News

Long-suffering northeastern counties bear Isabel’s brunt
Hurricane Isabel cut a devastating path through some of North Carolina’s poorest counties last month, wreaking havoc on local economies and communities in the northeast still trying to recover from the damage caused by Hurricane Floyd in 1999. Though the storm’s full impact will not be known for some time, preliminary damage estimates gathered by the state Department of Commerce show the 26-county disaster area with property, business and government revenue losses reaching into the millions. More than 15,500 homes were damaged or destroyed by the storm, with Dare County reporting a loss of at least $354 million in property so far. The storm is also likely to have a big impact on the region’s tourism industry, which has lost an estimated $40 million in the two weeks since Isabel hit. Long-term recovery will be especially difficult in places like Bertie and Hertford counties, which have poverty rates above 20 percent. More troubling still is the effect the hurricane may have on the region’s small businesses, which typically lack the capital to keep their ventures running through a disaster. According to data from the Institute for Home Business and Safety, about 43 percent of small businesses forced to close because of a disaster never reopen, and another 29 percent close within two years.

Agriculture losses from Isabel could top $168 million in eastern North Carolina
Damage estimates are still rolling in from hardest hit portions of northeastern North Carolina, where agricultural losses from Hurricane Isabel could top $168 million. Gov. Mike Easley and other state leaders toured the 35-county region most significantly impacted by the storm, which took a heavy toll on coastal fishing operations in some counties and caused widespread damage to cotton, peanuts and soybeans, and are working with congressional lawmakers to access whatever federal funding might be available. Farmers are generally not eligible to receive storm-related federal funding, but Congress stepped in with nearly $2.5 million to help them recoup damages lost to Hurricane Floyd in 1999. With that in mind, state Senate Pro Tem Marc Basnight is pushing U.S. Senate leaders to include funding for North Carolina farmers in the agriculture appropriations bill currently before them. Most recent estimates from the state Department of Agriculture are that nearly two million acres of crops were affected to varying degrees as a result of the storm, in addition to livestock operations in several counties. By comparison, Hurricane Floyd caused $812 million in mostly flood-related damage in 1999.

Attorney group offering free help to hurricane victims
The North Carolina Bar Association, through its Young Lawyers Division, is offering free legal assistance to persons affected by Hurricane Isabel. Victims of the hurricane, including those who experienced flooding in the aftermath of the storm, are urged to report insurance claims as quickly as possible and have an adjuster look at the property before making significant repairs. Storm victims needing help with legal problems may call the N.C. Bar Association weekdays from 9 a.m. to 5 p.m. at 1-800-662-7407 and ask for Disaster Legal Services. Someone will be on hand to answer basic questions and, if needed, refer storm victims to volunteer attorneys in or near their area. For those with property damage to report, call FEMA at (800) 621-3362. To check the governor’s special storm-related hotline, call 888-835-9966. For questions on recovering revenue from damaged or lost businesses, call 252-335-3247 in Elizabeth City; 252-328-6183 in Greenville; 252-467-0338 in Rocky Mount; and 910-962-3744 in Wilmington.

U.S. House lawmakers set to debate its version of tobacco buyout legislation
North Carolina congressional lawmakers are hoping the tobacco buyout bill co-sponsored by Rep. Mike McIntyre is conciliatory enough in its provisions to finally bring the issue to a close with $15 billion for farmers and quota owners. The buyout legislation currently before the U.S. House is a compromise bill cobbled together from several different measures, yet is more like a $13 billion Senate buyout bill being debated in that chamber. The House bill, which is expected to come before a subcommittee any day, would provide a five-year, $5 billion boost to North Carolina’s beleaguered economy while bringing an end to the 1930s-era tobacco allotment program. Tobacco growers have said they will drop their opposition to federal regulation of tobacco products in exchange for a healthy buyout sum. Both the House and Senate bills would pay for a buyout through assessments on cigarette companies, which is likely to drive up the cost of smoking in the future.

