Appalachian Regional Commission

Appalachian Reporter

● Autumn 1998 Appalachian Reporter

● April–June 1998 Appalachian Reporter

● January–March 1998 Appalachian Reporter

● September–November 1997 Appalachian Reporter

● July–August 1997 Appalachian Reporter

● May–June 1997 Appalachian Reporter

● March–April 1997 Appalachian Reporter

● January–February 1997 Appalachian Reporter

● November–December 1996 Appalachian Reporter

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | News, Events, and Publications | Socioeconomic Data | What's New | Home

| Site Index | Feedback

Appalachian Reporter

file:///F|/lps2404/reprtlst.htm [4/14/1999 11:07:11 AM]
November–December 1996

Table of Contents

❍ Commission Holds Meeting in Somerset, Kentucky

❍ The View from ARC Leadership . . .

❍ Committee Recommends New ARC Policies

❍ Commission Completes FY 1996 Project Funding Cycle

❍ Task Force to Help ARC Achieve Goals

❍ Governors Select ARC's 1997 States' Co-Chairman

❍ ARC Convenes Tourism Consultation

❍ ARC Notes

❍ DDAA Members Hold November Meeting

❍ Commission Adds Two Members to Personnel

❍ Upcoming Activities

Commission Holds Meeting in Somerset, Kentucky

Meeting at the Center for Rural Development in Somerset, Kentucky, the Appalachian Regional

Commission, joined by Governor Paul Patton and Rep. Hal Rogers (R-KY), outlined its major

activities for FY 1997 and examined the continuing needs of the Region's distressed counties.

In his opening remarks, Governor Patton stressed the importance of the Commission's distressed

counties program: "I do want to thank all the other states for recognizing that this is an effort to try to

help the entire nation by eliminating these historic and chronic sources of poverty and lack of

economic opportunity."

Following the governor, Representative Rogers emphasized the importance of the Commission's

regional efforts: "Let me say how much I appreciate the dedication of you and your governors and

your states. I'm sure at the outset of the ARC, the conceptualization of the idea, that there were those

sitting around the table somewhere that said, ‘Can we cooperate across the Region from New York

to Mississippi?' This model works. You have proved it."

Guidelines

In keeping with the requirements of the Commission's revised operating Code, members approved

new guidelines for project submissions for FY 1997. Reflecting the requirements of the Appalachian

Regional Development Act, the ARC Code, and the Strategic Plan, these guidelines set forth criteria

and provide guidance for the development and approval of ARC projects.

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (1 of 8) [4/14/1999 11:07:29 AM]
The new guidelines also recognize that projects may reflect the objectives and strategies developed

by the individual Appalachian states as identified in their Commission-approved plans and annual

strategy statements.

Research

Commission members approved the FY 1997 Research Prospectus, authorizing activities in three

categories: regional analysis, program area research, and program development. The prospectus

continues the Commission's research on emerging issues affecting the economic growth of

Appalachia.

The Commission also approved continuing the summer math/science program at Oak Ridge National

Laboratory, providing high school students and teachers in 13 states an opportunity to conduct

hands-on research at the Department of Energy's Federal Research Laboratories.

Special Guests

Special presentations highlighted a variety of Commission-supported activities in Kentucky.

Ginny Eager, executive director of Forward in the Fifth, and Michael Sanders, president of the

Christian Appalachian Project, joined Commission members to discuss the work of their

organizations in eastern Kentucky.

● 

Hilda Legg, former alternate to the federal co-chairman and now director of the Center for

Rural Development, reviewed the center's work.

● 

Other presentations to the Commission came from Ron Eller, director of the Appalachian

Center at the University of Kentucky, and Ewell Balltrip, executive director of the Kentucky

Appalachian Commission.

● 

Distressed Counties Tour

Following the meeting, Commission members and staff embarked on a day-long bus tour of

ARC-funded projects in four distressed counties.

Visits included a company financed by the Kentucky Highlands Investment Corporation and

Kentucky Hills Industries in Pine Knot.

The View From ARC Leadership . . .

Michael R. Wenger, States' Washington Representative

A highly successful elected official once told me that the best politics is good government. In other

words, if you pursue sensible and effective policies, political success will follow.

During the past two years, ARC has demonstrated the truth of that philosophy as it has undertaken

significant efforts to modernize and re-energize its activities.

First, ARC adopted three regional initiatives in the areas of export trade, telecommunications, and

civic leadership. In devoting special attention to these areas that are vital to the long-term

development of the region, our Appalachian states sacrificed some flexibility in their area

development allocations.

Second, ARC undertook a strategic planning process, resulting in the Commission's five goals.

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (2 of 8) [4/14/1999 11:07:29 AM]
Again, the states sacrificed flexibility in their area development funds, knowing that the strategic

plan would be in the Region's long-term interest.

ARC has now formed a task force for each goal area. Chaired by a state alternate, each group

consists of state program managers, LDD representatives, and ARC staff, and will play a leadership

role in bringing its goal to life, identifying ways to achieve the goal, and telling an accurate and

compelling story of progress.

Third, ARC decided to allocate more funds to the Region's distressed counties and in doing so, some

states gave up significant dollars to those with more distressed counties.

The states decided that these policies—focusing on regional initiatives, adopting a strategic plan, and

allocating more funds to distressed counties—made sense in terms of effective governance. Their

willingness to sacrifice flexibility and, in some cases, funds illustrates their ability to rise above

politics for the good of the Region.

The fact is, however, that by making these sacrifices states have significantly strengthened ARC

politically, both in Congress and the administration.

In the last Congress, when some members called for the elimination of ARC, our friends—in the

Region and outside—were able to point, not only to ARC's accomplishments over the years, but also

to the unique partnership which was voluntarily bringing its policies and programs in line with

changes in the Region.

Thus, when amendments in both the House and Senate to eliminate ARC were put to votes, it was no

accident that ARC prevailed by nearly record margins. Good policies had proven to be good politics.

Inside the administration the reaction has been similar. The willingness of ARC to voluntarily

"reinvent" itself has gained the Commission new respect among decision makers at the highest

levels. ARC is often held up as a model of how government ought to operate.

As we prepare for the second term of the administration and for a new Congress, respect for ARC is

higher than it has been for nearly two decades. This respect is a result of ARC's courage in making

hard but necessary decisions which reflect both regional changes and scarcity of fiscal resources.

So, in the future when we must decide whether a course of action is politically smart, perhaps the

right question is to ask is whether it is the right thing to do.

Committee Recommends New ARC Policies

At its December 12 meeting, the Policy Development Committee authorized additional steps in

planning the entrepreneurship regional initiative, recommended Commission approval of a new

policy on tourism projects, and voiced its support for revisions to the highway sections of the ARC

Code.

In reviewing options for ARC's entrepreneurship work, the committee expressed interest in

entrepreneurial education and directed a working group to develop additional details on this

component of the initiative. The working group will be built around the task teams that are working

on Goal One (education and training) and Goal Four (dynamic economic base).

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (3 of 8) [4/14/1999 11:07:29 AM]
The committee suggested that another small working group should examine the option of a

development finance component of the initiative. This group will survey other similar federal

programs, study available models, and report their findings back to the Commission.

Building on the suggestions of an ARC-sponsored consultation on tourism, the recommended

tourism policy envisions Commission support of tourism activities that are part of an overall

development strategy.

ARC will provide funding for tourism planning and research, training and technical assistance,

education and capacity building, marketing and promotional efforts, and infrastructure. Projects will

be assessed using the Commission's normal criteria for economic development projects. Capital

improvement projects will not be prohibited, but they will be reviewed stringently.

Continuing the effort to streamline ARC's operating code, the committee endorsed technical

revisions to the highway sections of the code, subject to review by the state highway departments.

Commission Completes FY 1996 Project Funding Cycle

Through 435 individual projects, the just-completed FY 1996 project funding cycle reflects ARC's

mission to partner with the people of Appalachia to create opportunites for self-sustaining economic

development and improved quality of life.

"These projects underscore the vitality of the Commission's approach toward achieving each goal by

working through our local communities," says Executive Director Thomas M. Hunter.

Developing a Knowledgeable and Skilled Population: In Allegany and Steuben Counties,

New York, an ARC grant of $149,000 matched by $151,126 in local funds will establish a

distance-learning network at two school districts and two education centers, strengthening

tech-prep and returning adult curriculums and providing programs in workforce training,

career and literacy skills, and job training to 1,688 high school and returning adult students.

1. 

Strengthening the Region's Physical Infrastructure: In Logan County, West Virginia, an

ARC grant of $1.6 million matched by $450,000 in federal, state, and local funds will assist

this distressed county in extending water service to an industrial park and new regional jail,

immediately creating 140 jobs. This project will also open up an additional 250–300 acres for

industrial development, creating a diversified economic base and bringing much-needed jobs

to an area long dependent on coal extraction and related industries.

2. 

Building Local and Regional Capacity: A $45,140 ARC grant matched by $11,285 in local

funds will support leadership training to citizens in Jackson, Wayne, and Clinton Counties, the

three ARC counties located in the Kentucky Highlands Empowerment Zone.

3. 

Creating a Dynamic Economic Base: An ARC grant of $74,835 will be matched with

$47,500 to provide online international trade assistance to small and medium-sized businesses

in Appalachian Ohio. Designed as an "incubator without walls," this project will include

training and technical assistance in finding online trade information and marketing products

internationally through the Internet.

4. 

Fostering Healthy People: In Benton and Marshall Counties, Mississippi, a $48,000 ARC

grant will be matched with $12,000 in local funds to continue an infant mortality reduction

program, which will provide medical, nutritional, emotional, and financial assistance to

5. 

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (4 of 8) [4/14/1999 11:07:29 AM]
children and parents. This project will help both counties reduce the infant mortality rate to the

national average.

Task Forces to Help ARC Achieve Goals

To help craft the policies for achieving the ambitious goals of ARC's strategic plan, the Commission

has created a special working task force for each of the five goal areas: developing a knowledgeable

and skilled population, strengthening physical infrastructure, building local capacity, creating a

dynamic economic base, and fostering healthy people.

A state alternate serves as a goal leader for each group, with ARC and federal staff, state program

managers, and local development district representatives also participating.

Each task force will begin its work by collecting baseline data, examining ARC's projects and

programs, and exploring potential public and private partnerships. Each goal group will use this

information to update the governors on the status of the strategic plan at the February Quorum

meeting.

Ultimately, the goal task forces will provide the Commission with an action plan which recommends

how the Commission can achieve each goal, helps align the Commission's research program and

special projects with each goal, and disseminates ARC's best practices to community leaders across

the Region.

The task forces will also help devise appropriate performance measurements for gauging

Commission progress toward reaching the goals.

Goal leaders include: Tina Coria (GA); Nick Ardillo (MS); Terri Hauser (VA); Kelly Lineweaver

(SC); and Dan Neff (OH).

Governors Select ARC's 1997 States' Co-Chairman

Governor Kirk Fordice (R-MS) has been selected by his fellow governors as the ARC states'

co-chairman for 1997. Governor Fordice, who was elected governor in 1991 and re-elected in 1995,

has been a strong proponent of the Commission.

Governor Fordice will take office on January 1, 1997. Nick Ardillo will serve as the alternate to the

states' co-chairman.

In other action, West Virginia Governor-elect Cecil Underwood (R-WV) will replace Governor

Gaston Caperton, who, after two terms in office, was ineligible to run for a third term.

Governor-elect Underwood is not exactly a stranger to the governor's office or the Commission. In

1956, at the age of 34, he was the youngest person ever elected governor in the state of West

Virginia. During his four-year term, Governor Underwood was involved in the planning that led to

the creation of the Commission.

In North Carolina, Governor Jim Hunt will enter his fourth term. Governor Hunt, a former ARC

states' co-chairman in 1978, served two terms from 1977 to 1985. Prohibited by law from seeking a

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (5 of 8) [4/14/1999 11:07:29 AM]
third consecutive term, he returned to the governor's office in 1992.

ARC Convenes Tourism Consultation

Leading industry experts and practitioners in the tourism field joined Commission officials for a

day-long consultation November 15 to explore the role of tourism in economic development and to

examine ARC's policy in this area.

Tourism and related enterprises are becoming an integral part of many Appalachian communities'

economic development strategies, with ARC investing in a wide variety of tourism-related projects

over the past decade.

Eight panelists and over a dozen specially invited guests—representing industry experts and

practitioners in the field—discussed the economic development benefits as well as the negative

impacts related to tourism development in rural communities.

Other discussion points focused on the differences between tourism and other business activities; the

critical elements necessary for successful tourism development; the appropriate role of government

in such activities; and tourism development in relation to the Commission's strategic plan.

Participants emphasized that successful tourism development results from a comprehensive planning

process, driven by community involvement and support.

The Policy Development Committee has proposed a tourism policy that reflects many of the

recommendations of consultation participants.

ARC Notes

Alabama Governor Fob James has named Edwin I. Gardner, acting director for the

Department of Economic and Community Affairs, to serve as his alternate to the Commission.

● 

In keeping with new ARC Code regulations, the states have submitted their strategy

statements that will link their ARC investments to five regional goals articulated in the

Commission's strategic plan.

● 

ARC officials participated in a November 22–23 conference on the federal role in economic

development sponsored by the National Association of Public Administration, with funding

from the Economic Development Administration.

● 

The Export Trade Advisory Council held a December 11 general business meeting in

Washington, D.C., to discuss its current research projects, education and training proposals,

and advocacy issues.

● 

Over 90 export practitioners, representing local development districts, state governments, and

higher education, attended a 3-day export training workshop sponsored by the Development

District Association of Appalachia October 30-November 1 in Roanoke, Virginia.

● 

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (6 of 8) [4/14/1999 11:07:29 AM]
DDAA Members Hold November Meeting

At a November 12 board meeting, members of the Development District Association of Appalachia

(DDAA) adopted several measures, including an action plan, to guide the organization's activities

through 1997.

The business meeting, which was held in conjunction with the National Association of Development

Organizations (NADO) annual training conference in Hilton Head, South Carolina, included a key

note address by Federal Co-Chairman Jesse L. White Jr. and a congressional briefing by States'

Washington Representative Michael R. Wenger.

In adopting its 1997 action plan, board members agreed to strengthen the organization's networking,

training, and information technology efforts and to continue to participate in the Commission's

policy development and strategic planning activities.

"This plan will not only strengthen the LDDs' partnership with ARC but also will greatly impact our

Region's communities," said Donald Rychnowski, DDAA president. The action plan will formally be

presented to the full membership at the annual March meeting.

Board members also approved the 1997 training programs on information technology and

applications, personnel management, and facilitation techniques. In addition, members approved the

budget for the 1997 LDD conference to be held March 16–18 in Arlington, Virginia.

In tribute to John D. Whisman, the Kentucky official widely credited for spearheading the creation

of ARC, board members formally adopted the John D. Whisman Award Program. The annual award

will be presented to individuals who best exemplify a commitment to regionalism.

The first award will be presented at the LDD conference this March. Nominations are due in

January. For additional information contact Robert Sokolowski, LDD program director, at

202/884-7707.

Commission Adds Two Members to Personnel

Filling positions created by retirements, ARC has recently hired two staff members to serve in the

Regional Planning and Research Division.

Gregory Bischak will serve as the Commission's regional economist. Formerly the executive director

of the National Commission for Economic Conversion and Disarmament, he will be responsible for

the development and evaluation of ARC research projects.

Keith Witt joins the Commission as a program assistant. A former GIS technician at the Western

Maryland Geographic Information System Center, he will coordinate the creation of databases for

use in regional analysis, general research, and ARC's performance management system.

ARC has also eliminated two staff positions and budgeted other vacancies at lower salary levels in

response to a reduction in administrative funding.

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (7 of 8) [4/14/1999 11:07:29 AM]
Upcoming Activities

January 15 Commission Meeting, Washington, D.C.

February 2 Governors' Quorum Meeting, Washington, D.C.

March 7 Export Trade Advisory Council, Washington, D.C.

March 16–18 ARC/LDD Conference, Arlington, VA

April 13–15 NADO Washington Policy Conference, Washington, D.C.

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW, Washington,

DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax (202) 884-7691, or send

e-mail to tshimmons@arc.gov.

Back to Top

About ARC< | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | News, Events, and Publications | Socioeconomic Data | What's New | Home | Site Index | Feedback

November–December 1996 Appalachian Reporter

file:///F|/lps2404/novdec96.htm (8 of 8) [4/14/1999 11:07:29 AM]
January–February 1997

Table of Contents

❍ Commission Members Hold Annual Quorum Meeting

❍ The View from ARC Leadership . . .

❍ New Policies Improve J-1 Waiver Program

❍ President Proposes Budget Increase for ARC Programs

❍ Clinton Budget Funds Development Activities

❍ Commission Announces Changes in Personnel

❍ ARC Notes

❍ LDDs Plan Annual March Conference

❍ Commission Project Promotes Regionalism

❍ Strategy Statements Outline State Priorities for ARC Funds

❍ ARC Achievements for FY 1996

❍ Commission Launches Community Capacity Project

❍ ARC Moves Forward on Entrepreneurship

❍ Appalachian Schools to Gain Internet Access

❍ DDAA to Sponsor Technology Workshop

❍ Upcoming Activities

Commission Members Hold Annual Quorum Meeting

At its annual quorum meeting of Appalachian governors and the federal co-chairman,

the Appalachian Regional Commission unanimously adopted the FY 1997 state strategy

statements that implement the Commission's strategic plan for the Region, examined the

Region's progress in the past year, and discussed transportation issues with

Transportation Secretary-designate Rodney Slater.

"These strategy statements reflect the spirit of collaboration and dedication in

implementing the new strategic plan that we adopted in this very room a year ago," said

ARC Federal Co-Chairman Jesse L. White Jr., who jointly presided over the February 2

meeting with States' Co-Chairman Kirk Fordice, governor of Mississippi.

"The 13 states, our 69 local development districts, and our federal office have worked

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (1 of 14) [4/14/1999 11:07:45 AM]
shoulder-to-shoulder in this process. What we have achieved is to give structure to our

investments while actually expanding state flexibility," added White.

Local Decisions

Governor Fordice reminded Commission members of the importance of input from

local partners in investing in the Region. "While we on the state and federal levels have

an important responsibility to fulfill, ultimately progress throughout Appalachia will be

driven and accomplished by local leaders. We should provide the leadership and vision

in a supporting role to the progressive people who are determined to build better

communities."

Transportation

Secretary Slater stressed his commitment to continue working with the Appalachian

states to complete the Appalachian Development Highway System.

"It has been our desire to really bring our partnership to you where you live and have

your hopes and aspirations, to ensure that your transportation system for your state and

for this region collectively, and for our nation, is the best in the world," he said.

Federal Co-Chairman White told Commission members that the Clinton administration

will be proposing a major initiative to speed up funding for the completion of the

system through ISTEA reauthorization.

In other action, Commission members voted to approve revisions to the highway

chapter of the ARC Code.

Grant Cycle

In addition to approving the strategy statements for FY 1997, Commission members

approved a more flexible approval cycle for future submission of strategy statements.

This will allow projects to be funded at the beginning of the fiscal year.

Virginia Governor George Allen strongly supported the idea. "I think this accelerated

schedule is a great idea. It can save up to maybe five months and move these projects

forward. And these are important projects, especially when you’re dealing with

economic development matters."

In a broad-ranging discussion of the Region’s needs, several governors stressed the role

of ARC funds in promoting local economic growth. Said Tennessee Governor Don

Sundquist, "The Appalachian Regional Commission is critical to what we’re trying to

accomplish in the eastern part of our state where we do have some isolated . . . poor

counties."

Other governors at the session were Zell Miller (Georgia), Paul Patton (Kentucky),

James Hunt (North Carolina), Thomas Ridge (Pennsylvania), David Beasley (South

Carolina), and Cecil Underwood (West Virginia). Alternates Edwin Gardner (Alabama),

Alexander Treadwell (New York), Ronald Kreitner (Maryland), and Dan Neff (Ohio)

represented their states' governors.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (2 of 14) [4/14/1999 11:07:45 AM]
The View From ARC Leadership . . .

Jesse L. White Jr., Federal Co-Chairman

President Clinton's budget for ARC, released on February 5, is truly historic. For the

first time in the thirty-two year history of our agency, the president is recommending a

special allocation from the Highway Trust Fund to accelerate the completion of the

Appalachian Development Highway System. Until this year, our highways had to be

built out of regular, appropriated funds.

For FY 1998, the president is recommending $200 million from the trust fund for our

system.

In addition, his budget has $90 million in our "regular" appropriations account for

highways, for a grand total of $290 million. The special allocation in the trust fund will

rise yearly throughout the authorization period of ISTEA, to a level of $500 million in

2003.

This new and bold commitment to completing the ADHS arises from the fact that, while

the interstate system is 99% finished, the Appalachian Development Highway System is

only 77% complete. And, at the recent levels of regular appropriations, the final miles

would be built only at the end of the 21st century.

Obviously, something has to be done to keep faith with the commitment the nation

made to the people of Appalachia over thirty years ago.

By making our system eligible for special funding out of the trust fund, the promise and

dream of an Appalachia fully connected to the American economy can be finally

realized in the foreseeable future.

While there will be many complexities and controversies in the reauthorization of

ISTEA during the 105th Congress, this issue will be paramount to the Appalachian

states. It is hoped that either under the administration proposal or Senator Byrd's more

ambitious plan, all our states would be net winners.

The other good news in the president's budget is that the mark for our regular

appropriations is $165 million for FY 1998, $5 million more than our appropriated

figure for the current year.

This will add some $14 million to our area development work, which will be crucial in

continuing progress on our distressed counties program, the new strategic plan, and our

regional initiatives.

Our "intensive care" approach to distressed counties is working. Over the past four

years, the number of economically distressed counties in the Region has fallen from 115

to 94.

The requested increase in area development funds will accelerate the process of

removing the remaining counties from distress and raising the entire Region to

economic self-sufficiency.

The president's budget will also enable us to expand our entrepreneurship initiative from

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (3 of 14) [4/14/1999 11:07:45 AM]
the current planning and research stage to full regionwide implementation—a key

strategy for fostering dynamic local economies.

The total ARC budget for FY 1998 is $365 million, one of the highest levels ever for

the Commission. I am honored to represent a president with this type of commitment to

ARC.

As always, we will be calling upon all our state partners and our bipartisan

congressional leadership, as well as upon our local development districts, to help

support and defend this budget. With a lot of hard work—and, as always, some good

luck—this will be a truly banner year for the Appalachian Regional Commission.

New Policies Improve J-1 Waiver Program

Two major changes will improve the effectiveness of the Commission's J-1 Visa Waiver

program.

Through ARC's J-1 program, foreign physicians with advanced training in American

medical schools are placed for a minimum of three years in federally designated Health

Professional Shortage Areas (HPSAs) in the Region.

First, the recently enacted FY 1997 omnibus appropriation legislation contains a

provision which strengthens the government's enforcement power over violations of the

J-1 policies of all federal agencies, including ARC.

Doctors who fail to fulfill their three-year service commitment to practice primary

health care in areas with physician shortages will be forced to return to their home

countries for at least two years before they can apply for any other U.S. immigration

status.

