Kentucky county that put financial hopes in Noah's Ark theme park is sinking in debt

Ark Encounter (Associated Press photo)

A Northern Kentucky county that put its financial future in the hands of a Noah's Ark theme park is sinking in debt. Desperate for a new revenue source, local officials in Grant County "gave hefty land grants and tax incentives to the Ark Encounter, a religious theme park that includes a 'life-sized reconstruction' of Noah’s ship," Alan Greenblatt reports for Governing. "The park opened last July, but due to the tax breaks, it hasn’t translated into any sort of public revenue windfall for the county."

The theme park expects to draw a million visitors annually, but visitors aren't spending as much as local officials had hoped, largely because there are few other attractions in the region to tempt people to stick around after visiting the park, Greenblatt writes. The main problems are a lack of hotels and restaurants to draw tourists into the local business districts, including Interstate 75. County Judge Executive Steve Wood told Greenblatt, “We haven’t had anything really built yet. That was probably wrong on our part.”

Grant County, Kentucky (Wikipedia map)

"The truth is that Grant County’s problems are largely its own fault," Greenblatt writes. "For two decades, county officials refused to raise taxes. Instead, to make up for funding shortfalls, they dipped into reserves, draining them by some $2 million over the past eight years. It was the jail that generated the most serious financial trouble. Deferred maintenance led to serious deterioration, with the state eventually deciding to pull its prisoners out of the county lockup altogether. That led to a substantial drop in revenue, prompting local arguments about whether it made more financial sense to close the jail or clean things up sufficiently to recapture housing fees from the state."

There is some hope, Greenblatt writes. "The city of Dry Ridge has just announced that two new hotels will be built over the coming year, along with some new restaurants. If tourists can be convinced to visit Grant County downtowns when they come to see the boat, that should bring in a few more dollars to help the county balance its books."

Kansas can now charge to apply for incentive program to move to rural areas, but won't, for now

Kansas can now charge people to apply for an incentive program that encourages recent college graduates to move to the state's rural areas, Jonathan Shorman reports for The Topeka Capital-Journal. A new law allows the Kansas Department of Commerce to charge up to $750 to apply for the state's Rural Opportunity Zones program, which offers $15,000 in loan debt repayment, and in some cases waives income tax for up to five years. The Commerce Department said the fees are meant to offset administrative costs, and it will not charge people who apply for the incentive.

Fees will be charged, beginning Oct. 1, for other state programs, such as Promoting Employment Across Kansas Program, High Performance Incentive Program, Job Creation Fund, Angel Investor Tax Credits and Kansas Industrial Training and Retraining programs, Shorman writes. There is still the possibility that a fee could be added to the incentive program at a later date, a move supported by at least one state leader. Sen. Julia Lynn (R-Olathe) who chairs the Senate Commerce Committee, told Shorman. “If there were some nominal fee, I don’t think that should deter anybody." (Read more)

N.C. economic development bill causing rural vs. urban feud over distribution of sales taxes

The North Carolina Senate on Monday approved an economic development bill that has caused a rural vs. urban battle over how sales taxes are distributed, Colin Campbell reports for The Charlotte Observer. "The bill softens the impact of earlier proposals on the sales tax revenue plan, which had prompted outcry from some urban and tourism counties that would lose substantial money. The effort in the Senate is aimed at pumping more state money into areas of the state, generally smaller and more rural, that have not seen the same prosperity as in larger counties."

Republican Senate Majority Leader Harry Brown "had earlier called for distributing 80 percent of revenues based on population and only 20 percent based on the sale location," Campbell writes. "The Senate’s new proposal would split revenues, with half staying in the county where the sale took place and half then distributed based on county population. The change would take effect in 2016."

"Rural lawmakers said the change is crucial to help funding as jobs and retail shift toward urban areas," Campbell writes. Sen. Ralph Hise, a Republican from rural Mitchell County, told Campbell, “We have areas of this state that aren’t growing, that are declining in population. We have to make sure that our rural areas are sustainable. We’re trying to change a system so that we can become one North Carolina.”

