APPALACHIAN REGIONAL COMMISSION

FY 2019 Performance Budget 

Justification 

As Submitted by the Federal Co-Chair to the Appropriations Committees 

of the House and Senate

February 2018 
1 

Appalachian Regional Commission

FY 2019 Performance Budget Justification 

As Submitted by the Federal Co-Chair 

February 2018 

Table of Contents 

FY 2019 Budget Summary and Highlights .......................................................................... 2 

Major Program Justification: Area Development Base Program ..................................... 8 

Major Program Justification: Coal Impacted Communities Initiative ............................. 14 

Major Program Justification: Special Regional Initiative for Distress ........................... 17 

 Performance ........................................................................................................................ 20 

 Salaries and Expenses ....................................................................................................... 23 

 Comprehensive Reform Initiative ...................................................................................... 26 

Appendices .......................................................................................................................... 31 

 A. High-Poverty Counties in the Appalachian Region 

 B. County Economic Status Designations in the Appalachian Region, FY 2018 

 C. Appalachian Regional Commission Organization Chart 

 D. Commission Members 

 
2 

Budget Summary and Highlights 

 
3 

The Federal Co-Chair requests $152 million to fund 

the activities of the Appalachian Regional Commission 

(ARC) for FY2019. This amount represents level 

funding with the amount appropriated by Congress in 

FY 2017. Seventy million is requested to continue the 

base Area Development Program; $50 million is 

requested to continue the effort to assist 

communities adversely affected by the downturn in 

the coal industry; and $32 million is requested for 

special regional initiatives to address distress. 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 opioid crisis on 

the workforce, the lack of both water and sewer infrastructure as well as the lack of broadband 

infrastructure and service in rural areas. ARC is authorized through 2020. 

The 13-state Appalachian Region confronts 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 other federal programs. ARC is the only federal agency statutorily 

mandated to address these challenges. The mission of the ARC is to help close the gap between 

Appalachia and the rest of the nation and bring the Region’s 420 counties and 25 million 

residents into the economic mainstream. 

ARC’s work does not duplicate other federal programs; instead, it extends the reach of those 

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

technical assistance that enables economically distressed communities to compete successfully 

in national programs. For federal partners at the national level, 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. 

For example, working through a multi-year partnership with the Centers for Disease Control 

and Prevention, ARC has implemented projects to address Appalachia’s disproportionally high 

rates of type 2 diabetes and obesity, as well as some types of cancer. Other recent partners 

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

and Urban Development, and the Treasury, the Environmental Protection Agency, Oak Ridge 

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

the Arts, and the National Trust for Historic Preservation. 

ARC also partners with private sector and nonprofit partners to increase the amount of financial 

and technical assistance flowing to the Region. ARC spearheaded development of Appalachian 
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Community Capital (ACC), a new community development financial institution and wholesale 

development finance intermediary for development lenders that will increase the availability of 

capital to small businesses in the 13-state Appalachian Region. ARC made a lead investment of 

$3.45 million in equity and operating support. Its regional lending partners raised an additional 

$12 million in debt and equity from Bank of America, Deutsche Bank, Calvert Foundation, and 

the Ford Foundation. Additional supporters include the Mary Reynolds Babcock Foundation, 

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

A second round, totaling $7 million, is anticipated to close in 2018. 

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). In FY 2018 Appalachia has 

proportionally more of the economically 

weakest counties and fewer of the 

economically strongest counties. 

Moreover, over 25 percent of the 

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 

87 today and the regional poverty rate has been cut almost in half, from 31 percent to 17 

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, which 

received ARC investments, than in similar non-Appalachian counties that did not. 

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 26% lower than the nation in 2015. 

 The Region has been disproportionately affected by the loss of coal and manufacturing 

jobs. During the period 2000-2014, Appalachia had a net loss of 622,000 manufacturing 

jobs. 
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 Appalachia is underserved by basic infrastructure, including broadband service, and lags 

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

 The Region has higher mortality rates than the nation as a whole in each of the 

following: heart disease (17 percent higher), cancer (10 percent higher), COPD (27 

percent higher), injury (33 percent higher), stroke (14 percent higher), and diabetes (11 

percent higher). 

 The opioid crisis has hit the Region especially hard, with an overdose mortality rate 65 

percent higher than that found in the rest of the nation. Mortality rates due to suicide 

and liver disease are also higher in the Region. 

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 $70 million dedicated to this activity. 

ARC, will accomplish this mission through 

implementation of activities within the five goals of 

the agency’s strategic plan. ARC will continue to 

work with state and local partners to address 

ongoing challenges in the Region in FY 2019. 

