed plans to build a subdivision until the BRAC list was announced. At Lowe's, store manager Charles Edwards said he expects to see the effect of the BRAC decision in the store's sales. "I think they've passed the uncertainty stage now," he said. "I think that if they would have announced the closing of the base, we might have made some adjustments." Edwards said a strong percentage of his customers are military-related. Hal Keck of Houser and Associates Real Estate said his initial reaction was "relief and joy, probably in that order." Keck said the county's real estate market will pick up. "I know that there were a number of individuals that were holding back on getting into the housing market until this notification was made."

Shelby Star: New program rescues families from foreclosure
My home is about to be auctioned. A Charlotte company told me they could save my home from foreclosure. Instead, they took my savings and did nothing. That’s the predicament Vicky Kornegay faced in January. With the help of the N.C. Home Protection Pilot and Loan Fund, it’s a bridge that’s been crossed. “I can’t even describe what I was going through,” said Ms. Kornegay, 26. When she bought her home at 915 Langston Drive in 2000, she was determined this would be a right step for her and her baby, Kylie. To afford the down payment, she pulled overtime at Haworth Comforto, a Lincolnton plant that made office chairs. “I still remember how it felt when I got the keys in my hand. I think I even did a little jig,” she said. About a year ago, Haworth Comforto closed and went overseas. For 26 weeks, Ms. Kornegay claimed unemployment benefits. Her manufacturing job paid $13.25 an hour. She was thankful to get a job at a local daycare, although it paid less than half of what she made at the plant. When her home began to go through foreclosure, she received several inquiries in the mail from companies claiming they could help her. One Charlotte company sent an information packet several times. “They talked a good game,” she said. So, she gave them all her savings — about $600 — to start the process of saving her home from foreclosure. The company told her they would need to contact the person from whom she bought the house. They never contacted her again, she said. She kept calling them, but never got a response. Cleveland County Community Development Corp. in Shelby is the agency administering the N.C. Home Protection Pilot Program and Loan Fund. The program didn’t cost Kornegay a dime. She was able to get a $6,400 loan from the program and will attend homeowner counseling for the duration of the assistance, said program director Karla Haynes.

The Insider: Record number of women, African-Americans serving in state Legislature
New analysis by the N.C. Center for Public Policy Research shows that record numbers of women and blacks are serving in the legislature. The center, in a report released today, also found high turnover in both legislative chambers, with almost a fourth of House members and a fifth of senators leaving every two years since 1984. Among the 170 legislators, 39 are women and 26 are black. The number of women legislators is the highest in the South. Ran Coble, executive director of the Raleigh-based think tank, said issues such as curbing domestic violence, affordable health care and pay equity have a better chance of being acted on with the high percentage of women in the legislature. The center also found that 56 legislators have business-related occupations, 48 are retirees and 39 are lawyers. In comparison, in 1971, 68 lawyers filled legislative seats.

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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/