But Senate Minority Leader Dan Blue, an urban Democrat from the state's second most populated county, "questioned how much the sales tax change will help rural counties, some of which would get a boost of several hundred thousand dollars—hardly enough to build new schools," Campbell writes. Blue told him, “It’s still not going to provide the services that these counties deserve."

An Observer editorial on Monday called the bill a "ham-handed attempt to help struggling rural counties." While a 50-50 split might sound fair, "the Senate’s plan fails to account for the fact that the 75-25 split was the result of a 2007 compromise in which the state took the responsibility of Medicaid funding from the counties."

"Rural counties, whose biggest budget expense was Medicare and Medicaid, benefited the most," the editorial states. "So leaders agreed to give urban counties a heftier sales tax slice to help with their biggest expense—schools."

While the bill is expected to be defeated in the House, "that shouldn’t be the end of the discussion about offering economic uplift to our neediest regions," states the editorial board. "Lawmakers should immediately propose new legislation setting up a grant program to build schools, retrain workers and seed economic development efforts in the poorest rural counties. It’s not as if we can’t afford it. Despite tax cuts that helped top earners and squeezed the working class, we have a $400 million-plus budget surplus. Why not just ease the cuts a bit and aim that money at struggling areas? It would be a much more sensible response to the very real needs in rural counties." (Read more)

Going green has cost Appalachia, helped Northeast, Southwest, Midwest and West, study says

From 2008 to 2012, as the nation began moving away from coal and toward green energy, the coal industry lost 49,000 jobs, "while the natural gas, solar and wind industries together created nearly four times that amount," says a county-level study by Duke University. Appalachia, particularly Southern West Virginia and Eastern Kentucky, as well as the Uinta Basin of Utah and Colorado and parts of the Powder River Basin in Montana and Wyoming, experienced the greatest job losses. The Northeast, Southwest, Midwest and West all benefited, gaining jobs.

Senior author Lincoln Pratson said, "Our study shows it has not been a one-for-one replacement. The counties that were very reliant on the coal industry are now in the most difficult position." Analyst Drew Harer said differences in the availability of state incentives for renewable energy have had a major impact on jobs. He said, "States with incentives have more growth. The southeast is incentive-free, and there is almost no development of green energy there compared to other regions." (Read more)

In need of rural doctors, Minnesota lawmakers look to expand loan forgiveness program

Facing a projected shortage of at least 800 rural doctors in the next decade, Minnesota lawmakers are considering tripling incentives for the state's loan forgiveness program, while also expanding the program to include other medical professionals, Jeremy Olson reports for the Star Tribune. "The deal is that doctors, dentists, nurses and others agree to practice for three to four years in sections of Minnesota designated as health care shortage areas and in exchange receive $5,000 to $30,000 per year to cut down their student loan debt."

The current program has been a success; 75 percent of the 192 doctors and more than 50 percent of dentists and nurses who have received loan forgiveness since 1991 are still working in rural areas, Olson writes. Rep. Deb Kiel (R-Crookston) has proposed increasing state funding from $740,000 per year to $3 million, which would fund an additional 50 loan forgiveness awards per year.

While nationally Republicans have gained control of Congress, in Minnesota, rural Republican lawmakers have a majority in the House. They hope that will lead to allocation of more funds to rural areas, Bill Salisbury reports for Pioneer Press. "The majority of Minnesotans who live in the Twin Cities area pay nearly two-thirds of the state's taxes and receive just over half of the state's spending. Meanwhile, non-metro taxpayers chip in slightly more than one-third of the revenue and get nearly half of the state aid."

