A PPALACHIAN REGIONAL COMMISSION

FY 2021 Performance Budget 

Justification

As Submitted by the Federal Co-Chair to the Appropriations 

Committees of the House and Senate

February 2020
1 

Appalachian Regional Commission

FY 2021 Performance Budget Justification 

As Submitted by the Federal Co-Chair 

February 2020 

Table of Contents 

FY 2021 Budget Summary and Highlights .......................................................................... 2 

Major Program Justification: Area Development Base Program ................................... 10 

Major Program Justification: Coal Impacted Communities Initiative ............................. 17 

Major Program Justification: Special Regional Initiative for Distress ........................... 21 

Major Program Justification: 

 Special Regional Initiative for Substance Abuse Mitigation ............................... 24 

 Performance ........................................................................................................................ 27 

 Salaries and Expenses ....................................................................................................... 30 

 Comprehensive Reform Initiative ...................................................................................... 34 

Appendices .......................................................................................................................... 41 

 A. High-Poverty Counties in the Appalachian Region 

 B. County Economic Status Designations in the Appalachian Region, FY 2020 

 C. Appalachian Regional Commission Organization Chart 

 

   
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Budget Summary and Highlights

The Federal Co-Chair requests $165 million to fund 

the activities of the Appalachian Regional Commission 

(ARC) for FY 2021. This represents level funding with 

the amount requested in the President’s Budget for 

FY 2020. Seventy-three million is requested to 

continue the Area Development Base Program; $50 

million is requested to continue the effort to assist 

communities adversely affected by the downturn in 

the coal industry; $32 million is requested for special 

regional initiatives to address distress; and $10 million 

to address workforce challenges caused by the 

Region’s drug crisis. ARC will utilize this funding to 

leverage emerging opportunities such as continued development of the southern automotive 

and aviation clusters, and to address barriers such as effects of the drug crisis on the workforce, 

as well as the lack of both water, sewer, and broadband infrastructure in the Region. ARC is 

authorized through FY 2020 – the Administration supports reauthorization legislation. The 

mission of the ARC is to help close the economic gap between Appalachia and the rest of the 

nation and bring the Region’s 420 counties and 25 million residents into the economic 

mainstream. The 13-state Appalachian Region has historically confronted a combination of 

challenges that few other parts of the country face—its mountainous terrain and isolation, 

dispersed population, inadequate infrastructure, lack of financial and human resources, and 

weak track record in applying for and receiving assistance from national federal programs. 

Additionally, the Region is hit harder by economic downturns and traditionally takes longer to 

recover. Figure 1 indicates that Appalachia has performed worse than the country overall 

during each of the three time periods: 

• From 2002 to 2007, total employment growth in Appalachia was approximately two 

percentage points less that than in the U.S.; 
3

• From 2007 to 2012, employment 

declined approximately two 

percentage points more than it did 

in the nation as a whole; and 

• From 2012 to 2017, the Region 

experienced growth at only half the 

rate for the country overall. 

Figure 2 indicates the percentage of the 

population and jobs in the United States 

that are found in Appalachia. A noticeable 

gap exists between the two, which can be 

interpreted to indicate that there are—and 

have been—fewer jobs available per 

person in Appalachia than elsewhere in 

the country. Most recently, downturns 

in the coal economy and the 

disproportionately high rate of 

substance abuse have exacerbated this 

issue. Because new challenges don’t 

eliminate or supersede old ones, this 

request features multiple initiatives that 

reflect the evolution of Appalachia by 

including differing, yet complementary 

programmatic approaches. 

The Area Development Base Program will continue to address the specific needs of individual 

states, while the Coal Impacted Communities and Substance Abuse Workforce Reentry

initiatives will address multi-jurisdictional activities that cross state borders. These multi-state 

projects are difficult for ARC to fund through the Area Development Base Program. This new 

approach will enable Appalachia to develop on both a micro and macro level, better positioning 

the Region to participate in the global economy. ARC is the only federal agency statutorily 

mandated to address challenges specific to this Region and its work does not duplicate other 

federal programs. Instead, ARC extends the reach of national programs into the most 

challenged parts of Appalachia by providing necessary gap funding and technical assistance that 

enables economically distressed communities to compete successfully for these programs. ARC 

brings deep knowledge of the Region, a strong track record of impact, and far-reaching 

networks of critical community, state, and regional partners established over the last 50 years. 

Figure 2: Percentage of U.S. Population and Jobs in Appalachia, 1969-2017
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In FY 2019, ARC partnered with The U.S. Department of Labor’s Employment and Training 

Administration to design workforce development initiatives through the Workforce 

Opportunity for Rural Communities grant initiative. Activities will result in enhanced training 

and support activities for dislocated workers, new entrants in the workforce, incumbent 

workers, and individuals affected by substance use disorder, which is disproportionately high in 

Appalachia. A total of 10 applications from the Region received funding in this round and a 

second request for proposals was under development for release in FY 2020. Other recent 

partners include the U.S. Departments of Transportation, Agriculture, Commerce, Education, 

Housing and Urban Development, and the Treasury, the Environmental Protection Agency, 

Department of Energy including Oak Ridge National Laboratory and the National Energy 

Technology Laboratory, the Federal Deposit Insurance Corporation, the National Endowment 

for the Arts, National Institute on Drug Abuse, and the National Trust for Historic Preservation. 

ARC has an impressive record of engaging private sector and nonprofit partners to increase the 

amount of financial and technical assistance flowing to the Region. To deploy computer 

equipment into the Region, ARC formed a partnership with Microsoft Corporation. Bristol 

Meyer’s Squibb Foundation joined ARC to combat disproportionately high levels of Type 2 

diabetes in the Appalachia. When ARC commissioned research on the lack availability of 

investible capital in the Region, Appalachian Community Capital was launched in response, 

raising an additional $12 million in debt and equity from Bank of America, Deutsche Bank, 

Calvert Foundation, the Ford Foundation, Mary Reynolds Babcock Foundation, the Claude 

Worthington Benedum Foundation, the Annie E. Casey Foundation, and BB&T Bank. Most 

recently, ARC addressed a barrier to substance abuse recovery and reemployment -- the lack of 

transportation services to connect those in recovery to treatment and employment 

opportunities -- by identifying transportation solutions. Partners engaged in this initiative 

include national ride-share transportation network companies such as Lyft, and other faithbased service providers. This group will continue to build-out this pilot through FY 2020. 

To assess progress in completing the mission, ARC developed an index that compares the 

economic condition of Appalachian counties with all the counties in the nation (based on 

unemployment, per-capita income, and poverty rates). While the number of distressed 

counties for FY 2020 has dropped to a low not seen since pre-recession 2008, Appalachia still 

has proportionally more of the economically weakest counties and fewer of the economically 

strongest counties compared to the rest of the nation. Moreover, about 25 percent of the 
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weakest counties in the nation are in Appalachia, 

while the Region has only 1.7 percent of the 

nation’s strongest counties. When this index 

demonstrates an equal share of counties across 

each quartile, Appalachia will be at 

socioeconomic parity with the nation.

Since its inception, ARC has created an 

impressive record of accomplishments. The 

number of high poverty counties in Appalachia 

has been cut by more than two-thirds, from 295 

in 1960 to 98 today and the regional poverty rate

has been cut almost in half, from 31 percent to 16.3 percent. A 2015 study commissioned by 

ARC found that over the period 1970–2012, employment and per capita income growth rates 

were higher in Appalachian counties that received ARC investments than in similar nonAppalachian counties that did not. Between FY 2015 and FY 2019, ARC program investments 

totaled $665.8 million. Taken together these funds—

• leveraged over $1.0 billion in other public investment

• attracted almost $3.9 billion in private investment

• resulted in 107,019 jobs being created or retained

• provided training and new skills to 176,122 students and worker/trainees

But despite the accomplishments, major challenges still confront the Region. 

• Nearly one-fifth of Appalachia’s counties still suffer from persistent and severe 

economic distress 

• Per capita market income in Appalachia was nearly 27 percent lower than the nation in 

2017

• The Region has been disproportionately affected by the nationwide decline in 

manufacturing. From 2000 to 2017, Appalachia lost 30 percent of its manufacturing jobs 

(a loss of 586,000 jobs), whereas the country as a whole experienced a decline of 25 

percent (a loss of 4.4 million jobs). 

• Appalachia is underserved by basic infrastructure, including broadband service, and lags

behind the nation in the percentage of adults with a college education

• 78 percent of the 39,413 coal mining jobs lost in the United States from 2011 to 2018 

were in the Appalachian Region—a loss to the Region of 30,657 direct mining jobs
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• The nation’s substance abuse crisis continues to disproportionately impact Appalachia. 

By 2017, the Region had an overdose mortality rate that was 63 percent higher than the 

nation.

ARC recently released Strengthening Economic Resilience in Appalachia in which Downstream 

Strategies, the Northeast Regional Center for Rural Development, Dialogue + Design Associates 

and West Virginia University developed best practices for communities to transform and 

diversify economies and build resilience against future economic shocks.1 The practices 

identified match closely with the goals and objectives of ARC’s Strategic Plan. 

Area Development Base Program

Through the Area Development Base

Program, ARC continues to address

widespread generational poverty

through a flexible bottom-up approach 

working with state and local partners

with $73 million dedicated to this 

activity. ARC will accomplish this 

mission through implementation of 

activities within the goals of the 

agency’s strategic plan which is being 

updated during FY 2020. ARC will 

continue to work with state and local 

partners to address ongoing challenges 

in the Region in FY 2021. 