Significant drop in rural unemployment rate belies troubling workforce picture
The rural jobless rate dropped rather significantly in August, to 6.9 percent from 7.5 percent the previous month, and there was good news for urban unemployment levels as well. Yet the economic reality is that the drop appears to be largely due to scores of out-of-work North Carolinians giving up the job hunt and leaving the workforce. According to figures released last week from the state Employment Security Commission, more than 18,000 people dropped out of the labor force between July and August. The story in urban counties is much the same, with the unemployment rate dropping to 6 percent from 6.3 percent the previous month, yet there were 31,000 fewer people in the labor force in August than in July. With the state’s unemployment trust fund dipping perilously low, state leaders voted recently to borrow $150 million from private lenders to pay off federal loans used to buoy the fund. To avoid paying a stiff 6.5 percent interest fee to the U.S. Department of Labor, North Carolina leaders opted to get a lower-interest loan on its own, a move that is expected to save the state more than $6 million.

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Reports and Research

N.C. poverty detailed in just-released UNC Institute of Government publication
What can be done today to combat poverty in North Carolina? The most recent issue of Popular Government, a quarterly publication of the UNC Institute of Government, presents multiple perspectives on the issue: historical, political, demographic, socioeconomic, cultural, and educational. The articles offer no easy remedies. They begin, however, to describe the shape of poverty in this state and suggest strategies that public officials, business leaders, nonprofit organizations, citizens, and others might pursue. The articles are available on-line free of charge on the institute’s website. Click here to visit the site.

New report highlights needs of Latino nonprofits serving eastern U.S.
The needs of nonprofit organizations focused on the nation’s rapidly growing Latino population are examined in a new report entitled, “The Latino Nonprofit Sector in the Eastern United States.” Among the study’s key findings: a need to increase charitable giving from within the Latino community itself; to build the public’s awareness about the work of Latino nonprofits; and to address leadership issues arising from conflicts that arise within the Latino leadership community. Noting that the majority of Latino nonprofits have never received any technical assistance, the report identifies a number of areas where assistance is needed, starting with staff development and fundraising. For an overview of the report’s findings, visit the website at www.pnnonline.org/article.

Small business accounts for nearly 75 percent of net U.S. job creation, SBA report finds
The U.S. Small Business Administration has released a 2003 profile of each state’s small business sector. The data serves to highlight the significant role of small and entrepreneurial businesses in job creation. The Small Business State Profiles for 2003 report finds that small businesses accounted for three quarters of net new job creation last year. Individual state profiles are available at: www.sba.gov.

UNC School of Government publishes complete report of 2003 N.C. General Assembly legislation
The UNC School of Government has released the final disposition of bills and resolutions from the 2003 N.C. General Assembly. The report lists each bill in numerical order, provides the last action taken on each bill and, if applicable, its ratified chapter number. The index report is $12, plus 7 percent sales tax for state residents, while the full report is $22 plus sales tax. To order a copy, go to the School of Government website.

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Meetings and Events

Center gears up for 12th annual forum, “Fostering the Entrepreneurial Spirit in Rural North Carolina”
Don’t miss the Rural Center’s 12th annual Rural Partners Forum, “HomeGrown Jobs, Fostering the Entrepreneurial Spirit in Rural North Carolina,” Oct. 22 and 23 at the North Raleigh Hilton. The event will feature prominent state leaders and experts on business and economic development who will speak on the crucial need to establish an environment throughout the state, particularly in rural North Carolina, that allows entrepreneurial activity to thrive. The center will present compelling new research on entrepreneurs and host a small business resource expo aimed at helping them find the niche they need to position their business for success. The two-day event will culminate with the announcement of a Rural HomeGrown Jobs Initiative at 11 a.m. on the 23rd. On the night of the 22nd the center will celebrate the state’s rural heritage with a Rural Roadhouse, featuring the N.C. Jazz Ensemble. Registration is $100 for both days. To register, click here or call Kelly Griffin at the center, (919) 250-4314.

