News

N.C. lawmakers renew commitment on Internet connectivity through 2006
The Rural Center’s initiative to boost high-speed Internet service and usage in rural North Carolina will not conclude this year as planned because state lawmakers agree there is still much work to be done closing the digital divide between low-wealth rural counties and more technologically advanced urban areas. Gov. Mike Easley signed House Bill 1194 into law Aug. 18, giving the Rural Internet Access Authority new life as the e-NC Authority through 2006. The Rural Center will continue to administer and staff the privately funded authority, which for the first time will allow distressed urban areas to qualify for program-related grants and initiatives. A change was also made in the makeup of the authority’s 21-member commission, which as of Jan. 1 will be scaled down to nine voting members and six non-voting members. At the end of the authority’s original three-year run, there is little doubt about the impact the initiative has had on rural North Carolina’s technology footing: in 2002 alone the authority helped drive a 20 percent increase in rural computer ownership. To visit the authority on the web, go to www.e-nc.org.

Poll finds nearly half of all Carolinians expect to be affected by manufacturing losses
Rural unemployment rose slightly in July to 7.5 percent, up from 7.4 percent the previous month, due to the July 30 closing of Kannapolis-based Pillowtex and subsequent loss of 4,800 jobs – the largest mass layoff in state history. Manufacturing layoffs have pushed the unemployment rate above 10 percent in 19 rural counties, and a new poll released this week shows nearly half of state residents fear the problem will affect them personally. The poll, conducted for the Charlotte Observer by KPC Research, found 40 percent of North and South Carolinians believe themselves or a family member will be laid off due to cheap foreign labor, with 24 percent calling the possibility "very likely," and 16 percent "somewhat likely." National unemployment figures released last week show a loss of 93,000 American jobs in August, the 37th consecutive month of manufacturing jobs losses.

Displaced manufacturing workers to receive $20 million in federal grants for retraining, health insurance
Laid-off Pillowtex workers will receive job retraining benefits as part of a $20.6 million federal emergency grants package aimed at North Carolina’s devastated manufacturing sector. Gov. Mike Easley worked with congressional lawmakers in securing the grants, which will be used to assist trade-affected workers and their families with job retraining courses and with maintaining their health insurance coverage. The grants include $13 million specifically for the 4,800 Pillowtex workers laid off at the end of July. Federal data show that 23,428 workers in the Carolinas qualified last year to take part in a federal job retraining program because they lost jobs due to changes in foreign trade policy.

Easley signs transportation stimulus bill, rural areas to get healthy share of jobs
Gov. Easley signed into law a two-year, $700 million transportation and economic stimulus package expected to create 30,000 jobs throughout rural and urban North Carolina through a series of road maintenance and improvement projects. The first round of projects funded under the N.C. Moving Ahead program are in the planning stages, and several others will be rolled out in the coming weeks. Citing federal statistics that show 42,000 jobs are created for every $1 billion spent on highway construction projects, Easley says the impact to the state’s economy will be upwards of $4 billion once all of the nearly 800 projects identified under the legislation are completed. To find out more about N.C. Moving Ahead, click here.

Sen. Dole enters tobacco buyout fray with assessment plan on cigarette companies
As Congress returns from a late-summer vacation and prepares to take up legislation to end the 1930s-era tobacco allotment program, N.C. Sen. Elizabeth Dole is proposing an assessment on cigarette makers to finance the plan. Latest estimates show a buyout of U.S. tobacco allotments, or the quotas given to farmers years ago to protect them against shifts in supply and demand, could pump at least $4 billion into the state's rural economy. Sen. Dole argues that the assessment is not a direct levy because the money would come from a Commodity Credit Corp. loan, which in turn would be paid back by reimbursements from tobacco manufacturers, but RJR Reynolds officials say the estimated $2 billion cost to cigarette makers over six years is simply too steep. A federal buyout of the quota system will make the golden leaf more competitive on world markets, it is widely believed, by driving down the price of domestic tobacco. American cigarette companies have cut their purchases of U.S. tobacco by about half in recent years, partly because they can get it cheaper overseas and due to a drop in consumer demand.

