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While the center is designed for grants to generate jobs, in its files "Other stories emerge: Legislators influencing where the money goes. People and businesses from across the political landscape getting in on the deals. Political money men benefiting from taxpayer cash, spent with little notice or scrutiny," reports Curliss, who details several examples of politicians receiving grants for businesses they own.
Republicans, in full control of state government for the first time since Reconstruction, want to reduce the center's funding. Billy Ray Hall, who heads the agency, told Curliss, “I eat, sleep and breathe rural North Carolina. Rural North Carolina, I think, deserves the respect of trying to chart their path. They deserve the value of giving them as much as you can to help them make good decisions. And I think that’s what I’ve been trying to do. That’s what the Rural Center’s been trying to do. And we’ve been trying to do it smart.” But Hall may have drawn more Republican ire by reminding new state Budget Director Art Pope, a leading critic, that a center grant had helped his family's discount-store business, which Pope denied but then admitted.
Hall claims the center has created 19,911 jobs in the past five years, but the newspaper found more than 950 jobs from projects that had yet to begin, writes Curliss. Even jobs the center claims to have created are sometimes suspicious, such as a $350,000 water-well grant that would help generate jobs at a new restaurant that had already hired employees. The center’s communications director, Garnet Bass, said in an email message: “I suppose you could argue about whether we’re prematurely saying some of the jobs have been created. ... We think we’re providing the most accurate picture possible for the value of the state investment. It may not be perfect, but we haven’t heard of a better way.”
The center has replied to the stories, in a comment to this blog post.
2 comments:
We are deeply disturbed about articles in The News and Observer that have painted a partial and inaccurate picture of the N.C. Rural Economic Development Center and its work on behalf of rural communities in North Carolina. The articles focus on two rural job-generating grant programs – the Economic Infrastructure Program that supports water, sewer and other “backbone” infrastructure; and the Building Reuse and Restoration Grants Program that restores vacant buildings to productive business use.
We share the following points in hope of setting the facts straight.
Fact 1: Most rural leaders are aware of the Rural Center’s broad programming and results. Other N&O readers may not be. The center has led public policy initiatives, trained local leaders and in other ways helped build the capacity of our communities to answer their challenges. It has awarded 5,000 grants totaling over $680 million since 1987. Nearly two-thirds of this funding has helped communities solve serious health and environmental issues through water and sewer improvements. The articles focus on a subset of grants that provide incentives for job creation.
Fact 2: The General Assembly first appropriated funds to the Rural Center for job-generating programs in 2004, following a devastating recession. The center modeled its programs on existing state programs, both in terms of repayment provisions and reporting procedures.
Fact 3: Three out of every four grant dollars from the Economic Infrastructure and Building Reuse programs have supported private sector jobs in manufacturing, processing and health care – jobs that provide competitive wages and benefits. The stories focus on restaurants and retail projects, which account for only 12 percent of funding. The restaurant and retail projects are often located in economically distressed counties where options are severely limited.
Fact 4: The Rural Center does not seek to dictate economic development projects to rural North Carolinians. Projects are developed by community leaders; approved by town councils and county boards of commissioners; and submitted by units of local government. Both programs require that local governments match Rural Center grants dollar for dollar with other funds. The Rural Center has never “built” a Walmart or any other business.
Fact 5: By focusing on a handful of projects, the articles leave the mistaken impression that job numbers have fallen short in the programs. The fact is that of 274 grant projects that have been fully completed, 30 percent more jobs were created than required under the terms of the grant contracts. In absolute numbers, the applications projected the creation of 9,900 jobs. The businesses created 13,144 jobs.
Fact 6: With incentive grants, job counts must be constantly revised and are based upon 1) job numbers guaranteed by performance agreements; 2) actual job numbers reported in required reports; and 3) final job numbers at the time the project is closed out. Job numbers do change, but get increasingly more accurate as the project matures.
Fact 7: In a perfect world, our small towns would be filled with thriving, homegrown and locally owned businesses. But in the real world, rural communities often view chain stores and restaurants as highly desirable for the jobs, services and products they bring.
Fact 8: “Spending in the shadows.” It’s a poetic title, but we’re mystified as to its use in the N&O articles. In truth, the center conducts extensive outreach to ensure communities are aware of grant opportunities; ensures staff are available to answer community questions; and conducts rigid scoring reviews. Projects then move to board advisory committees for in-depth reviews and then to the board's executive committee for final review and decision-making. Once decisions are made, the center announces the grants and posts projects on its website. Furthermore, the center makes a full report to the General Assembly on all grants.
Billy Ray Hall
Rural Center President
Rural Center statement on N&O stories
We are deeply disturbed about articles in The News and Observer that have painted a partial and inaccurate picture of the N.C. Rural Economic Development Center and its work on behalf of rural communities in North Carolina. The articles focus on two rural job-generating grant programs – the Economic Infrastructure Program that supports water, sewer and other “backbone” infrastructure; and the Building Reuse and Restoration Grants Program that restores vacant buildings to productive business use.
We share the following points in hope of setting the facts straight.
Fact 1: Most rural leaders are aware of the Rural Center’s broad programming and results. Other N&O readers may not be. The center has led public policy initiatives, trained local leaders and in other ways helped build the capacity of our communities to answer their challenges. It has awarded 5,000 grants totaling over $680 million since 1987. Nearly two-thirds of this funding has helped communities solve serious health and environmental issues through water and sewer improvements. The articles focus on a subset of grants that provide incentives for job creation.
Fact 2: The General Assembly first appropriated funds to the Rural Center for job-generating programs in 2004, following a devastating recession. The center modeled its programs on existing state programs, both in terms of repayment provisions and reporting procedures.
Fact 3: Three out of every four grant dollars from the Economic Infrastructure and Building Reuse programs have supported private sector jobs in manufacturing, processing and health care – jobs that provide competitive wages and benefits. The stories focus on restaurants and retail projects, which account for only 12 percent of funding. The restaurant and retail projects are often located in economically distressed counties where options are severely limited.
Fact 4: The Rural Center does not seek to dictate economic development projects to rural North Carolinians. Projects are developed by community leaders; approved by town councils and county boards of commissioners; and submitted by units of local government. Both programs require that local governments match Rural Center grants dollar for dollar with other funds. The Rural Center has never “built” a Walmart or any other business.
Fact 5: By focusing on a handful of projects, the articles leave the mistaken impression that job numbers have fallen short in the programs. The fact is that of 274 grant projects that have been fully completed, 30 percent more jobs were created than required under the terms of the grant contracts. In absolute numbers, the applications projected the creation of 9,900 jobs. The businesses created 13,144 jobs.
Fact 6: With incentive grants, job counts must be constantly revised and are based upon 1) job numbers guaranteed by performance agreements; 2) actual job numbers reported in required reports; and 3) final job numbers at the time the project is closed out. Job numbers do change, but get increasingly more accurate as the project matures.
Fact 7: In a perfect world, our small towns would be filled with thriving, homegrown and locally owned businesses. But in the real world, rural communities often view chain stores and restaurants as highly desirable for the jobs, services and products they bring.
Fact 8: “Spending in the shadows.” It’s a poetic title, but we’re mystified as to its use in the N&O articles. In truth, the center conducts extensive outreach to ensure communities are aware of grant opportunities; ensures staff are available to answer community questions; and conducts rigid scoring reviews. Projects then move to board advisory committees for in-depth reviews and then to the board's executive committee for final review and decision-making. Once decisions are made, the center announces the grants and posts projects on its website. Furthermore, the center makes a full report to the General Assembly on all grants.
Billy Ray Hall
Rural Center President
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