Coal Impacted Communities Initiative 

The economic downturn of the coal industry has 

had significant impact on Appalachia. Eighty-two 

percent of the 40,851 coal mining jobs lost in the 

United States from 2011 to 2016 were in the 

Region—a loss to Appalachia of 33,502 direct 

mining jobs. To address this, Congress 

appropriated $50 million to ARC in each FY2016 and 

2017 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 $94 million in projects serving 250 coal 

impacted counties. These projects are expected to create or retain 8,800 jobs, train 25,400 

workers or students, and leverage an additional $210 million to the Region. ARC received $280 

million in requests to fund activities to revitalize the economy and has been able to fund onequarter of those with the funds made available. The budget requests $50 million to continue to 

assist communities adversely impacted by the downturn of the coal industry in FY 2019. 
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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 by investing significantly more funding for those areas. In FY 2017, 73% of ARC’s 

funds were invested in in projects for benefit of distressed communities ARC gauges its longterm 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. ARC will 

complement its efforts to reduce distress by directing funding to leverage emerging 

opportunities and to address barriers to economic development. 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 opioid crisis on the workforce present significant barriers and require substantial 

resources to overcome. The budget requests $32 million in FY 2019 to develop projects 

focused the reduction/elimination of economic distress in the Region. 

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 $6.69 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 and the 50 percent federal share for administrative 

expenses of the non-federal Commission staff. 

 
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ARC Proposed Budget for FY 2019 

Appalachian Regional Commission Funding 

 FY2017 FY2018* FY2019 Change 

Base Program 70,000 70,000 70,000 0 

Coal Impacted Communities Initiative 50,000 50,000 50,000 0 

Congressionally Directed Special Programs 32,000 32,000 0 

Special Regional Initiative for Distress 32,000 

Total 152,000 152,000 152,000 0 

 

Area Development Program Grants 139,281 139,238 139,111 (127) 

 

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

 

Salaries and Expenses 

Commission Operations (50% Federal Contribution) 4,209 4,238 4,353 115 

Office of the Inspector General 544 547 551 4 

Office of the Federal Co-Chair 1,766 1,777 1,785 8 

Total 6,519 6,562 6,689 127 

 

 

 *Continuing Resolution at FY2017 Rate 

 

 
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Program Justification: Area Development Base Program 

The Federal Co-Chair of the Appalachian Regional Commission requests a total of $152 million -- 

$70 million of which will continue the activities in the base Area Development Program This 

represents level funding with the amount appropriated by Congress in FY 2017. 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. Over the past five years, each $1 of ARC grant funds leveraged $6.49 in private 

investment and $1.78 in other public funds. 

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. For 

entrepreneurs to develop these opportunities, they need skilled employees, robust support

systems, the right types of investment, and engaged communities. With these fundamentals in 

place, Appalachian entrepreneurs can increase the number of high-quality jobs, build local

wealth, and contribute broadly to sustained economic and community development across the

Region. To promote entrepreneurship and business development in Appalachia, ARC has 

pursued 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. 

 
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Goal 2: Ready Workforce

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

Appalachia.

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

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

and entrepreneurial ecosystem and is often an economic driver. Investments by ARC and its 

partners aim to connect education, workforce, and business interests in a seamless system that 

prepares the Region’s young people to succeed in existing and emerging sectors, and that 

creates new opportunities for workers transitioning to new employment, such as those who 

have lost jobs in mining or other coal-related industries. These efforts must begin with strong 

educational programming and institutions, and ensure that all students have the basic skills, as 

well as soft skills, needed for productive employment. This requires providing education and 

training matched to the Region’s current sectors and jobs, while increasing access to advanced 

skills training for the high-growth, high-demand jobs of the future. At the same time, equipping 

the Region with a competitive workforce must include efforts to address Appalachia’s health 

challenges, which can significantly impede the productivity of the workforce. 

ARC will leverage its resources and partner with other public, private, and non-profit 

organizations to advocate for and address the challenges posed by poor health conditions and 

the substance abuse epidemic and other health barriers that keep Appalachians from being 

active and productive workers. 

 

Economic Opportunities 

To address the lack of adequate risk capital in the Appalachian Region, ARC made an investment in FY 2012 of $175,000 in a pilot 

program to form angel funds throughout the Region. Angel Investors are an important source of capital for growing firms. The Center 

for Venture Research estimates that U.S. angel investors provided $19 billion in 55,000 deals in 2008. Many of the investments were in 

start-up or very early-stage companies. This opportunity addressed a critical need for seed capital in Appalachia. Incremental follow-on 

investments of $575,000 were made over the years as the program developed and grew. Through FY 2017, six new Appalachian Angel 

Investment funds have been formed and six are currently under development, spanning nearly all ARC states. To date, these funds have 

raised $8 million in private capital and made 26 investments, which have resulted in the creation of more than 80 jobs. The locations 

currently operating Florence AL, Ashland KY, Somerset KY, Charleston WV, Knoxville, TN, and Boone, NC. A web site linking these

investment funds and facilitating co-investment opportunity is also under development. 