Coal Impacted Communities Initiative

The economic downturn of the coal industry has had significant impact on Appalachia. Seventyeight percent of the 39,413 coal mining jobs lost in the United States from 2011 to 2018 were in 

the Appalachian Region—a loss to the Region of 30,657 direct mining jobs. To address this, 

Congress appropriated $50 million to ARC in each FY 2016 – FY 2020 for activities that target

federal resources to help communities and regions that have been affected by job losses in coal 

mining, coal power plant operations, and coal-related supply chain industries due to the 

changing economics of America's energy production. To date, ARC has invested over $190

million in 239 projects touching 326 counties across Appalachia through this Initiative. These 

investments are projected to create or retain more than 23,000 jobs, and leverage more than 

$811 million in additional private investment into Appalachia's economy. The FY 2019 round 

included $15 million exclusively dedicated to broadband deployment and included a new 

 1 https://www.arc.gov/research/researchreportdetails.asp?REPORT_ID=150
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investment priority on strengthening substance abuse response. The FY 2020 round built on 

the findings of an evaluation by an outside contractor and also included special consideration 

for projects serving Opportunity Zones. The budget requests $50 million to continue to assist 

communities adversely impacted by the downturn of the coal industry in FY 2021.

Special Regional Initiative for Distress

ARC by law must direct at least half of its grant funds to projects that benefit economically 

distressed counties and areas in the Region; however, the agency routinely exceeds that

requirement. In FY 2019, 70 percent of ARC’s funds were invested in projects for the benefit of

distressed communities. ARC gauges its long-term progress toward helping the Region achieve 

economic parity with the nation in terms of the gradual reduction in the number of such 

counties and areas over time. In FY 2020, the number of distressed counties in the Region 

dropped to a level not seen since pre-recession 2008, indicating that this initiative is generating 

successful results. ARC will continue its effort to reduce distress making targeted investments 

in emerging opportunities and activities that reduce economic barriers. Continued expansion

of the southern automotive and aviation clusters offers great potential for job creation in 

Appalachia. Other challenges such as inadequate water, sewer and broadband infrastructure 

and the effects of the drug crisis on the workforce however, continue to require substantial 

resources to overcome. The budget requests $32 million in FY 2021 to develop projects 

focusing on the reduction/elimination of economic distress in the Region. 

Special Regional Initiative for Substance Abuse Mitigation

In 2017, the Region had an overdose mortality rate that was 63 percent higher than the nation,

and an opioid-related overdose mortality rate that was 79 percent higher than that found in the 

United States overall. In addition to being considered a health and public safety issue, this 

problem is now recognized as a barrier to economic prosperity because of the impact of the 

drug crisis on the Region’s workforce. The threat to economic prosperity in the Appalachian 

Region makes the issue a priority for ARC. In response, ARC convened the Substance Abuse 

Advisory Council, a 24-member volunteer advisory group of leaders from recovery services, 

health, economic development, private industry, education, state government, law 

enforcement and other sectors representing each of the Region’s 13 states. The Council’s work 

is guiding ARC’s strategy to help address the workforce impacts of the substance abuse 

epidemic. The budget requests $10 million in FY 2021 to develop projects focused on workforce 

reentry strategies that both strengthen local economies and support Appalachians who have 

achieved long-term recovery from a substance use disorder. This funding reflects the 

Administration’s declaration that the drug crisis is a national emergency and supports the 

Administration’s 2020 National Drug Control Strategy. 
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Local Development Districts

Grassroots participation in the Area Development program comes from 73 Local Development 

Districts (LDDs), multi-county agencies and boards composed of local elected officials and 

businesspeople. The budget requests $6.20 million to support the work of the LDDs. 

Salaries and Expenses

The budget requests funding for salaries and expenses totaling $9.83 million for the full costs of 

the Office of the Federal Co-Chair, its immediate staff, and a portion of the cost associated with 

the Office of the Inspector General, programmatic costs of the Commission and the 50 percent 

federal share for administrative expenses of the Commission staff.
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ARC’s appropriation has increased significantly. Five years ago, the Commission received $80 million; today the amount is more than twice that 

at $175 million appropriated in FY 2020. Because appropriation increases were incremental and initially appeared to be temporary, the 

Commission did not immediately add staff capacity to correspond to the additional grant demand caused by the higher appropriations. At this 

point, however, ARC’s additional program responsibilities appear to be established, if not permanently, at least for the long term. Staffing 

increases to match up with these new responsibilities can no longer be avoided in order to deploy the full appropriation each year. The request 

reflects the full costs of the Office of the Federal Co-Chair, its immediate staff, and a portion of the cost associated with the Office of the 

Inspector General. The request also includes funding for Commission operations through an alternative approach to budgeting that shifts all 

program costs out of the administrative category where expenses are shared by the states and the federal government. This is consistent with 

the original organization of ARC in which “administrative” expenses were largely those associated with the planning and research functions of 

the Commission and grant program costs were in tern borne by the federal government alone through transfers to other agencies who 

administered ARC Investments. In recent years, ARC has been assigned programmatic responsibilities for appropriations that were previously 

transferred to other agencies necessitating this change. 

The agency is currently engaged in a staff reorganization, of which these increases are a part, designed with the goal of maintaining necessary 

levels of services to the states while producing long term efficiency savings. 

Appalachian Regional Commission Funding

Change

Base Program 73,000 73,000 73,000 0

Coal Impacted Communities 50,000 45,000 50,000 5,000

Special Initiatives For Distress 42,000 47,000 32,000 (15,000)

Special Regional Initiate for Substance Abuse Mitigation 10,000 10,000 0

Total 165,000 175,000 165,000 (10,000)

Area Development Program Grants 152,111 159,450 148,966 (10,484)

Local Development Districts 6,200 6,200 6,200 0

Salaries and Expenses

Commission Administration (50% Federal Contribution) 4,353 3,035 3,272 237

Commission Programatic 3,832 3,870 38

Office of the Inspector General 551 546 745 199

Office of the Federal Co-Chair 1,785 1,937 1,947 10

Total 6,689 9,350 9,834 484

ARC Proposed Budget for FY 2021

FY2019

Enacted Budget

President's

FY2021

FY2020

Enacted
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Program Justification: Area Development Base Program

The Federal Co-Chair of the Appalachian Regional Commission requests a total of $165 million --

$73 million of which will continue the activities in the Area Development Base Program. This 

represents level funding with the amount requested in the President’s Budget for FY 2020. ARC 

funding decisions for this program reflect local priorities through a flexible “bottom up” 

approach, enabling communities to tailor the federal assistance to their individual needs. This 

program extends the reach of other federal programs into the most challenged parts of 

Appalachia by providing the necessary gap funding that enables economically distressed 

communities to compete successfully in national programs. Finally, this program helps attract 

private sector investment to areas that otherwise would not likely be considered competitive 

investment opportunities. From FY 2015-FY 2019, on average every $1 of ARC grant funds 

leveraged $5.83 of private investment.

ARC’s authorization expires at the end of FY 2020. The Administration supports legislation to 

reauthorize the program. ARC will update its strategic plan through a comprehensive process that 

will include stakeholder input as well as socioeconomic and programmatic assessment. The new 

plan will take effect in FY 2021. While no significant programmatic changes are anticipated, the 

goals and objectives of the plan will likely shift to reflect the current economic challenges and 

opportunities. What follows describes the plan enforce at the time of this publication. 

Goal 1: Economic Opportunities

Invest in entrepreneurial and business development strategies that strengthen Appalachia's economy.

Appalachia is in the midst of an economic transition that presents significant opportunities for

the growth of new and expanding businesses—and the new jobs that would result—especially in

promising sectors such as health care, energy, local food systems, advanced manufacturing, and

tourism. Fostering entrepreneurship and creating an entrepreneurial ecosystem to capitalize on

these opportunities is a key component of ARC’s economic development efforts. Skilled

employees, a robust support system, the right types of investment, and engaged communities

are needed for entrepreneurship to flourish. In FY 2019, ARC initiated a Summer High School 

Entrepreneurship Program and is currently working with its implementation partner to deliver 

the initial session during FY 2020. The goal of the program is to increase next generation 
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entrepreneurial activity in the Region. ARC will continue to pursue a wide range of activities, 

including improving access to capital and credit for small businesses, supporting business 

incubators and accelerators, providing education and training for entrepreneurs, and helping 

rural firms expand their international market opportunities with special focus on designated 

Opportunity Zones. 

Goal 2: Ready Workforce

Improve the education, knowledge, skills, and health of residents to work and succeed in 

Appalachia.

Education, particularly postsecondary education, is a key component of the business and 

entrepreneurial ecosystem and is often an economic driver. However, Appalachia lags behind 

the nation in the proportion of adults with a college degree (25 percent compared with 32

percent for the nation). Investments by ARC and its partners aim to connect education, 

workforce, and business interests in a seamless system that prepares the Region’s youth to 

succeed in existing and emerging sectors, and that creates new opportunities for workers 

transitioning to new employment in high-growth high-demand sectors. This is particularly 

important for those who have lost jobs in manufacturing and mining or other coal-related 

industries. 

A healthy, skilled, and ready workforce is a building block for a more prosperous Appalachian 

Region. The nation’s substance abuse crisis continues to disproportionately impact Appalachia. 

By 2017, the Region had an overdose mortality rate that was 63 percent higher than the nation, 

and an opioid-related overdose mortality rate that was 79 percent higher than that found in the 

United States overall.

