As a result of devolution, in recent years federal agencies have turned to regional organizations to deliver programs at the local level, because they offer federal agencies a cost-efficient and effective mechanism. As part of the 2001 budget process, Congress encouraged the Federal Emergency Management Agency to work with regional development organizations to update the nation s flood maps, recognizing their relationship with rural local governments. During the past 40 years, regional organizations have expanded their funding and enhanced their menu of services and programs to meet local, state and federal needs. For nearly 40 years, regional development organizations have provided the institutional infrastructure necessary for distressed communities to obtain and manage funding for programs and services that promote regional solutions to local economic development challenges. Most receive funding for an array of programs from federal, state, local and private sources.
Programs vary by region and reflect local priorities.
These regional organizations are created as governmental units or nonprofit public and private institutions. In some states, they are created by state legislation, in others by executive order or local agreements. While a few have taxing authority, most are dependent on federal, state and local grants, contracts and service fees. In 2000, the NADO Research Foundation conducted a survey of regional development organizations and received information from 292 regions in 48 states. Percentage values represent median score per budget source.