Ready Workforce 

ARC invested $100,000 in FY 2017 to support equipment purchase for Surry Community College’s new Industrial Training Center in 

Yadkinville, NC. The 11,200 square foot building will feature laboratory and learning spaces for multiple training programs across welding, 

mechatronics engineering, computer integrated machining, electronic engineering and electrical systems. The facility will enhance the 

college's ability to create a pipeline of workers with industry-specific skills to meet the demands for a highly educated workforce which 

will serve to attract new industry to the region. The project will improve 11 businesses, 1,050 workers/trainees and over 70 students by 

preparing the regional workforce for manufacturing, technology, and electrical engineering careers. Investors in the project include Duke 

Energy Carolinas and the Cannon Foundation.
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Goal 3: Critical Infrastructure

Invest in critical infrastructure—especially broadband; 

transportation, including the Appalachian Development 

Highway System; and water/wastewater systems.

Congress authorized construction of the Appalachian 

Development Highway System (ADHS) as part of ARC’s 

original enabling legislation. The ADHS, 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. 

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; housing; and transportation, including the Appalachian 

Development Highway System and local access roads. 

ARC’s infrastructure projects have traditionally 

addressed the Region’s need for modern water and 

wastewater systems. Typical grants extend a water line 

to provide municipal water, fire protection, and 

development options for future and existing 

businesses; replace a water tank, transmission line, and 

relocate sewer lines in order to create and retain jobs 

and alleviate potential health and environmental 

hazards; provide safe, reliable sewer service to support 

existing businesses and attract future investment in the 

region; or expand critical health-care facilities in 

underserved areas. 

Increasingly ARC infrastructure projects fund new, 

emerging, and innovative development activities, 

including a “dig once” strategy to deploy fiber for 

broadband connectivity at the same time water and 

sewer lines are being installed or repaired; downtown 

revitalization efforts, such as streetscape and utility 

Critical Infrastructure for Distressed Counties 

In FY 2016, ARC invested $500,000 of funding set 

aside for work in the most economically distressed 

areas in the Region to assist the City of Irvine, 

Kentucky, in upgrading its existing wastewater 

collection system to provide new sewer service for 

219 households in the Wiseman community (the 

first time these households have had access to 

public sewer service) and improve sewer service for 

354 households and 86 businesses in adjacent West 

Irvine, in economically distressed Estill County, 

Kentucky. USDA Rural Development grant and loan 

funding and Community Development Block Grant 

funds were both included in the overall funding 

package. Rural communities like these with limited 

resources often need ARC funding in addition to 

funding from other federal agencies in order to 

make the project financially feasible. Currently 

sewer treatment in the area consists of septic 

systems and a small package treatment plant that 

serves a 40-unit mobile home park. Contaminated 

runoff impacts surface water draining into Station 

Camp Creek and other streams located above 

Irvine's municipal water intake. These streams are 

tributaries of the Kentucky River, a major source of 

drinking water for Central Kentucky. 
11 

improvements to support existing and future businesses and residences; and creative re-use of 

formerly mined lands and brownfields. 

Physical infrastructure projects have been among the primary generators of new jobs in 

Appalachia. These investments are fundamental building blocks for further economic 

development. 

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 support of existing and emerging economic 

opportunities. 

ARC invested in a range of downtown revitalization projects 

across the Region in FY 2016 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. ARC also continued its partnership 

with the National Endowment for the Arts to support the Appalachian Gateway Communities 

Initiative, a program that provides 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. In FY 2017, ARC again partnered with NEA to produce 

a pilot for communities that had previously developed plans and activities under this initiative 

and needed to develop strategies to evolve to the next level. 

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 are helping build the capacity and skills of current and 

next-generation leaders and organizations to advance the Region’s community and economic 

development. 

To achieve the greatest impact, ARC investments in leadership and community capacity building 

will aim to help communities create a common vision for local development. Communities will 

Natural and Cultural Assets 

ARC made a seed investment of $35,000 in FY 2016 

to support High Country Pathways’ development of 

a regional "local foods trail" marketing and 

branding campaign for food-related tourism across 

7 counties. The area currently has a burgeoning 

local foods sector including productive farms and 

wineries, craft breweries, farmers markets, farmto-fork restaurants, and annual local-foods events. 

This investment will leverage growing tourism due 

to existing recreational opportunities and historic 

main-street small towns. The goal of this project is 

to amplify the tourism industry by establishing a 

marketing campaign. 
12 

then form implementation plans and processes that 

will guide future investment and capture new 

opportunities that create positive community change. 

The Appalachia Funders Network (AFN) is group of 

more than 80 local, regional, and national foundations, 

financial institutions, and government agencies with a 

common commitment to supporting a more equitable, 

sustainable, and dynamic regional economy in Central 

Appalachia. With ARC support and guidance, AFN’s 

foundation members hold more than $5 billion in 

assets and invest $86 million annually to accelerate 

economic transition across six Central Appalachian 

states. AFN is primarily organized through working groups focusing on some of the Region’s key 

growth sectors, including energy and natural resources, food systems, health, and communitycapacity building. 