"Rural issues moved to the Legislature's front burner this session after 10 Republicans defeated House DFL incumbents in outstate districts in the November election, giving the GOP the majority," Salisbury writes. "They campaigned on a theme that 'Greater Minnesota was left behind' under one-party DFL rule the previous two years." (Read more)

States step up incentives to attract young lawyers to rural areas, where they are often scarce

It's hard to find a lawyer when you need one in many rural areas. That lack of rural lawyers is forcing some states to think outside the box to draw young professional to their towns, reports Regina Garcia Cano for The Associated Press.

In South Dakota, four urban areas have 65 percent of the state's lawyers, while in Nebraska, 12 of the state's 93 counties don't have a practicing attorney, Cano writes. "Only about 30 percent of Georgia's attorneys can be found outside the Atlanta area. And even in New York with nearly 170,000 attorneys, more than 60 percent concentrate in New York City." (Rapid City Journal map from 2013)

South Dakota has started a program believed to the first of its kind that compensates lawyers much the way that similar programs do for doctors that relocate to rural areas, Cano writes. The program, funded by the state's judicial system, the South Dakota Bar Association and the counties, "offers an annual subsidy of $12,000 or 90 percent of the cost of a year at the University of South Dakota Law School to live and practice in rural communities."

Other states are following suit with programs to help draw lawyers to rural areas, Cano writes. "Nebraska next year will begin repaying loans for law school graduates who commit to serving at least three years in underserved communities in the state. The state bar also is teaming with two law schools to offer summer clerkships at rural firms. And Legal Aid of Arkansas recently received a $15,000 grant from the American Bar Association to fund fellowships for newly admitted lawyers who serve in rural areas for one year." (Read more)

Kentucky denies more than $18 million in tax incentives for religious-themed amusement park

Kentucky has refused to give a planned amusement park more than $18 million in state tourism tax credits because the business has hiring practices that discriminate based on religion, Linda Blackford reports for the Lexington Herald-Leader.

Answers in Genesis, which plans to open a park called Ark Encounter in Northern Kentucky that includes a life-size Noah's Ark, threatened to file a federal lawsuit to get the incentives, Blackford writes. But officials say job postings requiring candidates to have a "salvation testimony" and a "Creation belief statement" are violations of state rules that prohibit discrimination on the basis of religion. (Artist's rendering of Ark Encounter)

In a letter to state officials, James Parsons, attorney for Answers in Genesis, wrote, "Merely allowing Ark Encounter LLC to participate equally in the neutral tax incentive program of Kentucky and to exercise all its rights allowed under existing state and federal law cannot be construed in any way as a diversion of state funds to further any religious mission or endorse any religious viewpoint of Ark Encounter."

But Tourism, Arts and Heritage Cabinet Secretary Bob Stewart disagreed, writing that "state tourism tax incentives cannot be used to fund religious indoctrination or otherwise be used to advance religion. The use of state incentives in this way violates the separation of church and state provisions of the constitution and is therefore impermissible," Blackford writes.

If you can't keep Asian carp out of waters, might as well eat them; 2nd processing plant to open in Ky.

Invasive Asian carp have been threatening the Great Lakes, including the region's $7 billion annual fishing industry. While officials have considered various ways to stop the flow of Asian carp in America's waters, in May Kentucky agreed to allow a Chinese company to open the first American Asian carp processing plant. Asian carp is a delicacy in Southeast Asia.

This week, it was announced that a second Asian carp processing plant will be built in Kentucky, with Riverine Fisheries International planning to open a plant in Fulton County that "will catch, clean, process, package and transport various species of Asian carp found in Kentucky's waters," The Associated Press reports. "The company plans to create 110 new jobs and invest $18.7 million into the project."