Economic Opportunities

With existing space to launch entrepreneurs and host new businesses almost at capacity in the Starkville, MS area, new space was

needed. ARC made an investment of $300,000 in FY 2019 in order to rehabilitate a 3-story building to serve as an innovation hub. The 

building is located near many downtown amenities and to Mississippi State University’s Center for Entrepreneurship's Idea Center, 

making it a desirable location especially for young entrepreneurs. The existing facility provides technical assistance to over 100 people 

annually who are considering a start-up and logistical resources. The additional 34,000 square foot expansion will enable 

entrepreneurship to continue growing. 
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In FY 2018, ARC released the Appalachian Overdose 

Mapping Tool2, a data visualization tool illustrating 

the impact of the opioid epidemic in the 

Appalachian Region and its relation to 

socioeconomic factors such as unemployment, 

poverty, education, and disability. The tool 

demonstrates the high concentration of opioid 

overdose cases in Central Appalachia. In FY 2019, 

ARC convened the Substance Abuse Advisory 

Council a 24-member volunteer advisory group of 

leaders from recovery services, health, economic 

development, private industry, education, state government, law enforcement and other 

sectors representing each of the Region’s 13 states. The Council’s work is guiding ARC’s strategy 

to help address the workforce impacts of the substance abuse epidemic as the agency engages

with both the Federal Regional Opioid Subcommittee convened by the Administration and the 

USDA Opioid Misuse Partnership. ARC is well positioned to assist in increasing the treatment 

and recovery workforce, and expanding employment opportunities for people in recovery as 

described in the Administration’s 2020 National Drug Control Strategy. ARC will advocate for 

and address the challenges posed by the drug epidemic and by the generally poor health 

conditions that present barriers to active employment.

Goal 3: Critical Infrastructure

Invest in critical infrastructure—especially broadband; transportation, including the 

Appalachian Development Highway System; and water/wastewater systems.

 2 https://overdosemappingtool.norc.org/

Recovery Workforce

Lack of transportation can be an obstacle preventing people in recovery from getting the care they need to maintain substance abuse 

disorder recovery and obtain employment. In FY 2019 ARC invested $215,000 to assist community leaders in Huntington, WV in 

developing a pilot project to address this specific challenge. Activities include training treatment and recovery workers to be mobility 

advisors, enhancing and expanding available transportation options, subsidizing critical treatment and recovery trips, and engaging 

rideshare and volunteer driving services. Potential partners include national transportation network companies like Lyft, local vehicle 

donation programs, and faith-based volunteer groups. This pilot will also collect data and monitor the project to measure success in 

order to offer best practices to other communities facing similar challenges.
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Equipping Appalachia’s communities with 

basic infrastructure has been a major focus of 

ARC since its creation. In order to compete in 

the global economy, Appalachia must continue 

to develop and improve the infrastructure 

necessary for economic development,

including broadband and telecommunications; 

basic infrastructure, such as water and 

wastewater systems; diversified energy; and 

transportation, including the Appalachian 

Development Highway System (ADHS) and 

local access roads.

Many Appalachian communities lack basic 

public services and do not have the financial 

capacity to fund water and wastewater 

improvements. Roughly 20 percent of the 

Region's population is not served by a 

community water system and must rely on 

private well water for their drinking water 

needs. Nearly half of all Appalachian 

households are not served by public sewage systems. ARC's residential infrastructure program 

targets the Region's most economically distressed communities and utility systems that are 

struggling to resolve public health and environmental emergencies.

ARC also supports infrastructure investments that promote 

economic and employment opportunities. The provision of 

water, sewer, gas, fiber, and access roads are critical to 

attracting new development and supporting the expansion 

and economic health of the Region's existing business sector. 

ARC uses grant funds to leverage other public dollars and 

private-sector investment to attract commercial and industrial 

development. These investments are fundamental building 

blocks for further economic development. Congress has 

devoted special funding for broadband deployment and basic 

infrastructure in Central Appalachia. These activities are 

discussed in more detail in the section titled Special Regional 

Initiatives for Distress. 

Critical Infrastructure for Distressed Counties

The town of Grantsville, in economically distressed Calhoun 

County, WV received a grant to upgrade its water treatment 

facility in FY 2019. Project partner USDA Rural Development 

Service made a grant in the amount of $1.4 million and a loan in 

the amount of $1.76 million, however, an additional $1 million

was still needed to move forward. ARC used funds exclusively 

reserved for work in distressed counties to complete the 

investment package. A total of 1,336 households and 163 

businesses will be served when the project is complete. 

Growing Industry Clusters

In FY 2018, ARC invested $462,554 along with partner agency 

EDA in a $1.5 million project in the city of Chickamauga, Georgia, 

for critical upgrades to the water system serving a flooring 

manufacturing factory. The infrastructure improvements will 

also benefit additional business in the area and will help protect 

1,000 manufacturing jobs, including those at the area’s largest 

employer, and could attract up to $100 million in private 

investment. Northwest Georgia is known as “The Carpet Capital 

of the World,” with 85 percent of all carpet manufactured in the 

US is produced in Georgia. The region’s industry base is 

comprised of a diverse set of companies, including 

multinationals, medium-sized firms, and innovative start-up 

companies, primarily in textile and textile mill manufacturing. 

This project supports Floor 360, a voluntary group of industry 

stakeholders led by the Northwest Georgia Regional Commission 

and Georgia Tech’s Enterprise Innovation Institute.
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Congress authorized construction of the ADHS as part of ARC’s original enabling legislation. This 

highway system, which supplements the Interstate Highway System, was designed to generate 

economic development in previously isolated areas by connecting Appalachia to the interstate 

system and providing access to areas within the Region as well as to markets in the rest of the 

nation. The ADHS has been a key element of ARC’s economic and community development 

programs.

Goal 4: Natural and Cultural Assets

Strengthen Appalachia's community and economic development potential by leveraging the 

Region's natural and cultural heritage assets.

Appalachia’s natural and cultural heritage assets offer great economic potential. They

contribute to a sense of regional identity, catalyze entrepreneurship and other economic

development activities, and make communities more attractive to visitors and more livable

for residents. ARC works with partners to leverage the productive use of the Region’s 

assets in support of existing and emerging economic opportunities. 

ARC has invested in a range of downtown revitalization 

projects across the Region to help communities 

strengthen their local economies and improve quality of 

life. In addition, to capitalize on the expanding 

recreational tourism industry in the Region, the 

Commission invested in projects creating and extending 

hiking, biking, and motorsports trails. In a multi-year 

partnership with the National Endowment for the Arts 

(NEA), ARC supports the Appalachian Gateway 

Communities Initiative to provide technical assistance 

with natural and cultural heritage tourism development 

to communities that are geographically positioned as 

“gateways” to the Region’s public lands and heritage 

areas. 

Goal 5: Leadership and Community Capacity

Build the capacity and skills of current and next-generation leaders and organizations to 

innovate, collaborate, and advance community and economic development.

Cultivating the next generation of Appalachian leaders is key for the Region’s future. ARC’s 

strategic investments and partnerships achieve the greatest impact by helping build the 

capacity and skills of current and next-generation leaders and organizations to advance the 

Region’s community and economic development. 

Natural and Cultural Assets

With outstanding natural assets, world-class 

recreational opportunities, established regional 

partnerships in the wood product industry, and 

improved highway infrastructure connectivity, the 

Mon Forest region is ripe for recreational tourism 

industry cluster development. Rural communities 

like those in West Virginia, lack the capacity and 

resources needed to successfully support and 

capitalize on the recreational economy. Creating a 

complete recreational vacation experience for 

visitors is key to driving greater visitation and 

prolonged stays. In FY 2019, ARC invested $452,500

matched equally by funds from the U.S. 

Department of Commerce to Woodland 

Community Lenders and the Natural Capital 

Investment Fund to offer loan capital and technical 

assistance to 85 potential or growing businesses in 

the area of specialty recreational opportunities in 

order to generate tourism revenue.
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In FY 2018, ARC launched the Appalachian Leadership Institute with the mission of equipping a 

diverse network of leaders with the skills, expertise, and vision to address the Region’s most 

pressing issues and increase Appalachia’s economic competitiveness. This program includes a 

year-long leadership module aimed at current or emerging leaders. Ongoing networking and 

collaborative activities will be encouraged through an active alumni engagement program. The 

goal of this activity is to provide a toolkit to address challenges and opportunities unique to the 

Appalachian Region. The first cohort was significantly oversubscribed with ARC receiving over 

180 applications for 40 slots. That group began training in FY 2019 and will graduate in FY 2020

and transition to the alumni program. 
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ARC Area Development Base Program 

Performance Targets*

Based on annual appropriation of $73 million

(Subject to final allocation by the Commission)

Priority Goal Investment Strategy Annual 

Performance 

Target

Five-Year 

Performance Target

Economic 

Opportunities

Invest in entrepreneurial and business 

development strategies that strengthen 

Appalachia’s economy

2,500 

Businesses 

created or 

strengthened

20,000 Jobs 

created or 

retained

112,500 Businesses 

created or strengthened

100,000 Jobs created or 

retained

Ready 

Workforce

Improve the education, knowledge, 

skills, and health of residents to work 

and succeed in Appalachia.

22,000 students, 

workers, and 

leaders improved

110,000 students, 

workers, and leaders 

improved

Critical 

Infrastructure

Invest in critical infrastructure—

especially broadband; transportation, 

including the Appalachian 

Development Highway System; and

water/wastewater systems

22,000

businesses and 

households with 

access to

improved 

infrastructure

110,000 businesses 

and households with 

access to

improved infrastructure

Natural and 

Cultural Assets

Strengthen Appalachia’s community 

and economic development potential 

by leveraging the Region’s natural and 

cultural heritage assets

250 communities 

with enhanced 

capacity

1,250 communities with 

enhanced capacity

Leadership 

Capacity

Build the capacity and skills of current 

and next-generation leaders and 

organizations to innovate, collaborate 

and advance community and 

economic development

* Subject to change with update of the ARC Strategic Plan for FY 2021 6 to 1 Leveraged Private Investment
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Program Justification: Coal Impacted Communities Initiative

The Federal Co-Chair of the ARC requests $50 

million for its regionally competitive Coal 

Impacted Communities Initiative. This 

represents level funding with the amount 

appropriated by Congress in prior years. 