 

Leadership and Community Capacity 

ARC invested $125,000 to continue the multi-year 

partnership with the Benedum Foundation to 

deploy the FLEX-E Grant program in West Virginia. 

The program assists communities in developing 

small-scale, non-construction projects that develop 

or strengthen community leadership, encourage 

the formation of community-based groups or 

coalitions, promote community-wide strategic 

planning, create tools such as feasibility studies 

that assess or promote economic development 

opportunities, or increase the ability of a 

community or region to leverage a local asset for 

economic development. The FY2017 program 

focused on flood recovery related activities. 
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ARC Area Development Base Program 

Performance Targets 

Based on annual appropriation of $70 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 

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 Coal Impacted Communities 

Initiative. This represents level funding with the amount 

appropriated by Congress in FY 2017. This initiative 

assists communities and regions adversely affected by job 

losses in coal mining, coal power plant operations, and 

coal-related supply-chain industries that have occurred 

because of the changing economics of America’s energy 

production. Appalachia has been disproportionately 

affected by the downturn in the coal industry with 82 

percent of the 40,851 coal mining jobs lost in the United 

States from 2011 to 2016 coming from the Region—a loss 

of 33,502 direct mining jobs. 

The Coal Impacted Communities Initiative seeks to create 

a more vibrant economic future for coal-impacted 

communities by cultivating economic diversity, enhancing 

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 four priority areas: 

• Building a competitive workforce; 

• Enhancing access to, and use of, broadband 

services; 

• Fostering entrepreneurial activities; and 

• Growing industry clusters in communities. 

Enhance access to Broadband Services 

$948,673 ARC made a grant to Somerset County, 

PA, in FY 2017 for the Somerset County Fiber 

Extension Project. ARC funds will be used to install 

22 miles of fiber optic cable on existing pole lines 

that will allow a variety of business, residential, 

medical, and educational customers in Somerset 

County access to broadband services. The area 

does not currently have cable broadband available 

and DSL service is not offered ubiquitously. The 

project will serve 1,094 businesses and 3,962 

households and will act as an economic and 

tourism driver in the county. 

Building a Competitive Workforce 

$1,500,000 In FY 2017, ARC made a grant to Hazard 

Community and Technical College (HCTC) in Hazard, 

KY, for the Intergenerational Training Center. ARC 

funds will be used to purchase equipment for a new 

14,700 square foot facility at HCTC’s Lees College 

Campus in Jackson, KY that will deliver job training 

and credentialing courses focused around four 

emerging regional career clusters: information 

technology, telemedicine and health sciences, 

mechatronics, and eco-tourism/small business 

development. The project will leverage the capacity 

of the Eastern Kentucky Concentrated Employment 

Inc. (EKCEP) and the Kentucky Career Center to 

promote and market the program to out-of-school 

youth and displaced and underemployed workers 

impacted by the decline in the coal industry. The 

project will serve a seven-county area in 

southeastern Kentucky and will train 295 dislocated 

workers and credential 228 students over the life of 

the award. 
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Over the last two years, ARC has invested $94 million in 

in projects in 250 counties creating/retaining almost 

8,800 jobs and leveraging an additional $210 million in 

investment. Funded activities range from fostering a 

strong drone cluster in southwest Virginia and 

strengthening the local food economy in Central 

Appalachia, to training workers for private-sector 

technology jobs in eastern Kentucky, boosting 

entrepreneurship and innovation in southwest 

Pennsylvania, and expanding support for tourism 

businesses in West Virginia. 

The ARC grants are expected to lead to the creation or 

retention of 3,915 jobs and create or improve 2,915 

businesses. Additionally, ARC has commissioned 

research on the economics of the coal industry supply 

chain, supported research on opioid abuse issues in 

coal- impacted communities, and advanced the use of 

broadband in the revitalization of downtowns. 

Work is currently underway to implement a new round 

of investments. A Request for Proposals (RFP) 

continues priorities established in the prior year program but increases emphasis on 

communities that were underserved in the FY 2016 and FY 2017 rounds. Additionally, new focus 

will be placed on impact investing and building a healthy workforce. Five technical assistance 

workshops will occur in the Region and several informational webinars are under development. 

The change in coal mine employment by county and ARC Coal Impacted Communities Initiative 

project grant awards are depicted in the maps below. 

Fostering Entrepreneurial Activities

$1,250,000 In FY 2017, ARC made a grant to the Natural Capital 

Investment Fund, Inc. in Shepherdstown, WV for the Growing 

Triple Bottom Line Small Businesses in Coal Impacted Communities 

in Central Appalachia project. These funds will be used to expand 

coal-impacted communities’ access to capital in Southern West 

Virginia by capitalizing a $4,000,000 tourism-related revolving 

loan fund and developing a West Virginia New Markets Tax 

Credit Fund. The project will create 200 new jobs and 20 new 

businesses, bring $5,000,000 of leveraged private investment into 

the region, and will be supported by funding from the Claude 

Worthington Benedum Foundation. 