Second, ARC has recently amended its J-1 policy to clarify and strengthen the

requirements that health facilities which sponsor J-1 physicians must serve the

medically indigent and accept Medicare and Medicaid assignments.

Based on language currently used by the National Health Service Corps, the new ARC

regulations prohibit discrimination against the medically indigent and require the use of

sliding fee scales for poverty-level and low-income individuals, as well as the

conspicuous posting of a notice to patients at the practice site concerning these fee

arrangements.

The new ARC policy stems in part from the growing number of placements of

physicians in HPSAs that serve a specific population. It also responds to a recent report

by the General Accounting Office that recommended actions to ensure that J-1

physicians actually serve the poverty populations they are supposed to serve.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (4 of 14) [4/14/1999 11:07:45 AM]
President Proposes Budget Increase for ARC Programs

President Clinton has requested $165 million for the Appalachian Regional Commission

for FY 1998, an increase of $5 million over the 1997 funding level. In addition, the

president proposes spending $200 million from the federal Highway Trust Fund to

accelerate completion of the Appalachian Development Highway System.

"This administration is committed to keeping the nation's promise to Appalachia," said

ARC Federal Co-Chairman Jesse L. White Jr. "Our emphasis is on the most

economically distressed counties and on completion of this vitally important

development highway system."

Under the president's budget, the Commission would receive $71 million for area

development programs, an increase of $14 million from the amount appropriated by

Congress in FY 1997.

Although final decisions on how the funds would be used would be made by the

Commission, the administration proposes additional efforts to assist the Region's

distressed counties and an expanded emphasis on the regional initiative in

entrepreneurship, while continuing the work in the five goal areas outlined in the

agency's strategic plan.

The budget provides $4.4 million for the Region's 69 local development districts. The

Commission's operational costs would be budgeted at 3.4 percent.

Funding for the Commission's regular highway program is budgeted at $90 million. For

the first time in the history of the Commission, the administration is also requesting an

allocation of $200 million from the Highway Trust Fund toward completion of the

3,025-mile highway system.

These funds would be under the administrative and programmatic jurisdiction of ARC.

The administration plans to include this in its draft of legislation reauthorizing federal

highway programs.

The House Energy and Water Development Appropriations Subcommittee, chaired by

Representative Joe McDade (R-PA), will hold hearings on ARC's budget on March 6.

Federal Co-Chairman White and this year's states' co-chairman, Mississippi Governor

Kirk Fordice, will testify on ARC's behalf.

Clinton Budget Funds Development Activities

President Clinton's budget for FY 1998 proposes $268 billion in discretionary domestic

spending, an increase of $5.5 billion from 1997. This includes funding for a variety of

federal economic development programs.

EC/EZ Program

Building on the experience of the first round of enterprise communities and

empowerment zones (EC/EZ), the administration is proposing a second round of

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (5 of 14) [4/14/1999 11:07:45 AM]
selections, with 100 new designations. Communities would receive a combination of tax

incentives, direct grants, and priority consideration for funds from federal economic

development programs.

Like the first competition, this round would challenge communities to develop their

own comprehensive, strategic plans for revitalization, with input from residents and a

wide array of community partners. The administration would invest in communities that

develop the most innovative plans and secure significant local commitments.

CDFI

The Treasury Department's Community Development Financial Institutions Fund, for

which the budget proposes $125 million ($75 million more than in 1997), provides

grants, loans, equity investments, and technical assistance to qualified

CDFIs—including community development banks, low-income credit unions,

microenterprise funds, and many multibank community development corporations.

Federal funds may be used for small businesses, low-income housing, community

facilities, and other community development activities.

EDA

The president's budget request contains $344 million for the Economic Development

Administration, roughly the same level as the agency received in 1997. Funding for

EDA's planning program remains at the current level of $24 million.

Public works grants for infrastructure that fosters business growth and job creation

would be funded at $160 million.

RCAP

In keeping with the 1996 Farm Bill, the administration would consolidate a dozen of the

Department of Agriculture's rural development programs under the Rural Community

Advancement Program, budgeted at $688.57 million.

Commission Announces Changes in Personnel

A long-time professional staff member recently retired from the Commission.

Neil Walp, who went to work at the Commission when it was created in 1965, provided

31 years of service as a program developer and regional planner and, most recently, as a

program analyst and senior agriculture and forestry advisor.

The Commission welcomes a new employee, LAN administrator Matthew Bender. He

will be responsible for information systems development and the maintenance of ARC's

computer systems.

In other actions, the Commission staff has honored two of its members with the annual

peer awards for outstanding service to the Commission. Judy Maher, policy analyst in

the Regional Planning and Research Division, and Deann Greathouse, program assistant

in the General Counsel's Office, received cash awards.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (6 of 14) [4/14/1999 11:07:45 AM]
All Commission staff nominate fellow workers for peer awards.

ARC Notes

ARC Federal Co-Chairman Jesse L. White Jr. recently joined Assistant Secretary

of Commerce for Economic Development Phillip A. Singerman, Senator Max

Baucus (D-MT), and Rep. Jim Oberstar (D-MN) in a forum on economic

development sponsored by the National Association of Counties. White stressed

the importance of ARC's partnership with EDA in promoting the economic

growth of the Region.

● 

The Commission will host the first formal gathering of advisors and editors of the

Encyclopedia of Appalachia, a multidisciplinary reference work covering the

culture, geography, natural resources, and history of the 13-state mountain region,

in Washington on Tuesday, March 4.

● 

ARC has joined the Capital Area Rural Health Roundtable, which provides a

forum for representatives of national organizations, foundations, congressional

offices, and federal agencies to learn about and discuss health care issues.

● 

Executive Director Tom Hunter recently presented staff service awards. Vernon

Smith received a 30-year award, while Anne Bethea, Bob Decker, and Jan

Jackson received 25-year awards. A 20-year plaque went to Henry King, while

Evangeline Wells and Mike Wenger received 15-year awards.

● 

The Appalachia Leadership Initiative on Cancer will host a summit on cancer

July 10–13 in Washington, D.C. For additional information, contact Lisa Hiner at

606/257-4033.

● 

Senator Robert C. Byrd (D-WV) has introduced legislation, S. 182, that would

authorize funding to complete the Appalachian Development Highway System

over the next six years.

● 

LDDs Plan Annual March Conference

Local development districts from across the Region will participate in their annual

conference March 16–18 at the Crystal City Marriott in Arlington, Virginia.

Sponsored by the Development District Association of Appalachia (DDAA) in

conjunction with the Appalachian Regional Commission, this annual conference

provides LDD members an opportunity to conduct their annual board and business

meetings, attend workshops covering regional development issues, share with their

peers innovative programs and services, and meet with congressional officials.

During Sunday's opening session, the association will honor Representatives Joseph

McDade (R-PA) and Rick Boucher (D-VA) with a special congressional award, given

each year to members of Congress who have strongly supported the Appalachian

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (7 of 14) [4/14/1999 11:07:45 AM]
Regional Commission and the work of the 69 local development districts in providing a

foundation for local economic growth in Appalachia.

Monday's session will provide participants an opportunity to attend workshops related

to goals three and four of ARC's strategic plan. Workshop topics include: "Building

Local Capacity—Seven Key Elements for an Effective Regional Council;" "Building

Self-Sustaining Economies through More Effective Partnerships;" and "How to Partner

with the Nonprofit Community."

The afternoon session will include a presentation on public speaking by Beverly

Silverberg of Communications, Inc., as well as a workshop on the importance of LDD

state associations.

The association will conclude the conference with a presentation related to goal five,

"Quality Health Care—An Economic Development Tool," by Bruce Behringer,

executive director of the Office of Rural and Community Health at East Tennessee State

University.

For additional information, contact Robert Sokolowski, LDD program director, at

202/884-7707.

Commission Project Promotes Regionalism

Promoting "regionalism" as a key to local economic growth, ARC has recently funded

the Northeast Alabama Development Forum, which will encourage cooperative

development and planning activities in 11 Alabama and six Georgia counties.

Crossing state geographical and political boundaries, the Northeast Alabama

Development Forum will establish a series of task forces to address regional

development issues, conduct seminars and workshops on topics of regional interest, and

host a two-day conference to explore themes of regional growth and cooperation.

"We want to take the time and make the opportunity to create a vision of what kind of

south we want this to be," said H. Brandt Ayers, who will chair the forum. "In a busy

world, somebody needs to step back and ask what it is we want to have happen," added

Ayers, editor of the Alabama Anniston Star.

The project is based on the recognition that northeast Alabama and northwest Georgia

share many concerns, including the availability of adequate water supplies, regional

transportation needs, the region's workforce training needs, and the future of Fort

McClellan.

The Northeast Alabama Development Forum will include the Alabama counties of

Blount, Calhoun, Cherokee, Cleburne, De Kalb, Etowah, Marshall, Talladega, and St.

Clair, and the Georgia counties of Floyd, Carroll, Chattanooga, Polk, Harralson, and

Heard.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (8 of 14) [4/14/1999 11:07:45 AM]
Strategy Statements Outline State Priorities for ARC

Funds

Implementing key elements of the Commission's new strategic plan, the Appalachian

states have developed strategy statements for FY 1997, linking state programs and

projects to ARC's five goals.

The strategy statements reflect the diverse approaches states are adopting in advancing

ARC's ambitious goals.

GOAL 1 - Education and Training

The role of education in fostering economic growth is evident in the plans states have

for upgrading education in the Region. Seven states will support the use of improved

curricula through telecommunications, while eight states will expand or implement

programs that emphasize workforce preparation.

A partnership with the Appalachian Rural Systemic Initiative, a National Science

Foundation initiative based in Kentucky, will work to improve the math and science

scores of students in 66 distressed counties in Kentucky, North Carolina, Ohio,

Tennessee, Virginia, and West Virginia.

GOAL 2 - Infrastructure

Infrastructure, particularly water and sewer systems, is a high priority for all the

Appalachian states, and 1997 investment totals for nonhighway infrastructure are likely

to exceed the $41 million in ARC funds spent in 1996.

Eleven states have identified water systems, waste treatment plants, and sewerage

services as priority projects this year, with most states having multiple projects in each

category.

Kentucky and Virginia have commissioned special initiatives addressing the lack of

potable water in areas of their states, and ARC funds will likely be used to support those

efforts.

West Virginia issued $117 million in bonds in 1996 for water and sewer projects, and

ARC dollars can be used to supplement these funds.

GOAL 3 - Civic Capacity

This year the Appalachian states will address both leadership skills development and

citizen mobilization through a variety of approaches. Eight states will concentrate on

starting or enhancing local programs to provide leadership training. Nine states will

focus on increasing the capacity of local governments and nonprofits by improving

planning processes or encouraging collaborative service delivery.

Good models abound across the Region. Mississippi has established a Competitive

Community Program, which provides local leadership with the tools to plan for lasting

growth.

In New York, the Southern Tier West Regional Planning and Development Board uses

outcome-based planning methods to get people started on community development

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (9 of 14) [4/14/1999 11:07:45 AM]
initiatives.

GOAL 4 - Dynamic Economic Base

Strategy statements indicate state support for a broad array of activities to foster more

dynamic local economies, including enterprise development programs, recapitalization

of revolving loan funds, and entrepreneurial education. Five states will support

feasibility studies and marketing of tourism initiatives that can promote job creation and

community renewal.

Tennessee will support opportunities for industry-cluster initiatives that build on the

Region’s comparative advantages and that deepen the linkages among cluster-based

sectors.

GOAL 5 - Healthy People

By using telecommunications to expand access to health care, strengthening prenatal

and neonatal programs in counties with high infant mortality rates, and identifying gaps

in the delivery of health care services, states will work to improve health care in the

Region.

Through public awareness, education, and outreach activities, the South Carolina Infant

Mortality Reduction Project is nearing its goal of reaching a 90 percent immunization

rate in the Appalachian part of the state.

ARC Achievements for FY 1996

GOAL 1: Education and Training

● Provided educational activities for 37,651 participants.

● Provided job skills training for 10,350 participants.

GOAL 2: Infrastructure

● Opened 26 miles of Appalachian Development Highways.

● Provided water/sewer service for 15,932 households.

● Supported the construction of 190 low-/moderate-income houses.

GOAL 3: Civic Capacity

● Provided leadership programs for 7,464 participants.

GOAL 4: Dynamic Economic Base

● Assisted in the development of 15,686 jobs.

● Assisted in the retention of 17,659 jobs.

● Attracted $1.017 billion in matching private funds.

GOAL 5: Healthy People

● Placed 146 doctors in medically underserved areas of the Region.

● Provided health services to 11,388 participants.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (10 of 14) [4/14/1999 11:07:45 AM]
Commission Launches Community Capacity Project

Not far from NASA's Space Flight Center in Huntsville, Alabama, ARC's federal, state, and local

partners, along with the Rensselaerville Institute, are launching a multistage civic development

program, created to help rural Appalachian communities explore, discover, and benefit from a larger

universe of economic and community development strategies and problem-solving models.

The Appalachian Community Learning Project (ACLP) is providing a vehicle to showcase a broad

range of successful problem-solving strategies and techniques pioneered by Appalachian

communities and an opportunity for local Appalachian leaders to put these techniques to work in

their communities.

The inaugural ACLP forum—taking place February 27–March 1 in Huntsville—will involve teams

of local leaders from seven communities representing Appalachian Alabama, Georgia, Mississippi,

and Tennessee.

"This is a 'homegrown' approach to community problem solving," said ARC Federal Co-Chairman

Jesse L. White Jr.

"A number of our communities have made great strides in becoming economically self-reliant, in

mobilizing their citizens, in organizing, in conceiving innovative ideas and strategies, in planning,

and in successfully carrying out their vision. We view these examples—all homegrown in

Appalachia—as great, untapped resources," said White, adding, "Communities learn best from other

communities."

In late March, a second forum for the central Appalachian states will be held near Asheville, North

Carolina. The third forum for northern Appalachia is scheduled for early May in Hidden Valley,

Pennsylvania.

In all, over 150 community leaders from 32 communities will attend one of three forums, with over

half representing ARC-designated distressed counties or communities within those counties.

The forums will provide participants an opportunity to identify local problems and map out first

steps toward solving these concerns.

Backed with ARC technical and financial assistance, each ACLP community team will return home

and take on a small project to solve an identified issue. Development officials from LDD and state

ARC offices, as well as Commission staff, will provide technical support for these local efforts.

Follow-up activities will include a meeting of ACLP participants to celebrate successes and share

experiences. Challenge grants will also be available to help successful communities.

This regionwide project is part of the Commission's regional initiative in leadership and civic

development.

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (11 of 14) [4/14/1999 11:07:45 AM]
ARC Moves Forward on Entrepreneurship

As part of its planning efforts for a regional initiative in entrepreneurship, Commission staff recently

met with business development and finance policy makers and practitioners from Kentucky and

Pennsylvania.

The meetings are designed, in part, to determine the strengths and weaknesses of the Region's

business development infrastructure and to determine the most appropriate role of ARC in

stimulating locally-owned, job-creating businesses.

Commission staff will be visiting officials from North Carolina and Mississippi in March.

ARC's inquiry includes consultation with local and state economic development practitioners,

nonprofit community development experts, and academic researchers.

The Commission is also looking at other federal and state programs created to address business

capital gaps that often plague low-income areas, including the Community Development Financial

Institution (CDFI) fund, the USDA's Alternative Agricultural Research and Commercialization

Corporation, and several state-level venture capital funds.

In addition, Kentucky Highlands Investment Corporation and the Enterprise Corporation of the Delta

are just two of the nonprofit organizations the Commission is looking at as successful models in

stimulating business development in distressed rural areas.

The results of these discussions will be presented to the Policy Development Committee in April and

will form the basis for deciding how best to implement the entrepreneurship initiative.

Appalachian Schools to Gain Internet Access

Joining forces with Projectneat, a California-based nonprofit organization, the Appalachian Regional

Commission will help link 1,250 Appalachian schools to the Internet in 1997.

Projectneat will provide Appalachian schools with state-of-the-art Internet "appliances," which

employ a simple push-button access system to display information on a large television screen

instead of on a computer monitor.

These mobile devices can serve an entire school; and since information is displayed on a 27-inch

television screen, it can be shared by an entire class.

In partnership with Projectneat, ARC will fund teacher training programs, assisting them with

integrating these devices into their curricula.

Projectneat plans to donate interactive learning tools to connect every U.S. primary and secondary

school to the Internet by the summer of 1998, focusing on underserved schools first.

In its work to support the economic development of the Region, ARC has funded nearly $600

million in education projects in its 13 member states since 1965.

This project was jointly announced by Federal Co-Chairman Jesse L. White Jr. and Kamran Elahian,

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (12 of 14) [4/14/1999 11:07:45 AM]
founder of Projectneat, at the February 2 Governors' Quorum Meeting.

DDAA to Sponsor Technology Workshop

The Development District Association of Appalachia will sponsor a technology workshop May

18–20 at the Meadowview Marriott Conference Center in Kingsport, Tennessee.

Through a variety of workshop sessions, participants will have an opportunity to explore the

relationship between information technology and effective government management, as well as the

many uses of technology in economic and human resource development.

The workshop will also showcase technology applications in such areas as Geographic Information

Systems (GIS), comprehensive and strategic planning, industrial sites marketing, and effective use of

electronic census data.

The registration fee is $95.00, and the registration deadline is May 2. For more information, contact

LDD Program Director Bob Sokolowski at 202/884-7707.

Upcoming Activities

March 6 Hearing on FY 1998 ARC Appropriation, Energy and Water Subcommittee, Washington,

D.C.

March 7 Export Trade Advisory Council, Washington, D.C.

March 16–18 ARC/LDD Conference, Arlington, VA

March 20–22 Appalachian Community Learning Project—Central Appalachia, Lake Junaluska

Assembly, Lake Junaluska, NC

April 13–15 NADO Washington Policy Conference, Washington, D.C.

May 1–3 Appalachian Community Learning Project—Northern Appalachia Hidden Valley

Conference Center, Hidden Valley, PA

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW, Washington,

DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax (202) 884-7691, or send

email to tshimmons@arc.gov.

Back to Top

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (13 of 14) [4/14/1999 11:07:45 AM]
About ARC< | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | News, Events, and Publications | Socioeconomic Data | What's New | Home | Site Index | Feedback

January–February 1997 Appalachian Reporter

file:///F|/lps2404/janfeb97.htm (14 of 14) [4/14/1999 11:07:45 AM]
March-April 1997

Table of Contents

❍ Commission Seeks $165 Million for Fiscal Year 1998

❍ The View from ARC Leadership . . .

❍ Commission Research Effort to Focus on Welfare Reform

❍ Administration Requests ARC Reauthorization

❍ President Proposes ARC Highway Funding

❍ ARC Contributes to Historic Housing Project

❍ ARC Notes

❍ DDAA to Sponsor Technology Workshop

❍ Regional Initiative Projects Move Forward

❍ ARC, DOC Sign Pact to Boost Region's Exports

❍ ARC Hosts First Board Meeting of Encyclopedia of Appalachia Project

❍ Development Official Testifies on Bill to Boost Small Business Growth

❍ Upcoming Activities

Commission Seeks $165 Million for Fiscal Year 1998

Federal Co-Chairman Jesse L. White Jr. and States' Co-Chairman Kirk Fordice,

governor of Mississippi, have asked a House panel to support the administration's

request of $165 million for the Appalachian Regional Commission in FY 1998.

In the March 4 hearing before the House Energy and Water Development

Appropriations Subcommittee, Fordice told the lawmakers that the amount—which

includes $90 million for highways, $71.4 million for area development activities, and

$3.6 million for salaries and expenses—"will enable us to continue progress toward our

vision of a self-sufficient Appalachian Region, enabling this Region to take its place in

the mainstream of the American economy."

White pointed out that the administration's budget request advances the implementation

of the Commission's new strategic plan, accelerates construction of the Appalachian

Development Highway System, and intensifies the agency's work with the Region's

most economically distressed counties.

Area Development

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (1 of 11) [4/14/1999 11:08:02 AM]
The administration's budget calls for an increase of $14.4 million over the current

funding level for area development programs. "This budget contemplates additional

resources for our most economically distressed counties and greater emphasis on the

development of local entrepreneurship across the Region," White told the

subcommittee.

He also noted that it would continue vigorous support of multi-county regional planning

agencies, "the heart of the ARC delivery system."

Fordice told the committee that ARC "has never been about throwing money at a

problem. We never have had much money to throw in the first place. The Commission

has been about solving problems by building partnerships in the public and private

sectors and by being advocates for our region."

Representative Hal Rogers (R-KY) applauded the Commission's work. "This

organization, I think, is a model for the way other agencies ought to operate," he told

the subcommittee. "It is grassroots-driven at the outset."

Rogers noted particularly the role of the Commission in creating jobs. "Now that

welfare reform is here and we are asking people who were formerly drawing welfare to

find a job, that has brought a new urgency to the Appalachian Region."

Targeting

During the hearing, several members of the subcommittee urged the Commission to

continue targeting resources to the Region's most economically distressed counties.

"What we really want to concentrate on are those [distressed ] counties," said

Representative Vic Fazio (D-CA). "The more you emphasize the neediest, the more I

think you will find support will continue here, not only to keep the Commission alive

but to fund the kind of budget you think you need."

White explained that the Commission has also adopted policies that restrict funding in

counties that are performing at or near national economic norms.

Highways

White noted that the administration's budget calls for an unparalleled commitment to the

timely completion of the 3,025-mile Appalachian Development Highway System. The

budget requests $90 million in appropriated dollars and $200 million within the

authorization of ISTEA.

"While the interstate system is 99 percent finished, the Appalachian system is only 77

percent complete or under construction," he said. "By authorizing funding for the

ADHS in the reauthorization of ISTEA, the promise and dream of an Appalachia fully

connected to the American economy can be finally realized in the foreseeable future."

Governor Fordice added that the regional nature of the highway system is critical to

achieving economic self-sufficiency in Appalachia.

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (2 of 11) [4/14/1999 11:08:02 AM]
The View From ARC Leadership . . .

Thomas M. Hunter, Executive Director

During the past year, just about everything you heard about ARC relates to putting a

new strategic plan into place. We are truly excited about the plan and what it will mean,

over the long term, for the Appalachian Region.

But big plans are not realized overnight. Our success in achieving the goals of the plan

will be incremental: each year, if we are doing our jobs, we should be able to see

additional progress.

Thanks to the new performance measurement system, we can collect data that reveal

these results of our first year under this plan.

In 1996, Commission programs directly benefited 178,000 people. Spending on

nonhighway projects was $61 million, with distressed counties receiving $18.3 million

of that total. Highway spending was about $137.7 million. Results by goal include:

Goal 1—ARC projects provided educational activities for some 42,600 participants and

job-skills training for more than 10,000 participants.

Goal 2—Twenty-six miles of the Appalachian Development Highway System were

opened; and nearly 35,000 households, many located in distressed rural counties, will

directly benefit from community improvements such as water and sewer lines.

Goal 3—ARC-funded projects provided leadership training for some 7,500 participants.

Goal 4—ARC assisted in the development of nearly 16,000 jobs, helped to retain

17,500 jobs, and attracted more than $1 billion in matching private funds

Goal 5—ARC placed 146 physicians in medically underserved areas of the Region, and

provided health services to 12,213 participants.