Appalachia has been disproportionately 

affected by the downturn in the coal industry 

with 78 percent of the 39,413 coal mining 

jobs lost in the United States from 2011 to 

2018 in the Appalachian Region—a loss to the 

Region of 30,657 direct mining jobs. Figure 3 

indicates that between 2012 to 2017, both the United States and the Region saw declines -- 2.7 

percent for the United States, and 17.3 percent for the Region.

This initiative assists communities and regions adversely affected by job losses in coal mining, 

coal power plant operations, and coal-related supply-chain industries in diversifying their 

economies. It is designed to assist Appalachia in better competing in the global economy 

through transformational activities that cross state borders to connect development efforts. 

Prior year requests for proposals have been significantly oversubscribed, demonstrating both 

the significant need and the volume of opportunities. Therefore, the Federal Co-Chair will take 

measures to expedite deployment of these funds. 

The Coal Impacted Communities Initiative will enhance job training and re-employment 

opportunities, creating jobs in existing or new industries, and attracting new sources of 

investment. ARC has funded activities in coal-impacted communities through a competitive 

grant process with a preference for one or more of five priority areas:

Building a Competitive Workforce Enhancing Access to, and use of, Broadband 

Fostering Entrepreneurial Activities Growing Industry Clusters

Substance Abuse Mitigation

Figure 3: Industrial Share, Coal, Gas, & Other Mining, 2002-2017
18

A request for proposals (RFP) for the FY 2019 built on prior rounds and featured a $15 million 

exclusively dedicated to broadband deployment and included a new investment priority on 

strengthening substance abuse response. That round yielded 54 new investments totaling 

$44.4 million bringing the overall total for this initiative to $190 million. Funded activities 

include strengthening the response to substance abuse in Central Appalachia, training workers 

for private-sector technology jobs in eastern Kentucky, boosting entrepreneurship and 

innovation in southwest Pennsylvania, and expanding support for tourism businesses in Virginia 

and West Virginia 

An RFP for FY 2020 was released in the first quarter of FY 2020 and included modifications 

based on best practices and lessons learned from the Chamberlin/Dunn program evaluation 

conducted during FY 2019 and special consideration for applicants proposing to serve 

Opportunity Zones in conjunction with the Administration’s initiative. 
19

Coal Impacted Communities Initiative Funding Examples

FY 2019

Building a Competitive Workforce

$1,461,078 In FY 2019, ARC made a grant to Eastern Kentucky 

Concentrated Employment Program, Inc. (EKCEP) in Hazard, KY, 

for the Eastern Kentucky Addiction Recovery & Training 

Program (eKART). EKCEP is partnering with Sullivan University 

and Addiction Recovery Care to implement the program, which 

will bridge the gap between addiction recovery and productive 

participation in the workforce for individuals in recovery. The 

program will provide career training and supportive services, as 

well as cultivate second chance job opportunities. Sullivan 

University, which is successfully training individuals in recovery 

to become Peer Support Specialists, will enable participants to 

return to the workforce in jobs where they can help other 

individuals enter and complete recovery. The project will train 

65 new peer support specialists and at least 125 individuals in 

recovery will re-enter the Eastern Kentucky workforce. Sixtythree businesses will be certified as recovery-friendly 

workplaces. Additional funding is provided by the Kentucky 

Department of Behavioral, Developmental, and Intellectual 

Disabilities and Kentucky Opioid Response Effort.

Growing Industry Clusters

$1,100,000 In FY 2019, ARC made a grant to Clarion University 

in Clarion, PA, for the Northwest Pennsylvania Diversifying the 

Regional Economy project. The project offers training 

opportunities to reinvigorate the regional economy and prepare 

for the emerging petrochemical industry by developing highly 

skilled secondary education pre-apprenticeship programs, 

offering certification of employer-demanded apprenticeships, 

creating career-ladder training in targeted industry clusters, 

identifying customized training needs to upgrade the existing 

workforce, and implementing entrepreneurial training leading 

to job growth. By the conclusion of the project, 150 high school 

students will have obtained employment or enrolled in further 

education or training, 75 workers/trainees will have enhanced 

their position or found new employment, and 30 adult 

participants will have completed entrepreneurship training and 

started at least four businesses.

Enhance access to Broadband Services

$2,147,125 In FY 2019, ARC made a grant to Duck River Electric 

Membership Corporation (DREMC) in Shelbyville, TN, for its East 

Loop and Smart Grid Fiber Communication project. The project 

will deploy smart grid improvements that form the backbone of 

a gigabit-speed fiber retail broadband network. The project will 

enable DREMC's Internet service provider (ISP) partners to 

provide affordable broadband access to 1,202 businesses and 

2,876 households in Franklin, Coffee, and Marion Counties, 

resulting in the creation of 103 new jobs.

Fostering Entrepreneurial Activities

$796,924 In FY 2019, ARC made a grant to Grow Ohio Valley 

(GOV) in Wheeling, WV, for the Agribusiness Development in 

the Upper Ohio Valley project. Serving agricultural producers 

and businesses in a three-state region (West Virginia, Ohio, and 

Pennsylvania), Grow Ohio Valley will launch a year-round 

consignment market in an unused downtown space of 

Wheeling, West Virginia, and develop a branded product line 

featuring local ingredients to be sold at the market. Additional 

market opportunities for farmers will be developed through the 

expansion of GOV's FARMacy initiative, which partners with 

healthcare providers to offer prescriptions of fresh produce to 

patients suffering from chronic diseases and substance abuse 

issues. The project will also roll out a STEM-focused curriculum 

in Ohio County, West Virginia, schools that equips high school 

students to pursue indoor agricultural careers. The project will 

improve 100 businesses, create 66 jobs, launch three 

businesses, and leverage more than $460,000 in private 

investment. 
20

ARC Area Development Program – Coal Impacted Community 

Initiative

Performance Targets

Based on $50 Million

Includes funds for Administration

Investment Strategy Annual Performance Target

Invest in entrepreneurial and business development 

strategies that strengthen the Appalachian Economy

Improve the education, knowledge, skills, and health of 

residents to work and succeed in Appalachia

Invest in critical infrastructure – especially broadband; 

transportation; including the Appalachian Development 

Highway System and water/wastewater systems

Strengthen Appalachia’s community and economic 

development potential by leveraging the Region’s natural 

and cultural heritage assets

Build the Capacity and skills of current and nextgeneration leaders and organizations to innovate, 

collaborate and advance community and economic 

development

5,000 Students/Workers Improved

5,000 Jobs Created/Retained

2,000 Businesses Improved

400 Businesses Created

100 CommunitiesImproved

1:1 Match to ARC Ratio

2:1 LPI to ARC Ratio

This Initiative targets communities that face extreme economic challenges due to the downturn in the coal economy and will require

significant upfront investment to achieve long term goals. 
21

Program Justification: Special Regional Initiative for Distress

The Federal Co-Chair of the Appalachian Regional Commission requests $32 million for Special

Regional initiatives for Distress in Appalachia. ARC will use this funding to augment the existing 

work being done in distressed areas through the Area Development Base Program and the Coal 

Impacted Communities Initiative and reduce the disproportionately high rate of distress in the 

Appalachian Region. In FY 2020, the number of distressed counties dropped to 80, a low not 

seen since pre-recession 2008, suggesting successful impact from this initiative. Expansion of 

the southern automotive and aviation clusters continues to offer great potential for job 

creation. However, other challenges such as inadequate water, sewer, and broadband 

infrastructure coupled with the effects of the drug crisis on the workforce continue to present 

significant barriers and require substantial resources to overcome.

ARC was an early investor in the automotive manufacturing industry, with the Appalachian 

governors voting to allocate funding across multiple states to assist South Carolina in providing 

the necessary infrastructure for BMW to expand in the Region. Twenty years later, in 2012, 

automotive cluster analysis found that BMW alone was responsible for creating 7,000 jobs. With 

the company’s growth, an extensive supplier network has developed in the state, creating 

additional jobs. 

ARC has continued to seed development of this sector 

as a cluster of automotive manufacturers including 

Mercedes, Toyota, and Honda and their supply chain 

partners add plants throughout the southern

Appalachian states. All of those manufacturers have 

benefitted from ARC investments, primarily for the 

basic infrastructure necessary to help transition these

communities out of economic distress. ARC is leveraging 

this opportunity by providing funds to expand 

workforce opportunities and develop necessary 

infrastructure most recently for the states of Alabama 

and Mississippi as Mazda-Toyota opens a new 

manufacturing facility anticipating jobs for 4,000 employees who will need enhanced training. 

Southern Automotive Cluster Development

In FY 2019, ARC made two investments to support 

buildout of southern automotive employment 

opportunities at the Scott G. Davis Industrial Park in 

economically at-risk Bibb County, AL. A total of 

$630,840 was provided to build a 300,000-gallon 

water tank. Later, an investment of $1,200,745

was made for sewer system improvements and an 

interconnection to provide redundancy. Park 

tenants currently include Mercedes-Benz U.S. 

International and two supply chain distributors with 

future expansions under development. Together 

these investments will result in $300 million 

leveraged private investment and will result in 

creation of 265 jobs when complete. 
22

Despite the success in the southern automotive sector, nearly one-fifth of Appalachia’s counties 

still suffer from persistent and severe economic distress due primarily to the Region’s historic 

reliance on single sector economic drivers like coal extraction and traditional manufacturing. 