Growing Industry Clusters

$2,220,000 ARC made a grant in FY 2016 to the Industrial 

Development Authority in Wise, VA, for the Virginia Emerging 

Drone Industry Cluster Project. ARC funds will be used to 

position five counties in southwestern Virginia as a national 

destination for the development of a drone-operator workforce 

to support the emerging drone industry in the United States. The 

award will enable Mountain Empire Community College to offer 

courses that train students, including former coal industry 

workers, to operate drones and drone sensors to provide 

commercial and government services—including geospatial 

surveys, close-up inspections of fixed structures, and mapping. 

The drone project projects 125 graduates during the grant 

performance period with a 96% placement rate 
16 

* 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 advantages. 

 

ARC Area Development Program – Coal Impacted Community 

Initiative 

Performance Targets 

Based on annual appropriation of $50 million 

(Estimated Investment Deployment) 

Investment Strategy 

Annual Performance 

Target

Invest in entrepreneurial and business development strategies that 

strengthen Appalachia’s economy

5,000 Students/Workers Improved 

5,000 Jobs Created/Retained 

2,000 Businesses Improved 

400 Businesses Created 

100 Communities Improved 

1:1 Match to ARC Ratio 

2:1 LPI to ARC Ratio 

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 next-generation leaders and 

organizations to innovate, collaborate and advance community and 

economic development 
17 

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 2017, 73% of ARC’s funds were invested in in projects for 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. ARC will complement its efforts to reduce distress by directing 

funding to leverage emerging opportunities and to address barriers to economic development. 

Continued expansion of the southern automotive and aviation clusters offers great potential for 

job creation in the Appalachia. Other challenges such as inadequate water, sewer and 

broadband infrastructure and the effects of opioid crisis on the workforce present significant 

barriers and require substantial resources to overcome. 

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

driven primarily by the Region’s reliance on single sector economic driver. During the period 

2000-2014, Appalachia had a net loss of 622,000 manufacturing jobs. In the coal-mining sector, 

the United States lost 26,432 jobs between 2011 and 2015; 87 percent of those (23,058) were in 

the Appalachian Region. And of that number, 16,000 were in Kentucky and West Virginia alone. 

Today the Region faces another economic crisis as the opioid epidemic unfolds and effects the 

workforce. Recent ARC research reveals that the overdose mortality rate in Appalachia is 65 

percent higher than that found in the rest of the nation. Mortality rates due to suicide and liver 

disease are also higher in the Region. 

In addition to being sicker than the rest of the country, Appalachia’s population is older than the 

rest of the nation. The share of Appalachia’s population under 20 years old has fallen 

substantially since 1970— from just under 38 percent in 1970 to around 25 percent in 2012. This 

decline occurred at the same rate in the U.S. as a whole from 1970 through the early 1980s, but 

since then has been more pronounced in Appalachia. Similarly, in the 2011–2015 period, the 

share of residents ages 65 and over in the Appalachian Region exceeded the national average by 
18 

two percentage points. Net population loss occurred in almost two thirds of the Region’s 

counties between 2000 and 2010. And the Region continues to lag behind the nation in the 

proportion of adults with a college degree (22.6 percent compared with 29.8 percent for the 

nation). Taken together, these conditions create major barriers to development of a strong 

regional economy and require a special targeted approach. 

Despite these challenges, opportunities exist in the Region. 

ARC will use funds available through this initiative to 

leverage emerging opportunities such as the development 

of the southern automotive and aviation clusters. 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. 

In recent years the automotive sector in southern Appalachia has grown to include major 

assembly plants for Mercedes, Toyota, and Honda. All of those have benefitted from ARC 

investments, primarily for basic infrastructure. The presence of these manufacturing facilities has 

sparked the growth of a vibrant automobile-parts sector across the southern part of Appalachia 

and transitioned communities out of economic distress. ARC is leveraging this opportunity by 

providing funds to expand workforce opportunities and develop necessary infrastructure. This is 

an appealing strategy for the state of Mississippi which has 12 distressed counties in FY 2018. 

Along with activities that develop existing opportunities, 

funds from this initiative will address deficits in the 

Region. Appalachia, like most of rural America, continues 

to lag the nation in access to advanced 

telecommunications infrastructure. Many areas still do 

not have cell coverage and broadband service; if 

broadband is available, it is usually only in the downtown 

and the immediately surrounding area. Even when 

available, rural access tends to be slower and less reliable. 

ARC has had a special focus on access and use of 

broadband for a number of years. As part of the agency’s 

reauthorization in 2015, Congress reinforced this focus by 

Southern Automotive Cluster Development 

$368,000 in FY 2015, ARC made a grant to Shelton 

State Community College in Tuscaloosa, Alabama, to 

strengthen the automotive industry workforce 

pipeline, focusing particularly on residents of Hale 

County, a rural, economically distressed county. 