In adopting the ARC strategic plan, we also challenged ourselves to build a network of

alliances with partners who can help us reach ARC goals.

To date, that network includes: the Community College Association of Appalachia,

since our community colleges are the key to postsecondary education and training for

many Appalachians and an invaluable source of community leadership; the nonprofit

organization Projectneat, to provide equipment to link 1,200 Appalachian schools to the

Internet; the U.S. Department of Commerce, to target some of that department's foreign

trade resources to Appalachian businesses; and an ongoing partnership with the U.S.

Department of Energy, to provide math-science enrichment at Oak Ridge National

Laboratory for Appalachian students and teachers.

Our work on the strategic plan strengthened the ARC partnership by giving the states

and local development districts a much broader role in setting the course of our

program.

Add to these goal-oriented accomplishments completion of an internal reorganization,

the streamlining of our Code and project application process, and the overhaul of our

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (3 of 11) [4/14/1999 11:08:02 AM]
accounting system. ARC now has a modern, efficient management system to support its

program.

This has been a great beginning, and everyone can feel proud of his or her role in it. But

it is, after all, just the beginning. From now on, each new year will challenge us to build

and improve on the past year's record. With all of us working together, I am confident

we can meet the challenge.

Commission Research Effort to Focus on Welfare Reform

The ARC Research Committee has targeted the Appalachian Region's response to

welfare reform for special emphasis in the Commission's research activities. Meeting on

April 16, the committee recommended a consultation on the implementation of welfare

reform and allocated $300,000 of the research budget for funding up to three

demonstration projects across the Region.

A scan of current literature on the implications of welfare reform and a preliminary

analysis of the potential regional impact indicates that there are significant issues

confronting the ARC Region in implementing welfare reform.

Those challenges include adequate transportation and child-care needs in rural areas, the

capacity of local welfare agencies, and the implications of potential reallocation

programs for welfare-to-work participants.

The demonstration projects would offer models for other states and communities to use

in responding to the requirements of last year's welfare reform legislation.

In other action, the Research Committee approved a new round of emerging issues

papers. The research topics were suggested initially by the respective Goals Teams.

Topics include a demographic study of the Region, an analysis of the impact of

telecommunications deregulation on universal access in the Region, and an assessment

of the role of nontraditional service delivery organizations in economic development.

The committee also voted to extend Dr. Amy Glasmeier's tenure as the Commission's

John D. Whisman Appalachian Scholar. She is on the faculty at Pennsylvania State

University

Terri Hauser, Virginia Governor George Allen's alternate to the Commission, chairs the

committee.

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (4 of 11) [4/14/1999 11:08:02 AM]
Administration Requests ARC Reauthorization

The Clinton administration has proposed legislation to reauthorize the work of the

Appalachian Regional Commission through fiscal year 2002.

For FY 1988 it would authorize amounts consistent with the president's budget request

for ARC (including $90 million for highways and $71.355 million for area development

programs). In subsequent years, it would authorize "such sums as may be necessary."

ARC has lately operated on the basis of annual appropriations legislation, and

reauthorization would strengthen the ability of the agency to plan and effectively carry

out job-creating economic development activities.

"This is another sign of the president's strong support for the work of ARC," said

Federal Co-Chairman Jesse L. White Jr., who formally transmitted the legislative

proposal to Congress on March 27.

It would require the Commission to target its resources by restricting assistance to

"economically strong" counties and by giving special consideration to the needs of

counties designated as economically distressed. The Commission would retain

considerable discretion and flexibility in dealing with these concepts.

The proposed legislation would establish a statutory statement of purposes that is

consistent with the five goals articulated in ARC's new strategic plan. It would also

mandate that ARC programs and projects be subject to outcome measurements in order

to evaluate expenditures.

It would continue the work of the local development districts, multicounty regional

plannng agencies that bear much of the local responsibility for developing ARC

projects.

The measure builds on bipartisan legislation reported in the last Congress by the House

Committee on Transportation and Infrastructure.

Representatives Bud Shuster (R-PA) and James Oberstar (D-MN) are expected to

formally introduce the measure in the House. The House committee plans to consider

the legislation later this year.

President Proposes ARC Highway Funding

President Clinton has proposed legislation that would, for the first time, authorize

funding for the Appalachian Development Highway System (ADHS) from the Highway

Trust Fund.

The proposed six-year, $175 billion National Economic Crossroads Transportation

Efficiency Act (NEXTEA) program is designed to continue building and operating a

safe, efficient, and environmentally sound national transportation system into the next

century.

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (5 of 11) [4/14/1999 11:08:02 AM]
"Our nation's prosperity and quality of life depend greatly on our transportation

system," the president said in unveiling the omnibus transportation package.

The legislation, submitted to Congress on March 12, would authorize $2.19 billion for

the ADHS over the life of the bill. The president's budget for FY 1988 includes a

request for $200 million for the ADHS from the Highway Trust Fund. Spending out of

the trust fund would increase gradually in the outyears, reaching $500 million in FY

2003.

A number of competing highway proposals have also been introduced in Congress, as

states focus on funding formulas and identify individual transportation interests. The

final legislation must balance a variety of competing interests and funding choices.

In the House, the Committee on Transportation and Infrastructure held a series of

hearings in March to hear from members of Congress who were interested in specific

highway projects in their districts. A number of congressmen from the Appalachian

Region identified segments along the ADHS as being particularly important to their

districts.

According to ARC Federal Co-Chairman Jesse L. White Jr., the administration's

commitment to completing the ADHS arises from the fact that, while the interstate

system is 99 percent complete, the Appalachian system is only 77 percent complete. At

the recent levels of regular appropriations, the final miles would be built only at the end

of the twenty-first century.

"This proposal will help realize the promise of an Appalachia fully connected to the

American economy," White said.

Although the House and Senate committees hope to begin drafting their versions of the

highway bill this spring, final congressional action is not expected until much later in

the year.

ARC Contributes to Historic Housing Project

In a unique and historic partnership, Partnership Build, a program of the Federation of

Appalachian Housing Enterprises (FAHE) will join forces with Habitat for Humanity's

1997 Jimmy Carter Work Project (JCWP) to construct houses for very-low-income

families in Central Appalachia during the third week of June.

This week-long event, called Hammering in the Hills, will use a combination of

volunteer labor, sweat equity, and public and private donations to build over 100 homes.

An ARC Co-Chairmen's Committee grant of $63,000 to FAHE will contribute to the

construction of 63 homes in the Region's most distressed counties of Kentucky,

Tennessee, Virginia, and West Virginia.

Habitat for Humanity's JCWP will build 50 homes in seven sites in eastern Kentucky

and eastern Tennessee.

"We can do more things together than separately. Bring the Jimmy Carter Work Project

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (6 of 11) [4/14/1999 11:08:02 AM]
here will bring added public attention to the [housing problem] and what can be done

about it," said FAHE director David Lollis.

ARC funds will be used to support FAHE's coordination costs, regional fundraising

efforts, home ownership counseling, loan underwriting, and actual construction costs.

ARC Notes

ARC program staff joined over 60 other federal and state representatives in a

roundtable discussion on "Leveraging State Technology to Benefit Distressed

Areas." The April 17 program was sponsored by the Economic Development

Administration.

● 

As part of the Appalachian Community Learning Project (ACLP), 13 community

teams from Central Appalachia attended the second in a series of three regional

forums March 20–22 near Asheville, North Carolina. Over ten communities from

Northern Appalachia will attend the third regional forum May 1–3 in Hidden

Valley, Pennsylvania.

● 

The Commission, in conjunction with the U.S. Department of Energy's Oak

Ridge National Laboratory in Oak Ridge, Tennessee, will provide an opportunity

for over 60 Appalachian students and teachers to attend a two-week summer

math/science and technology hands-on learning institute July 12–26.

● 

The Commission welcomes new employee Sue Moreland, who will be joining

ARC's Program Operations Division. Sue will be sharing with the Commission

17 years of experience in economic development, having previously served as

Virginia's ARC program manager.

● 

Federal Co-Chairman Jesse L. White Jr. will be speaking at the one-day

International Symposium on Technical Colleges and Industrial Competitiveness

May 12. ARC is jointly sponsoring the symposium with Regional Technology

Strategies, Inc.; BellSouth; the Community College Association of Appalachia;

and the American Youth Policy Forum.

● 

At the Commission's April 16 Policy Development Committee meeting, members

reviewed the status of ARC's regional initiative investments and the performance

measurement system. In addition, committee members heard staff reports on a

regional initiative in entrepreneurship and on the classification of ARC counties

for FY 1998.

● 

Regional Initiative Projects Move Forward

Now in their third year of funding, ARC continues to advance investments in three

regional initiatives—export and international trade development, telecommunications,

and leadership and civic development.

In New York, an ARC grant of $33,750 will enable the Southern Tier East Regional

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (7 of 11) [4/14/1999 11:08:02 AM]
Planning Development Board to develop an export trade program, providing technical

assistance and training to service providers and industries in an eight-county area.

In addition, an interactive telecommunications facility, funded by an ARC regional

initiative grant in telecommunications, will be used to conduct many of the export

training sessions.

An ARC grant of $122,044 to Virginia's Center on Rural Development (CORD) will

provide a leadership and civic development program for communities in Appalachian

Virginia. This program will offer training, technical assistance, challenge grants, and a

civic development conference.

In West Virginia, an ARC grant of $102,000 will enable the West Virginia

Development Office to create a Wide Area Network (WAN), connecting economic

development and nonprofit organizations to a "one-stop" economic development

network.

DDAA to Sponsor Technology Workshop

As part of its effort to promote the effective use of information technology by local

development districts, the Development District Association of Appalachia (DDAA)

will sponsor a technology workshop May 18–20 in Kingsport, Tennessee.

Participants will meet with technology specialists, attend hardware and software

demonstrations, and develop practical strategies to address technology opportunities.

The inaugural activities, which begin Sunday, will include an overview discussion on

the importance of information technology, followed by a networking reception for LDD

staff, board members, and other participants.

The reception will also include demonstrations by a number of technology specialists.

During Monday's session, Susan Reid, executive director of the First Tennessee

Development District, will provide opening remarks and a workshop overview.

In addition, ARC Federal Co-Chairman Jesse L. White Jr. will introduce special guest

Representative Rick Boucher (D-VA), who will speak on the importance of technology

in rural areas.

A strong supporter of ARC, Representative Boucher has placed southwest Virginia at

the forefront in the use of information technology, playing an instrumental role in

launching several "electronic villages" in his rural district.

Monday's workshop sessions will include a presentation on two of Virginia's electronic

villages, as well as a presentation on statewide community connections to information

technology in North Carolina.

A major part of the afternoon will be spent by participants working in teams, identifying

strategies, action steps, and the role of the DDAA in linking the districts with each

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (8 of 11) [4/14/1999 11:08:02 AM]
other, the states, and ARC.

The workshop will conclude on Tuesday with reports from each working group.

ARC, DOC Sign Pact to Boost Region's Exports

At the March 7 meeting of the Export Trade Advisory Council (ETAC) in Washington,

D.C., the Appalachian Regional Commission and the U.S. and Foreign Commercial

Service (US&FCS) at the U.S. Department of Commerce signed an historic agreement

aimed at boosting exports by small and medium-sized businesses located in Appalachia.

This agreement will support cooperative efforts between federal, state, and local

partners in the planning, development, and implementation of a number of trade

promotion projects.

ARC and US&FCS will each contribute $40,000 in salary and other direct costs for this

initiative. The Ford Foundation will also support this partnership, providing $20,000 to

improve the participation of Appalachian businesses in the international market place.

ARC Federal Co-Chairman Jesse L. White Jr., along with Daniel J. McLaughlin, deputy

assistant secretary for domestic operations for the International Trade Administration,

signed the agreement at ETAC's quarterly business meeting.

"Appalachia's participation in the export market not only means jobs for our residents; it

also means greater wealth for our nation," said Federal Co-Chairman White.

"This agreement is another example of our efforts to expand ARC's pool of partners, all

of whom are working toward strengthening Appalachia's economic future and

prosperity. I am pleased to welcome the U.S. and Foreign Commercial Service, along

with the Ford Foundation, as new partners in this critical work," White said.

Emphasizing the administration's support for international trade, Deputy Assistant

Secretary McLaughlin said, "The Clinton administration has demonstrated that exports

equal jobs and economic development and we are pleased to join ARC and its member

states in exporting from the Appalachian Region to the world."

ARC Hosts First Board Meeting of Encyclopedia of

Appalachia Project

At the first formal gathering of advisors and editors for the Encyclopedia of Appalachia,

members began refining topics for inclusion in the 1,800-page multidisciplinary

reference work and discussing sources of funds.

ARC Federal Co-Chairman Jesse L. White Jr. hosted the March 4 meeting, which took

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (9 of 11) [4/14/1999 11:08:02 AM]
place at Commission headquarters.

The advisory and editorial board consists of Appalachian scholars, journalists, political

leaders, and national park officials, and includes an Appalachian folklorist and a

publishing executive.

The single-volume work is expected to present a complete picture of Appalachia,

addressing the Region's culture, history, politics, and natural resources. Entries will

range from coal mining and labor to bluegrass music and recreation.

Dr. Jean Speer, director of the Center for Appalachian Studies at East Tennessee State

University and co-editor of the project, notes that this work will also examine

Appalachia's role in the economic development of the United States.

"It's a place that has provided a lot of natural resources, including coal and water to

power the textile mills and recreation," said Speer.

Rudy Abramson, former Washington correspondent for the Los Angeles Times and

author of Hallowed Ground, a recently published book about the Virginia Piedmont,

will serve as the other co-editor of the project.

The University of Tennessee has been recently named publisher for this work. A

publication date is targeted for the year 2001. Electronic versions will also be available

both through the Internet and for CD-ROM use. A children's version also is being

considered.

The Commission provided a $25,000 Co-Chairmen's Committee grant two years ago to

support the planning phase of this reference work.

"Appalachia's unique geography, history, culture—and particularly its contributions to

our nation's industrial might and development—should be recognized, celebrated, and

cherished," said Federal Co-Chairman White. "This encyclopedia, of which ARC is just

one of many partners, will help share this richness with people all over the world. We

are proud to be part of this project."

Development Official Testifies on Bill to Boost Small Business

Growth

Pointing to the special needs of Appalachia, J. Glynn Loope, executive director of the Alleghany

Highlands Economic Development Authority in Covington, Virginia, recently testified before the

Senate Small Business Committee concerning legislation that would provide government contracting

preferences and set-asides to small businesses located in economically distressed areas.

The legislation, the HUBZone Act of 1997, was introduced by Senator Kit Bond (R-MO).

Loope recommended that Congress let the HUBZone Act "perform as a compliment to the work of

the Appalachian Regional Commission" in helping create "entrepreneurial people and enterprising

communities."

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (10 of 11) [4/14/1999 11:08:02 AM]
Upcoming Activities

May 1–3 Appalachian Community Learning Project—Northern Appalachia Hidden Valley

Conference Center, Hidden Valley, PA

May 14 Export Trade Advisory Council, Atlanta, GA

May 18–20 DDAA Technology Training Workshop, Kingsport, TN

May 22 Commission meeting, Washington, D.C.

June 6–10 NARC annual conference, Charlotte, NC

July 10–12 Summit, Appalachia Leadership Initiative on Cancer, Washington, D.C.

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW, Washington,

DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax (202) 884-7691, or email

tshimmons@arc.gov.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | News, Events, and Publications | Socioeconomic Data | What's New | Home | Site Index | Feedback

March–April 1997 Appalachian Reporter

file:///F|/lps2404/marapr97.htm (11 of 11) [4/14/1999 11:08:02 AM]
May–June 1997

Table of Contents

❍ Commission Launches Initiative in Entrepreneurship

❍ The View from ARC Leadership . . .

❍ ARC Approves FY 1998 Administrative Budget

❍ Appalachian Communities Begin Hometown Projects

❍ Appalachia Leadership Initiative on Cancer to Host Washington, D.C., Summit

❍ DDAA Plans Workshop on Personnel Issues

❍ Pennsylvania to Begin Innovative Entrepreneurial Education Program

❍ ARC Notes

❍ ARC Announces Personnel Action

❍ Commission Convenes Consultation on Welfare Reform

❍ ARC Reauthorization Hearings Scheduled

❍ Commission Unveils World Wide Web Site

❍ Upcoming Activities

Commission Launches Initiative in Entrepreneurship

At its May 22 meeting, the Appalachian Regional Commission unanimously voted to

launch its single largest new initiative of the past two decades—a three-year, $15

million effort aimed at boosting the creation of homegrown businesses in Appalachia.

"Through this entrepreneurship initiative, the Commission is committing itself to

helping our communities develop, grow, and expand local businesses to create jobs and

to strengthen local economies," said ARC Federal Co-Chairman Jesse L. White Jr.

"Homegrown businesses also help our people gain greater control over their economic

destiny by generating wealth which stays in the community—the real key to

self-sufficiency and sustainability," he noted.

Funding will be available to support programs and activities in one of five areas critical

to entrepreneurship: access to capital and financial assistance; technical and managerial

assistance; technology transfer; entrepreneurship education and training; and

entrepreneurial networks.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (1 of 10) [4/14/1999 11:08:10 AM]
"Governors know that you need a balanced approach to growing the economy, including

recruitment of outside industry, expansion of existing industries, and encouragement of

new businesses locally," said ARC States' Co-Chairman Kirk Fordice, governor of

Mississippi and former businessman.

"This latter approach takes advantage of the entrepreneurial skills of our citizenry,

creates more stable jobs, and keeps wealth in the local communities. The initiative will

provide resources to enable us to reap the benefits of encouraging homegrown

businesses," he added.

ARC's action represents the culmination of a year-long planning effort designed to

determine the appropriate role of ARC in stimulating locally owned, job-creating

businesses.

This planning effort included a consultation with leading experts in the field, focus

group sessions, and research on the existing entrepreneurial infrastructure in the Region.

In kicking off this initiative, four Appalachian entrepreneurs recently met with ARC

staff and Federal Co-Chairman White for a discussion on entrepreneurship as an

economic development strategy.

The entrepreneurs told of the struggles of starting a business, stressing the importance

of greater access to information and financial assistance as critical to the success of any

new business.

Funding for initiative projects is immediately available through ARC's regular

application process.

The View From ARC Leadership . . .

Governor Kirk Fordice, States' Co-Chairman

As the states' co-chairman for the ARC, I testified at a congressional hearing earlier this

year that "I believe the best social program ever devised by man is a good job." And I

stated my belief that the most successful job creation efforts occur "when we keep our

money at home and take care of our own needs."

That's why I am such a strong supporter of the ARC. It's a job creation partnership

between the federal government and the 13 Appalachian states. It allows state and local

officials to make decisions on how the money is spent, and its flexibility enables state

and local officials to think creatively about how to best create an environment that

encourages job creation.

For example, the Three Rivers Planning and Development District, through its ARC

Revolving Loan Fund, has funded thirty-five loans totaling $2.5 million. These loans

have leveraged nearly $9 million in private sector funds and have created more than

1,200 new jobs.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (2 of 10) [4/14/1999 11:08:10 AM]
The Golden Triangle Planning and Development District, to better assist local units of

government, plans to develop, with ARC assistance, a telecommunications network

system that would act as a resource center, offering valuable information, expertise, and

interaction to the information superhighway for local existing and potential industries.

The system will have the capability of offering two-way interactive video conferencing

with data transmission via satellite. Local companies, as well as local agencies, will be

able to link up with counterparts anywhere in the world to exchange information and

ideas.

Our Mississippi Department of Economic and Community Development is using ARC

funds to assist counties in northeast Mississippi to develop and strengthen their civic

infrastructure and build capacity through leadership, strategic planning and other

programs which mobilize citizens for community betterment. This kind of capacity

building is an essential element of a business-friendly climate which can attract new

jobs and encourage local entrepreneurs to step forward.

These are merely examples of how ARC money has been used in the 21 counties of

Appalachian Mississippi. During the 32-year life of the ARC program, more than $135

million has been funneled into these counties for activities ranging from health care to

housing to water and sewer projects. This money has resulted in more than $340 million

from all sources being invested in these projects to help develop a strong and stable

economy.

In addition, the ARC has provided approximately $200 million in funds to help

construct Mississippi's portion of the Appalachian Development Highway System.

Corridor V and Corridor X are both nearing completion because of ARC funding. When

they are finished, they will provide direct access from Tupelo to Birmingham and

Huntsville, Alabama, and Chattanooga, Tennessee, thus furthering the economic growth

and development of northeast Mississippi.

That's the ARC story in northeast Mississippi. It's a story repeated in all 13 states that

are part of the Appalachian Region—building local partnerships to create an

environment in which good jobs are developed and flourish.

ARC Approves FY 1998 Administrative Budget

At the May 22 Commission meeting, members approved ARC's operating budget for

FY 1998, agreed to support the transition of three regional initiatives through FY 1998,

approved a fourth regional initiative in entrepreneurship, and heard a special

presentation on local entrepreneurship activities.

A budget of $5.1 million has been proposed for FY 1998, reflecting $133,000 less than

the amount authorized by the Commission in FY 1996 and FY 1997. The budget also

provides personnel support for 48 positions, the lowest level since ARC's creation in

1965. Funding for the administrative costs of ARC is shared jointly by the federal

government and the Appalachian states.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (3 of 10) [4/14/1999 11:08:10 AM]
In FY 1994, prior to the adoption of the Commission's strategic plan, ARC launched

regional initiatives in leadership and civic development, telecommunications, and

export development, with the agreement to reexamine the initiatives at the end of a

three-year period.

With many of the regional initiative projects and programs supportive of ARC's five

goal areas, Commission members agreed to phase out the regional initiatives over the

next year, allocating $2 million in FY 1998 funds, which includes central office funds,

to support the initiatives.

The funds will enable the states to continue special funding of regional initiative

projects that are already being developed and will provide a transition period as these

kinds of projects are incorporated into the states' regular area development funding

cycle.

Jeff Dukes, senior special projects officer from the Mississippi Department of

Economic and Community Development, discussed the Mississippi Business Incubator

System, which supports business incubation in centers in 12 Mississippi communities.

Appalachian Communities Begin Hometown Projects

Focusing on efforts ranging from a downtown revitalization project to a mentoring

program for young adults to a community housing program, participants in the

Appalachian Community Learning Project (ACLP) are now back in their home

communities putting to use problem-solving and collaborative strategies practiced at

one of the three regional forums held earlier this year in the southern, central, and

northern areas of the Appalachian Region.

With over 150 participants from 32 communities participating in these three-day

regional forums, community teams worked together in identifying a local problem,

charting a course of action, and initiating a small, six-month project—backed with ARC

financial assistance—to resolve the identified issue.

Community team members from Winston County, Mississippi, have undertaken a

revitalization project in Noxapater, landscaping downtown public areas and

creating an overall strategy for a revitalized main street. This project will result in

the renovation of two downtown buildings and an increase in sales tax revenue.

● 

In Johnson County, Tennessee, team members are recruiting skilled tradesmen to

work with at-risk youths in a mentoring program. Through signed agreements

between the participating youths and mentors, students will participate in a

summer-long internship program, with at least half the participants seeking

additional skills training upon completion of the program.