Central Appalachia lags behind the nation in basic infrastructure availability. Roughly 20 percent 

of Appalachian households are not served by a public water system (compared with 10 percent 

of the rest of the nation’s households), and 47 percent of Appalachian households are not 

served by a public sewage system (compared with a national average of 24 percent). 

Appalachia, like most of rural America, continues to lag behind the nation in access to advanced 

telecommunications infrastructure in addition to the basic infrastructure mentioned earlier. 

Many areas still do not have cell coverage and broadband service; if broadband is available, it is 

usually only in the downtown and the immediate surrounding area. Even when available, rural 

access tends to be slower and less reliable.

This initiative will continue to address these deficits by 

providing funds to expedite build-out of water, sewer, 

and broadband infrastructure, particularly in Central

Appalachia. As part of the agency’s reauthorization in 

2015, Congress recognized the importance of this by 

creating a new authority for ARC to work in broadband 

deployment. This strategy aligns with the FY 2017 

recommendations of the Department of Agriculture’s 

Interagency Task Force on Agriculture and Rural 

Prosperity, which acknowledges that reliable and 

affordable high-speed internet e-connectivity will 

transform rural America as a key catalyst for 

prosperity.

ARC is a key partner in the effort to develop broadband access throughout eastern Kentucky 

through the creation of a large middle-mile network known as KentuckyWired. This network will 

bring enhanced broadband access to 119 community anchor institutions in eastern Kentucky and 

provide the platform necessary for providers to branch out and provide last-mile facilities in 

selected areas. ARC has already invested over $52 million in this initiative, which has received 

special congressional funding for improving broadband service to distressed counties in Central

Appalachia. Despite these challenges, opportunities exist in the Region. 

Substance abuse poses a major threat to the economic prosperity of Appalachia. In October

2017, the Administration declared a national public health emergency, underscoring the 

challenge this crisis poses nationally. This issue is particularly striking for Central Appalachia. In 

2018, West Virginia has an overdose mortality rate more than twice the national average. The 

pervasiveness of drug abuse has a negative impact on the Region’s workforce, diminishing 

Central Appalachia Distressed County Infrastructure

In FY 2019, ARC invested $1,000,000 to rehabilitate a 

wastewater treatment plant in Middlesboro in 

economically distressed Bell County, KY in order to resolve 

violations with the Kentucky Division of Water. When 

complete, his project will serve 4,345 households and 609 

businesses, of which 569 are commercial, 7 are industrial, 

and 33 are community amenities. The project used special 

statutorily discretionary authority provided to ARC 

enabling funding up to 100% in certain emergency cases on 

a limited basis. New city management committed to 

restoring the plant to operating compliance and to proper 

maintenance of the rehabilitated equipment going forward 

and is in the process of making phased rate increases to 

fund ongoing maintenance.
23

regional economic opportunity. Taken together, these conditions create major barriers to 

development of a strong regional economy and require a special targeted approach. 

Throughout FY 2021, ARC will continue to work with public and private sector partners to 

leverage opportunities such as the growth of the southern automotive sector and to eliminate 

economic barriers such as the lack of critical water, sewer, and broadband infrastructure and to 

combat the effects of substance abuse and other diseases of despair on the Appalachian 

workforce in order to reduce economic distress in the Region. Outcome measures will be 

developed in conjunction with state and local partners as this initiative is developed.

 

Potential Outcomes for Project Development

(Includes funds for Administration)

Businesses Improved

Communities Improved

Households Improved

Participants Improved

Students Improved

Workers and Trainees Improved
24

Program Justification: Special Regional Initiative for Substance Abuse 

Mitigation 

The Federal Co-Chair of the ARC requests $10 million to implement a regionally competitive 

initiative to address the substance abuse crisis that disproportionally affects Appalachia. In 

addition to being considered a health or public safety issue, substance abuse presents a barrier 

to economic prosperity because of its impact on the workforce, making this issue a priority for 

ARC. In FY 2021, ARC will continue its initiative piloted in FY 2020 and launch a regionally 

competitive request for proposals to fund activities that focus on the build-out of the recovery 

ecosystem necessary to support workforce reentry. This funding reflects the Administration’s 

declaration that the drug crisis is a national emergency and supports the Administration’s 2020

National Drug Control Strategy. 

While the Region has made progress in achieving its mission of reaching socioeconomic parity 

with the nation, it continues to be buffeted by a series of economic challenges including the 

substance abuse epidemic. ARC will continue to focus efforts on the existing economic 

challenges such as the Region’s lack of adequate water and sewer infrastructure and the 

significant downturn of the coal economy, but the negative impact of the substance abuse 

epidemic on the Region’s workforce and subsequent economic prosperity require a special 

tailored focus. Substance abuse has been cited as a significant factor, although not the only 

factor, impacting the availability of workers in Appalachia. The socioeconomic conditions 

within this issue are not 

surprising: 

unemployment is high, 

educational attainment 

is low and life 

expectancy is poor -- all 

challenges that have 

plagued Appalachia for 

decades. The burden 

placed on communities 

attempting to compete 
25

in the global economy while facing these barriers is almost insurmountable. By 2017, the 

Region had an overdose mortality rate that was 63 percent higher than the nation, and an 

opioid-related overdose mortality rate that was 79 percent higher than that found in the United 

States overall. This suggests a cyclical relationship between poverty and substance abuse that 

presents a special challenge for Appalachia requiring a specialized targeted funding approach. 

Through the SUPPORT for Patients and Communities Act, Congress and the Administration 

recognized the severity of the substance abuse issue in Appalachia and provided special 

guidance for ARC to address this issue. Building on this Congressional guidance, ARC convened 

the Substance Abuse Advisory Council, a 24-member volunteer advisory group of leaders from 

recovery services, health, economic development, private industry, education, state 

government, law enforcement and other sectors representing each of the Region’s 13 states. 

Through a series of listening sessions held in 2018 and 2019, ARC discovered significant barriers 

to addressing substance abuse. Many rural communities throughout Appalachia lack the

infrastructure needed to support individuals in recovery and help them successfully obtain 

sustainable employment. Even in communities with adequate infrastructure, services and 

systems are often siloed, making it difficult for individuals in recovery to navigate the various 

needed services to successfully reenter the workforce. 

The advisory council produced a report of recommendations which was formally accepted by 

ARC late in FY 2019. The report outlined proposed steps that ARC could take to support 

community efforts to address this crisis. These recommendations target the ARC recovery-towork ecosystem model, and include:

• Developing a recovery ecosystem model that addresses stakeholder roles and 

responsibilities as part of a collaborative process that develops infrastructure and 

operations, and fund deployment of local planning and implementation of the model, 

and examine funding models to sustain the recovery ecosystem. 

• Developing and disseminating a playbook of solutions for communities addressing 

common ecosystems gaps and services barriers.

• Developing model workforce training programs that incorporate recovery services with 

appropriate evaluation measures.

• Convening experts to develop and disseminate an employer best practices toolkit to 

educate employers and human resource experts in recruiting, selecting, managing, and 

retaining employees who are in recovery.

• Funding local liaison positions across Appalachia responsible for promoting a recovery 

ecosystem by building bridges between employers, workforce development agencies, 

and recovery organizations, and disseminating an employer best practices toolkit. 
26

The substance abuse recovery ecosystem, within the context of building and strengthening 

economically resilient communities in Appalachia, is a complex linkage of multiple sectors, 

including, but not limited to: recovery communities, peer support, health, human services, faith 

communities, criminal justice, public safety, housing, transportation, education, and employers, 

designed to help individuals in recovery access the support services and training they need to 

maintain recovery and successfully obtain sustainable employment. In FY 2020, ARC will use its 

grassroots delivery system by collaborating with state, local, other federal, and private sector 

partners to address this epidemic through regionally competitive activities designed in 

accordance with this ecosystem architecture plan. ARC will continue to work with the 

Substance Abuse Advisory Council in FY 2021 to incorporate best practices and lessons learned 

from the FY 2020 initiative in Appalachia 

ARC’s work will not duplicate that of other federal programs; instead, it will focus on a specific 

element of recovery by facilitating successful workforce reentry. It will also extend the reach of 

national programs into the most challenged parts of Appalachia by providing necessary gap 

funding and technical assistance. ARC will continue to participate in both the Federal Regional 

Opioid Subcommittee convened by the Administration and the USDA Opioid Misuse Partnership 

consisting of federal and non-profit partners collaborating to address substance abuse. 

Recovery to Work Pilot

In FY 2020, ARC made a grant in the amount of $133,681 to the Graham County Governments to promote a pilot program supplying 

recovery ecosystem activities in economically distressed Graham County, North Carolina. The county will partner with NCWorks, 

Industrial Opportunities Inc, Tri-County Community College, GC Department of Health, GC Department of Social Services, GC Transit, NC 

Vocational Rehab, NC DHHS, & Celebrate Recovery (Grace Extended Ministries). Recovery to Work will identify clients coming out of 

rehabilitation, as well as unemployed citizens who are actively in recovery, to re-enter into the workforce by working in concert with 

these partners to connect clients directly to employment through a certified Peer Support Specialist (PSS). The PSS will connect clients 

with meaningful, competitive employment, workforce training, recovery support programs, and transportation while working in 

conjunction with project partners to ensure each client has the strongest possible opportunity for a sustained recovery and 

employability. Ninety workers and 163 businesses will be served across 6 communities. If this pilot is successful, it will be replicated 

throughout other counties in the state. 
27

ARC is a performance-driven organization with a systematic program for performance

measurement in place, in accordance with its 2016–2021 strategic plan. The strategic plan

establishes both long- and short-term goals and performance measuresto track progress in

meeting the agency’s mission. A multi-level evaluation system was designed in accordance with

the Government Performance and Results Act.