"Riverine Fisheries will focus on Asian carp that are invading Kentucky Lake, the Mississippi River, Cumberland River, Cumberland River and Tennessee River," AP reports. "In addition to targeting Asian carp, the company will also process other seafood products brought in from other areas of the U.S." (Read more)

Washington Post uses Nebraska county as example of rural lawyer shortage

In another example of rural lawyer shortages, Knox County, Nebraska—where the population has dropped from 19,100 in 1930 to 8,560 today—has only 12 lawyers, and eight of are older than 60 and looking to retire, if only they could find a replacement, Danielle Paquette reports for The Washington Post. (Wikipedia photo: Knox County)

"Rural Nebraska needs lawyers, Paquette writes. "Young, single, college-educated people keep leaving the Heartland, enticed elsewhere by more money or exposed brick lofts or mimosa-drenched brunches. The young have long fled small towns for big-city lights, but the trend has been worse in recent years, aggravated by recession and a historic concentration of resources in urban areas. Nearly 60 percent of America’s rural counties lost residents last year. That’s up from 50 percent in 2009 and 40 percent in the late ’90s, according to Census data."

In an attempt to draw more young lawyers to rural Nebraska, the state has upped incentives through the Rural Practice Loan Repayment Assistance Program, Paquette writes. "Effective next year, law graduates who work in counties with populations of less than 15,000 can start receiving up to $42,000 in student debt relief. Recipients must stay 10 years to earn the full amount, forsaking city life, higher salaries — and, potentially, the professional network to move on and up."

But incentives aren't always enough to lure prospective lawyers from bigger cities like Omaha, which offers much more options for arts, entertainment and meeting people, Paquette writes. One way the Nebraska College of Law in Lincoln is trying to promote rural practice is through a bus tour that allows soon-to-be-graduates to visit different counties on spring break, meet local attorneys and shake hands with business leaders. (Read more)

Rural Kansas hospital says it has good strategy for recruiting doctors; Michigan ups incentives

While many rural areas have struggled with doctor shortages, medical professionals in Lakin, Kan., say they have uncovered the key to recruitment success, Mike Shields reports for the Kansas Health Institute. "In Kearny County, on the High Plains near the Kansas-Colorado boundary where there are only about five residents per square mile, one small hospital has adopted a distinctive approach to recruitment that in a relatively short time has produced a staff that includes five doctors, five physician assistants and a growing volume of patients."

The key, Kearny County Hospital CEO Benjamin Anderson told Shields, is to direct searches at four specific types of doctors: someone born and raised in the area looking to return home; foreign doctors who gained U.S. resident status by agreeing to work (usually temporarily) in an under-served area; a "challenged doctor" with addictions or other problems who struggles with accountability issues; and a missionary-type person, someone "driven by by mission or purpose” to treat those in need.

Anderson told Shields that doctors they recruit “aren’t that interested in country clubs, not that interested in ego and money and prestige and elite social clubs. What they are there for is to serve. That doesn’t mean our community is Third World, and it doesn’t mean it is inferior. There is need everywhere.” The hospital also offers four-day work weeks, limited emergency-room calls and eight weeks off each year to pursue other interests or missionary work. (Read more)

While that method has worked in Kansas, Michigan is trying to draw new doctors the old fashioned way—through incentives. Gov. Rick Snyder signed a bill this week that hopes to bring more doctors to under-served areas by increasing "the maximum annual repayment benefit for a doctor from $25,000 to $40,000, which "creates a lifetime cap of $200,000," reports the Midland Daily News. It also allows the state Department of Community Health "to give preference to physicians studying general practice, family practice, obstetrics, pediatrics or internal medicine." (Read more)

More than 80 percent of new hires in North Carolina are for low-wage jobs

The "left-leaning" North Carolina Justice Center released a report Wednesday that found that more than 80 percent of the state's new hires from June 2009 through September 2013 were for low-wage jobs, defined by the center “as a job that pays less than what it takes for a family or an individual to make ends meet,” Richard Craver reports for the Winston-Salem Journal. Last month the center released a report saying that most job-growth incentives in the state go to wealthy urban areas, with little going to rural areas, including the state's most distressed.