● 

Team members from Huntington, West Virginia, have identified a need for home

ownership in their small neighborhood and have initiated a community housing

program. This program will identify potential home owners and provide them

with the necessary support to move from renting to home ownership. Team

members expect that at least five homes will be purchased at the end of the

● 

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (4 of 10) [4/14/1999 11:08:10 AM]
six-month project period, with assistance provided to fifteen community

members.

Other community projects range from employment placement programs to community

renovation projects to self-help infrastructure projects for industrial development.

Officials from local development districts, ARC offices, and Commission staff are

providing technical support for these efforts.

ACLP participants will meet again this fall for an opportunity to share experiences and

celebrate successes. Challenge grants will also be available to help successful

communities with follow-up projects.

This regionwide capacity building effort is part of the Commission's regional initiative

in leadership and civic development.

Appalachia Leadership Initiative on Cancer to Host

Washington, D.C., Summit

How has a cancer education program based in the tiny Appalachian community of

Coalport, Pennsylvania, been able to draw some 200 women for cervical and breast

cancer screening tests over the past four years?

In Wetzel County, West Virginia, what are the responsibilities of a cancer education and

early detection "contract" that women are encouraged to sign?

An 11-state coalition created by the National Cancer Institute in 1992 met formally for

the first time July 10–13 at the Washington Marriott Hotel to address these questions

and a range of others on the state of cancer education and control efforts across the

Appalachian Region.

The Appalachia Leadership Initiative on Cancer (ALIC) coalition was created in

response to the disproportionately high incidence and mortality rates for some cancers

among low-income, rural Appalachians. The program is designed to facilitate a strong

cancer control network of local, state, and national organizations.

More than 300 participants representing some 75 community-based organizations

attended the cancer summit.

ARC Federal Co-chairman Jesse L. White Jr. appeared as a keynote speaker.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (5 of 10) [4/14/1999 11:08:10 AM]
DDAA Plans Workshop on Personnel Issues

To help strengthen the Region's 69 local development districts' (LDDs) management

practices in a changing climate of public service delivery and accountability, the

Development District Association of Appalachia (DDAA) will offer a Personnel

Management Workshop July 27–29 in Charleston, West Virginia.

This four-session workshop will blend professional development activities with

business and legal updates on personnel management issues.

Professional development activities will be discussed and practiced in sessions one and

three and will cover such issues as how to effect changes in workplace norms to meet

the new role of public service organizations, how to retain superior employees in today's

public service organizations, and how to manage conflicts in the workplace.

Sessions two and four will address the effective management of people and processes

and will present the current compliance regulations affecting personnel in today's

organizations.

ARC Notes

Over 105 individuals representing local development districts, state offices, and

colleges and universities attended the Development District Association of

Appalachia's technology workshop May 18–20 in Kingsport, Tennessee.

● 

ARC staff recently attended the Community Colleges of Appalachia's annual

conference held June 22–24 in Hiawassee, Georgia.

● 

Robert E. Jones, an Alabama Democrat who served 30 years in the House of

Representatives and was a leader in the passing of the Appalachian Regional

Development Act, died June 4. Before retiring in 1977, Mr. Jones served as

chairman of the House Public Works Committee.

● 

Thomas A. Closser, executive director of the Buckeye Hills–Hocking Valley

Regional Development District, passed away June 13. Mr. Closser served 23

years as executive director of the organization.

● 

Pennsylvania to Begin Innovative Entrepreneurial

Education Program

A new multi-year project will encourage schools from across Appalachian Pennsylvania

to implement hands-on learning and training activities in entrepreneurship, part of a

comprehensive educational initiative to foster an entrepreneurial culture.

With an ARC grant of $254,309, matched with $63,577 from the Pennsylvania

School-to-Work program and $107,482 in local funds, this initiative will provide

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (6 of 10) [4/14/1999 11:08:10 AM]
entrepreneurial education and training activities through the Rural Entrepreneurship

through Action Learning (REAL) program for students in grade levels 11 and 12 and at

the community college level.

In addition, an existing statewide course, "Taking Charge: Learning Economics through

Entrepreneurship," will be updated and offered to students in grades 9 and 10.

Another major program activity includes the creation of an entrepreneurial education

summer camp for high school students.

To help facilitate an educational framework for entrepreneurial learning at the

elementary grade level, an inventory and analysis of existing programs will be

conducted, with the goal of developing and implementing a kindergarten through grade

six entrepreneurial education program by the third year of the initiative.

Approximately 21 high schools and 10 community colleges are expected to be

participating in the program by the end of the initiative.

The TEAM PA foundation—created by Pennsylvania's Governor Tom Ridge to

enhance business growth and expansion in the Commonwealth—will implement the

entrepreneurship program.

Pennsylvania representatives will discuss their statewide entrepreneurship strategy with

Commission officials at the July 18 Policy Development Committee meeting.

ARC Announces Personnel Action

A new staff member and a corps of summer interns are advancing the work of the

Commission.

Christina Evans recently joined the Commission as a public affairs specialist, filling the

position opened by the departure of Ann Anderson.

Ms. Evans previously has worked in public affairs on Capitol Hill, bringing to the

Commission over 11 years of experience.

Ann Anderson served eighteen years as public affairs specialist for the Commission.

As part of the Commission's summer internship program, nine graduate and college

students have been assisting staff in the areas of program evaluation, legislation, special

projects, and publications.

The summer internship program offers students an opportunity to gain professional

work experience in a public service setting.

Conducting performance evaluations on ARC development projects for the Regional

Planning and Research Division are Melissa Bird, William Jeffries, Carver Struve, and

Gretchen Welborn. Salvador Banuelos spent eight weeks in the Regional Planning and

Research Division working with the Commission's transportation specialist.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (7 of 10) [4/14/1999 11:08:10 AM]
In addition, David Hughes will be conducting a performance evaluation of the

Commission's J-1 Visa Program, while Jennifer Langer will be working on several

special projects for the Development District Association of Appalachia.

Jason Ward and Rebecca Jacobstein are providing legislative assistance in the Office of

the Federal Co-Chairman, and Amy Wright is assisting with publications and projects in

the Customer Relations and External Affairs Division.

ARC has also eliminated two staff positions and budgeted other vacancies at lower

salary levels in response to a reduction in administrative funding.

Commission Convenes Consultation on Welfare Reform

Leading welfare policy specialists and practitioners joined Commission officials for a

day-long consultation May 21 to explore the effects of welfare reform in Appalachia.

Panelists John Sciamanna from the American Public Welfare Association and David

Bixler from the General Accounting Office provided an overview of the

welfare-to-work law, emphasizing the new law's priority of job placement as a means to

develop employment experience and workplace skills.

In exploring private sector participation in welfare-to-work programs, Joe Barker from

the West Virginia Rural Development Council discussed the importance of linking

employers with welfare agencies, noting that the state's partnership with the private

sector has already yielded corporate participation in placing ready-to-work recipients in

jobs.

Panelist Kate Carr agreed, noting that the Welfare-to-Work Partnership is a major

private sector initiative designed to build an expanding network of companies

committed to hiring people formerly on public assistance without displacing the current

workforce.

In addition, Clifford Johnson, a Senior Fellow from the Center on Budget and Policy

Priorities, stressed the importance of public sector initiatives as a way to provide jobs or

work experience to welfare recipients, particularly in regions with high unemployment

or low job creation rates.

During facilitated discussions, participants raised concerns that the timetables and job

placement requirements under the new law could create an incentive for states to meet

federal deadlines by focusing on urban areas at the expense of rural areas.

Others noted the importance of linking economic, community, and human development

programs to welfare-to-work efforts.

Afternoon panelists focused their discussion on implementing state plans and

identifying key issues and opportunities in the Region posed by the challenges of

welfare reform.

Participants also emphasized the need for ARC's demonstration projects to focus on

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (8 of 10) [4/14/1999 11:08:10 AM]
capacity-building efforts to meet the most pressing demands in the Region's rural and

distressed counties. The Commission has allocated $300,000 of the research budget for

funding up to three regional demonstrations projects.

In addition, Commission staff are expected to meet with the President's Domestic Policy

Council to discuss possible rural initiatives.

Other panelists included: Timothy Jackson, Kentucky's deputy secretary, Cabinet for

Families and Children; Donald Taylor, executive director of Mississippi's Department

of Human Resources; Susan Christie, American Public Welfare Association; Diane

McSwain, Health and Human Services; Peggy Barrett, Owsley County, Kentucky,

Department of Social Insurance; Paula Wolf, Covenant with North Carolin's Children;

and Todd Christensen, Virginia Department of Community Development.

ARC Reauthorization Hearings Scheduled

The House Public Buildings and Economic Development Subcommittee held

reauthorization hearings on ARC July 10 and July 17.

The hearings focused on reauthorization legislation (H.R. 1429) submitted by the

Clinton administration and introduced earlier this year by Representatives Bud Shuster

(R-PA), Jim Oberstar (D-MN), Jay Kim (R-CA), and Jim Traficant (D-OH), the

bipartisan leadership of the House Committee on Transportation and Infrastructure.

Federal Co-Chairman Jesse L. White Jr. and West Virginia Governor Cecil Underwood

testified on behalf of the Commission at the July 10 hearing.

The legislation would renew the highway and area development work of ARC for five

years, requiring the Commission to target its resources by restricting assistance to

"economically strong" counties and giving special consideration to the needs of counties

designated as economically distressed.

The measure would also establish a statutory statement of purpose that is consistent

with the goals of ARC's strategic plan.

The hearings also heard testimony concerning the reauthorization for the Economic

Development Administration.

Commission Unveils World Wide Web Site

Accessing ARC program information, publications and press releases, testimony, and a variety of

other information has just gotten easier for Appalachian constituents with access to the Internet.

The Commission has recently unveiled its Internet presence through a site on the World Wide Web.

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (9 of 10) [4/14/1999 11:08:10 AM]
The Commission's site links to state and local development district home pages and provides

information on how to apply for ARC funding.

The Commission's Web site URL is http:\\www.arc.gov.

ARC also is exploring the benefits of communicating electronically and conducting routine tasks

through the Internet.

Upcoming Activities

March 6 Hearing on FY 1998 ARC Appropriation, Energy and Water Subcommittee, Washington,

D.C.

July 17 House Hearing on ARC Reauthorization

July 18 ARC Policy Development Committee Meeting, Washington, D.C.

July 27–29 DDAA Personnel Managment Workshop, Charleston, WV

September 12 Export Trade Advisory Council Meeting, Pittsburgh, PA

September 25 Commission Meeting, Tupelo, MS

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW, Washington,

DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax (202) 884-7691, or email

Tanya Shimmons.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | News, Events, and Publications | Socioeconomic Data | What's New | Home | Site Index | Feedback

May–June 1997 Appalachian Reporter

file:///F|/lps2404/mayjun97.htm (10 of 10) [4/14/1999 11:08:10 AM]
July–August 1997

Table of Contents

❍ Commission Seeks Multi-Year Reauthorization Act

❍ The View from ARC Leadership . . .

❍ ARC Moves Forward with Welfare-to-Work Action, Demonstrations

❍ Commission Releases Cost-to-Complete Highway Study

❍ Commission to Hold Meeting in Mississippi

❍ Export Summit to Focus on Appalachia

❍ ARC Advances Research Activities as Part of Entrepreneurship Initiative

❍ ARC Notes

❍ Findings Highlight Capital, Credit Needs

❍ House, Senate Approve $160 Million for Commission

❍ States' Representative to Retire from ARC

❍ Association to Offer Facilitation Training

❍ Upcoming Activities

Commission Seeks Multi-Year Reauthorization Act

ARC Federal Co-Chairman Jesse L. White Jr. and West Virginia Governor Cecil

Underwood testified before Congress July 10, urging the House Subcommittee on

Public Buildings and Economic Development to enact legislation formally authorizing

ARC. The Clinton administration has proposed a five-year reauthorization.

Underwood, who was first elected governor of West Virginia 40 years ago and was

elected a second time last year, gave the panel an eyewitness account of Appalachia

before and after the creation of the Appalachian Regional Commission.

"In 1956, I was the youngest person ever elected governor of West Virginia. That was

nine years before the Appalachian Regional Commission was ever created," Underwood

said.

"Conditions in the Region were stark. Flooding in the deep and narrow hollows of the

Region was a constant menace. Poverty and the boom-bust cycle of the economy were

the norms. No matter how good the times might beat a particular moment, people lived

in perpetual dread of the wrenching poverty that was always just a tomorrow away," he

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (1 of 11) [4/14/1999 11:08:32 AM]
added.

The efforts of the Appalachian Regional Commission, Underwood said, have

transformed the people and the Region.

"Today, Appalachia, rather than being a region of despair, is a dynamic region of

contrasts, populated by people with hopes and dreams," he noted. "The Appalachian

Regional Commission has been our lifeline, our source of hope, our bootstrap so that we

could help ourselves to become a region of opportunity."

Echoing the governor's statement, White told the committee, "ARC must continue its

commitment to build Appalachia's basic infrastructure, target resources to the areas of

greatest need, and deploy its programs to help Appalachian communities develop

self-sustaining economies that can compete in the international marketplace of the

twenty-first century."

Highways

White also underscored the importance of completing the 3,025-mile Appalachian

Development Highway System.

"The timely completion of the ADHS is an absolutely essential step in the Region's

economic development," he said. "A modern system of highways is a critical response

to the Region's isolation."

White also noted the importance of ARC's current efforts to target assistance to areas of

greatest need and to encourage the creation of homegrown businesses through programs

such as the three-year, $15 million entrepreneurship initiative.

Outside Support

During a second session of hearings, which focused on the reauthorization of both the

Economic Development Administration (EDA) and ARC, representatives from the

National Association of Development Organizations and the Coalition for Economic

Development, a group of 11 national economic development organizations, voiced their

support for the reauthorization of ARC.

Speaking for the coalition in support of the reauthorization of EDA and ARC, president

of the National Association of Regional Councils Franklin G. Ching said, "Members of

the coalition believe that EDA and ARC have had remarkable success in assisting these

distressed communities. The track record of these agencies prove that."

"We urge this panel to recognize that success by reporting out a multi-year

reauthorization bill for EDA and ARC," said Ching.

The View From ARC Leadership . . .

Doug Taylor, President of the DDAA

With newly elected officers and board members in place, the Development District

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (2 of 11) [4/14/1999 11:08:32 AM]
Association of Appalachia (DDAA) began its 1998 fiscal year this past July.

It is my pleasure to serve as the new president of the DDAA with fellow officers Ken

Green, vice president (WV); Rudy Johnson, treasurer (MS); and Ron Flanary, secretary

(VA).

I also extend my appreciation and warm welcome to our new board members: Bob

Culver (AL); Barry Tarter (GA); Paul Hall (KY); Mike Wagoner (MD); Randy Kelley

(MS); Bob Augenstern (NY); Paul Hughes (NC); John Quinlan (OH): Ed Silvetti (PA);

Bob Strother (SC); Susan Reid (TN); Wayne Strickland (VA); and Rich Wood (WV).

We began this fiscal year with a retreat for officers and DDAA board members. This

retreat produced valuable discussions centered around DDAA goals and established our

work activities for this fiscal year.

The DDAA's first activity is to improve communication among its members. This

includes an effort to electronically network all local development districts, helping them

secure the necessary equipment and providing them with Internet access.

A second activity will involve the DDAA secretary and committee members in creating

a quarterly newsletter. This newsletter will inform our members of the work of DDAA

committees and report on DDAA participation at ARC meetings.

Other outcomes of the retreat include:

Developing a stronger partnership with ARC and ensuring LDD input in ARC's

new performance measurement system.

● 

● Adopting a work program for FY 1998.

Approving a framework for the agenda and a budget for the 1998 LDD

conference.

● 

Recognizing former DDAA President Don Rychnowski for his leadership over

the past two years. Don's efforts have led to a stronger partnership between the

DDAA and ARC.

● 

Commending Susan Reid for her work as chairman of the DDAA's training

committee. Susan is executive director of the First Tennessee Development

District. The DDAA will continue to offer its highly successful training

workshops.

● 

In addition, our members will be represented on each of ARC's Goal Teams, which

have been developed through the strategic planning process and are designed to help

guide Commission policy.

DDAA members will be full partners in this process, meeting the challenge of

implementing ARC goals and improving the quality of life for the people of

Appalachia.

I would like to extend my personal appreciation to the Commission and Federal

Co-Chairman Jesse L. White Jr., Executive Director Tom Hunter, and States'

Washington Representative Mike Wenger for their support of the DDAA.

Finally, the DDAA also wishes Mike Wenger the best of luck as he departs the ARC to

take on his new position as deputy director for the President's Initiative on Race. We

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (3 of 11) [4/14/1999 11:08:32 AM]
will sincerely miss him and his breakfast "pep" talks at the annual LDD conference.

ARC Moves Forward with Welfare-to-Work Action,

Demonstrations

In continuing to explore the effects of welfare reform in Appalachia, Commission

leaders have met separately with officials from the President's Domestic Policy Council

and the National Welfare-to-Work Partnership, developed a request for proposals to

fund three regional welfare-to-work demonstration projects, and finalized a report on

ARC's welfare-to-work consultation on May 21.

In meeting with officials from the President's Domestic Policy Council, Federal

Co-Chairman Jesse L. White Jr. discussed possible rural initiatives in implementing

welfare reform.

ARC staff also met with senior officials from the National Welfare-to-Work Partnership

to discuss possible collaborative efforts in expanding the program to rural Appalachia.

The Welfare-to-Work Partnership is a major private-sector initiative designed to build

an expanding network of companies committed to hiring people formerly on public

assistance.

In other action, ARC has developed a request for proposals (RFP) to fund three

welfare-to-work demonstration projects in the region.

The request for proposals reflects the recommendations from consultation participants

and additional research on community-based, welfare-to-work initiatives. The RFP will

be issued at the end of September.

The final report, Welfare-to-Work: Opportunities and Challenges for Appalachia, is

available from the Commission. This report, which is a result of ARC's consultation on

welfare reform, provides an analysis of key policy issues confronting the Appalachian

Region, as well as an examination of private- and public-sector initiatives for moving

people from welfare to work.

Commission Releases Cost-to-Complete Highway Study

ARC has released a new study of the cost to complete the Appalachian Development

Highway System (ADHS). This is the first formal update of the cost estimate to

complete the 26 corridors since 1992. The study was conducted by the Federal Highway

Administration in cooperation with the 13 Appalachian states.

Major findings of the study include the following:

Of the total 3,025 miles authorized by Congress for construction of the ADHS,

2,219 miles are complete, and another 136 miles are under construction. The

remaining 670 miles are in the preliminary or final design stage.

● 

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (4 of 11) [4/14/1999 11:08:32 AM]
The 1997 estimated cost to complete the ADHS (federal and state combined) is

$8.5 billion.

● 

The federal share of the cost to complete is $6.8 billion. At the time of this

estimate, approximately $600 million in federal funds have been appropriated

through various sources and are available for the Appalachian corridors.

Therefore, the remaining federal needs are $6.2 billion.

● 

The 1997 cost estimate represents an increase of $1.1 billion (15 percent) over the

1992 estimate. Major reasons for the cost increase since 1992 include inflation in

the construction industry, design changes, location changes, and environmental

mitigation.

● 

Current average annual appropriations to build the ARC highways lag far behind

the level of funding needed. Without a steady, dependable, and substantial source

of funding, the ARC highway system will not be completed until the latter years

of the 21st century.

● 

The federal co-chairman of ARC, Jesse L. White Jr., and the governors of the 13

Appalachian states have repeatedly emphasized their commitment to completing the

highway system.

From its inception, the Appalachian highway system was envisioned primarily as an

instrument of economic development, connecting Appalachia to the interstate system,

providing access to the Region, and stimulating local job creation.

To date, more than 30 years after the first spadeful of dirt was turned, the ADHS is

slightly less than 78 percent complete. The impact of the completed segments has been

significant, but large portions of central Appalachia remain isolated by treacherous,

narrow, twisting roads and slow travel speeds.

In the meantime, the cost to complete the ADHS has steadily climbed. The final miles

of the system are recognized as the most difficult and expensive to construct.

Despite the magnitude of the work remaining, the economic impetus to complete the

system has never been more compelling. A modern system of highways is an essential

first step in fostering economic growth and enabling Appalachia to become a net

contributor to the national economy.

The 1997 cost-to-complete study provides an overview of the status of the highway

program and a state-by-state cost estimate and project report.

Commission to Hold Meeting in Mississippi

The Appalachian Regional Commission will meet October 7 in Tupelo, Mississippi.

States' Co-Chairman Governor Kirk Fordice of Mississippi will host the meeting.

Leading the meeting's agenda will be the approval of the states' FY 1998 annual

implementing strategy statements. The strategy statements reflect each state's spending

priorities, guidelines, and policies.

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (5 of 11) [4/14/1999 11:08:32 AM]
In addition, Commission members will consider ARC's FY 1998 budget allocations and

an ARC techical assistance workplan.

The meeting will also include a special presentation by Mississippi high school students

who participated in the Oak Ridge National Laboratory Summer Math/Science Institute.

The summer institute is a joint project between ARC and the Oak Ridge National

Laboratory.

Tupelo Mayor Glen McCullough, former ARC program manager, will provide a special

welcome.

On the day prior to the meeting, Commission members and staff will join a panelist

discussion on Mississippi's workforce training programs and tour ARC-funded projects

in the Tupelo area.

Mike Clayburn, president of the CREATE Foundation, will also discuss the foundation's

community leadership initiatives.

Export Summit to Focus on Appalachia

The Kentucky Cabinet for Economic Development, in conjunction with the

Appalachian Regional Commission, will sponsor a conference on export-trade October

22–25 in Lexington, Kentucky.

he conference will provide a series of workshops focusing on the benefits and impacts

of trade on Appalachian communities, the global economy and how it works, and the

state of the Appalachian economy.

Technical sessions covering best practices in Appalachian trade development and the

mechanics of exporting will also be offered to participants.

In addition, innovative uses of advanced technology and the Internet in export-trade will

be demonstrated throughout the conference.

For additional information, contact the Kentucky International Trade Division at (502)

564-7140.

ARC Notes

Susan Berner, a West Virginia native and long-time Commission employee,

passed away on August 25. Susan provided 22 years of service to ARC.

● 

ARC's Math/Science and Technology Institute, which is sponsored in conjunction

with the U.S. Department of Energy's Oak Ridge National Laboratory, attracted

38 students and 15 teachers from Appalachia July 12–26. Students attended from

all 13 Appalachian states.

● 

Appalachian Community Learning Project (ACLP) participants from Alabama,

Georgia, and Mississippi will meet again October 21–22 in Lake Guntersville,

● 

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (6 of 11) [4/14/1999 11:08:32 AM]
Alabama. Participants from New York, Pennsylvania, Ohio, Maryland, and West

Virginia will meet November 12–13 in Morgantown, West Virginia, and

participants from Virginia, Kentucky, North Carolina, South Carolina, and

Tennessee will meet December 2–3 in Kingsport, Tennessee.

ARC Advances Research Activities As Part of

Entrepreneurship Initiative

In an effort to assess the entrepreneurial capacity of the Region and to help guide

Commission and state investments in stimulating locally owned, job-creating

businesses, ARC has recently undertaken a series of research activities as part of its

initiative on entrepreneurship.