Through a strong partnership with the West 

Alabama Chamber of Commerce, Community Works 

Tuscaloosa, and the University of Alabama 

Economic Development Academy, the grant was 

projected to equip 192 people with certificates, 

place 95 students in jobs with a major automobile 

manufacturer or businesses in the automotive 

supplier industry, and help local employers create at 

least 65 new jobs. At the end of the grant period, 

over 1,600 jobs had been created. 

Central Appalachia Distressed County Infrastructure 

$500,000 In FY 2017, ARC partnered with USDA Rural 

Development and the State of Kentucky in a project in the 

City of Sanford, one of the oldest settlements in Eastern 

Kentucky, to replace damaged and deteriorating cast iron 

waterline that plagued the city with excessive leakage, rust 

contamination and capacity challenges. The original 

infrastructure was put in place in 1954 and had outlived its 

useful life expectancy. ARC used special initiative funds 

designated for Central Appalachian Distressed County 

Infrastructure to participate in this project that will 

improve 3,276 households and 256 businesses. 
19 

creating a new authority for ARC to work in broadband deployment. This strategy aligns with the 

recommendations of the Department of Agriculture’s Interagency Task Force on Agriculture and 

Rural Prosperity, which acknowledges that reliable and affordable high-speed internet econnectivity 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 $38 million in this initiative, which has received 

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

Appalachia. 

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

President, through his declaration of a national public health emergency, underscored the 

challenge the opioid crisis poses nationally. This issue is particularly striking for central 

Appalachia. West Virginia has an opioid-related overdose rate over three times as high as the 

rate for non-Appalachian United States. The Appalachian parts of Kentucky, Maryland, and Ohio 

all have opioid-related overdose rates more than twice as high as that found in the nonAppalachian U.S. As a result of all other terrible consequences, opioid abuse decimates that 

workforce and diminishes regional economic opportunity. 

Throughout FY 2019, ARC will continue to work with public and private sector partners to 

leverage opportunities and eliminate economic barriers such as the lack of critical infrastructure 

including broadband, and the effects of drug 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 

through the Appalachian states. 

Potential Outcomes for Project 

Development 

Businesses Improved 

Communities Improved 

Households Improved 

Participants Improved 

Students Improved 

Workers and Trainees Improved 
20 

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

measurement in place, in accordance with its 2016–2020 strategic plan. The strategic plan

establishes both long- and short-term goals and performance measures to 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 is tracked by ARC’s intranet management system, 

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

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 

process that 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 

recommendations for 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. 

 

Performance and Evaluation 
21 

 
 22 
23 

The Federal Co-Chair requests $6,689 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 in for the base program for FY 2019 compared with prior year prior year 

appropriation history. 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 the 50 percent federal share for administrative expenses of the non-federal 

Commission staff. As required by the Appalachian Regional Development Act, member states collectively 

contribute the other 50 percent of the Commission’s non-federal staff and related costs. 

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. Federal Co-Chair’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 and chairing an interagency organization as provided in the ARDA; 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. 

 

Salaries and Expenses 

2017 2018 2019

Actual Enacted Requested Change

Personnel Compensation 641 1,020 1,022 2

Personnel Benefits 189 280 280 

Travel & Transportation 67 85 85 

Rent, Communications 143 165 170 5

Printing 1 1 1 

Services 271 205 206 1

Supplies 6 11 11 

Equipment 0 10 10 

Total: 1,318 1,777 1,785 8

Office of the Federal Co-Chair
24 

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 

agreements and Memoranda of Understanding with other federal Offices of Inspector General. This 

budget has been certified by the Inspector General and reflects a request for increased funding to 

complete increased oversight as the ARC appropriation has increased. 

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 2019. The table below shows ARC Non-Federal Operating Expenses. 

2017 2018 2019

Actual Enacted Requested Change

Personnel Compensation 166 193 195 2

Personnel Benefits 26 63 62 (1)

Travel & Transportation 1 25 25 

Rent, Communications 5 36 37 1

Printing 0 1 1 

Services 255 225 225 

Supplies 1 2 4 2

Equipment 1 2 2 

Training 0 

Total: 455 547 551 4

Office of the Inspector General

2017 2018 2019

Actual Enacted Requested Change

Personnel Compensation 4,434 4,967 5,082 115

Personnel Benefits 1,888 1,804 1,919 115

Travel & Transportation 120 123 130 7

Rent, Communications 793 864 897 33

Printing 15 20 19 (1)

Services 791 607 582 (25)

Supplies 31 44 34 (10)

Equipment 16 48 44 (4)

Total: 8,088 8,477 8,707 230

Non-Federal Operations
25 

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. 

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

metropolitan area and benefits are budgeted accordingly. The FY 2019 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. Additionally, the 

salary of the IG has transitioned to the Commission in accordance with Dodd-Frank Wall Street Reform 

and Consumer Protection Act as mentioned above. 