Grant information and performance istracked by ARC’s intranet managementsystem,

ARC.net. Data elements are geared to performance measures and strategic objectivesfrom

the strategic plan. As each grant is closed, ARC staff collects output and outcome information

and tracks data against anticipated performance. The performance data is validated through

a processthat confirms project outcomes three years after the projects have been

completed. The three-year period allows ARC to accurately capture data on performance

measures, which can continue to accrue after a project has been completed.

ARC conducts an outside evaluation of each strategic goal area on a rotational basis. Each

study assesses how well ARC projects met their projected performance targets and offers

recommendationsfor ways to improve the grants process. This information is published on the

ARC website and used to guide future Commission policy. ARC performance is published

annually in its Performance and Accountability Report, which is available on the agency’s

website at www.arc.gov.

ARC will update its strategic plan through a combination of stakeholder input as well as 

programmatic and socioeconomic assessment in FY 2021. 

Performance and Evaluation
28

ARC’s annual performance targets are established in the agency’s 2016 – 2021 strategic plan. These targets are based on an annual 

appropriation of $70 million as was the trend at the time the plan was developed. Congress provided additional funding for regional initiatives 

that have resulted in significantly higher results estimates for FY 2019. 
29
30

The Federal Co-Chair requests $9.834 million for Salaries and Expenses to implement the Area 

Development program and its associated costs. The chart below summarizes ARC’s total request 

for salaries and expenses for the base program for FY 2021 compared with prior year 

appropriations. ARC’s appropriation has increased significantly. Five years ago, the Commission 

received $80 million; today the amount is more than twice that at $175 million. ARC did not 

immediately increase staff as the appropriation increases were incremental and initially 

appeared to be temporary. At this point, however, ARC’s additional program responsibilities 

appear to be established, if not permanently, at least for the long term and requested staffing 

increases are necessary to match up with these new responsibilities and can no longer be 

avoided in order to fully deploy the annual appropriation. In FY 2021, ARC will conduct a study 

of relevant costs and efficiencies and begin the process of decentralizing operations from the 

current Washington DC offices into the region, considering economic distress in the area of any 

new location.

ARC continues the alternative approach to budgeting adopted in FY 2020 that shifts all program 

costs out of the administrative category where expenses are shared by the states and the 

federal government. Additionally, ARC anticipates an additional change in accounting by 

2020 

Enacted

2021 

President's 

Budget

Change 

in 

Federal 

Request

Commission Administration Federal Contribution 4,354 3,272 237

State Contribution 4,354 3,272 237

Inherently Federal Base Program Costs -- 3,832 3,870 38

Commission Operations Total 8,707 10,414 275

Office of the Federal Co-Chair 1,785 1,947 10

Inspector General 551 745 199

TOTAL FEDERAL REQUEST 6,690 9,834 484

546

9,350

2019 Enacted

ARC Salaries and Expenses Appropriation History

3,035

3,035

9,902

1,937

Salaries and Expenses 
31

allocating a percentage of administrative expenses across each of its programmatic initiatives. 

This request reflects the federal share of Commission administrative expenses, the full costs of 

the Office of the Federal Co-Chair, its immediate staff, and the Office of the Inspector General. 

The Commission is currently engaged in a staff reorganization, of which these increases are a 

part, designed with the goal of maintaining necessary levels of services to the states while 

producing long term efficiency savings 

The request for the Office of the Federal Co-Chair provides for an immediate staff of eight 

positions, with related benefits, rent, travel, services, and other expenses. The Federal CoChair’s staff is paid entirely by the federal government and assists in carrying out the Federal 

Co-Chair’s responsibilities. These include working with federal agencies; serving as the 

Commission’s liaison to the Congress and the Administration; representing the Administration 

in working with the Member states to formulate regional strategies and other policy; and 

reviewing projects for final approval by the Federal Co-Chair.

The Office of the Inspector General’s request funds a three-person staff, related expenses, and 

required contract audit, investigative, training, legal support and support for the Council of the 

Inspectors General on Integrity and Efficiency as required by the Inspector General Reform Act 

(PL 110-409) passed by Congress in 2008. This legislation placed increased requirements on the 

office of each Inspector General. Inspector General activities will continue to emphasize the 

effectiveness and efficiency of program operations and compliance with laws and regulations 

affecting grant programs. This includes review and evaluation activities in connection with the 

GPRA Modernization Act of 2010, the Single Audit Act, and GISRA, as well as coordination and 

cooperation with other oversight offices on crosscutting issues and legislated reviews. Audit 

activities enable the Commission to produce audited financial statements, as other agencies are 

required to do under the Accountability of Tax Dollars Act. The request will cover expenses for 

necessary investigative and legal support, which will be obtained through reimbursable 

2021

2019 2020 President's Change

Actual Enacted Budget

Personnel Compensation 708 1,121 1,113 (8)

Personnel Benefits 218 313 307 (6)

Travel & Transportation 133 100 115 15

Rent, Communications 161 175 180 5

Printing 1 1 1

Services 465 206 210 4

Supplies 12 11 11

Equipment 10 10 10

Total: 1,708 1,937 1,947 10

Office of the Federal Co-Chair
32

agreements and Memoranda of Understanding with other Federal Offices of Inspector General. 

This budget has been certified by the Inspector General. 

Each year, the states and the Federal Co-Chair must approve the Commission’s operating 

budget. Following completion of appropriations action, final non-federal staffing decisions are 

made and must be approved at a Commission meeting of the member states with the Federal 

Co-Chair. As a result of this consultative process, final allocations may differ from the estimates 

of operating expense amounts by object class for 2021. The following table shows ARC 

Commission operating expenses. 

2021

2019 2020 President's

Actual Enacted Budget Change

Personnel Compensation 177 1 213 360 147

Personnel Benefits 30 65 90 25

Travel & Transportation 25 25

Rent, Communications 36 39 40 1

Printing 1 1

Services 293 195 225 2 30

Supplies 1 2 2

Equipment 1 2 2

Training 4 (4)

Total: 538 546 745 199

1 Includes the full compensation of the Inspector General transitioned from the Commission operating budget. 

2 An additional $300,000 in Coal Impacted Communities funding will be provided to the IG for work on that Initiative. 

Office of the Inspector General

2021

2019 2020 President's

Actual Enacted Budget Administrative 

Split State/Fed Programatic Change

Personnel Compensation 4,317 6,059 6,178 3,589 2,589 119

Personnel Benefits 1,831 2,127 2,328 1,364 964 201

Travel & Transportation 254 146 206 54 152 60

Rent, Communications 951 938 978 964 14 40

Printing 17 8 8 0 (9)

Services 1,760 537 638 487 151 101

Supplies 36 34 34 34 0 0

Equipment 60 44 44 44 0 0

Total: 9,209 9,902 10,414 6,544 3,870 512

Federal Contribution 4,605 3,035 3,272 237

State Contribution 4,354 3,035 3,272 237

Inherently Federal Program Costs -- 3,832 3,870 38

8,958 9,902 10,414 512

Division of 2021 Operating 

Expenses Areas

Commission Operations
33

ARC’s authorizing legislation specifies that Commission staff shall not be considered federal 

employees for any purpose. Accordingly, these professionals are neither state nor federal 

employees, even though they work directly for the joint federal-state partnership agency. An 

Executive Director, who is appointed by the states and the Federal Co-Chair, manages this staff 

and is the Chief Executive Officer of the Commission. 

In FY 2019, ARC’s obligations included a substantial investment in contractor services to assist 

with upgrade and buildout of the agency’s web-based grants management tool, ARC.net. 

Personnel compensation for Commission staff generally follows that of federal employees in the 

metropolitan area and benefits are budgeted accordingly. The FY 2021 request reflects costs 

associated with the Commission’s responsibility for funding its own private pension plan for 

Commission staff. Periodically, prior year balances are invested to meet the fiduciary 

requirements of the plan. Accounts payable and related activities have been transitioned to the 

US Department of Agriculture and several federally required system administration 

responsibilities have been outsourced. 
34

Comprehensive Reform Initiative
35

ARC Dashboard

Organizational Effectiveness Initiatives

Status as of January 2020

The Appalachian Regional Commission (ARC) continues to identify, analyze, and implement workplace 

efficiencies to ensure the highest possible output using cost- and time-effective resources. ARC 

proactively makes these decisions during its normal course of business while adjusting to internal and 

external forces which demand innovation and evolution. On April 12, 2017, Office of Management & 

Budget (OMB) released Memo M-17-22 “Comprehensive Plan for Reforming the Federal Government 

and Reducing the Federal Civilian Workforce”. Below, ARC has documented key actions that align with 

this directive, highlighting accomplishments already completed and those in progress, towards 

maximizing employee performance, organizational restructuring, improving efficiency and effectiveness, 

and workforce management. These changes will enhance ARC’s mission and effectiveness in carrying 

out the critical work of economic development in the Appalachian Region. 