Current research under way includes the following:

Mt. Auburn Associates will examine the capital and credit financing needs of the

Region's small and medium-sized businesses, evaluate how well ARC's revolving

loan funds are positioned to meet those needs, and identify innovative ways to

improve the supply of capital and credit to start-up and expanding businesses.

(See "Findings Highlight Capital, Credit Needs.")

● 

The Southern Technology Council will provide an inventory of public- and

private-sector programs that support entrepreneurial activities within the Region.

The inventory will include a broad array of programs ranging from training and

technical assistance to lending and foundation-supported programs to educational

instruction.

● 

The Corporation for Enterprise Development will conduct an analysis of current

government and industry statistics that provide measures of entrepreneurship at

the state and county levels across Appalachia.

● 

The Carnegie Mellon Census Research Data Center will identify the number of

small and medium-sized manufacturing firms created over the past thirty years

nationwide and in the Region, the number of firms that have closed, and the

employment, wage, and productivity characteristics of these plants.

● 

These measures will afford an opportunity for comparisons of entrepreneurial activity

between the nation and the Appalachian Region and the ARC states, as well as within

subregions of Appalachia.

The information obtained through the research activities can provide a foundation for

the states as they tailor their entrepreneurial investments to meet the needs of their

communities.

Preliminary reports on all research activities are now under review. Final reports are

expected by November.

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (7 of 11) [4/14/1999 11:08:32 AM]
Findings Highlight Capital, Credit Needs

The preliminary findings of a research project conducted by Mt. Auburn Associates

capture the emerging strengths and existing challenges in creating homegrown

businesses in Appalachia.

The research is based on the analysis of county economic and banking market data, a

survey of over 200 Appalachian businesses with five or more employees, and interviews

with 22 development finance professionals.

Some highlights of the preliminary findings include the following:

The rate of enterprise formation, as measured by the percentage of single-site

business facilities classified as new business start-ups, is relatively low

throughout the Region. This is true even in areas experiencing high employment

growth.

● 

A county-by-county analysis of the Region's employment growth shows a

moderate pace of increasing employment, with high levels of need for economic

stimulus remaining in the Region. Some of the largest growth clusters are in

Tennessee, Alabama, north Georgia, South Carolina, central Kentucky, and parts

of Ohio and West Virginia.

● 

The participation of non-traditional entrepreneurs, especially women, is relatively

low throughout the Region, except in Appalachian New York and some parts of

West Virginia and Ohio, which are at or near the national average.

● 

In addition, the preliminary findings reveal that the Region's businesses are more

heavily dependent on banks for financing than their non-Appalachian counterparts;

revolving loan funds are an important financial supplement to ARC businesses; and

significant financing gaps exist for working capital, risk capital for start-ups, and

microbusiness assistance.

The final report will be available in mid-November.

House, Senate Approve $160 Million for Commission

Both the House of Representatives and the Senate have passed appropriations bills

providing $160 million in funding for ARC highways, area development programs, and

administrative costs for the coming year.

The two versions of the Fiscal Year 1998 Energy and Water Development

Appropriations Bill now go to a joint House-Senate conference committee to resolve

any differences before final passage.

The $160 million amount represents a funding level equal to the ARC's FY 1997

appropriation.

The Senate unanimously approved its bill on July 16. Action on the House bill followed

on July 25, when it was passed by a vote of 418 to 7. An amendment to the House bill

to strip $90 million in highway funding from ARC, offered by Rep. Scott Klug (R-WS),

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (8 of 11) [4/14/1999 11:08:32 AM]
was defeated by a vote of 328 to 97.

In defense of ARC, Rep. Joseph McDade (R-PA) told his colleagues, "This program, in

my view, is one of the best intergovernmental programs that exist in the nation. Local

and state government involvement is something we talk about all the time. Here is a

program where it actually works."

Noting that the interstate highway system is 99 percent complete while the Appalachian

corridor system lags behind at 78 percent completion, Rep. Hal Rogers (R-KY) said,

"Even through the Appalachian system is only three- fourths complete, its impacts are

already considerable. Industries and businesses have grown along the highways that we

have built in this poor part of our country. This growth should be allowed to continue."

Added Rep. Bob Wise (D-WV), "Appalachian Regional Commission studies clearly

document that every county with ARC highways has job growth three to four times as

high as those Appalachian and rural counties without."

Others who spoke on behalf of ARC included Reps. Roger Wicker (R-MS), Vic Fazio

(D-CA), Jay Kim (R-CA), and Jim Bunning (R-KY).

Also pending before Congress is an administration proposal to allocate $200 million

from the Highway Trust Fund to the Appalachian Development Highway System

(ADHS). The proposal is contained in the National Economic Crossroads

Transportation Efficiency Act, known as "NEXTEA."

The House Transportation and Infrastructure Committee is expected to act on its version

of the multiyear highway measure in late September.

In a related development, the Senate approved the 1998 Transportation Appropriations

Bill, which includes an extra $300 million in federal highway money to speed the

completion of the ADHS.

The House version of the transportation bill, however, does not contain the funding; the

issue will be resolved in conference.

States' Representative to Retire from ARC

Michael R. Wenger, the ARC states' Washington representative since 1981, has

announced his retirement, effective September 15.

He will become a deputy director of President Clinton's new Advisory Board on Race

Relations.

Wenger's work with the Commission spans almost 20 years, including service as West

Virginia's alternate for Governor Jay Rockefeller in 1977. He has worked closely with

the local development districts, state alternates, and program managers, and ARC's

congressional friends.

"Mike has been a strong and effective voice for the people of Appalachia," said

Mississippi Governor Kirk Fordice, the states' co-chairman.

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (9 of 11) [4/14/1999 11:08:32 AM]
"His keen understanding of the needs of the Region and his commitment to the strength

of ARC's unique state-federal partnership have been indispensable to the Commission's

success," Fordice added.

As states' Washington representative, Wenger has been the daily presence of the ARC's

state partners in Washington, representing the state's interest in the day-to-day

discussions of Commission programs, staff operations, and legislative activities.

"During the 1980s, when the Commission was under presidential attack, Mike provided

the skill, energy, and leadership that helped keep ARC alive," said Federal

Co-Chairman Jesse L. White Jr.

"We at the Commission will greatly miss his detailed knowledge of Commission

policies and history, his good humor, and his deep personal commitment to the people

of Appalachia," White said.

The States' Management Committee has announced a timetable for selecting a new

states' Washington representative that calls for an August 29 application deadline,

interviews with finalists in mid-September, and final decisions by the end of September.

Association to Offer Facilitation Training

The Development District Association of Appalachia (DDAA) will offer training

workshops in facilitation techniques for its members in October and November.

The first session will take place October 12–14 at the Chattanooga Marriott Hotel in

Chattanooga, Tennessee. The workshop will be repeated November 9–11 at the

Pittsburgh Airport Marriott in Pittsburgh, Pennsylvania,

The workshops will be lead by Dr. Wesley Wynens and Dr. L. Steven Dempsey, both of

the Institute of Community and Area Development at the University of Georgia.

Registration information for either of the workshops is available by calling Robert

Sokolowski, director, LDD Programs, at (202) 884-7711.

Upcoming Activities

October 7 Commission Meeting, Tupelo, MS

October 12–14 DDAA Facilitation Training, Chattanooga, TN

October 21–22 ACLP Southern Regional Forum, Lake Guntersville State Lodge &

Conference Center, AL

October 22–25 "Race for the Future" Conference on Export Trade, Lexington, KY

November 12–13 ACLP Northern Regional Forum, Lakeview Conference Center,

Morgantown, WV

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (10 of 11) [4/14/1999 11:08:32 AM]
Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW,

Washington, DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax

(202) 884-7691, or email tshimmons@arc.gov.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | Information and Publications | Home | Site Index | Feedback

July-August 1997 Appalachian Reporter

file:///F|/lps2404/julaug97.htm (11 of 11) [4/14/1999 11:08:32 AM]
September–November 1997

Table of Contents

❍ Commission Holds Meeting in Tupelo, Mississippi

❍ The View from ARC Leadership . . .

❍ ARC Receives Funding for FY 1998 Activities

❍ Commission Completes FY 1997 Project Funding Cycle

❍ States Appoint New Representative

❍ Recently Approved Entrepreneurship Projects

❍ Appalachia's LDDs Receive Recognition for Innovative Programs and Services

❍ ARC Notes

❍ Committee Proposes Funding for Highways

❍ ARC, USAID Sponsor Development Program

❍ Community Learning Project Advances

❍ ARC Extends Welfare Proposal Deadline

❍ ARC Helps with Program on Microenterprises

❍ Action Highlights State-Level and Regionwide Trade Development Efforts

❍ Research Focuses on Industrial "Clusters"

❍ ARC Sponsors Export Trade Conference

❍ Commission Adds Two Members to Personnel

❍ Upcoming Activities

Commission Holds Meeting in Tupelo, Mississippi

Hosted by States' Co-Chairman and Mississippi Governor Kirk Fordice in Tupelo,

Mississippi, on October 8, the Appalachian Regional Commission outlined its workplan

for FY 1998 and heard reports on several of the special projects conducted in FY 1997.

In welcoming the group to Mississippi, Governor Fordice stressed the unique nature of

the ARC partnership. "I am not a fan of big government or big federal spending

programs," he said, "but I am also the first to admit that the Appalachian Regional

Commission is different. The difference lies in the partnership."

Underscoring the strength of the partnership, Federal Co-Chairman Jesse L. White Jr.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (1 of 12) [4/14/1999 11:08:45 AM]
noted continuing congressional support for the Commission, as expressed through

increased funding for Commission activities and bipartisan rejection of an amendment

that would have stripped ARC's highway funding from the appropriations bill.

State Strategy Statements

Moving forward under the Commission's new operating code, which anchors all ARC

projects in the five goals of the agency's strategic plan while giving states greater

flexibility in the cycle of submitting projects, the Commission unanimously approved

FY 1998 strategy statements from the states.

Three states—Kentucky, New York, and Mississippi—presented highlights of their

strategy statements for the coming year, with common themes of infrastructure

improvements, entrepreneurship activities, and applications of telecommunications

technology. Reflecting the Commission's increased emphasis on performance

measurements, the statements included plans for outputs and outcomes measurements.

To implement the states' strategy statements, the Commission authorized the allocation

of its FY 1998 funds, including an additional $1 million for the work of the local

development districts.

Research Agenda

The Commission also approved the FY 1998 research budget, which focuses on

performance measurement and program evaluation, local development district regional

training, and economic and demographic research to further work on the goals identified

in the agency's strategic plan.

Ongoing research activities include an economic impact study of the Appalachian

Development Highway System, with a final report expected early in the spring.

A special presentation by three Mississippi teenagers underscored the achievements of

ARC's partnership with the U.S. Department of Energy in giving students and teachers

hands-on experience with cutting-edge scientific research at the Oak Ridge National

Laboratory in Tennessee.

Workforce Training

In other activities associated with Commission meeting, the Mississippi Office of

Appalachia sponsored a seminar on workforce training, featuring innovative

partnerships between local businesses, state employment offices, and community

colleges.

"Workforce development is a priority here in Mississippi," said Governor Fordice in a

luncheon business speech. "The prerequisite to creating jobs in distressed counties is

creating a skilled workforce. Let us never lose sight of the fact that job readiness starts

with education."

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (2 of 12) [4/14/1999 11:08:45 AM]
The View From ARC Leadership . . .

Thomas M. Hunter, Executive Director

Tupelo, Mississippi, was the place to be when ARC held its Commission meeting there

October 7. Governor Fordice and our former colleague, Tupelo Mayor Glenn

McCullough, rolled out Mississippi's famed hospitality for the ARC family for two days

of activities that we will long remember. Most important, our Commission meeting was

purposeful and productive.

One of the strongest impressions that I took home from the Commission meeting was

the increasing impact that we are having on young people—the Appalachian leaders of

tomorrow—as we reorganize our efforts around the five pillars of our Strategic Plan.

During the meeting, the Commission heard an inspiring presentation from three

Mississippi students who participated in this year's U.S. Department of Energy

workshop for students and teachers at the Oak Ridge National Laboratory in Tennessee.

Then, following the meeting, a group of us traveled to the nearby Verona School to

witness Governor Fordice connecting the school to the Internet through ARC's

Projectneat program, which is a partnership with the California nonprofit organization

Projectneat to bring Internet access to Appalachian schools. The Verona School is the

first school in Mississippi to join forces with Projectneat.

We need look no further than these students and their counterparts throughout the

Region to reinforce our faith—and our determination—in the future of Appalachia.

The Commission meeting was the highlight of an extremely busy season for ARC. As

we reported at the meeting, ARC last year funded a total of 427 projects. At the Tupelo

meeting, we authorized a mail ballot to approve the distribution of our fiscal year 1998

congressional allocation as well as the FY 1998 strategy statements for eleven states.

We have also sponsored a number of regional seminars over the past few months,

including several LDD training sessions, an export trade conference in Kentucky, and a

second round of Appalachian Community Learning Project sessions, to name just a few.

Not only do these events provide excellent forums for the exchanges of information

among the ARC partners, but they also help to raise our profile in the Region.

But the greatest burst of activity, at least in terms of impact on the Commission, has

come from Congress. For fiscal year 1998, Congress has approved, and the president

has signed into law, appropriations bills containing a total of $470 million for ARC.

(See next story.)

We owe a great debt of gratitude to the members of our congressional delegation as well

as to our friends in Congress outside the Region, who recognize the importance of our

mission.

But that support in Congress would not be possible without a strong record of results to

show for our work. Our unique federal-state-local partnership has proven to be an

effective vehicle for change in Appalachia.

The pace of activity from my vantage point shows no signs of slowing—and for that I

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (3 of 12) [4/14/1999 11:08:45 AM]
am grateful. All of us should be ever mindful that we are doing important work, not just

for the people of Appalachia, but for the future of our country.

ARC Receives Funding for FY 1998 Activities

Providing a substantial boost to the Commission's highway program and a modest

increase in its area development budget, Congress and the President have approved a

total of $470 million for the work of ARC for FY 1998—the largest appropriation for

the Commission's activities in two decades.

ARC's "regular" appropriation through the Energy and Water Development

Appropriations Act gives the agency $170 million, a $10 million increase over FY 1997

funding.

Of this total, $102.5 million is for highways, $63.855 million for area development, and

$3.654 million for salaries and expenses.

The House and Senate versions of the legislation contained $160 million for the

Commission, but congressional negotiators increased this by $10 million, directing that

the added funding go for the Appalachian Development Highway System (ADHS).

The conference agreement also included an increase of $6.855 million over FY 1997

funding for nonhighway programs.

In addition to these funds, Congress approved an additional $300 million for work on

the ADHS through the Department of Transportation Appropriations Act. This marks

the first time that the highway system has received funding from this source and

indicates strong congressional support for making significant progress toward the

completion of the system.

Senators Richard Shelby (R-AL) and Robert Byrd (D-WV) led the effort to secure this

new funding for highways.

Although the money is appropriated to the Department of Transportation, the funds are

to be allocated according to ARC's formula and are to be treated, in effect, as ARC

highway dollars.

The Region's governors and the federal co-chairman have now allocated ARC's funds

among the states and across program areas.

Commission Completes FY 1997 Project Funding Cycle

Clean water for a group of rural families, infrastructure to equip a community's first

industrial park, distance learning courses for GED students, specialized assistance for

small businesses entering the export market—these projects suggest the broad sweep

and vitality of ARC activities for FY 1997.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (4 of 12) [4/14/1999 11:08:45 AM]
With almost 430 nonhighway projects advancing the Commission's five strategic goals,

the 1997 projects will help communities across Appalachia create self-sustaining local

economies and move the Region closer to economic parity with the rest of the nation.

Developed at the local level, often under the leadership of local development districts,

and presented to the Commission by each state's governor, ARC's projects display the

agency's diversity and flexibility. In addition, many projects reflect ARC's special

regional emphses in telecommunications, export trade, local leadership development,

and entrepreneurship.

With a skilled workforce (Goal 1) being critical to the Region's long-term growth,

ARC projects expand local opportunities for job training, often capitalizing on the

potential offered by new technologies.

Matching $150,000 in ARC funds with $491,000 from local sources, the Delaware and

Otsego Counties Distance Learning Project in New York will link 3,800 students, 300

faculty and staff, and more than 14,000 community members. Integrating resources

from local schools, the state university, the regional occupation center, and the local

telephone company, the project will extend GED and learning resources to adults who

now lack access to these programs.

Basic infrastructure (Goal 2) continues to claim the largest share of ARC's dollars. In

Tennessee, an ARC grant for sanitary sewer improvements to an industrial park will

help leverage additional public and private investment of almost $140 million dollars

and lead to the creation of an estimated 1,077 new jobs within the next three years.

Using ARC funds to promote civic capacity (Goal 3), the Brushy Fork Institute in

Berea, Kentucky, will involve 100 high school students and 50 adults in civic activities

which shape their local communities. Students will serve on public institutions such as

school boards, fiscal courts, and water district boards, with adult participants serving as

mentors.

A number of projects reflect ARC's new emphasis on entrepreneurship, a key element

of the effort to foster dynamic local economies (Goal 4). A $110,000 grant to the

North Georgia Technical Institute will establish an entrepreneurial education program to

serve potential and existing entrepreneurs across Appalachian Georgia.

Using ARC funds to foster health care (Goal 5), the South Carolina State Office of

Rural Health will undertake an assessment of the health professionals needed to ensure

adequate access to primary and preventive health care in Appalachian South Carolina,

while three counties in Tennessee will provide dental services to over 8,000 low-income

residents.

States Appoint New Representative

Bill Walker has recently been appointed as states' Washington representative to the

Commission. Selected by the governors of the thirteen Appalachian states, Walker

brings to the Commission 24 years of experience with Maryland's ARC programs.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (5 of 12) [4/14/1999 11:08:45 AM]
A native of Maryland, Walker has a combination of public- and private-sector

experience, with a career-long emphasis on rural economic development issues. He has

worked with ARC since 1973, and has been ARC's program manager in Maryland since

1975.

Since 1994, he has also served as executive director of the Maryland Rural

Development Council. Prior to that, he was acting director of the Maryland Department

of Housing's Community Assistance Administration. In that capacity, he was

instrumental in providing technical assistance to Maryland's rural communities,

including downtown revitalization.

"Bill Walker brings a wealth of talent and experience to this position. We look forward

to working with him in his new capacity as our states' representative in Washington,"

said ARC States' Co-Chairman Kirk Fordice, governor of Mississippi.

Walker replaces Michael Wenger, who has been appointed a deputy director of the

President's Initiative on Race.

Recently Approved Entrepreneurship Projects

New York—An ARC grant of $43,140 matched with $80,115 in local funds will enable

Tompkins County Area Development, Inc., to establish the Ithaca Business Innovation

Center, which will deliver needed managerial and technical assistance to high-tech

startup firms in Tompkins County. This project will assist approximately 60 firms over

a three-year period, creating nearly 260 jobs.

Pennsylvania—A $59,088 grant, along with $22,547 in local funds, will assist the

Pennsylvania Council on Economic Education to establish a business plan development

curriculum for 3,500 students in Appalachian Pennsylvania. Participation in the

program will enable students to compete in a statewide business plan competition.

ARC Notes

Nancy Knight, a longtime employee of the Mississippi Office of the Appalachian

Regional Commission in Tupelo, has been named its director. Nancy replaces

former Director Glenn McCullough, who resigned to serve as the mayor of

Tupelo.

● 

Al Feldstein has been named as Maryland's ARC program manager. Al replaces

former Program Manager Bill Walker, who resigned to serve as states'

Washington representative to the Commission.

● 

Boyer Simcox has been named executive director of the Buckeye Hills–Hocking

Valley Regional Development District in Ohio, while Ed Stephens has been

named executive director of FIVCO Area Development District in Kentucky,

replacing David Salisbury, who retired after 29 years of service.

● 

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (6 of 12) [4/14/1999 11:08:45 AM]
Appalachia's LDDs Receive Recognition for Innovative

Programs and Services

Over a dozen of Appalachia's local development districts (LDDs) have been recognized

by the National Association of Development Organizations (NADO) for programs that

use innovative approaches in providing services in rural areas of Appalachia or solving

regional problems.

Those LDD programs that have received the NADO Innovation Awards range from

inventive ways to improve regional transportation services and enhance economic

development opportunities to creating jobs through "grassroots" recycling programs.

Other such innovative projects recognized by NADO include:

Gateway ADD Empowerment for Employment Plus—Sponsored by the

Gateway Area Development District in Kentucky, this project fosters

collaboration between a variety of job training agencies, increasing participants

access to training resources and job opportunities.

● 

Mountain Area Information Network (MAIN)—Sponsored by the

Land-of-Sky Regional Council and the U.S. Department of Commerce's National

Telecommunications and Information Administration, this volunteer effort

provides affordable Internet access to North Carolina's mountain communities, as

well as offers Web page development for nonprofit and government agencies,

small business support, and public discussion forums.

● 

Cars Assist Recipients in New Growth (CARING)—Sponsored by the Mount

Rogers Planning District Commission and the Wythe County (Virginia)

Department of Social Services, this program enables people moving from welfare

into the workforce to lease or purchase vehicles, removing transportation barriers

in this rural area and promoting self-sufficiency.

● 

In other action, the Commission has recently published Sharing the Vision: Initiatives

from Appalachia's Local Development Districts.

This publication highlights individual programs and projects supported by the Region's

LDDs and arranged according to the five goals—education, infrastructure, leadership

and civic development, dynamic economies, and health—set forth in ARC's strategic

plan.

Committee Proposes Funding for Highways

Committees in the House and Senate have favorably considered legislation that would

for the first time provide funding for the Appalachian Devlopment Highway System

(ADHS) out of the Federal Highway Trust Fund.

The omnibus transportation bill would reauthorize all the major federal highway and

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (7 of 12) [4/14/1999 11:08:45 AM]
transit programs for six years. It replaces the Intermodal Surface Transportation

Efficiency Act (ISTEA), which expired September 30.

In the House, Representative Bud Shuster (R-PA), chairman of the Transportation and

Infrastructure Committee, has proposed legislation that would allocate $2.25 billion for

the ADHS over the life of the bill.

Although the committee has given its approval to the Shuster bill, it stopped short of

sending the measure to the House floor, deferring final action until next spring, when

budget discussions will determine the amount of money available to fund the

legislation.

In the Senate, the Environment and Public Works Committee has approved legislation

that would provide $300 million out of the trust fund for the ADHS over the bill's

six-year period.

Although the Senate began debate in October on the committee's bill, the legislation

was eventually shelved until next spring.

Senator Robert Byrd (D-WV), joined by Senators John Warner (R-VA), Max Baucus

(D-MT), and Phil Gramm (R-TX), has proposed an amendment to the Senate bill that

would increase ADHS funding, providing up to $500 million a year for the six years

covered by the measure. The amendment would use increased revenues from the federal

gas tax to pay for increased highway spending.

President Clinton has also proposed funding construction of the system out of the

Highway Trust Fund at a funding level of $2.19 billion over six years.

ARC, USAID Sponsor Development Program

More than 250 people from across the United States and from several foreign countries

convened in Knoxville November 19–20 to share lessons learned in tackling common

challenges in rural economic development.