"The center reported that during the four-year period, the state had a net gain of 75,157 ultra-low wage jobs (paying less than $24,000 annually), a net gain of 34,685 low-wage jobs (paying between $24,000 and $33,709) and a net gain of 21,887 jobs paying more than $33,709," Craver writes. 

The state's fastest growing ultra-low wage jobs are in fast-food, which accounted for 32,309 new hires, earning an average wage of $279 per week. Janitorial work was second, with 9,733 new hires, averaging $443 a week, Craver writes. The fastest growing low-wage jobs were in temporary work, with 44,721 new hires averaging $583 per week. That was followed by auto parts accessories and tire stores, with 2,038 new hires with an average weekly wage of $546. (Read more)

Most job-growth incentives in North Carolina go to wealthy urban areas, liberal group's report finds

North Carolina spends a large portion of its business incentives on wealthy, urban areas, leaving rural areas, including the state's most distressed, with far less money to improve the local economy, Allan Freyer writes for the Budget and Tax Center, part of the left-leaning North Carolina Justice Center. About 56 percent of incentives since 2007 have gone to the urban counties that include Charlotte, Raleigh and Durham.

Freyer's report also says the state "has awarded more than triple the amount of incentive dollars to projects in the wealthiest 20 counties than projects in the state’s 40 most distressed counties," Freyer writes. "The state's incentive projects promised to create or retain two jobs in the 20 wealthiest counties in the state for every one job promised to the 40 poorest counties." North Carolina is also "paying almost twice as much in incentive dollars for each job promised in the wealthiest 20 counties than in the 40 most distressed counties." (Read more) (Center graphic: Tier 1 has the 40 most distressed counties, Tier 3 the 20 wealthiest counties)

"The report raises a practical economic question as well: Are performance-based economic incentives, as well as other tax credits for job creation in more economically distressed counties, enough to convince a company to operate in rural North Carolina?" Richard Craver reports for the Winston-Salem Journal. "In most instances, the answer has proven to be no, particularly for corporations that want an urban feel or a large population from which to draw their workforce."

Michael Walden, an economics professor at North Carolina State University, told Craver that rural residents can still benefit from urban incentives in two ways: “commuting to job opportunities provided by the new firm, or taking job openings that may arise from supplier firms that may be located in non-metro counties.” (Read more)

Voucher programs steer tax dollars to private schools that teach creationism, intelligent design

Public schools are not legally allowed to teach creationism or intelligent design, but public tax dollars are going to private schools to teach those concepts. "Taxpayers in 14 states will bankroll nearly $1 billion this year in tuition for private schools, including hundreds of religious schools that teach Earth is less than 10,000 years old, Adam and Eve strolled the garden with dinosaurs, and much of modern biology, geology and cosmology is a web of lies," Stephanie Simon reports for Politico. (Politico graphic: state voucher programs)

According to the National Conference of State Legislatures, "Some 26 states are now considering enacting new voucher programs or expanding existing ones," Simon writes. "One concept that is gaining popularity, on the table in eight states: setting up individual bank accounts stocked with state funds that parents can spend not just on tuition but also on tutors or textbooks, both secular and religious. On Friday, the Arizona Supreme Court ruled the approach constitutional; lawmakers there are already working to broaden eligibility."

"Already, about 250,000 students take advantage of vouchers and tax-credit scholarships," Simone writes. "That’s just a fraction of the 55 million public school students in the U.S., but it’s up about 30 percent from 2010. Some states have built growth into their laws. In Florida, for instance, public subsidies are set to rise from $286 million this year to about $700 million in 2018 even without further legislative action, as long as demand remains high." Only one state, Wisconsin, had a voucher program in 1993, but last year 20 states had programs. (Read more)

PBS Newshour features segment on Kansas' attempt to draw people to rural towns

In 2012, the rural population of the U.S. declined for the first time, according to the Economic Research Service of the U.S. Department of Agriculture. One state trying to change that trend is Kansas, where Republican Gov. Sam Brownback has initiated the Rural Opportunity Zones program, which pays college graduates up to $15,000 over five years to move to counties that have experienced population loss, and waives income tax for people moving from out of state.