The OMB memo directs agencies to act on: 

• Short-term workforce reductions

• Short-term cost savings

• Maximizing employee performance

• Long-term workforce reductions

When implemented, the efforts are expected to result in the following objectives:

1. Lean, more accountable, more efficient government

2. Effectively and efficiently deliver programs that are highest need to citizens

3. Align workforce to meet needs of today and future

4. Remove barriers that hinder employees from delivering results

Date

completion 

or 

estimated 

completion

Strategy or

Action Description

Status

Complete

Inprogress

Analysis 

Impact

1. Eliminate activities

2. Restructure/merge

3. Improve org 

efficiency & 

effectiveness

4. Workforce 

management

September 

2015

Internal 

Communications 

Strategy

With leadership guidance from the executive director, 

increased frequency and transparency of all-staff 

communications related to ARC mission, operations, 

and processes. Through quarterly all staff meetings, 

monthly lunchtime presentations, and collaborative 

working groups, relevant information is shared and 

discussed to ensure strong decisions are made in the 

best interest of ARC’s investments. With this level of 

communication, employees are provided necessary 

resources to maximize their performance. 

Efficiency & 

Effectiveness; 

Workforce 

management
36

August 

2015

External 

Communications 

Strategy

Consolidated Public Relations Information Officer 

position within the Communications team. Hired 

Communications Director and implemented 

communications strategy including e-newsletter, 

updated web pages, and social media outreach. 

Streamlined and strengthened communications with 

partners, states and others to coordinate information 

sharing related to investments and successes in the 

region. 

Efficiency & 

Effectiveness; 

Workforce 

management

September 

2016

Document 

Position 

Descriptions

In coordination with a subject matter expert (SME) 

consultant, conducted a compensation and 

classification analysis. Interviewed all employees and 

directors to obtain accurate and current data on job 

tasks and responsibilities. Utilizing external resources, 

knowledge and experience, drafted, discussed, and 

finalized position descriptions and pay grades for 

every ARC position. 

Workforce 

management; 

Restructure

October 

2016

January 

2018

Performance 

Management

Enhanced performance management and reward/pay 

process to objectively align outcomes with employee 

goals, impact of job functions and relevant 

competencies. Implemented new appraisal form 

which better emphasizes job responsibilities, goal 

achievement, and competencies along with integrated 

professional development. Conducted all staff training 

on the new system, its purpose, outcomes and action 

items. Provided additional staff resources and support 

through goal setting workshops, coaching and 

employee performance criteria development. 

Provided all staff training on SMART-ER Goal 

development and provided in-house consultation on 

goal setting to ensure alignment with ARC strategy 

and priorities.

Workforce 

management

December 

2016

Organizational 

Effectiveness

Working with a consultant, identified organizational 

effectiveness opportunities to leverage knowledge 

management, developed a more efficient team 

structure, and implemented an action plan for mission 

priorities and strategies. Reduced administrative 

burden for project coordinators by re-allocating

administrative functions to a centralized role. 

Implemented new team structure to balance changing 

workloads.

Restructure; 

Efficiency & 

Effectiveness

December 

2016

Cross-training Conducted cross training and SOP documentation in 

all critical roles and functions. This proactively 

provides critical function coverage for staff departures 

and identifies any areas for improved efficiency in 

work process. 

Efficiency & 

Effectiveness; 

Workforce

management
37

January 

2017

May 2018

Consolidate 

Positions

Using job analysis to ensure agency needs are met 

sufficiently, combined Administrative Assistant and 

Executive Assistant roles into one and leveraged use of 

technology to reduce time spent on administrative 

requirements. Anticipate further position 

consolidation and workforce re-structuring in 

Communications, Local Development District, and 

Finance teams following RIO. 

Workforce 

Management; 

Restructure

February 

2017

Enterprise 

Technology

Through an RFP process, selected and worked with a 

consultant team to facilitate an analysis of the current 

grant management work processes. From that, the 

team identified efficiencies and enhanced workflow. 

Engaged services of an applications developer to code 

those identified technical efficiencies and enhance 

user experience in current system. 

Restructure; 

Efficiency & 

Effectiveness

May 2017 Retirement Plan, 

Pension 

Analyzed current plan document related to eligible 

creditable service for early retirement; determined 

gap for potential early retirement between age 55 and 

62; evaluating return on investment of plan 

amendment allowing relevant non-ARC employment 

to apply towards credible service thereby allowing 

participants to reach early retirement eligibility 

sooner. (does not impact benefit amount; only years 

to early retirement)

Workforce 

management

May 2017 Retirement 

Incentive Option 

(RIO)

Offered a Retirement Incentive Option (RIO) to 16 

eligible employees. Six (6) employees accepted the 

offer with retirement effective dates between January 

and April 2018. Goal met to reduce staff overhead 

costs and align workforce to meet the needs of today 

and the future through a voluntary offer. Provided 

eligible employees with financial planning resources to 

help with decision-making. 

Workforce 

management

June 2017 Travel System Implemented web-based travel agency system to 

leverage technology, streamline of information and 

24/7 access bypassing costly services performed by 

outsourced services. This enhancement will make 

travel administration and reservations easier, faster, 

and more accurate, using online profiles, internetbased access to travel arrangements and streamlined 

internal approvals. 

Efficiency & 

Effectiveness

June 2017 HR Policy 

Updates

Updated personnel policies which result in more 

efficient workforce management, increased 

efficiencies and strengthen accountability through 

performance management and reward program tied 

to performance. 

Efficiency & 

Effectiveness; 

Workforce 

management

July 2017 Phone System Implemented technology-based phone system to 

leverage integration with Microsoft Outlook. This 

Efficiency & 

Effectiveness
38

change will remove barriers that hinder ability to do 

the work by being able to provide more timely 

responses to telephone communications despite 

travel, work locations or job function. 

November 

2017

Excel Training Conducted Excel Level 1 and Level 2 training for 

approximately 25 employees. Developed learning 

objectives to align with ARC roles and responsibilities. 

Majority of participants learned new tools that will be 

useful in their job and enable more efficient work 

processes. 

Efficiency & 

Effectiveness; 

Workforce 

management

December 

2017, 

2018, 2019

Anti-Harassment 

and AntiDiscrimination

Conducted training to provide awareness to all 

employees about activities that are not professionally 

acceptable in the workplace as well as specific 

personnel policies and EEO items. This resulted in an 

organization-wide understanding of ARC’s policy along 

with culture of respect and professionalism. 

Efficiency & 

Effectiveness; 

Workforce 

management

August 

2018

Re-organization Implemented a staff re-organization to address 

increased scope and depth of programs (last five years 

operating budget increased from $65M to $155M) as 

well as the assumption of additional programmatic 

responsibilities previously assigned to other Federal 

agencies. This change will enhance staff capacity. The 

key elements of the reorganization include:

1. Dividing program staff into two separate divisions –

each with its own Division Director: 

- Infrastructure & Transportation, including all 

investments and opportunities pertaining to 

broadband, transportation and other regional 

infrastructure needs. This involves moving 

transportation staff to this division to increase 

collaboration related to the Region’s needs.

- Business & Workforce Development, including all 

investments and opportunities pertaining to workforce 

development, entrepreneurship, education, health 

and other issues affecting the Region’s workforce.

2. Renaming the Planning & Research Division to the 

Research & Evaluation Division to better reflect the 

Division’s focus on research, evaluation and analysis. 

This includes moving transportation staff from this 

division to the Infrastructure & Transportation 

Division. 

3. Establishing a separate IT Division with a dedicated 

Division Director to assess, implement and lead 

technological enhancements which will increase 

workforce efficiency. 

4. Recognizing POWER, the Appalachian Leadership 

Initiative and LDD support as regional programmatic 

Restructure/mer

ge; Efficiency & 

effectiveness; 

Workforce 

management
39

initiatives which will report directly to the Executive 

Director. 

August

2018

Technical 

Assistance

ARC States and grantee partners have identified 

increased needs for technical assistance to support 

grant funded programs in the Region. Many grantees 

and partners may not have the resources to fully 

understand and comply with the evolving 

requirements and conditions for federally funded 

programs. This re-designed role (vacated as a result of 

the Retirement Offer) provides technical assistance by 

developing, delivering, and assessing strategic and 

tactical training, support and education to more than 

70 Local Development Districts (LDD), 13 State 

Program Managers, potential and current grantees, 

and others. 

Efficiency & 

effectiveness; 

Workforce 

management

August 

2018

Employee Onboarding & 

Resources

Implemented an on-boarding program to decrease 

time to assimilation for new hires. Program includes 

first day agenda covering topics such as benefits, 

operating procedures, policy review, and performance 

management training. Developed and implemented an 

internal Portal utilizing SharePoint technology to 

provide Benefit/Payroll and ARC 

Resources/Information to all staff. Access to the Portal 

is through secure Office 365 site and updates are 

made weekly to ensure timely and accurate 

information is made available to all staff. The Portal 

compiles information that was previously stored in 

various electronic and hard copy documents in various 

locations. 

Efficiency & 

Effectiveness; 

Workforce 

management

October 

2018

Applicant 

Tracking System

Implemented an applicant tracking system (ATS) to 

increase efficiency in recruitment efforts. The ATS 

reduces administrative work and time to fill while 

increasing the availability of data and metrics to assist 

with strategic decision-making and strategic workforce 

planning. 

Efficiency & 

effectiveness

June 2019 ARC.gov web site 

re-design

Conducted feasibility study of ARC’s web site redesign 

which included divisional input, Federal and States 

needs assessment. Launched RFP for implementation 

for new web site.

Efficiency & 

Effectiveness

October 

2019

Proposed Code 

Changes 

Drafted changes to ARC’s code in the areas of 

Personnel, Transportation, and Grants Management. 

Presented and discussed changes to Federal and State 

Co-Chairmen and all Alternates. Proposed changes to 

Personnel provide long-term financial sustainability for 

Commission costs as well as modernized benefits for 

current and future workforce management. 