Jointly sponsored by the Appalachian Regional Commission and the U.S. Agency for

International Development (USAID), along with University of Tennessee, the sessions

explored a variety of practical approaches in fostering rural entrepreneurship

development, microenterprise lending, and rural investment.

In welcoming participants, ARC Federal Co-Chairman Jesse L. White Jr. noted parallels

between USAID's work in developing countries and ARC efforts to strengthen

economic and community development in Appalachia. "We have much to teach and

much to learn from one another," he said.

White, along with USAID Administrator Brian Atwood and Representative John

Duncan (R-TN), toured a day-care business in a distressed area of Knoxville that

attributed its growth to a microenterprise loan from the Community Microloan Program.

Community Microloan helps entrepreneurs and the self-employed in 21 counties of east

Tennessee access the resources they need to build their businesses.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (8 of 12) [4/14/1999 11:08:45 AM]
The conference spotlighted a number of projects that have received ARC support,

including the Brushy Fork Institute at Berea College, ACENET, and WINGS (Women's

Initiative Networking Groups).

Community Learning Project Advances

The Appalachian Community Learning Project (ACLP) is entering the second phase,

with this year's participants eligible to receive continuation grants for funding of larger

community-based projects.

Second-phase projects must relate to ARC's five strategic goals; involve broad

representation of the community, including the local development districts; and be able

to be completed within a year.

Proposal applications will be accepted in January, and grant awards are expected to be

announced in mid February.

This year's final ACLP forum—the Central Regional Forum—will be held December

2–3 in Kingsport, Tennessee.

ARC Extends Welfare Proposal Deadline

The Appalachian Regional Commission has extended the deadline to December 15,

1997, for its request for proposals (RFP) to fund three welfare-to-work demonstration

projects in the Region.

The demonstration projects will be selected by the Commission through a competitive

process. Each project selected will receive up to $100,000 for innovative methods to

place welfare recipients in jobs, as well as stimulate economic development, particularly

in the most welfare-dependent and economically distressed areas of the Region.

In other action, the U.S. Department of Labor (DOL) has released its interim regulations

for its competitive grant program.

This program provides grant funding for the implementation of welfare-to-work

programs in areas with high unemployment, welfare, and poverty rates.

Commission staff participated in the DOL's stakeholder discussions to ensure that

heavily affected rural areas were considered in the design of DOL's Competitive Grant

Program.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (9 of 12) [4/14/1999 11:08:45 AM]
ARC Helps with Program on Microenterprises

The Appalachian Regional Commission has provided scholarships to 10 microenterprise

organizations and future entrepreneurs representing nine Appalachian states to attend

the Mid-Atlantic Association of Enterprise Opportunity's (AEO) conference on

"Microenterprise: Empowering Entrepreneurs," held October 15–17 in Williamsburg,

Virginia.

Attracting over 175 participants, workshops focused on best practices, training, and

access to credit in fostering microenterprise development.

Action Highlights State-Level and Regionwide Trade

Development Efforts

State-level projects and regionwide activities continue to advance the goal of ARC's

regional initiative in export development—increasing the number of small and

medium-sized businesses that participate in export trade.

An ARC grant of $190,000, matched with $55,560 in local funds, will be used to

create an export training program, which will produce up to 15 certified export

specialists serving Appalachian Virginia at the end of two years. In addition, this

training program will provide over 30 small and medium-sized businesses with

extensive one-on-one export assistance. This program is a result of a

collaborative effort between Virginia Tech and the Virginia Economic

Development Partnership.

● 

With assistance from a regional initiative grant from ARC, Tri-County Council of

Western Maryland, in conjunction with the Quad State Business Expo,

participated in the first International Trade Reception on November 6 in

Hagerstown, Maryland.

● 

In promoting the benefits of international trade to Appalachian companies, Tri-County

Council sponsored an export assistance booth at this event, with representatives from

nine foreign embassies and state export support agencies from Maryland, Virginia, West

Virginia, and Pennsylvania providing assistance to and answering inquiries from

Appalachian companies interested in exporting.

Regionwide activities are primarily advanced through ARC's Export Trade Advisory

Council (ETAC) and have most recently included an export conference targeted to

development professionals and local officials.

In other regional action, the Commission, through a special contract with the U.S.

Department of Commerce's International Trade Administration, Office of Trade and

Economic Analysis, has released a report on Appalachia's export performance.

The report provides merchandise export totals for the years 1993 through 1995 for 120

Appalachian zip codes in the Region's 13 states, representing the first effort to look at

how a large substate region is trading internationally by zip code.

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (10 of 12) [4/14/1999 11:08:45 AM]
Research Focuses on Industrial "Clusters"

Regional Technology Strategies has finished its study of the way industrial "clusters"

operate in seven Appalachian sectors that are important to the Region's economy and

possess export potential—electronic components, household furniture, knitting mills,

medical devices, industrial machinery and environmental technologies.

An industrial cluster is characterized by a group of firms that are related geographically

and that form new modes of cooperation and interaction, improving regional economies.

The findings of this study indicate that most ARC states export at a rate below the

national average, but continue to make progress toward the national average.

The study also found that through collective marketing and access to information, the

export potential increases for those firms located in the industrial clusters of knitting

mills (hosiery), furniture, and environmental technologies.

This study represents an effort by the Commission and its Export Trade Advisory

Council (ETAC) to better understand industrial cluster development and to craft cluster

strategies for the development of Appalachia.

ARC Sponsors Export Trade Conference

Over 70 economic development professionals and local officials representing the

13-state Appalachian Region met in Lexington, Kentucky, October 22–25 for a

conference aimed at increasing Appalachia's impact on the global marketplace.

Emphasizing that export trade is a major factor in providing high-paying jobs in

Kentucky and throughout Appalachia, Kentucky Governor Paul Patton opened the

conference, entitled "Race for the Future: Plain Talk about Global Competition in

Appalachian Communities."

Conference workshops focused on how international trade works, what communities

can do to encourage export trade, and how businesses should respond to the global

challenge. Workshop panelists included export-trade practitioners, policy specialists,

government representatives, and business leaders.

Keynote speakers included: Erik R. Peterson, senior vice president and director of

studies, Center for Strategic and International Studies; Ed Sarpolus, vice president of

EPIC-MRA; John D. Stempel, director, Patterson School of Diplomacy and

International Commerce, University of Kentucky; and Ambassador Richard C. Brown,

senior coordinator, Summit of the Americas.

Cosponsored by the Appalachian Regional Commission, the Kentucky Cabinet for

Economic Development, and the University of Kentucky's International Business and

Management Center, this conference is part of ARC's special regional initiative on

export trade, which is aimed at increasing exports of small and medium-sized

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (11 of 12) [4/14/1999 11:08:45 AM]
businesses throughout Appalachia.

ARC will hold another conference targeted for the Region's export trade practitioners

April 2&3150;3 in Asheville, North Carolina.

Commission Adds Two Members to Personnel

The ARC has recently added two staff members to the Program Operations Division.

Vincent Cobb joins ARC as a program manager after serving four years at the Institute

for Policy Studies and over two years as project director of disarmament and

community development at the Fellowship of Reconciliation.

Program Manager David Hughes recently received his master's degree in geography

from Appalachian State University. David also has a bachelor's degree in community

and regional planning from Appalachian State.

In other personnel action, two ARC staff members—Keith Witt and Doris

Charouel—recently received special recognition awards for their contributions to the

Commission's mission.

Upcoming Activities

December 2–3 ACLP Central Regional Forum, Kingsport, TN

December 9 Export Trade Advisory Council Meeting, Washington, D.C.

December 9–10 ARC Policy Development Committee Meeting and Strategic Planning

Retreat, Baltimore, MD

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW,

Washington, DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax

(202) 884-7691, or email tshimmons@arc.gov.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | Information and Publications | Home | Site Index | Feedback

September-November 1997 Appalachian Reporter

file:///F|/lps2404/sepnov97.htm (12 of 12) [4/14/1999 11:08:45 AM]
January–March 1998

Table of Contents

❍ Commission Members Gather for Annual Quorum Meeting

❍ The View from ARC Leadership . . .

❍ Hearings on ARC Programs Slated

❍ President Seeks $357 Million for Commission in FY 1999

❍ Export Conference to Focus on Technology

❍ IG Survey of Projects Confirms Job Creation

❍ LDDs Plan Annual March Conference

❍ Commission Announces Welfare-to-Work Demonstration Projects for Appalachia

❍ Universal Service Funds to Help Rural Areas

❍ Study Evaluates Capital, Credit Needs

❍ J-1 Program Advances Health Care Goal

❍ West Virginia Bolsters Micro-Loan Program

❍ Cancer Initiative to Hold Four Regional Summits

Projects Promote Collaboration and Enhance Leadership Skills to Help ARC Communities Shape

Local Economies

❍ 

❍ Community Development Publication Now Available

❍ ARC Notes

❍ Commission Completes Performance Plan

❍ Upcoming Activities

Commission Members Gather for Annual Quorum

Meeting

At its annual quorum meeting of Appalachian governors and the federal co-chairman,

the Appalachian Regional Commission examined the Region's progress in the past year,

heard a report on the Appalachian Development Highway System (ADHS), and

discussed the president's proposal to create a Delta Regional Commission modeled on

ARC.

Reporting on the Commission's legislative status, Federal Co-Chairman Jesse L. White

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (1 of 13) [4/14/1999 11:08:51 AM]
Jr. observed that this year's total appropriation of $470 million for ARC programs "is

the highwater mark in funding in the Commission's history." He noted that this

indicated the strong position the Commission enjoys in Washington.

White jointly presided over the February 22 meeting with States' Co-Chairman George

Pataki, governor of New York. Other governors in attendance included Zell Miller

(GA), Paul Patton (KY), Kirk Fordice (MS), James Hunt (NC), Thomas Ridge (PA),

Don Sundquist (TN), James Gilmore (VA), and Cecil Underwood (WV).

Economic Opportunities

Governor Pataki reminded Commission members of the importance of entrepreneurial

development and targeted investments in fostering economic opportunities for the

people of the Region. "We want to see the native talent, ability, and entrepreneurial

spirit of the people have the opportunities through the development of strong

entrepreneurial strategies," Pataki said.

"And, of course, whenever you think about the twenty-first century, you think about

telecommunications and the ability to do everything from enhanced economic

opportunities and shared educational experiences."

Progress Report

In reviewing ARC activities over the past year, Executive Director Thomas M. Hunter

reported that ARC projects in FY 1997 directly benefited 163,000 people in the Region

through major activities in all five of the Commission's goal areas.

Infrastructure and business development projects helped create 11,000 new jobs and

retain 28,000 existing ones, while water and sewer activities improved service to 26,000

Appalachian households. Roughly 5,000 people participated in leadership development

programs, and 37,000 people benefited from health care projects.

Last year ARC's nonhighway investment of $55.3 million leveraged $146 million in

matching state and local funds and $359 million in private investment.

Delta Proposal

Federal Co-Chairman White outlined the president's proposal to create a Delta Regional

Commission modeled on ARC. "I'm very proud that the president chose our model as

one to carry to the Delta," White said. He stated it was the administration's goal to

protect ARC while serving the needs of the Delta.

While most governors expressed their support for an ARC-like effort for the Delta,

Governor Pataki noted that the Appalachian states had serious concerns about those

parts of the proposal that would result in shared staffing with ARC. He stated that their

concerns have been expressed in a letter to the president.

After a full discussion of the issues, White assured the governors that he would further

convey their views to the administration.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (2 of 13) [4/14/1999 11:08:51 AM]
The View From ARC Leadership . . .

Jesse L. White Jr., Federal Co-Chairman

Appalachians have, no doubt, read about the president's proposal to create for the lower

Mississippi River Delta a commission based on the model of ARC.

This effort both protects ARC as it currently exists and gives us the exciting opportunity

to help a region in need in the same way we have been helped for the past three decades.

Few Americans realize that in their midst lies a vast region of the country which, in

many ways, represents Third World economic conditions. Black poverty in the

Mississippi River Delta is a staggering 44 percent, ten percentage points higher than in

the inner cities . . . 31 percent of all children (much higher for blacks) live in poverty . .

. over half of the Delta counties have had poverty rates exceeding 20 percent for the past

four decades.

Appalachia, in many ways, looked very similar in the early 1960s, leading to the

creation of ARC.

This "intensive care" effort by the federal government has worked in Appalachia's 399

counties by cutting the poverty rate in half, creating thousands of jobs, and building the

basic infrastructure necessary for economic growth.

This is why the president has proposed that the nation now make a similar commitment

to the Lower Mississippi River Delta—some 219 counties and parishes winding down

the river from the southern tip of Illinois through parts of Missouri, Kentucky,

Tennessee, Arkansas, Mississippi, and Louisiana.

President Clinton proposes the creation of the Delta Regional Commission (DRC) with

an initial funding level of $26 million to address the problems of job creation and

underdevelopment in this area.

The DRC would not only infuse targeted resources to a severely undercapitalized area,

but also would become an advocate for these communities among government, private,

and nonprofit sectors.

Nothing would change for ARC, and funding would not be reduced. The work of the

DRC would be funded out of new presidential initiative money at the same per capita

level as in Appalachia. Our highway program would operate as it has in the past, except

with vastly increased funding out of the Highway Trust Fund.

While the original proposal included shared staffing and a shared federal co-chairman,

the governors have expressed reservations about these arrangements; and, the

partnership is now working to accommodate both the goal of creating a DRC and of

addressing the legitimate concerns of the states. Most of the governors agree that the

Delta needs and deserves some type of ARC model to help develop the Region.

The simple fact is that the nation will be made stronger by helping the Delta become a

contributor to, rather than a drain on, the national wealth. Especially with the impact of

welfare reform, the need for economic development is greater than ever.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (3 of 13) [4/14/1999 11:08:51 AM]
The rising tide of the 1990s has left the lower Mississippi River Delta hung up like a

barge on a sandbar. It cries out for a simple, thin towline—the DRC. We in Appalachia

can apply the lessons we have learned to give that towline and continue that spirit of

American generosity which lead to our creation over thirty years ago.

Hearings on ARC Programs Slated

House and Senate Committees have scheduled spring hearings on ARC's programs,

with Federal Co-Chairman Jesse L. White Jr. and West Virginia governor Cecil

Underwood slated to testify on the Commission's behalf.

The Senate Transportation Appropriations Subcommittee, chaired by Senator Richard

Shelby (R-AL), will hold a field hearing March 16 in Birmingham, Alabama, on the

status of the Appalachian Development Highway System (ADHS).

Federal Co-Chairman White will testify about the importance of completing the ADHS

and will review recent progress in opening new segments along the system.

The subcommittee will consider the economic development impacts of the highway

system. The hearing will also focus specifically on the need to complete Corridor X,

one of the major uncompleted segments of the ADHS.

Last fall the Transportation Appropriations Subcommittee provided a special

appropriation of $300 million for the ARC highway program, the largest single

appropriation for the ADHS in the program's history.

ARC's FY 1999 budget request will be the subject of a March 26 hearing before the

House Energy and Water Development Appropriations Subcommittee. Federal

Co-Chairman White and States' Co-Chairman Pataki will jointly testify.

The subcommittee is chaired by Rep. Joe McDade (R-PA). The subcommittee holds a

hearing on the budget request each year before beginning work on the legislation that

funds ARC for the coming fiscal year.

The president's budget requests $67 million in nonhighway funds and $290 million for

highways out of the Highway Trust Fund.

President Seeks $357 Million for Commission in FY 1999

President Clinton has requested $357 million from two sources of funding for the

Appalachian Regional Commission in FY 1999.

The funding includes $67 million in appropriated dollars for ARC, the bulk of which

would go into ARC's economic development programs, including business development

and entrepreneurship, water and sewer systems, education, workforce training, health

services, and related activities for the Appalachian Region.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (4 of 13) [4/14/1999 11:08:51 AM]
Another $290 million from the federal Highway Trust Fund is designated for the

Appalachian Development Highway System (ADHS) in the highway portion of the

budget.

"This is the first year that the president has called for ARC highway funding solely out

of the trust fund. This two-track approach will provide a steady, predictable, and

reliable source of money to build the ARC highways while continuing to fund our

economic development programs without interruption," said ARC Federal Co-Chairman

Jesse L. White Jr.

"Most important for the people of Appalachia, the president has once again signaled his

strong support for ARC, and has made a solid commitment to finishing the Appalachian

highway system by proposing a total of $2.19 billion to be funded out of the highway

trust fund over six years," added White.

The total funding proposed for ARC in FY 1999 budget is approximately the same

amount that the president proposed in FY 1998, when he asked Congress for $365

million. Congress ultimately approved a record $470 million for ARC in FY 1998,

including a special $300 million appropriation for highways.

The president's proposed highway legislation—NEXTEA—is a six-year program that

calls for ARC highways to receive a total of $2.19 billion from the Highway Trust

Fund, starting with $200 million proposed for FY 1998 and continuing at the following

levels: $290 million in FY 1999; $350 million in FY 2000; $400 million in FY 2001;

$450 million in FY 2002; and $500 million in FY 2003. The highway bill is pending

before Congress, along with separate House and Senate versions.

"It is especially significant that the White House and both houses of Congress have

expressed a strong commitment to fund the ADHS out of the Highway Trust Fund. This

is historic and holds great potential for accelerating the completion of our highway

system," White stated.

"The Appalachian Regional Commission has made great headway in removing the

barriers to progress that have isolated Appalachia from the mainstream of the American

economy for so many years, but the job is not yet done," said White. "We are

determined to go the distance, and I am pleased that the president is solidly in our

corner."

Export Conference to Focus on Technology

The Appalachian Regional Commission, in conjunction with the North Carolina

Department of Commerce and Advantage West, will sponsor "Tools for Trade:

Technology and Best Practices for Export Programs," April 2–3, 1998, in Asheville,

North Carolina.

"Tools for Trade" will focus on the cutting-edge technology and innovative practices

now in use in export trade promotion programs. The event will bring together the

Region's trade specialists and many others who share a commitment to building robust,

entrepreneurial economies throughout Appalachia.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (5 of 13) [4/14/1999 11:08:51 AM]
With a focus on technology, the workshops will address client assessment, market

research, and training and counseling. A session on videoconferencing, including usage

options, cost issues, and time zone barriers, will also be offered to participants.

Prior to the start of the conference— on the evening of Wednesday, April 1—a

networking reception will enable participants to witness a broad range of advanced

technology demonstrations which are revolutionizing the trade profession.

For registration information contact Patricia Ireland, international trade director,

Advantage West, (704) 687-7552.

IG Survey of Projects Confirms Job Creation

An inspector general interim survey report on ARC infrastructure grants has concluded

that roughly twice as many jobs were actually created than were projected in the

original project application estimates.

About 65% of infrastructure grantees noted that job creation was substantially in excess

of original estimates, and less than 10% reported limited job creation to date.

The survey scope included 105 industrial-site improvement projects for which ARC

contributed funds—primarily water and sewer infrastructure and access roads—between

1987 and 1993. These projects have produced 28,000 jobs—an average ARC

investment of only $1,083 per job.

The January 1998 interim report was based on questionnaire responses from 100 of the

105 grantees surveyed, along with 22 field observations by the inspector general's staff.

Additional efforts are being made to secure responses from the five remaining grantees.

LDDs Plan Annual March Conference

Local development districts from across Appalachia will participate in their annual

conference March 22–24 in Arlington, Virginia.

Sponsored by the Development District Association of Appalachia (DDAA), in

conjunction with the Appalachian Regional Commission, this conference provides LDD

members an opportunity to conduct their annual board and business meetings, attend

workshops covering development issues, network with peers, and meet with

congressional officials.

This year's conference theme focuses on entrepreneurialism and the role of the LDDs in

generating jobs.

During Sunday's opening session, an entrepreneurial forum will provide LDD

participants and entrepreneurs from the Region an opportunity to discuss federal and

other financial programs available to new and existing small businesses.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (6 of 13) [4/14/1999 11:08:51 AM]
Opening activities also include a morning board meeting, followed by an LDD

executive director work session covering performance measurement issues.

During Sunday's opening session, the association will honor Representatives Sherwood

Boehlert (R-NY) and Bud Cramer (D-AL) with a special congressional award, given

each year to members of Congress who have strongly supported the Appalachian

Regional Commission and the work of the 69 local development districts.

Other activities will focus on community development, with West Virginia Senator

John D. Rockefeller IV giving a Monday afternoon presentation on "Partnership and

Pooling—The Essentials of Community and Economic Development."

Monday's activities will also include a session on the role and participation of LDDs in

local civics.

Commission Announces Welfare-to-Work Demonstration

Projects for Appalachia

The Appalachian Regional Commission has awarded four welfare-to-work

demonstration grants in an effort to test promising approaches to implementing welfare

reform in Appalachia.

Chosen competitively from among 33 responses to ARC's request for proposals, these

community-based demonstration projects address the diverse welfare-to-work needs of

some of Appalachia's most distressed areas.

An ARC grant of $100,000 matched with $103,000 in local funds will be used by

the Lightstone Community Development Foundation in conjunction with the state

of West Virginia's Small Business Development Office, to foster

self-employment for 20 people.

● 

Operating in 29 counties, this project, in collaboration with three micro-loan

programs, also will promote asset formation for participating communities and

individuals.

● 

The Rural Areas Development Association, which operates in southwest Virginia,

will receive an ARC grant of $86,649, to be matched with $22,700 to improve

child care for those transitioning from welfare to the workforce.

● 

This project will develop new child care options in the Region by recruiting and training

welfare recipients to be child care providers, strengthening the existing child care

industry in both southwest Virginia and northeast Tennessee, and providing resources

and referrals to 800 families in the Region.

With an ARC grant of $99,467 and matching funds of $148,200, the Enterprise

Development Corporation in Athens County, Ohio, in collaboration with a local

credit union, will help people moving from welfare into the workforce purchase

and maintain cars, removing transportation barriers in this rural area.

● 

The Drive to Work project will also help approximately 40 participants in

building assets through the creation of Individual Development Accounts (IDAs).

● 

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (7 of 13) [4/14/1999 11:08:51 AM]
Sarah's Place—an Elliot County works project located in Kentucky—will receive

an ARC grant of $98,054, to be matched with $66,600 to provide "wrap-around"

community services—job skills training, employment services, child care,

transportation, health and wellness, and microenterprise development—to help

individuals find and maintain jobs.

● 

Universal Service Funds to Help Rural Areas

As part of the 1996 Telecommunications Bill, the Federal Communications

Commission (FCC) has set up a $2.3 billion Universal Service Fund to support the

expansion of telecommunication services in the nation's rural areas.

These funds will provide rural health care providers, as well as schools and libraries,

affordable access to modern telecommunications and information services.

Approximately $400 million has been reserved for the health care program, with the

remaining funds supporting rural schools and libraries.

Rural health care and education providers can find additional details on the fund and

application requirements at the National Exchange Carrier Association's (NECA)

website at http://www.neca.org.

Rural education providers can also find additional application details on the Schools and

Libraries Corporation's (SLC) website at http://www.slcfund.org.

Study Evaluates Capital, Credit Needs

As part of an effort to assess the entrepreneurial capacity of the Region, ARC has

recently released the study Capital and Credit Needs in the Appalachian Region,

conducted by Mt. Auburn Associates.