Nov. 14 is the deadline to apply for the Natural Resources Leadership Development Program at N.C. State
The Natural Resources Leadership Development Program will accept applications for its 2004 class until November 14th. The program is designed and taught by faculty from the departments of Forestry, Agricultural and Resource Economics, and Extension Administration at N.C. State University and faculty from the School of Government at UNC-Chapel Hill. The program is structured around six three-day workshop techniques where participants can practice the skills presented in the classroom. Participants also will travel to Washington, D.C. where they will have the opportunity to discuss natural resource issues and policy with government representatives and lobbyists. The program emphasizes hands-on training. For more details, or to download an application, visit the website at: www.ces.ncsu.edu.

Rural Internet Access Authority to host Southeast Wireless Symposium Dec. 2
The Rural Center’s Rural Internet Access Authority will host a wireless symposium for the southeast on Dec. 2 at the M.C. Benton, Jr. Civic and Convention Center in Winston-Salem. The event, which is co-sponsored by the N.C. Consortium of Internet Service Providers, Qualcomm, Verizon and Sprint, will present an overview of the latest wireless products, services and industry trends, and offer networking opportunities among wireless professionals. The registration deadline is Nov. 1 To register online click here Or, download the registration form and send it by mail, along with a $25 registration fee, to the Rural Internet Access Authority, 4021 Carya Drive, Raleigh, NC 27610.

Small business innovation conference coming to Raleigh Dec. 3
The 3rd annual Southeastern Small Business Innovation Research/Small Business Technology Transfer Biotechnology Conference will be held Dec. 3 in the Research Triangle Park. The conference highlights sessions on how to complete proposals for the programs and presentations on potential projects from the National Institutes of Health, the Department of Defense, the National Science Foundation, and the Department of Energy. To register, or to find out more about the conference, click here.

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At the Rural Center

Center’s new fact sheet details rural North Carolina’s long road to economic recovery
North Carolina’s economy is still lagging behind most other states in the nation and isn’t likely to recover from the recession for some time, according to the fall edition of the center’s rural economy fact sheet, a quarterly publication that presents the latest and most comprehensive data on rural economic issues in the state. North Carolina’s unemployment rate is the ninth highest in the U.S., and an economic recovery here will likely take longer than in other parts of the country due to a steady and permanent decline in the manufacturing sector. This edition of the fact sheet also sheds light on the state’s growing climate for small business ownership, revealing that 75 percent of North Carolina businesses have fewer than 10 employees. To view a pdf version of the fact sheet, visit the center’s website at: www.ncruralcener.org/news.

Center's Rural Data Bank updated with new tools, searchable features
The Rural Center rolled out its web-based Rural Data Bank one year ago, providing North Carolina citizens and leaders with a broad range of statistical information on rural people, communities and the rural economy. Now the center has added a new tool that allows users to compare data on each county in the state to other counties, to the state, and to other rural or urban regions. There is also new information on trends and issues affecting North Carolina, including employment, poverty, healthcare and agriculture. Visit the Rural Data Bank to access the new features at www.ncruralcenter.org/databank/changes.asp.

Funding Sources

Fannie Mae to support development of affordable housing professionals
The Fannie Mae Foundation, in partnership with the John F. Kennedy School of Government, is offering funding to help those who work in the affordable housing field hone their professional skills. The fellowship program is designed to support the development of senior public and nonprofit officials committed to affordable housing in the United States. The program is intended to enhance the management and decision-making skills of accomplished leaders experienced in managing housing and community development programs. Fellowship funds cover the cost of the admission deposit, program tuition, and room and board for the session. See the Fannie Mae Foundation website for complete program and application information: www.fanniemaefoundation.org.

Value-added agricultural grants of up to $500,000 to be awarded this fall
Grants of up to $500,000 will be awarded this fall from a $27.7 million pool of funds from the Rural Business-Cooperative Service’s Value-added Agricultural Product Market Development Grant Program. Grants will be awarded to strengthen the work being done by independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based businesses. To be eligible for consideration, projects must involve one of the following: developing feasibility studies or business plans needed to establish a viable value-added marketing opportunity for an agricultural product; or acquiring working capital to operate a value-added business venture or an alliance that will allow the producers to better compete in domestic and international markets. Applicants must provide matching funds at least equal to the grant. Applications are due Oct. 20 to the North Carolina Rural Development Office at 4405 Bland Road Suite 260, Raleigh, NC 27609. For more information or to download an application, click here.