Efficiency & 

Effectiveness; 

Workforce 

management
40

October 

2019

HR Policy 

Updates

Implementing additional Human Resources policy 

changes and updates to reflect enhancements in staff 

accountability and efficiency as well as changes to ARC 

Code. Areas of substantive updates include 

performance management, professional development, 

benefits, employee status, leave management. 

Efficiency & 

Effectiveness; 

Workforce 

management

December 

2019

Retirement Plan, 

401(k) 

Review options and opportunities to maintain same 

plan design but change to a newer platform which 

shifts administrative burden/tasks to the administrator 

(currently performed by ARC staff). Also review option 

to provide expanded investment options for 

participants to maximize retirement earnings. 

Efficiency & 

Effectiveness

January 

2020

Video 

Conference 

technology + AV 

equipment

Implemented organization-wide video conferencing 

technology to allow easy to access and highly effective 

conference capabilities. Completed AV installation in 

two conference rooms and Federal Co-Chairman’s 

office. Scheduled AV installation for Large Conference 

room in late 2019. Improved AV hardware and 

accessible software provide cost-effective 

communications tools to ensure effective 

collaboration, especially when travel is not a viable 

option. 

Efficiency & 

Effectiveness

January 

2020

Payroll 

Administration

Following a review of service gaps in current payroll 

and HR administration, ARC undertook a review of 

private sector payroll vendors. ARC selected a new 

vendor to administer the payroll and HR data 

management functions for non-Federal staff with nonFederal benefits. This change is expected to have a 

cost savings after year one and an increase in data 

accessibility immediately. 

Efficiency & 

Effectiveness

December 

2020

Enterprise 

System

Build out web-based grants management system to be 

a fully automated, end-to-end application 

incorporating best practices and identified work flow 

efficiencies. The system will be designed to be user 

friendly and capitalize on technology capabilities to 

minimize administrative tasks. Developed a Request 

for Proposals (RFP) then identified a technology 

consultant to complete the overhaul of the grants 

management system. Through time-based sprints, the 

IT team along with the consultant are implementing 

on-going system improvements, leading to a fully 

integrated application.

Efficiency & 

Effectiveness

On-going Staffing Hired 13 new staff since May 2018. Review and revise 

position descriptions for ten other positions and are 

actively recruiting for new employees. Actively 

recruitment qualified candidates from a variety of 

sources, utilizing cost-effective methods. 

Efficiency & 

Effectiveness; 

Workforce 

management
41

Appendices
42

APPENDIX A
43

APPENDIX B

County Economic Status in Appalachia, FY 2020
44

County Economic Status Designationsin the Appalachian Region

FY 2020

In accordance with the Commission's policy for determining the economic status of the 420 

Appalachian counties, the Research staff has analyzed the distribution of distressed, at-risk, 

transitional, competitive, and attainment counties for FY 2020 using the most current data 

available. ARC uses an index-based county economic classification system to identify and 

monitor the economic status of Appalachian counties. The system involves the creation of a 

national index of county economic status through a comparison of each county’s averages for 

three economic indicators—three-year average unemployment rate, per capita market income, 

and poverty rate—with national averages. The resulting values are summed and averaged to 

create a composite index value for each county. Each county in the nation is then ranked, based 

on its composite index value, with higher values indicating higher levels of distress.

Distressed Counties, FY 2020

• Alabama (1) – Macon

• Kentucky (38) – Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Elliott, Estill, 

Floyd, Harlan, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, Letcher, Lewis, 

Lincoln, Magoffin, Martin, McCreary, Menifee, Morgan, Owsley, Perry, Pike, Powell, 

Robertson, Rockcastle, Rowan, Russell, Wayne, Whitley, and Wolfe

• Mississippi (6) – Benton, Clay, Kemper, Montgomery, Noxubee, and Winston

• North Carolina (1) – Graham

• Ohio (4) – Adams, Athens, Meigs, and Monroe

• Pennsylvania (1) – Forest

• Tennessee (9) – Bledsoe, Clay, Cocke, Fentress, Grundy, Hancock, Jackson, Morgan, and 

Scott

• Virginia (4) – Buchanan, Dickenson, Lee, and Wise

• West Virginia (16) – Boone, Braxton, Calhoun, Clay, Fayette, Gilmer, Lincoln, Logan, 

McDowell, Mingo, Nicholas, Roane, Webster, Wetzel, Wirt, and Wyoming

At-Risk Counties, FY 2020

• Alabama (15) – Bibb, Clay, Coosa, DeKalb, Fayette, Franklin, Hale, Lamar, Lawrence, 

Marion, Pickens, Randolph, Talladega, Walker, and Winston

• Georgia (8) – Chattooga, Elbert, Franklin, Gilmer, Heard, Murray, Polk, and Towns

• Kentucky (13) – Boyd, Cumberland, Edmonson, Fleming, Green, Greenup, Hart, Laurel, 

Metcalfe, Monroe, Montgomery, Nicholas, and Pulaski

• Mississippi (13) – Calhoun, Chickasaw, Choctaw, Lowndes, Marshall, Monroe, 

Oktibbeha, Panola, Prentiss, Tippah, Tishomingo, Webster, and Yalobusha
45

• New York (1) – Allegany

• North Carolina (9) – Alleghany, Cherokee, Clay, Jackson, McDowell, Rutherford, Swain, 

Watauga, and Yancey

• Ohio (14) – Ashtabula, Coshocton, Gallia, Guernsey, Highland, Jackson, Jefferson, 

Lawrence, Morgan, Noble, Perry, Pike, Scioto, and Vinton

• Pennsylvania (1) – Fayette

• South Carolina (1) – Cherokee

• Tennessee (15) – Campbell, Carter, Claiborne, Grainger, Hawkins, Johnson, Lewis, Meigs, 

Monroe, Overton, Rhea, Unicoi, Union, Van Buren, and Warren

• Virginia (6) – Grayson, Henry, Patrick, Russell, Scott, and Tazewell

• West Virginia (14) – Barbour, Lewis, Mason, Mercer, Monroe, Pleasants, Pocahontas, 

Raleigh, Randolph, Ritchie, Summers, Tyler, Upshur, and Wayne

Transitional Counties, FY 2020

• Alabama (20) – Blount, Calhoun, Chambers, Cherokee, Chilton, Cleburne, Colbert, 

Cullman, Elmore, Etowah, Jackson, Jefferson, Lauderdale, Limestone, Madison, Marshall, 

Morgan, St. Clair, Tallapoosa, and Tuscaloosa

• Georgia (27) – Banks, Barrow, Bartow, Carroll, Catoosa, Dade, Dawson, Douglas, Fannin, 

Floyd, Gordon, Gwinnett, Habersham, Hall, Haralson, Hart, Jackson, Lumpkin, Madison, 

Paulding, Pickens, Rabun, Stephens, Union, Walker, White, and Whitfield

• Kentucky (3) – Clark, Garrard, and Madison

• Maryland (3) – Allegany, Garrett, and Washington

• Mississippi (5) – Alcorn, Itawamba, Lee, Pontotoc, and Union

• New York (13) – Broome, Cattaraugus, Chautauqua, Chemung, Chenango, Cortland, 

Delaware, Otsego, Schoharie, Schuyler, Steuben, Tioga, and Tompkins

• North Carolina (19) – Alexander, Ashe, Avery, Buncombe, Burke, Caldwell, Davie, 

Forsyth, Haywood, Henderson, Macon, Madison, Mitchell, Polk, Stokes, Surry, 

Transylvania, Wilkes, and Yadkin

• Ohio (12) – Belmont, Brown, Carroll, Columbiana, Harrison, Hocking, Mahoning, 

Muskingum, Ross, Trumbull, Tuscarawas, and Washington

• Pennsylvania (46) – Armstrong, Beaver, Bedford, Blair, Bradford, Cambria, Cameron, 

Carbon, Centre, Clarion, Clearfield, Clinton, Columbia, Crawford, Elk, Erie, Fulton, 

Greene, Huntingdon, Indiana, Jefferson, Juniata, Lackawanna, Lawrence, Luzerne, 

Lycoming, McKean, Mercer, Mifflin, Monroe, Northumberland, Pike, Potter, Schuylkill, 

Snyder, Somerset, Sullivan, Susquehanna, Tioga, Union, Venango, Warren, Washington, 

Wayne, Westmoreland, and Wyoming

• South Carolina (5) – Anderson, Greenville, Oconee, Pickens, and Spartanburg

• Tennessee (28) – Anderson, Blount, Bradley, Cannon, Coffee, Cumberland, DeKalb, 

Franklin, Greene, Hamblen, Hamilton, Jefferson, Knox, Lawrence, Loudon, Macon, 

Marion, McMinn, Pickett, Polk, Putnam, Roane, Sequatchie, Sevier, Smith, Sullivan, 

Washington, and White
46

• Virginia (12) – Alleghany, Bland, Carroll, Craig, Floyd, Giles, Montgomery, Pulaski, 

Rockbridge, Smyth, Washington, and Wythe

• West Virginia (24) – Berkeley, Brooke, Cabell, Doddridge, Grant, Greenbrier, Hampshire, 

Hancock, Hardy, Harrison, Jackson, Kanawha, Marion, Marshall, Mineral, Monongalia, 

Morgan, Ohio, Pendleton, Preston, Putnam, Taylor, Tucker, and Wood

Competitive Counties, FY 2020

• Georgia (1) – Cherokee

• Ohio (2) – Clermont and Holmes

• Pennsylvania (4) – Allegheny, Butler, Montour, and Perry

• Virginia (2) – Botetourt and Highland

• West Virginia (1) – Jefferson

Attainment Counties, FY 2020

• Alabama (1) – Shelby

• Georgia (1) – Forsyth

• Virginia (1) – Bath
47

APPENDIX C