The study evaluates the capital and credit financing needs of the Region's small and

medium-sized businesses and recommends strategies to improve the supply of capital

and credit to start-up and existing businesses.

The research is based on the analysis of county and economic banking data, a survey of

over 200 Appalachian businesses of different sizes, interviews with 22 development

finance professionals, an inventory of 400 state, regional, and local development

finance programs, and an assessment of ARC's Revolving Loan Fund.

Of particular note is the heavy dependence of Appalachian businesses on commercial

banking for their capital and credit needs and a lack of diversity in financial institutions

serving the Region.

In addition, working and risk capital financing gaps do exist for start-ups and small

businesses.

The information provided in this study can help states assess the financial needs of

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (8 of 13) [4/14/1999 11:08:51 AM]
entrepreneurs and determine how best to invest ARC resources to meet their range of

needs.

West Virginia Bolsters Micro-Loan Program

As part of ARC's regional initiative to encourage and support locally-based

entrepreneurship, the West Virginia Small Business Development Center (SBDC) has

received an ARC grant of $68,680, to be matched with $17,170, to bolster its statewide

micro-loan program.

ARC funds will be used to expand technical assistance for 11 organizations that provide

micro-loan services throughout West Virginia.

The West Virginia SBDC will also use this grant to provide extensive technical

assistance to businesses that use micro-loan funds, helping to answer business

management, marketing, and finance concerns.

These services will be available to businesses throughout West Virginia through online

services and a toll-free 800 number.

Cancer Initiative to Hold Four Regional Summits

With a grant from the Department of Health and Human Service's Office of Women's

Health, the Appalachia Leadership Initiative on Cancer (ALIC) will hold four regional

summits on cancer control this year.

To be held in the northern, north central, central highlands, and southern regions of

Appalachia, these workshops will promote locally-based cancer prevention and

outreach.

Low-income, rural Appalachians tend to have a disproportionately high incidence and

mortality rate for some cancers.

ARC co-sponsored ALIC's first conference this past summer in Washington, D.C.,

bringing together over 300 participants representing some 75 community-based

organizations.

For additional information, contact Angel Rubio at (606) 257-3601.

J-1 Program Advances Health Care Goal

ARC's J-1 Visa Program continues to advance the Commission's goal of providing

Appalachian residents' access to affordable, quality health care.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (9 of 13) [4/14/1999 11:08:51 AM]
The program recommends J-1 Waivers for physicians who agree to practice in the

Region's communities which are designated by the U.S. Public Health Service as Health

Professional Shortage Areas, or HPSAs.

Administered in close cooperation with state rural health officials, this program has

increased the availability of doctors in more than 200 Appalachian HPSA communities

since its inception.

The doctor requesting the waiver recommendation must agree to practice primary

medical care in an Appalachian HPSA for at least 40 hours per week during his or her

service period.

Typically, the doctor is sponsored by a Medicare- and Medicaid-certified hospital or

clinic located in a HPSA.

J-1 Visa Waivers Approved by State

Appalachian State 1996 1997

Alabama 18 29

Georgia 9 12

Kentucky 30 31

Maryland 1 0

Mississippi 8 6

New York 12 20

North Carolina 3 3

Ohio 10 4

Pennsylvania 19 20

South Carolina 2 4

Tennessee 13 15

Virginia 2 7

West Virginia 14 4

Total 141 155

Projects Promote Collaboration and Enhance Leadership

Skills to Help ARC Communities Shape Local Economies

Building collaborative partnerships and enhancing leadership skills are the cornerstones

of three recently funded ARC projects in Tennessee, West Virginia, and North Carolina

that are designed to help communities shape their local economies and solve local

problems.

These projects reflect unique state approaches in building civic capacity in their

Appalachian communities and play an integral role in helping the Commission achieve

its goal of providing Appalachians opportunities to work together for sustained

economic progress.

● The Institute of Public Service at the University of Tennessee has received a

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (10 of 13) [4/14/1999 11:08:51 AM]
second-year ARC grant of $115,000, to be matched with state and local funds of

$61,805 to foster local civic and economic growth in the 50 counties of

Appalachian Tennessee.

Four subregional organizations are taking the lead in Appalachian Tennessee to

coordinate existing leadership development initiatives, create leadership

programs in communities where none exist, and promote sharing of resources

through telecommunications technology.

● 

An ARC grant of $72,564, matched with $18,141 in local funds, will enable

Community Collaborative, Inc., to provide advanced leadership training to

broad-based community teams from the West Virginia counties of Barbour,

Lincoln, Pocahontas, Taylor, and Tucker.

● 

Building on its first year of operation, this program will enable over 40

participants representing the five teams to implement strategic plans developed

through previous leadership training programs.

● 

A Co-Chairmen's Committee seed grant of $50,000, to be matched with $75,000

in local funds, will enable North Carolina's HandMade in America to undertake a

multi-state, community-based economic development and tourism planning

effort.

● 

Recognizing the common natural, cultural, and historic resources of this southern

Appalachian region, local citizens and representatives from a broad array of public and

private community organizations throughout North Carolina, Tennessee, and Virginia

will collaborate on identifying local and regional assets and creating strategic

development plans, providing diverse interest groups an opportunity to work together

on projects that extend across town, county, and state boundaries.

Community Development Publication Now Available

The National Center for Small Communities has recently released Harvesting

Hometown Jobs: The New Small Town Guide to Economic Development.

Designed for citizens and leaders of small communities, this guidebook covers a variety

of practical, locally-based development topics ranging from community visioning and

strategic planning to economic development strategies that create the most local jobs,

including how to foster entrepreneurial development.

The National Center for Small Communities is a national nonprofit providing technical

assistance to the nation's small communities. ARC Federal Co-Chairman Jesse L. White

Jr. serves on the center's board of directors.

To request a copy of this publication, call the center at (202) 624-3551.

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (11 of 13) [4/14/1999 11:08:51 AM]
ARC Notes

Joining Tennessee governor Donald Sundquist, ARC Federal Co-Chairman Jesse

L. White Jr. participated in a panel discussion on jobs and the global economy.

The event—a kickoff of the partnership between the Center for Strategic and

International Studies and the Tennessee Quality Award—took place February 12

in Nashville.

● 

Harvey Berlin will join the staff of the Appalachian Regional Commission on

March 16 as senior transportation advisor. Harvey will replace Don Marttila, who

will retire this summer.

● 

Raymond Daffner will join ARC staff on March 30 as manager of entrepreneurial

development, replacing Jeff Thompson. Raymond will leave his post as executive

director of the Northwest Wood Products Association in Bend, Oregon.

● 

South Carolina governor David Beasley has appointed Lisa Chapman as state

alternate to the Commission. Lisa, who replaces Kelly Lineweaver, serves as the

director of South Carolina's Washington Office.

● 

Randy Hunt has recently been named alternate to the Commission by Ohio

governor George Voinovich. Randy replaces Dan Neff, who has been named

executive director of the Ohio Mid-Eastern Governments Association. Dan

replaces John Quinlan, who retired after 18 years of service.

● 

Commission Completes Performance Plan

The Appalachian Regional Commission has recently completed its FY 1999 annual

performance plan in response to the Government Performance and Results Act (GPRA).

Performance plans are required of virtually all agencies receiving federal funds. The

ARC performance plan includes estimates of accomplishments under each of the

Commission's five goal areas—education and training, infrastructure, civic

development, dynamic local economies, and health care—as adopted in its strategic

plan.

The performance plan also provides a framework for documenting the Commission's

progress on accomplishing its overall mission for creating self-sustaining local

economies and improved quality of life for the people of Appalachia.

Upcoming Activities

March 16 Field hearing on Appalachian Development Highway System, Senate

Transportation Appropriations Subcommittee, Birmingham, AL

March 22–24 DDAA/ARC Annual Conference, Arlington, VA

March 26 Hearing on FY 1999 ARC Appropriation, House Energy and Water

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (12 of 13) [4/14/1999 11:08:51 AM]
Development Appropriations Subcommittee, Washington, D.C.

April 1–3 "Tools for Trade" Conference, Asheville, NC

April 26–28 NADO Washington Policy Conference, Washington, D.C.

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW,

Washington, DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax

(202) 884-7691, or email tshimmons@arc.gov.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | Information and Publications | Home | Site Index | Feedback

January-March 1998 Appalachian Reporter

file:///F|/lps2404/janmar98.htm (13 of 13) [4/14/1999 11:08:51 AM]
April–June 1998

Table of Contents

❍ Commission Officials Seek Funding for Fiscal Year 1999

❍ The View from ARC Leadership . . .

❍ ARC Offers EZ/EC Application Support

❍ Commission Announces New ACLP Awards, Continues Program

❍ ARC Seeks Foundation Partnerships

❍ Foundation Funding Trends in Appalachia

❍ Trade Event Focuses on Latin America

❍ Commission Activities, Local Projects Advance Entrepreneurship Initiative

❍ ARC Notes

❍ Legislation Boosts Work on Appalachian Highways

❍ Commission Gets Seven New Counties

❍ Upcoming Activities

Commission Officials Seek Funding for Fiscal Year 1999

Federal Co-Chairman Jesse L. White Jr. and Governor Cecil H. Underwood of West

Virginia asked a House panel to support the administration's request for $67 million for

the Appalachian Regional Commission's area development work in FY 1999, along

with $290 million for the Appalachian Development Highway System out of the

Highway Trust Fund.

In a lively discussion March 25 with members of the House Energy and Water

Development Appropriations Subcommittee, the two Commission leaders discussed the

importance of ARC's work to the Region's distressed counties and the need to foster

entrepreneurial options for distressed communities.

"All nine republican governors and four democratic governors can say with unanimity

that the ARC has made a profound and positive difference in the lives of our people,"

Governor Underwood told the subcommittee, chaired by Representative Joe McDade

(R-PA).

"We believe that ARC has helped narrow the socioeconomic gap between Appalachia

and the rest of the nation," he continued. "It is doing this by helping to create jobs, raise

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (1 of 10) [4/14/1999 11:09:04 AM]
education and skill levels, and provide basic services to our rural communities."

Federal Co-Chairman White said that the budget reflects the Clinton administration's

belief that "ARC's nonhighway programs are functioning effectively, that the

partnership between the states and federal government remains strong, and the

Commission's priorities are the right ones for the Region."

Highways

According to White, for the first time, the administration is not requesting an

appropriation for the highway program through the Energy and Water Development

Subcommittee. Instead, the president is proposing that the highway system be funded

out of the Highway Trust Fund, with a substantial increase in funding for the highway

program.

"This proposal assures a predictable and secure funding source for the Appalachian

Development Highway System and represents the largest presidential commitment to

our highway system since the early days of the Commission," White told the

subcommittee.

"We believe that the completion of the corridor highway system is critical to the

development of Appalachia," said Governor Underwood, adding that the

administration's proposal would accelerate the job of completing the system.

Distressed Counties

Several subcommittee members underscored their belief that the Commission should

concentrate its efforts in those parts of the Region with the greatest economic need. "I

just can't emphasize enough the need to constantly force more of your funding into the

places where the obvious need is the greatest," said Representative Vic Fazio (D-CA).

Representative Hal Rogers (R-KY) stressed the importance of the Commission's work

in distressed counties. "Things are beginning to happen and economic growth is

occuring," he said, "with much credit to the programs of ARC and the area development

districts. The local development districts have been one of the most important engines

in helping lead that growth."

White, Underwood, Rogers, and Representative Joe Knollenberg (R-MI) explored the

strategies that distressed communities could use to respond to broader changes, such as

plant closings. White argued for greater emphasis on entrepreneurship. "I think if we

can get more entrepreneurship in the communities and more homegrown, locally

owned, growing businesses and a more diversified economy, these counties will be less

vulnerable."

Several members of the subcommittee complimented the Commission for its work in

the Region.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (2 of 10) [4/14/1999 11:09:04 AM]
The View From ARC Leadership . . .

Governor George Pataki, ARC States' Co-Chairman

I am pleased to serve as the states' co-chairman for the ARC for 1998, a position last

occupied by a New York governor in 1979.

Serving as the states' co-chairman has enabled me to fully participate in a regional

agency that has made a difference in the Region's 13 states.

In February, I co-chaired the Governors' Quorum Meeting with Federal Co-Chairman

Jesse L. White Jr.

This productive interchange was attended by governors from nine Appalachian states

and enabled us to secure essential resolution approvals, constructively discuss the

proposed Delta Commission, and make meaningful progress toward advancing ARC

objectives.

In New York's 14 Appalachian counties, ARC has provided essential investments that

have leveraged significant public and private resources to foster regional economic

development.

Since 1966, $470 million in ARC resources have been spent in and for the benefit of

Appalachian New York.

Area development resources have been incorporated into both the physical and social

infrastructure necessary for economic and community development.

Since 1995, our heaviest funding categories have included water and sewer

infrastructure, business development, education and training, and telecommunications.

Recognizing the importance of advanced telecommunications networks to regional

development, ARC resources have been used to benefit the educational, business,

government, and health sectors of Appalachian New York.

Our initial efforts focused on basic technology infrastructure investments and the

development of a strategic telecommunications initiative led by our local development

districts.

To date, nearly $3 million in ARC funds have supported 20 telecommunications

projects, with new projects in the planning stage.

With support through ARC's regional initiative in telecommunications, we have had the

opportunity to effectively broaden and expand utilization of these telecommunications

networks.

The passage of the Transportation Equity Act for the 21st Century is one of the ARC's

most important achievements.

This bill provides $450 million per year over the next five years to substantially

advance the completion of the Appalachian Development Highway System. This

important and historic achievement was among the original goals set in 1965 at the time

ARC was created.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (3 of 10) [4/14/1999 11:09:04 AM]
On September 10 and 11, 1998, we will host a meeting of ARC's members, bringing

together the federal co-chairman and state representatives for the first time in Corning,

New York.

ARC's achievements are proof of the effectiveness of federal, state, and local

governments working together to achieve common goals.

We look forward to your visiting New York in September as we work together to

advance the Appalachian Regional Commission's ambitious agenda.

Each month this space features comments from the ARC leadership team.

ARC Offers EZ/EC Application Support

Building on the success of round one of the Empowerment Zone and Enterprise

Community (EZ/EC) program, the administration recently announced a second round of

EZ investments to stimulate economic opportunity in rural and distressed communities

across the nation.

ARC will again be offering minigrants through July 31 to communities interested in

applying for a second-round EZ designation.

In May, Federal Co-Chairman Jesse L. White Jr. reviewed Appalachia's interest in the

program with Julian Potter, who coordinates the work of the Community Empowerment

Board for Vice President Al Gore. Gore chairs the board, which makes the EZ/EC

selections.

Norman Reid, acting associate deputy administrator for community development at the

United States Department of Agriculture (USDA), briefed ARC program managers on

USDA's plan for round two, offering suggestions for application development.

Under the second round, USDA will designate five rural empowerment zones

nationwide, while HUD would designate 15 urban zones. Each designated zone would

receive $40 million in federal funds over ten years, plus numerous tax and bond

incentives.

This second round would again offer a competitive application process. Communities

are encouraged to begin this process as soon as possible. The federal deadline for

applications is October 9, 1998.

During round one, ARC provided minigrants to communities interested in applying for

EZ/EC designation—one of a few federal agencies offering such assistance.

ARC's small investments paid off, with the Appalachian Region receiving ten rural and

urban ECs or EZs in the first round, including the Kentucky Highlands, which was one

of only three rural EZs in the nation.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (4 of 10) [4/14/1999 11:09:04 AM]
Commission Announces New ACLP Awards, Continues

Program

By garnering citizen action to bolster civic capacity, the Appalachian Community

Learning Project (ACLP) has helped 32 of the Region's small communities assess their

own needs and find the resources to tackle their individual problems, funding 12

continuation grants in round two of the ACLP program and prompting requests from

throughout the Region to bring more communities into the program.

Continuation Awards

Chosen competitively from among 28 proposals, 12 communities that participated in the

ACLP program have received continuation grants for funding of larger

community-based projects.

These efforts range from a downtown renovation project to a job-matching program for

the unemployed to the creation of a first-ever community youth leadership program.

Funding awards range from a minimum of under $2,000 to the maximum of $20,000.

The communities winning ACLP continuation awards include: Aliceville and

Scottsboro, AL; Gilmer and Heard County, GA; Owsley County, KY; Salamanca, NY;

East Jackson, OH; Sneedville/Hancock County and Johnson County, TN; Hurley, VA;

and Town of Big Ugly and Pocahontas County, WV.

Subscription Service

Because of the tremendous response from ARC states, LDD staff, and ACLP team

members, ARC, in conjunction with the The Rensselaerville Institute of New York, will

offer ACLP as a subscription service to states that wish to continue the program,

providing training, facilitation services, and community minigrants to participating

communities.

ACLP Results

Equipped with training and a $3,800 minigrant, ACLP communities are making great

strides in fostering local development opportunities, marshaling resources, and

promoting collaboration.

To revitalize their community after severe flooding, citizens from Pocahontas

County, West Virginia, used their ACLP minigrant to complete a series of local

projects, ranging from refurbishing a basketball court to placing smoke detectors

in elderly and low-income owners' homes. In addition to the ACLP grant,

Pocahontas citizens leveraged $20,000 to help complete these activities.

● 

Citizens in Hurley, Virginia, used an ACLP minigrant to coordinate over 2,000

hours of volunteer time to pick up 2,600 pounds of trash from 25 miles of

roadside, to pass an anti-littering ordinance, and to start regular weekly trash

pickup for their entire county.

● 

For additional information, contact Eric Stockton, ACLP program manager, at

202/884-7752.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (5 of 10) [4/14/1999 11:09:04 AM]
ARC Seeks Foundation Partnerships

The Appalachian Regional Commission is aggressively seeking to foster new

partnerships with foundations at the local, state, and national levels.

Commission officials and staff recently met with key representatives from foundations

that provide significant funding for rural development activities to examine current

funding patterns, discuss mutual areas of funding interests, and explore potential

opportunities for collaboration.

The Development District Association of Appalachia (DDAA) will sponsor three

foundation workshops throughout the Region to help local representatives successfully

obtain more foundation funding for development projects, promote greater collaboration

between local development districts and other nonprofit organizations, and move toward

"outcome-based" activities.

Targeted to local development district staff and the Region's nonprofit organizations,

workshops will be held August 16–18 in Pittsburgh, PA; September 13–15 in

Kingsport, TN; and October 4–6 in Birmingham, AL.

For additional information on the workshops, call Robert Sokolowski, director of LDD

programs, at 202/884-7707.

The Commission is also nearing completion of a three-part study on private foundation

funding in the Region. The study will analyze a variety of grant-making activities,

including geographic distribution, types of activities funded, and number of awards to

local development districts, as well as a detailed analysis of all foundations within the

Region.

Foundation Funding Trends in Appalachia

In 1996, Appalachia's share of domestically awarded grants—as examined in the

Foundation Grants Index—was 4.1 percent, far less than the Region's population

share of the United States of 8.2 percent.

● 

The Appalachian Region's total for all grants in 1996 was $296 million, with

Pittsburgh-based recipients accounting for nearly 44 percent (totaling over $130

million) of all grants awarded in the Region.

● 

On a per capita basis, the Appalachian Region receives an average of $13.59 per

person in foundation funding compared to the U.S. average of $27.50 per person.

● 

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (6 of 10) [4/14/1999 11:09:04 AM]
Trade Event Focuses on Latin America

Parlaying contacts in Latin America into signed contracts with Latin American businesses was the

theme of an export trade conference sponsored by the Appalachian Regional Commission's Export

Trade Advisory Council (ETAC) and the U.S. Department of Commerce.

Held in Pittsburgh, Pennsylvania, May 18–19, this event attracted nearly 80 participants, with

another 600 attendees participating by a live satellite transmission to 45 locations across the United

States.

Fifteen satellite sites were located in the Region, with rural establishments comprising about 40

percent of the Appalachian participants.

The purpose of the conference was to familiarize small and medium-sized Appalachian firms with

export opportunities in the Mercosur market—a trading bloc—that includes 200 million people in

Argentina, Brazil, Paraguay, Uruguay, and Chile.

Through a highly interactive question-and-answer session, commerical officers and specialists from

Chile, Argentina, and Brazil described how to do business in their respective markets.

During the afternoon session, export practitioners from Appalachian Pennsylvania, New York, and

West Virginia discussed a variety of export-trade issues, including how to introduce a company to a

country, find a market for a product, and distribute a product. Overseas contract procedures and

conflict resolution also were included in the discussion.

ETAC's board includes senior trade representatives from the 13 Appalachian states. ETAC tests new

and collaborative approaches of export development through research, education, market-entry

strategies, and advocacy, benefiting Appalachian small and medium-sized businesses.

Commission Activities, Local Projects Advance Entrepreneurship

Initiative

Strengthening entrepreneurial education, developing incubator networks, and promoting access to

capital are just some of the regionwide activities the Appalachian Regional Commission will

undertake as part of its three-year, $15 million initiative to support entrepreneurial business

development in Appalachia.

These efforts—expected to get under way in early fall—will involve a variety of private, as well as

federal, state, local, and foundation partners, building a broad base of regional support for these

types of economic development activities.

Based on projects that Appalachian states are undertaking to bolster entrepreneurial business

development at the local level, these regionwide activities will be developed with assistance from

advisory groups made up of state and local ARC members, policy experts, and entrepreneurs.

At the local level, Technology 2020, a nonprofit organization from Tennessee, will use a $310,000

ARC grant to increase access to capital and financial networks and to provide business and

managerial assistance to start-up businesses in the state's 50 Appalachian counties.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (7 of 10) [4/14/1999 11:09:04 AM]
As part of this project, Technology 2020, in collaboration with the Oak Ridge National Laboratory,

will implement a technology-transfer demonstration to create a greater number of locally owned,

technology-oriented businesses in Appalachian Tennessee.

ARC Notes

The Department of Labor has awarded the Corporation for Appalachian Development

(COAD) a $5.6 million grant through its Welfare-to-Work Competitive Grants program—the

only organization in the Appalachian Region to receive this award. This grant will enable

COAD to provide work-experience and post-placement services to an estimated 600

households in Appalachian Ohio.

● 

Summer Rutherford and Mark Spencer recently have joined the staff of the Appalachian

Regional Commission as regional planning specialists. Rutherford worked for four years at the

Beaufort County Planning Department in South Carolina, while Spencer provided ten years of

service to the Maryland Department of Natural Resources.

● 

The Appalachian Regional Commission met June 10 in Washington, D.C., approving

measures to streamline ARC's project approval process; adopt the FY 1999 budget for

Commission operations; and discuss the effects of the recently passed Transportation Equity

Act on the Appalachian Development Highway System.

● 

ARC Federal Co-Chairman Jesse L. White Jr. will testify on June 24 about the new

HUBZones program for economically distressed areas before the Subcommittee on

Government and Oversight of the House Committee on Small Business.

● 

Legislation Boosts Work on Appalachian Highways

Congress and the president have approved major transportation legislation that authorizes $450

million a year over the next five years out of the Highway Trust Fund to accelerate completion of the

Appalachian Development Highway System (ADHS).

"This legislation is a major victory for the people of Appalachia," said Jesse L. White Jr., federal

co-chairman of the Appalachian Regional Commission. "After years of battling budget cutbacks and

having to finance construction of the Appalachian highway system in fits and starts, we are finally

looking at a steady, predictable, and substantial source of multiyear funding."