A feature on PBS Newshour takes a closer look at the state's circumstances, and reports that "Jobs and people have been disappearing from rural Kansas and most of the Great Plains for the last 80 years." One reason was the Great Depression, and the other was the introduction of mechanized farming in the 1960s, which reduced the number of farms and the need for human workers.

In Kansas, Brownback hopes Rural Opportunity Zones can re-populate rural towns. "It’s a beautiful community. We just need to give it some opportunity," he told PBS. "It’s about creating opportunity for people." Currently 650 people participate in the program, which cost the state $838,000 last year. While the program has helped raise rural populations, some fear that it won't last, because there is still concern about lack of jobs, opportunities for advancement at jobs and enough to do in small towns to keep people interested in staying. (Read more)

Digital conversion endangers rural theaters; Colorado using grants, fundraising to help owners

More and more multiplexes seem to be opening, some featuring 20 or more screens, IMAX capability, stadium seating, and concession stands that offer restaurant-quality goods.  Most rural theaters can't compete with all that, but still hold a charm that harkens back to the old days when going to the movies was an event and the theater was an important local gathering place. But as we have noted before, the future of rural theaters is in jeopardy. (Kickstarter photo: The Rogers City Theater in Rogers City, Mich., has started a campaign to raise money to convert to digital)

"By the end of this year, an industry-mandated conversion to digital projectors will make it nearly impossible for many small, one or two-screen theaters in isolated towns across America to continue to operate," Stephanie Garlock reports for The Atlantic Cities. Digital-only benefits movie studios, because "the picture is generally clearer, and, more significantly, the financial and logistical costs of distribution are radically lower. A single copy of a 35mm feature film costs studios upwards of $1,500, while copies on digital hard drives run at about a tenth of that, with prices falling fast. Eventually, satellite transmission could make getting first-run films to theaters across the globe virtually hassle-free."

But the cost to theater owners is great, coming in at an estimated $50,000 per screen, Garlock writes. And if theaters don't convert, they won't get any first-run features, limiting them to small, independent films and older movies. As many as 20 percent of theaters, many of them in rural areas, are in danger of closing, because they can't afford to convert to digital. (Read more)

Colorado has a plan to save its rural theaters. State grants have awarded $200,000 to help save 13 rural theaters -- many of which only have one screen -- and officials hope a fundraising campaign will give the owners enough to pay for the rest of the conversions, Bente Birkeland reports for public radio station KUNC.

"It’s unusual for the state to give out grants to this type of mom and pop business, but government officials say it's not just about the theaters. It’s about preserving rural downtowns and the communities themselves," Birkleand reports. Jeff Kraft, state director of business funding and incentives, told her, “We’re able to use some of our incentive funds to make an existing business go over a onetime transition obstacle. All of them are really central to having a vital downtown experience in their communities. And they help make it more attractive to workers and business.” (Birkeland photo: The Sands in Brush, Colo., received a $20,000 grant, but needs another $30,000 to convert to digital)

Downtown Colorado Inc., "a statewide non-profit focusing on building vibrant commercial areas, is also helping theater owners who aren’t used to fundraising," with a campaign called Save Our Screens, Birkeland writes. The idea is to "engage theater owners in regular conference calls to address issues and questions, and develop training for fundraising, technology, and ownership models," according to Downtown Colorado. The group is also using case studies, by "collecting stories of theaters that have converted to identify best practices." According to Downtown Colorado, 58 percent of the state's theaters have converted to digital, 13 percent are in the process of converting, 26 percent have not converted, and 3 percent of theaters have closed. (Read more)