Country of Origin labeling implementation hits Congressional snag
A year after Congress passed Country of Origin Labeling (COOL) provisions as part of the federal farm bill, the measure is still being debated to gauge how it will affect some growers, particularly cattle farmers. North Carolina growers are for the most part cautiously optimistic about the program, which requires that most fresh produce and meat sold in the U.S. list their country of origin. The legislation is considered a marketing tool to boost the sale of American farm commodities to consumers that want to buy domestically produced goods, but many in the agriculture community are concerned that the costs associated with mandatory documentation fall squarely on the shoulders of farmers. Cattle farmers also oppose COOL implementation because they claim it would have unintended negative impacts on their industry due to a requirement that they label their Canadian-born calves as a non-domestic product after slaughter. Cattle growers who believe the requirement is rife with bureaucracy have the ear of lawmakers including N.C. Congressman Robin Hayes, chairman of the House Agriculture Livestock and Horticulture Subcommittee, who held hearings this summer on the issue and plans to hold more this fall. For now, COOL implementation on meat products is on hold until Congress takes up H.R. 2673, the Agriculture Appropriation bill. Click here to read the bill.

North Carolina schools to receive $11 million Gates Foundation grant
The Bill and Melinda Gates Foundation last week announced $11 million in grant funding for North Carolina schools as part of the foundation’s high school initiative. The funding, which is the first part of a larger $30 million state effort to raise educational standards at North Carolina high schools, will be used to create theme high schools, expand middle college offerings, and redesign schools to have smaller learning environments. The remaining $19 million will be raised through contributions by foundations and private and public sector organizations. The Public School Forum will administer North Carolina’s grant, which is aimed at raising the graduation rate of high school students and for college and workforce readiness programs. The Gates Foundation has invested $500 million in its education initiative to date. To find out more about the grant and the Gates Foundation’s grants program, visit the foundation website at www.gatesfoundation.org.

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Reports and Research

Rural America in dire need of prescription drug coverage, report finds
As Congress prepares to debate House and Senate versions of new Medicare legislation, a new report by the Center for American Progress finds prescription drug benefits are desperately needed in rural areas. The report found rural people were twice as likely as urban residents to lack drug coverage. Center president and founder John Podesta said the report "tried to point out where improvements are really needed in both bills to make the legislation fair and equitable in rural America." The report found that fewer Medicare recipients in rural areas have drug coverage through private insurance plans or benefits provided by former employers than those in cities. It also found that rural patients spend about 25 percent more on prescription drugs than those in cities. Report authors recommend a more stable plan for administering a Medicare drug benefit in rural areas where employers are more likely to move their business or go out of business altogether. To view the full report, go to www.centerforamericanprogress.com.

Rural America at a Glance 2003
Rural America At A Glance is a six-page brochure by the USDA Economic Research Service that highlights the most recent indicators of social and economic conditions in rural communities for use in developing useful policies and programs. This brochure is the second in a series of reports that uses current social and economic data to highlight important population, labor market, income, and poverty trends in rural areas. The brochure provides information on key rural conditions and trends for use by public and private policymakers and others in an effort to enhance the economic opportunities and quality of life for rural people and communities. To view the report, click here.

One of every 10 Americans an entrepreneur, study finds
A culture of entrepreneurship is stronger than ever before in the nation’s history, according to Global Entrepreneurship Monitor, an annual study conducted by Babson College and underwritten by the Kauffman Foundation. The report found that while perceptions of entrepreneurial activity are that it comes in spurts as the economy goes through cyclical changes and follows trends in the technology industry, it is, in fact, a perennial condition for a surprisingly large share of the American population. More than one in 10 working Americans were creating or growing new businesses last year, according to the report. That number is down slightly from 2001 yet 50 percent higher than in 1998. To view a summary of the report, click here, or go directly to the Babson report at www.kauffman.org/pdf/us_gem_2002.pdf.

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Meetings and Events

Center gears up for 12th annual forum, “Fostering the Entrepreneurial Spirit in Rural North Carolina”
The Rural Center will host its 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 major Rural HomeGrown Jobs Initiative at 11 a.m. on the 23rd. Registration is $100 for both days. To register, click here, or call Kelly Griffin at the center, (919) 250-4314.