The legislation marks the first time the Appalachian highway program will be funded out of the

federal Highway Trust Fund. Previously, highway funding was included in ARC's annual

appropriation in the Energy and Water Development Appropriations bill.

The bill's total dollars for the ADHS—$2.25 billion—represent the largest single authorization for

Appalachian highways in the program's history.

Under the measure, highway funds will be apportioned among the states based on each of the state's

relative share of the estimated cost to complete the ADHS. The Commission conducted a full-scale

study of the cost to complete the system in 1997.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (8 of 10) [4/14/1999 11:09:04 AM]
The funds provided to the states will remain available until expended.

President Clinton signed the measure, the Transportation Equity Act for the 21st Century, in a Rose

Garden ceremony June 9.

The legislation passed the House and Senate in late May by large bipartisan majorities.

Representative Bud Shuster (R-PA) and Senator Robert Byrd (D-WV) played key roles in securing

the major congressional commitment to build the ADHS. Shuster chaired the committee that wrote

the bill in the House, while Byrd offered a major amendment on the Senate floor that boosted

funding for the Appalachian highway system.

President Clinton had also recommended major ADHS funding in his proposed highway legislation.

Although the Highway Trust Fund is the source of dollars for the ADHS, work on the system will

remain under the administrative control and supervision of the Appalachian Regional Commission.

Under the legislation, funds are available to construct only the ADHS highways and access roads.

The measure did not add any additional miles to the ADHS, though it did make a modification to a

portion of Corridor O in Pennsylvania.

The 3,025-mile ADHS is 79 percent complete or under construction.

In related action, the legislation also authorizes grants to selected universities to establish

transportation research centers. Marshall University in West Virginia, on behalf of a consortium of

West Virginia colleges and universities, will receive an annual grant of $2 million for six years for

research concentrated primarily on the Appalachian corridor highway system.

Commission Gets Seven New Counties

Seven new counties have been added to the area served by the Appalachian Regional Commission.

The new counties are Hale and Macon in Alabama, Hart and Elbert in Georgia, Yalobusha in

Mississippi, and Montgomery and Rockbridge in Virginia.

Under the Commission's criteria, Hale, Macon, and Yalobusha are classified as distressed. The

others are classified as transitional.

The action brings the total number of the Appalachian Regional Commission's counties to 406.

Under the Commission's statute only Congress can change the boundaries of the ARC.

Projects in these new counties are now eligible for ARC funding.

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (9 of 10) [4/14/1999 11:09:04 AM]
Upcoming Activities

June 13–16 NARC Annual Conference, Tulsa, OK

July 22 Export Trade Advisory Council Meeting, Washington, D.C.

August 16–18 DDAA Foundation Funding Training, Pittsburgh, PA

August 30–Sept. 1 NADO Annual Conference, Tucson, AZ

Sept. 10–11 Commission Meeting, Corning, NY

Sept. 10–12 Northern Appalachia Leadership Initiative on Cancer Conference, Hershey, PA

Published bimonthly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW, Washington,

DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax (202) 884-7691, or email

Tanya Shimmons.

Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | Information and Publications | Home | Site Index | Feedback

April-June 1998 Appalachian Reporter

file:///F|/lps2404/aprjun98.htm (10 of 10) [4/14/1999 11:09:04 AM]
Autumn 1998

Table of Contents

ARC Representatives Meet Successful Entrepreneurs, Hold Commission Meeting in Appalachian

New York State

❍ 

❍ The View from ARC Leadership . . .

❍ Service Sectors Create Over One Million New Jobs in Region Since 1988

❍ Study Measures J-1 Visa Retention Rates

❍ Commission Continues ACLP, Other Capacity-Building Efforts

❍ University of Kentucky's Ron Eller Selected as John D. Whisman Scholar

❍ Action Highlights Regionwide Entrepreneurship Efforts

❍ Recently Approved Entrepreneurship Projects

❍ Congress Passes Full Reauthorization of ARC

❍ Commission Receives $66.4 Million for Nonhighway Investments in FY 1999

❍ Commission Announces Changes in Personnel

❍ Upcoming Activities

ARC Representatives Meet Successful Entrepreneurs,

Hold Commission Meeting in Appalachian New York State

It is one of the Appalachian Region's most dramatic success stories.

Six years ago Ronald K. Shobe was trying to jump-start a high-tech business in

Corning, New York. His fledgling photonics operation found a home at the

ARC-supported Ceramics Corridor Innovation Center, which provides services for

start-up businesses in Steuben County.

With time to experiment and fine-tune his light-processing technologies, Shobe saw the

business take off—beyond his wildest dreams. "We have grown from zero to $200

million-plus in six years," said Shobe.

Ceramics Innovation Center

Members of the Appalachian Regional Commission had an opportunity to meet Shobe

and other successful entrepreneurs at the Innovation Center during ARC's fall meeting

in Appalachian New York.

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (1 of 11) [4/14/1999 11:09:10 AM]
Created by Corning, Inc., in partnership with ARC, New York State, and Alfred

University, the Innovation Center has served as an incubator for 15 new businesses.

Seven of them—like Photonics Technologies—have graduated from the center and are

now operating on their own.

"Government can be a valuable tool," Dr. Stoner Horey, chairman of New York's

Steuben County Legislature, told ARC representatives visiting the center. "Our attitude

here not very long ago was, `The less government, the better.' But government used

right really can help."

Hosted by the State of New York, the visit to the innovation center was one of many

highlights during two days of ARC activities in Corning.

Commission members also attended a dinner honoring New York students and teachers

who participated in an ARC-supported math and science institute in Tennessee last

summer.

Commission Meeting

"This has been a terrific visit," said ARC Federal Co-Chairman Jesse L. White Jr., who

presided at the ARC Commission meeting on September 11. "We have established a

tradition of going into the Region at least once a year to hold a meeting. Last year it was

Mississippi. This year, New York, and each year it has been a very good experience."

White also applauded New York Secretary of State Alexander Treadwell, who is

Governor George Pataki's alternate to ARC, for his work in hosting the two days of

activities.

"This has been a very successful and productive year for ARC," Treadwell said, noting

recent congressional approval of $2.25 billion in highway construction funds for

Appalachia over the next five years. "ARC is moving in a very positive direction, and

the states are grateful to Dr. White, Executive Director Tom Hunter, and ARC's

dedicated staff."

State Strategy Statements

During the Commission meeting, members reviewed those state strategy statements

submitted for FY 1999. Three states—New York, West Virginia, and

Georgia—presented highlights of coming years' activities and noted progress in ARC's

five goal areas: skills and knowledge, infrastructure, community leadership,

self-sustaining local economies, and health.

Members also heard a presentation by Dr. Ralph Kerr, superintendent of the Arkport

Central School District, on its successful, ARC-funded telecommunications project.

The View From ARC Leadership . . .

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (2 of 11) [4/14/1999 11:09:10 AM]
Raising Educational Achievement is a Key ARC Goal

Thomas M. Hunter, Executive Director

One of ARC's goals is for Appalachian residents to have the skills and knowledge

necessary to compete in the 21st century.

Raising educational levels is a key to achieving that goal. And the key to raising

educational levels, I believe, is raising expectations—getting students and teachers to

aim higher.

How can raising expectations improve performance in our schools? Here's one example

that appears in the current issue of Appalachia magazine, which focuses on the

multitude of ARC-supported efforts under way to improve the quality of instruction in

Appalachian public schools.

In Douglas County, Georgia, math teachers placed students in a regular algebra class

who were scheduled to take a less demanding "pre-algebra" course. And you know what

happened: Tests showed that supposedly weaker students did just as well as the rest of

the class.

David Hill, the county's director of school improvement, concluded that teacher

expectations had been too low for the students and that if you simply tell students and

teachers that the standards are higher, then they will rise to the occasion. He calls it

creating a "culture of higher expectations."

Creating a culture of excellence is what ARC-supported education programs are all

about. And those of us who attended the ARC meeting in Corning, New York, earlier

this fall had an opportunity to see the results of such efforts first-hand. There ARC

honored high school students and teachers who participated in our summer math and

science institute in Oak Ridge, Tennessee.

Since 1991, ARC has collaborated with the U.S. Department of Energy's Oak Ridge

National Laboratory in offering a two-week summer institute for students and teachers

from Appalachia.

This hands-on learning program gives students and teachers the rare opportunity to

work with scientists in their own laboratories on their own major research.

Last summer 57 participants—21 teachers and 36 students—took part, representing all

13 Appalachian states and including six participants from New York's Southern Tier. A

third of the participants came from Appalachia's poorest counties, and roughly half were

women. During the past seven summers, 300 students and 100 teachers have

participated in the summer institute.

The students spoke about how the two-week seminar ranked among their most

memorable school experiences. One youngster said it had renewed her determination to

be a scientist. A teacher talked movingly of the value of spending two weeks with other

dedicated teachers from throughout the Region.

At ARC we see such initiatives as a key element in our efforts to foster economic

development in the Region. Nearly every good job these days requires a basic mastery

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (3 of 11) [4/14/1999 11:09:10 AM]
of math and computer skills. New workplace technologies demand that our

students—our future workforce—become adept at problem solving, critical thinking,

and reasoning.

Progress is taking place in schools throughout the Region. ARC is glad to be a part of it.

Service Sectors Create Over One Million New Jobs in

Region Since 1988

More than one million of the nearly 1.3 million new jobs added to the Appalachian

economy since 1988 are in the service sectors, according to a new report on the state of

the Appalachian Region's economy.

Increases in service-sector jobs including transportation, public utilities, and wholesale

and retail jobs resulted in an overall improvement in the Region's unemployment rate

from 6 percent in 1996 to 5.5 percent in 1997, the report noted.

Produced by ARC, the study evaluated economic trends in over 400 counties in the 13

states that make up Appalachia.

The study found that 23 percent of the service sector jobs were in higher-paying,

value-added industries such as health care, freight transport, architectural and

engineering services, finance and banking, accounting, and advertising.

The report noted these additional trends:

Per capita income, perhaps the best overall indicator of economic well-being,

grew strongly in Appalachia during the 1990s, recovering from severe losses

incurred during the 1980s. In 1996 the Region's per capita income was 82.6

percent of the national rate, slightly below the historic high of 83.5 percent in

1994.

● 

Office workers account for over half of the earnings in the Region's economy,

with one quarter of these workers holding high-wage, high-skill jobs. Managerial

and professional jobs have grown by 71 percent since 1973 in the Region—the

same rate as in the country as a whole.

● 

Appalachia's population is aging at a greater rate then the nation's. The rate of

people 65 and older is two points higher in the Region than in the nation.

● 

The percentage of Appalachian children living in poverty went from 21.4 percent

in 1970 to 17.3 percent in 1980, and then to 20.1 percent in 1990. About 18

percent of Appalachia's young people aged 15 to 24 live in areas with poverty

rates of 30 percent or more.

● 

Study Measures J-1 Visa Retention Rates

The Commission recently has conducted a study to determine the retention rates of

physicians who obtained J-1 Visa Waivers and have already fulfilled their service

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (4 of 11) [4/14/1999 11:09:10 AM]
commitment to practice in the Appalachian Region.

The study is part of the Commission's ongoing effort to evaluate the J- 1 Visa Waiver

Program and is based on physician reponses to a comprehensive survey, as well as

physician site visits and and interviews by Commission staff.

The results of the study suggest the following:

29 percent of all ARC J-1 physicians continue to practice at the same site. (For

the purposes of this study, successful retention includes a J-1 physician practicing

at the original sponsor's site or in the same or adjacent rural county as the original

sponsor's site.)

● 

The percentage of J-1 physicians who stayed within Appalachia—whether

successfully retained at the same site or not—was calculated to be 37 percent.

● 

● Physician retention rates have been steadily increasing since 1987.

Commission Continues ACLP, Other Capacity-Building

Efforts

Citizen teams from 22 communities across the Region are getting ready for a new round

of the Appalachian Community Learning Project (ACLP).

Based on ARC's successful regional initiative project begun in 1997, the ACLP gives

participants the chance to produce real results from a community-based development

project.

At a series of forums this fall beginning October 29–30 in Rensselaerville, New York,

community teams will create a strategic map to help them navigate through a set of

specific targets to reach their desired economic outcome. Each team then returns to their

hometown armed with a $3,000 mini-grant from ARC. There they work to gather local

resources, foster local partnerships, and do whatever it takes to reach their targets. The

results can be dramatic.

Notable projects from the first round include a community effort that found full-time

jobs for 10 citizens and a community group that leveraged over $500,000 in new

business investments.

Additional ACLP forums will take place November 5–6 in Clemson, SC, and

November 18–19 in Beckley, WV.

Foundation Workshops

The Development District Association of Appalachia (DDAA) has sponsored three

foundation training workshops throughout the Region, attracting over 360 participants

to sites in Pittsburgh, PA (August 16–18); Kingsport, TN (September 13–15); and

Birmingham, AL (October 4–6).

Part of the DDAA's aggressive effort to bolster the local capacity of the Region's

communities, these workshops have been designed to help local representatives

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (5 of 11) [4/14/1999 11:09:10 AM]
successfully obtain more foundation funding for development activities, promote

greater collaboration between local development districts and other nonprofit

organizations, and move toward "outcome-based" activities.

The DDAA will be sponsoring a workshop this spring to help its members institute the

ACLP program—garnering citizen action, marshaling resources, and promoting

collaboration—as a regular part of their local development activities.

EZ Application Support

ARC recently made $130,000 available in mini-grants to communities going through

the second round of the Empowerment Zone/Enterprise Community application

process.

Over 18 mini-grants were disbursed, providing 35 communities with technical and

financial assistance in strategic planning, benchmarking, and other application

activities.

The second round again offered a competitive application process, emphasizing

broad-based community involvement and collaboration. The EZ designations are

expected to be announced in January 1999.

University of Kentucky's Ron Eller Selected as John D.

Whisman Scholar

Award-winning author, scholar, teacher, and an eighth-generation descendent of

families from the mountains of Appalachia, Ron Eller, director of the Appalachian

Center and associate professor of history at the University of Kentucky, has been named

the John D. Whisman Scholar by the Appalachian Regional Commission.

"There is no question that Ron Eller knows the Appalachian Region and its past, its

present, and its promise," said ARC Federal Co-Chairman Jesse L. White Jr.

"Ron Eller brings this expertise and insight. Most of all, he brings a passion, not unlike

John D. Whisman's, to build a more hopeful, brighter future for all of Appalachia. I am

pleased to welcome Ron Eller as ARC's John D. Whisman Scholar for 1998–2000,"

added White.

The award honors John Whisman, who died in 1995. Longtime aide to Kentucky

Governor Bert Combs, Mr. Whisman is widely regarded as one of the chief architects of

ARC.

Eller becomes the third John D. Whisman Scholar to provide service for ARC. He

follows Amy K. Glasmeier, Pennsylvania State University, 1996–1998, and Andrew M.

Isserman, West Virginia University, 1995.

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (6 of 11) [4/14/1999 11:09:10 AM]
Action Highlights Regionwide Entrepreneurship Efforts

As part of its effort to strengthen entrepreneurial education, the Appalachian Regional

Commission, in cooperation with the Corporation for Enterprise Development, has

awarded 35 scholarships to the Region's community, business, and education leaders to

attend the 16th Annual Entrepreneurship Education Forum in Nashville, Tennessee, to

be held October 31 through November 3, 1998.

Fifteen full scholarships and 20 partial scholarships have been disbursed throughout the

Region, with at least one applicant from each of the Appalachian states receiving a

scholarship.

The scholarships were awarded based on need, with ARC targeting less-developed

communities in the Region, as well as organizations representing underserved

constituencies.

Over 1,500 application forms were mailed throughout the Region to local officials,

community colleges, local development districts, high school teachers and principals,

chamber of commerce representatives, and many more.

As part of receiving the scholarship, recipients will be asked to conduct informational

sessions about the forum in their communities.

The Nashville forum will present major trends in entrepreneurship education from

leaders in the field, with sessions targeted to educational programs at all levels,

including K–12 education, two-year and four-year colleges, and adult education.

At Monday's general session, ARC Federal Co-Chairman Jesse L. White Jr. will speak

about ARC's regionwide goal to bolster entrepreneurial development at the local level

and the role of entrepreneurial education programs in helping achieve that goal.

ARC's entrepreneurship initiative director, Ray Daffner, will hold a workshop session

on ARC's entrepreneurship regional initiative. In addition, Daffner will be available

throughout the event to talk with participants from the Appalachian Region.

Development Finance

The Commission has formed an advisory group, made up of state and local ARC

members, policy experts, and banking representatives, to review and recommend

innovations in ARC's development finance programs.

As part of this effort, the Commission has served as co-sponsor of the Community for

Economic Development's Counting on Local Capital conference on revolving loan fund

innovations, held October 8–9 in Washington, D.C. Commission staff also attended this

event.

In other action, the Commission, in conjunction with the Federal Deposit Insurance

Corporation, recently sponsored a regional seminar on Economic Development through

Small Business Lending.

Targeted to the Appalachian portions of Alabama, Georgia, and Tennessee, this event,

held September 15 in Chattanooga, Tennessee, provided sessions on the capital and

credit needs of the Region, successful public and private partnerships, and the

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (7 of 11) [4/14/1999 11:09:10 AM]
importance of technical assistance and intermediaries in small business lending.

Over 120 technical assistance providers, bankers, and government representatives

attended this event.

Recently Approved Entrepreneurship Projects

Maryland—An ARC grant of $50,000, matched with $233,500 in local and federal

funds, will support a microloan program in Garrett County, providing financial and

technical assistance to new and expanding businesses.

Pennsylvania—An ARC grant of $257,000, along with $64,250 in local funds, will

support the formation of an Appalachian Community Development Financial

Institution. This program will serve entrepreneurs who are unable to obtain traditional

financing by providing loans in the range of $10,000 to $50,000.

Congress Passes Full Reauthorization of ARC

The Appalachian Regional Commission achieved its third major legislative victory of

the year when both houses of Congress passed a three-year reauthorization of the

agency "to continue its vital mission for the people of the region." The Commission's

last reauthorization by Congress expired in 1982.

Jesse L. White Jr., ARC federal co-chairman, said, "Leading advocates of the

Commission from both parties have tried for years to get the agency authorized, and this

vote was a signal achievement for Appalachian senators and congressmen and their

allies."

"Much of the credit also goes to the ARC partnership itself for reforming its operations

and developing a new vision and new strategic plan," White added.

Reauthorization

Besides reauthorizing ARC, the measure authorizes a gradual budget increase for the

agency over the next three years up to $70 million for all non-highway investments.

This multi-year commitment will assist communities throughout the Region in realizing

longer-term economic development plans.

The legislation also builds upon internal reforms, such as the streamlining of grant

procedures and the elimination of outdated regulations, that were first outlined in ARC's

1996 strategic plan.

Provisions of the bill reflect ARC's current policy of targeting resources to the Region's

most economically distressed areas and restricting assistance to economically strong

counties.

The bill maintains the critical role of the local development districts in crafting regional

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (8 of 11) [4/14/1999 11:09:10 AM]
strategies for economic growth, and it preserves ARC's unique federal-state partnership.

It continues ARC's traditional emphasis on providing basic infrastructure, but through a

new statement of purposes it recognizes that the Region's future growth requires

creating a diversified regional economy, building entrepreneurial communities,

improving the skills of the Region's workforce, adapting new technologies for business

development, and making the Region more competitive in international markets.

Other Actions

The ARC reauthorization bill, which President Clinton is expected to sign, follows the

passage four months ago of a landmark $2.25 billion funding package designed to speed

up the completion of the Appalachian Development Highway System.

The president recently signed a yearly appropriations measure that provides $66.4

million for all ARC non-highway programs in fiscal year 1999.

West Virginia Governor Cecil Underwood, who testified before Congress earlier this

year in support of ARC programs, said that Congress sees ARC as "a partnership that

works."

"Having recently gone through a rigorous process of developing a new strategic plan

and setting regional goals, ARC has become a leaner, more innovative and flexible

agency that is moving on a number of new fronts to help the people of Appalachia help

themselves," Underwood stated.

"Congress' action demonstrates the confidence that many elected leaders, including our

nation's Governors, have in the Appalachian Regional Commission," said New York

Governor George Pataki, who currently serves as the States' Co-Chairman of the

Commission.

"Congress has recognized that ARC is one of the nation's most successful experiments

in federal-state partnerships," he noted.

Commission Receives $66.4 Million for Nonhighway

Investments in FY 1999

As part of the Energy and Water Development Appropriations Bill signed into law by

President Clinton this month, the Appalachian Regional Commission will receive $66.4

million in fiscal year 1999 for all non-highway investments.

This represents essentially level funding of the agency's non-highway activities.

The annual appropriation will continue to be directed toward projects and activities

focusing on the five goal areas contained in the ARC strategic plan.

The goal areas cover education and training, physical infrastructure, civic leadership

capacity, entrepreneurial and technical resources, and community health care.

Special targeted support for the Region's most economically distressed counties will

continue, as will support for the Region's 71 local development districts.

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (9 of 11) [4/14/1999 11:09:10 AM]
House and Senate conferees split the difference between the House bill's $65.9 million

and the $67 million in the Senate bill.

In June, President Clinton signed the Transportation Equity Act for the 21st Century

(TEA-21), which directed $2.25 billion over the next five years toward accelerating the

completion of the 3,025-mile Appalachian Development Highway System (ADHS).

Now nearly 80 percent complete or under construction, the ADHS is credited with

spurring economic growth and development while saving lives.

With passage of TEA-21, the completion of the ADHS will be supported through the

federal highway trust funds, but the Commission will continue to oversee the system

and administer the program.

Commission Announces Changes in Personnel

A long-time professional staff member recently retired from ARC.

Judith Maher, who joined the Commission in 1972, provided 26 years of service as a

researcher, librarian, and editor of special publications and most recently as a policy

analyst in the Regional Planning and Research Division.

ARC welcomes new staff member Michael Kiernan as public affairs specialist. Kiernan

comes to ARC from InterAction, a coalition of more than 150 nonprofit humanitarian

aid groups, where he served as press spokesperson and public affairs director.

Kiernan replaces Christina Evans, who recently returned to work on Capitol Hill.

Upcoming Activities

October 29–31 ACLP Forum, Rensselaerville, NY

October 31–November 3 16th Annual Entrepreneurship Education Forum, Nashville,

TN

November 5–6 ACLP Forum, Clemson, SC

November 18–19 ACLP Forum, Beckley, WV

November 19–20 Export Trade Advisory Council, Chautauqua, NY

Published quarterly by the Appalachian Regional Commission, 1666 Connecticut Avenue, NW,

Washington, DC 20235. Editor—Tanya Shimmons. For more information, call (202) 884-7700, fax

(202) 884-7691, or email tshimmons@arc.gov.

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (10 of 11) [4/14/1999 11:09:10 AM]
Back to Top

About ARC | ARC Federal, State, and Local Partners | ARC Programs |

How to Apply for a Grant | Information and Publications | Home | Site Index | Feedback

Autumn 1998 Appalachian Reporter

file:///F|/lps2404/autumn98.htm (11 of 11) [4/14/1999 11:09:10 AM]