States and schools still battle over consolidation

The number of independent school districts in the U.S. shrank nearly 90 percent between 1942 and 2012—from 108,579 school districts to 12,880. But almost all the decrease occurred in the first 30 years of that period; in the last 40, there have been many fewer consolidations despite continued state incentives for districts that merge and penalties for those that don't. Maggie Clark reports for Stateline, "For states, consolidating school districts can mean fewer buildings to maintain and lower administrative costs. For communities, consolidation can mean long bus rides for students, losing budgetary control and even a loss of community history." (Heritage Foundation map; for an interactive map of school districts by state, click here)

Two weeks ago, voters in the Seneca Falls school district near the Finger Lakes in upstate New York rejected a move to consolidate with neighboring Waterloo, Clark notes. "New York offers consolidating school districts a 40 percent increase in their state aid, freezing the amount based on their aid for the 2006-2007 school year, plus money for new buildings. Had Seneca Falls and Waterloo merged, they would have seen an additional $43 million in state aid over the next 14 years." Kent Gardner, chief economist at the Center For Governmental Research in Rochester, told Clark, “The actual savings from these plans is usually just a fraction of the property-tax bill, so it’s difficult to vote for doing a radical and risky thing for something that often amounts to $20 or $30 in savings."

"Kansas guarantees that consolidating districts will get the full amount of both individual districts’ state aid for five years after a merger," Clark writes. "Consolidation in rural districts in California’s Sierra Nevada mountains region meant long bus rides and moving middle and high school students onto the same campuses." And Maine, with the highest rural population percentage in the country, has been pushed the hardest to consolidate. In 2007, then Gov. John Baldacci signed legislation ordering Maine’s 290 school districts to consolidate into just 80 districts or face penalties. From 2007-2012, the state lost 58 districts. (Read more)

The Rural School and Community Trust advocates for rural schools. Its website is here.

Nebraska tries to bring lawyers to rural areas

Rural communities have struggled to attract lawyers to small towns. Law-school graduates in Georgia have had a hard time finding work, even though most of the state's rural counties lack lawyers, and states such as South Dakota and Kansas, where many counties are losing population, have tried to draw lawyers through incentives for recent graduates. That problem is occurring in Nebraska, where a shortage of attorneys in some communities "means long drives for clients, but a job market for law school graduates that is as expansive as the open prairie," Caitlin Sievers reports for the Sidney Sun-Telegraph in a town of 6,700 near the Colorado border. The county, which has nearly 10,000 residents, only has 18 lawyers; 12 rural counties in the state don't have a lawyer.

The Nebraska incentive program "is geared toward second-and third-year law students, and stresses the benefits of practicing law in rural areas in the state," Sievers writes. "The initiative featured a pair of two-day tours through Albion, a town of about 1,600 northwest of Columbus, and Ord, a town of about 2,000 north of Kearney. At least a couple of people found jobs because of the initiative, [state] bar association President Marsha Fangmeyer said." She told Sievers, "The hope is to continue this effort in other areas of the state. It is essential that we provide access to justice all across the state, including the rural areas." (Read more)

State takes over grantmaking from greatly shrunken N.C. Rural Economic Development Center

The North Carolina Rural Economic Development Center has been in the news for all the wrong reasons, with auditors finding in July that funds weren't being used for the purposes intended, and contributions to a retirement fund for then-President Billy Ray Hall were unreasonably high. Hall and board chair Valeria Lee resigned, and the state froze the center's funding, which includes about $90 million in grants left in limbo.

While the center may never fully recover, it will continue to serve the people and communities it was intended to help, Caitlin Bowling reports for the Smoky Mountain News in Waynesville. CeCe Hipps, a board member, told Bowling, “The best news is all the grants that were promised will be paid. Those are in the pipeline to get final approval by the state budget director.”

But "the first full-year budget of the new Rural Center will only amount to about $1.5 million — about $30 million less than it is used to operating with," Bowling writes. "All the state money previously in the center’s budget will now go to the state Department of Commerce, which will take over the grant-making functions of the center with a new rural economic-development division. The center is expecting to then operate on about $1.5 to $2 million a year, a combination of private donations, corporate sponsorships and grants — and as a backup can draw from about $11 million in savings," form interest accrued from unused state appropriations.