 
26 

 

Comprehensive Reform Initiative 
27 

Organizational Effectiveness Initiatives 

Status as of January 2018 

The Appalachian Regional Commission (ARC) has been identifying, analyzing, and implementing 

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

ARC has proactively made 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 take action 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 
28 

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 

2015 

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 

Provide all staff training on SMART-ER Goal 

development and provide in-house consultation on 

goal setting to ensure alignment with ARC strategy 

and priorities. 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. Provide additional staff 

resources and support through goal setting 

workshops, coaching and employee performance 

criteria development. 

 Workforce 

management 

December 

2016 

Organizational 

Effectiveness 

Working with a consultant, identified organizational 

effectiveness opportunities to leverage knowledge 

management, develop a more efficient team 

structure, and develop 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 Conduct 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 
29 

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 

work processes. From that, the team identified 

efficiencies and enhanced workflow. Engaged services 

of an applications developer to code technical 

efficiencies and enhance user experience in current 

system. Currently researching and will evaluate, then 

select a technology strategy to optimize the new 

business process within the current database system. 

This is expected to increase efficiencies by reducing 

time spent on administrative functions. 

 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 

December 

2018 

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 

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 total staff and align workforce to 

meet the needs of today and the future through a 

voluntary offer. Provided eligible employees with 

resources to assist with decision-making. 

 Workforce 

management 

July 2017 Phone System Implemented technology based phone system to 

leverage integration with Microsoft Outlook. This 

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. 

 Efficiency & 

Effectiveness 
30 

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, internet 

based access to travel arrangements and streamlined 

internal approvals. 

 Efficiency & 

Effectiveness 

June 2017 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 

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. 

90% of participants learned new tools that will be 

useful in their job and enable more efficient work 

processes. 

 Efficiency & 

Effectiveness; 

Workforce 

management 

December 

2017 

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 ensuring that ARC’s culture of respect and 

professionalism is upheld. 

 Efficiency & 

Effectiveness; 

Workforce 

management 

 
31 

 

Appendices 
32 

APPENDIX A 

 
33 

APPENDIX B 
34 

County Economic Status Designations in the Appalachian Region,

Fiscal Year 2018

Distressed Counties, FY 2018

 Alabama (2) – Hale and Macon 

 Kentucky (37) – Adair, Bath, Bell, Breathitt, Carter, Casey, Clay, Clinton, Cumberland, 

Elliott, Estill, Floyd, Harlan, Jackson, Johnson, Knott, Knox, Lawrence, Lee, Leslie, 

Letcher, Lewis, Lincoln, Magoffin, Martin, McCreary, Menifee, Morgan, Owsley, 

Perry, Pike, Powell, Rockcastle, Russell, Wayne, Whitley, and Wolfe 

 Mississippi (12) – Benton, Calhoun, Chickasaw, Choctaw, Clay, Kemper, 

Montgomery, Noxubee, Oktibbeha, Panola, Winston, and Yalobusha 

 North Carolina (2) – Graham and Swain 

 Ohio (4) – Adams, Athens, Meigs, and Scioto 

 Tennessee (11) – Bledsoe, Campbell, Clay, Cocke, Fentress, Grundy, Hancock, 

Jackson, Morgan, Scott, and Van Buren 

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

 West Virginia (12) – Boone, Braxton, Calhoun, Clay, Gilmer, Lincoln, 

Logan, McDowell, Mingo, Roane, Webster, and Wyoming 

At-Risk Counties, FY 2018

 Alabama (16) – Bibb, Calhoun, Chambers, Coosa, DeKalb, Fayette, Franklin, 

Lamar, Lawrence, Marion, Pickens, Randolph, Talladega, Tallapoosa, Walker, and 

Winston 

 Georgia (13) – Chattooga, Elbert, Fannin, Floyd, Franklin, Gilmer, Haralson, 

Hart, Heard, Murray, Polk, Rabun, and Towns 

 Kentucky (14) – Boyd, Edmonson, Fleming, Garrard, Green, Hart, Laurel, 

Metcalfe, Monroe, Montgomery, Nicholas, Pulaski, Robertson, and Rowan 

 Mississippi (9) – Alcorn, Lowndes, Marshall, Monroe, Prentiss, Tippah, Tishomingo, 

Union, and Webster 

 North Carolina (13) – Alleghany, Ashe, Caldwell, Cherokee, Clay, Jackson, Madison, 

McDowell, Mitchell, Rutherford, Watauga, Wilkes, and Yancey 

 Ohio (8) – Gallia, Highland, Jackson, Jefferson, Monroe, Morgan, Pike, and Vinton 

 Pennsylvania (1) – Forest 
35 

 South Carolina (1) – Cherokee 

 Tennessee (22) – Carter, Claiborne, Cumberland, DeKalb, Grainger, Greene, Hawkins, 

Johnson, Lawrence, Lewis, McMinn, Meigs, Monroe, Overton, Pickett, Polk, Putnam, 

Rhea, Unicoi, Union, Warren, and White 

 Virginia (5) – Grayson, Henry, Patrick, Russell, and Scott 

 West Virginia (13) – Barbour, Fayette, Hardy, Mason, Mercer, Nicholas, Pocahontas, 

Ritchie, Summers, Tyler, Wayne, Wetzel, and Wirt 

Transitional Counties, FY 2018

 Alabama (18) – Blount, Cherokee, Chilton, Clay, Cleburne, Colbert, Cullman, Elmore, 

Etowah, Jackson, Jefferson, Lauderdale, Limestone, Madison, Marshall, Morgan, St. 