Raleigh housing conference to focus on counseling prospective homeowners, Sept. 23-26
The North Carolina Association of Housing Counselors will host a four-day conference for prospective developers and counselors Sept. 23-26 at the North Raleigh Hilton. The event will feature five curriculum courses ranging from basic to advanced level training on everything for the housing professional, including pre-homeownership counseling, insights into mortgage lending, financial management tools and strategies such as calculating net worth, and information on current legal and ethical issues in counseling. Training registration deadline is Sept. 17. To register, call Felicia Jordan at 704-342-3316, or email fjordan@affordablehousinggroup.org.

Enterprise Foundation to hold annual conference on community development Nov. 5-7
The Enterprise Foundation is holding its annual conference Nov. 5-7 in Baltimore at the Marriott Waterfront Hotel. The theme of the conference is “Re-inventing Community Development” and will feature an American town meeting on community development, presentations on alternative approaches by experts in the field and several workshops on key topics. Save $100 off the $625 registration fee by signing up prior to Sept. 19; members receive an additional $75 savings. Membership to the Enterprise Foundation is free at www.enterprisefoundation.org. To register for the conference, click here. For general information, call 410.772.2418 or email networkconference@enterprisefoundation.org.

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At the Rural Center

Board of Directors approves $19.9 million in water and wastewater improvements
The Rural Center’s board of directors on Aug. 27 approved $19,936,423 in funding for water and sewer projects in 64 rural communities. The center awards grants twice each year from the Clean Water Bonds approved by voters in 1998 and from state appropriations. The grants are awarded under three project categories: unsewered communities grants of up to $3 million designed for communities without a central wastewater treatment facility; supplemental grants of up to $400,000 to match funds already dedicated to a water or sewer project; and capacity building grants of up to $40,000 to conduct the planning phase of water and wastewater projects. Sale of the bonds will continue to fund clean water projects under the supplemental and capacity grants programs for one more year, while funding for the unsewered communities grant program will be expended next February. To see the full list of grant awards, click here.

Funding Sources

Grants of up to $500,000 available for rural community development projects
The U.S. Department of Agriculture is accepting applications for grants of $50,000 to $500,000 from the Rural Community Development Initiative to help public, private, and non-profit organizations provide financial and technical assistance to build the capacity of rural communities as they undertake projects related to housing, community facilities, or community and economic development. Matching funds – dollar for dollar – will be required of all grant recipients. Applications will be scored on their ability to build local capacity, the expertise of the organization and other community factors. The deadline for applications is 4:00 pm on October 28. For more information, click here.

From the N.C. Press

Enquirer Journal: New development agency mulled
In an effort to bring economic development to Union County, a 501 (c) non-profit corporation may soon be formed to oversee and promote economic development throughout the county. Frank Rogers, Union County EDC chairman, informed the county board of commissioners of the need to form the non-profit corporation, as well as a committee to “investigate the structure and guidelines used by similar organizations in the Charlotte region to include representation from the current members of the EDC, Chamber of Commerce, county manager, board of education, Vision 2020, and some local business leader.” Rogers said the EDC has been working to improve economic development in the county since 1992, but the lack of developed sites has hindered the group from “aggressively narrowing the gap between residential and commercial/industrial tax base that is so desperately needed.”

Roanoke Beacon: County, state join forces in effort to spark economic growth
Washington County is one of six counties selected to partner with the Department of Commerce to develop strategies for fostering local economic growth. Out of 34 applicants, Washington, Caswell, Hoke, Mitchell, Hertford and Northampton counties were selected recently to participate in the state agency’s 21st Century Communities program. The initiative creates collaboration between the Department of Commerce and counties affected by both the recent national economic slowdown and by long-term changes in the state’s economic base. The initiative calls for a rapid response through examination of the strengths and challenges for local economies using existing resources in the Department of Commerce. Criteria for participation include relative economic distress, rising unemployment and a reliance on at-risk traditional manufacturing.

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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