The new division "will also hire some of the center’s employees and will use part of the center’s building in Raleigh. Already the center has trimmed its staff. A couple weeks ago, 15 people were handed pink slips," Bowling writes. "The 50-person operation will eventually be whittled down to between 10 and 15 people. The Department of Commerce is expected to hire 15 of the center’s employees by the end of this month to run the grant programs under the rural division." Many of the center's programs will continue, though some that were previously free could now require a fee. "One thing’s for sure, though, the nonprofit won’t be what it was." (Read more)

With no vet school and lots of animals, Arkansas looks for a way to fund veterinary training

Like many states, Arkansas and its most rural areas are in need of veterinarians. But no state university offers a veterinary program, forcing aspiring vets to leave the state to obtain their degree. Through grants, 12 veterinary students each year can earn in-state tuition at Louisiana State University, the University of Missouri, Tuskegee University and Oklahoma State University. "But a premature depletion of the program’s funds has left the state unable to support the veterinary grants," Julie Scheidegger reports for DVM360, a news source for veterinary medical information. (Photo by DVM360)

"In 2008, the state Legislature moved $20 million from the program’s reserves to offset lottery revenue shortcomings, exhausting the fund much earlier than expected," Scheidegger reports. Shane Broadway, interim director of the Arkansas Department of Higher Education, told Scheidegger, “Instead of running out in 2017, it runs out now." In 2011 and 2013, higher education officials requested lawmakers to act to help the program, but they were not unsuccessful, Scheidegger reports.

Democratic Gov. Mike Beebe wants the Legislature to move $1.1 million from the "rainy day fund" to the program. Approval, which is expected, "would guarantee one year of financial assistance for the dozen students set to begin programs this fall," Scheidegger reports. But it is only one-time money, meaning students attending LSU in 2013-14 for about $21,500 will be responsible for about $48,350 the following year, if the program is not continued. (Read more)

Ohio gives firm tax credit to move within state

Most state economic incentives are designed to bring jobs into a state, not move them within it. But in Ohio, the state is granting a deck-and-fencing materials company a 50 percent tax credit to leave the capital of Columbus for the rural town of Wilmington, pop. 12,500, between Columbus and Cincinnati, Joe Vardon and Dan Gearino report for The Columbus Dispatch.

The tax credit will only be given if the Wilmington site creates 85 new positions, in addition to any transfers from the Columbus facility. Sixty-five full-time employees worked in Columbus, and seven have accepted positions in Wilmington. A company spokesperson said there is room in Wilmington for all 65 employees.

"The state does not divulge how much the credit is worth to the company, which also received an undisclosed grant from JobsOhio," the Dispatch reports. Laura Jones, JobsOhio spokeswoman, told the paper that TimberTech, which was sold last year to CPG International, a company based in Scranton, Pa., "made it very clear to us that they were consolidating the jobs in Columbus and they were going to be leaving Columbus one way or the other. When the alternative is losing jobs to another state, we are always going to look at all options and do what is feasible to keep them in Ohio. … That’s a positive for Ohio.”

When Republican Gov. John Kasich announced the opening of the Wilmington site, he didn't mention the one in Columbus would be closing, the Dispatch notes. Ohio Democratic Party spokesman Matt McGrath told the paper, "It’s outrageous that Gov. Kasich and (JobsOhio chief) John Minor would stand on stage and heap praise — and tax breaks — on a company that was in the process of closing its Columbus plant and laying off dozens of workers, thereby encouraging other companies to force Ohio towns into competing for jobs that already exist." It's not the first time Kasich has been involved in offering a state-sponsored tax credit to a business. In 2011, Bob Evans received one for moving its headquarters. (Read more)