From the N.C. Press

Philanthropy Journal: Latino nonprofits to get a $2 million boost from state, national collaborative
Latino nonprofits in North Carolina soon will receive $2 million from local and national funders to strengthen internal operations. Last year, North Carolina joined the Funders’ Collaborative for Strong Latino Communities, an initiative that is active in 13 states and two countries and has raised $15.8 million from 95 regional, national and Latin American funders. Hispanics in Philanthropy, a San Francisco-based association of grantmakers, started the program in 2000 and plans to raise $16.5 million by 2005 to help strengthen small Latino nonprofits with assets under $2 million. In North Carolina, the Latino population has grown to 530,000, up 400 percent from 1990 to 2000, and has outpaced the growth of local Latino nonprofits, which have grown from roughly half-a-dozen in the early 1990s to 100 today. Eighteen North Carolina funders soon will visit 25 local Latino nonprofits that have been selected from a pool of 41 applicants, and in late October will decide who will get the grants.

Charlotte Observer: Census shows Hispanic population booming in NC
North Carolina had the second fastest-growing Hispanic population in the nation between 2000 and 2002, according to data released last week by the U.S. Census Bureau. The state's Hispanic population grew 16 percent during those two years, second only to Georgia's, where the number of Hispanic residents increased about 17 percent. Nevada (15 percent), Kentucky (13.9 percent) and South Carolina (13.6 percent) followed closely behind. North Carolina had the fastest-growing Hispanic population during the 1990s, growing by 394 percent to 384,000, according to the 2000 census. That number swelled to 444,000 by 2002, the new census figures show. While Hispanics are now the nation's largest minority group, that's not the case in the Carolinas, where blacks remain the biggest minority group by far.

Raleigh News and Observer: Bill Lee Act not benefiting rural, low-wealth areas, report finds
Another critical report of the Bill Lee Act tax credits is out. The Corporation For Enterprise Development, a nonprofit think tank in Washington, D.C., with offices in Durham and San Francisco, calls the act a "noble failure." The General Assembly created the tax credits in 1996 to spur economic development, especially in the state's poorer regions. In the first five years, companies have received more than $200 million in credits. But the state's own commissioned study estimates that 4 percent of the jobs created came as a result of the tax credits and that most of the credits went to companies in the wealthier parts of the state. "The Lee Act was a great experiment," said Bill Schweke, the nonprofit's research director. "But it failed. If the program is to exist at all, it must be dramatically restructured to improve accountability and to ensure that the areas of the state and the workers who have been hardest hit by plant closings, layoffs and dislocation really benefit." State Commerce Department officials call the credits a flawed but valuable tool, but many legislators are talking about revamping the program.

N.C. Associated Press: Investor forges manufacturing alliance to fight free-trade policies
Wilbur Ross, the financier who is buying out two North Carolina textile companies, said last week he is forging an alliance of manufacturers to protect American jobs. Bringing together a wide range of industries and unions, the Free Trade for America Coalition will fight international trade policy that it blames for the loss of 2.5 million American manufacturing jobs and the country's ballooning trade deficit. Ross, chairman of International Steel Group Inc., was vague on where the coalition may stand on issues such as steel tariffs and other policies that affect its members. He said the group was not against free trade, but seeks a level and fair playing field and the active enforcement of existing trade laws. Members include the American Cane Sugar Refiners Association, the National Textile Association, the Florida Citrus Association, Cattlemen's Associations from Kansas, Montana and Washington states, the American Steel Coalition United Steelworkers of America and the textile union Unite. Ross's investment firm, WL Ross & Co., is in the process of acquiring two bankrupt textile concerns in Greensboro, denim-maker Cone Mills Corp. and Burlington Industries.

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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