Clair, and Tuscaloosa 

 Georgia (22) – Banks, Barrow, Bartow, Carroll, Catoosa, Dade, Dawson, Douglas, 

Gordon, Gwinnett, Habersham, Hall, Jackson, Lumpkin, Madison, Paulding, Pickens, 

Stephens, Union, Walker, White, and Whitfield 

 Kentucky (3) – Clark, Greenup, and Madison 

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

 Mississippi (3) – Itawamba, Lee, and Pontotoc 

 New York (14) – Allegany, Broome, Cattaraugus, Chautauqua, Chemung, Chenango, 

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

 North Carolina (14) – Alexander, Avery, Buncombe, Burke, Davie, Forsyth, Haywood, 

Henderson, Macon, Polk, Stokes, Surry, Transylvania, and Yadkin 

 Ohio (19) – Ashtabula, Belmont, Brown, Carroll, Columbiana, Coshocton, Guernsey, 

Harrison, Hocking, Holmes, Lawrence, Mahoning, Muskingum, Noble, Perry, Ross, 

Trumbull, Tuscarawas, and Washington 

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

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

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

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

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

Wayne, Westmoreland, and Wyoming 

 South Carolina (5) – Anderson, Greenville, Oconee, Pickens, and Spartanburg 
36 

 Tennessee (19) – Anderson, Blount, Bradley, Cannon, Coffee, Franklin, Hamblen, 

Hamilton, Jefferson, Knox, Loudon, Macon, Marion, Roane, Sequatchie, Sevier, Smith, 

Sullivan, and Washington 

 Virginia (13) – Alleghany, Bland, Carroll, Craig, Floyd, Giles, Montgomery, Pulaski, 

Rockbridge, Smyth, Tazewell, Washington, and Wythe 

 West Virginia (29) – Berkeley, Brooke, Cabell, Doddridge, Grant, Greenbrier, 

Hampshire, Hancock, Harrison, Jackson, Kanawha, Lewis, Marion, Marshall, Mineral, 

Monongalia, Monroe, Morgan, Ohio, Pendleton, Pleasants, Preston, Putnam, Raleigh, 

Randolph, Taylor, Tucker, Upshur, and Wood 

Competitive Counties, FY 2018

 Georgia (1) – Cherokee 

 Ohio (1) – Clermont 

 Pennsylvania (5) – Allegheny, Butler, Elk, Montour, and Washington 

 Virginia (3) – Bath, Botetourt, and Highland 

 West Virginia (1) – Jefferson 

Attainment Counties, FY 2018

 Alabama (1) – Shelby 

 Georgia (1) – Forsyth 

 
37 

APPENDIX C 

 
38 

APPENDIX D 

Appalachian Regional Commission

Federal Co-Chair States’ Co-Chair

 Earl F. Gohl Governor Phil Bryant 

Governors and State Alternates

Alabama

Governor Kay Ivey 

Kenneth Boswell

New York

Governor Andrew M. Cuomo 

Mark Pattison

South Carolina 

Governor Henry McMaster 

Michael McInerney

Georgia 

Governor Nathan Deal

Christopher Nunn

North Carolina

Governor Roy Cooper 

Jim McCleskey 

Tennessee 

Governor Bill Haslam

Brooxie Carlton

Kentucky 

Governor Matt Bevin

Sandy Dunahoo

Ohio 

Governor John Kasich

Jason Wilson

 Virginia

Governor Ralph Northam 

Erik Johnston

Maryland 

Governor Larry Hogan

Wendi W. Peters

Pennsylvania

Governor Tom Wolf

Sheri Collins

West Virginia 

Governor Jim Justice 

Mary Jo Thompson

Mississippi

Governor Phil Bryant 

Robert G. “Bobby” Morgan States’ Washington Representative 

 James Hyland 

 Executive Director

Scott T. Hamilton 

APPALACHIAN REGION 

The Appalachian Region includes all of 

West Virginia and parts of Alabama, 

Georgia, Kentucky, Maryland, Mississippi, 

New York, North Carolina, Ohio, 

Pennsylvania, South Carolina, Tennessee, 

and Virginia. The Region is home to more 

than 25 million people and covers 420 

counties and almost 205,000 square miles.