Regional Organizations Impact
Rural Communities

By Zanetta Doyle, Digest Editor

Regional development organizations (RDOs) positively impact the economic condition of rural communities throughout the United States. Successful programs created and operated by regional organizations are featured in the Economic Development Digest, and are constant reminders of the unique service that regional organizations offer local and state governments, ultimately making a difference in many of the nation’s distressed areas.

More than 500 sub-state regional organizations work for local governments, businesses, academic institutions, nonprofit organizations and others engaged in community and economic development. Regional development organizations manage a diverse array of programs and services for the 82 million residents of rural and small metropolitan America, including comprehensive planning, workforce development and job training, small business development and finance, transportation planning, water and wastewater management, emergency services coordination, aging programs, youth development housing and various other initiatives aimed at promoting employment opportunities.

In recent months, studies have confirmed the important work of regional organizations which are known as economic development districts by the Economic Development Administration (EDA). There are 325 EDA designated and funded districts. In 2002, the Center for Urban Studies at Wayne State University published the study, Evaluation of EDA’s Planning Program: Economic Development Districts, which revealed that economic development districts funded by EDA were both effective and essential to local development. (New Study Highlights Value of EDA Planning Districts, Economic Development Digest, October 2002) The study also reported that economic development districts exhibit a strong ability to leverage EDA funding to secure investments from other sources. Districts have also developed a track record of facilitating a comprehensive strategic planning process that provides the critical backbone for economic development planning at the regional level.

Diversity of Regional Councils

This issue of the Digest highlights findings of the National Association of Development Organization’s (NADO) 2002 Regional Development Organization Survey, which gathered data regarding the activities of regional organizations, including the economic impact they are making in the communities they serve. Based on that information, this month’s edition spotlights programs reflective of the survey results.

Western Maryland Benefiting from Regional Councils

Leanne Mazer, Executive Director of the Tri-County Council for Western Maryland, in Cumberland, Maryland commented, “The Garrett Information Enterprise Center (GIEC) was formed through a unique funding scenario that involved the Appalachian Regional Commission, Economic Development Administration and local support. Without this marriage of funds, this project would not have come to fruition. This $1.5 million high tech business incubator is located on the campus of Garrett College to ensure complete access to college services for its tenants. Opened in July of 2002, the GIEC is already over 50 percent occupied in an area where unemployment is nearly twice the state rate. This project is well ahead of occupancy and new job projections, and most jobs pay wages much higher than the county average. The GIEC houses 10 companies that have nearly 30 employees.”

Louisiana Council Incubates Strong Economy

The Kisatchie-Delta RPDD, Inc., in Alexandria, Louisiana, is currently involved in a public works project that will transform an old department store into a business incubator in Alexandria. Funding for the multi-million dollar project, in which construction is scheduled to get underway in Fall 2003, will be provided by EDA and the state of Louisiana, and the city of Alexandria.

According to Jimmy Williams, Executive Director of the Kisatchie-Delta RPDD, Inc., a great deal of interest in the incubator has come from businesses that are involved in the medical support services area that will serve as a complement to the regional hospitals in Alexandria. “The city will also use a portion of the building as a customer service center that will provide residents with better access to various services in one location.” Williams added, “Without assistance from EDA, the implementation of this project would not have been possible.”

While the survey and other studies support the relevance of regional development organizations, increasing concerns over proposed cuts in state and local budgets will present serious challenges for regional organizations that receive funding for programs from federal, state, local and private sources. Among other challenges include increased demands for regional organizations’ services from local governments; high unemployment rates in communities that are already struggling; and homeland security issues.

“America’s rural communities and regional development organizations are already struggling in light of a faltering economy, strained state and local budgets and an ever increasing load of fiscal and programmatic responsibilities,” said Joe Brannan, President of NADO and Executive Director of the SouthEastern Arizona Governments Organization in Bisbee, Arizona. “Additional cuts on the federal level will undoubtedly add to a seemingly overwhelming burden faced by rural local governments and regional development organizations.”

Despite the many economic challenges that regional organizations are facing, they continue to find ways to accomplish the work necessary to bring about visible economic development in rural areas, as highlighted throughout this issue. However, according to the NADO survey, continued funding from federal, state, local, private and other entities will remain crucial to the longevity of these programs in which regional organizations are involved.

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Report Promotes Regional Councils

The report, CRS Report for Congress, The Role of Regional Councils in the Federal System: Policy Issues and Options, November, 25, 2002, recommends that regional organizations should play an even larger role. As stated in the report, “Advocates suggest that Congress could better realize certain policy objectives by enhancing regional councils’ role in the delivery of federal assistance. They contend that this could facilitate communication among levels of government, achieve greater consensus on federally assisted projects, lead to more targeted distribution of government resources to areas in greatest need, and overcome some problems associated with state and local delivery of region-focused programs.” Visit www.ncesonline.org for more information.

Names of Regional Development Organizations Include:

Area Development Districts (ADD)

Business Development Corporation

Council of Governments (COG)

Economic Development Commission (EDC)

Economic Development District (EDD)

Local Development District (LDD)

Planning and Development District (PDD)

Regional Development Center (RDC)

Regional Planning Commission (RPC)

NADO Report Substantiates Regional Commissions Significance

A newly published report by the NADO Research Foundation, Federal State Regional Commissions: Regional Approaches for Local Economic Development, highlights the crucial role of federal-state regional commissions in assisting distressed communities.

The report highlights the effectiveness of the Appalachian Regional Commission (ARC) and explains how other severely impoverished areas can use ARC as a model to establish regional commissions. It also highlights the important link between these commissions and regional development organizations. The report also details the critical role of regional councils in the unique federal/state/local partnership of the commissions.

The report is available online at www.nado.org under the “What’s New” section. To order copies of the report, contact NADO at 202/624-7806 or email info@nado.org. The cost is $10 for NADO members and $20 for non-members.

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