Governor Sonny Perdue and members of the OneGeorgia Authority Board met December 7 at Southwest Georgia Technical College and approved grants and loans from the OneGeorgia Authority’s portfolio of financing programs.
These awards will assist with a variety of economic development projects in rural Georgia aimed at creating jobs, stimulating new private investment, supporting the retention of existing jobs and enhancing regional competitiveness through capacity-building projects. These projects, along with their respective local leadership representatives, were recognized at the OneGeorgia board meeting.
Company officials and local leaders associated with the most recent EDGE awards were recognized at today’s meeting. The five EDGE awards, totaling $2.5 million, are leveraged against approximately $100 million in total project costs and are projected to create over 677 jobs within the next three years as well as to retain 75 jobs.
Washington-Wilkes Payroll Development Authority / Callaway Farms Manufacturing, LLC
EDGE grant funds will be used to assist with building improvements to support the location of Callaway Farms Manufacturing, LLC (CFM), an animal bedding manufacturer, to Washington. The Company plans to rehabilitate an existing 20-acre site previously occupied by International Paper Company Sawmill. CFM is a privately held company that was created in 2007 by three individuals who have over 75 years of agricultural and business experience. The Company’s principal product will be animal bedding for horses that will be made out of pulpwood and unusable timber procured from a five-county area surrounding Wilkes County.
EDGE Award: $100,000 / Total Project Cost: $4.5 million
50 new jobs in two years / Interstate competition: Jasper, Alabama
Development Authority of Harris County / Hoover Universal, Inc.
EDGE grant funds will be used to assist with site preparation to support the location of Hoover Universal, Inc. (HUI), an auto supply manufacturer, to West Point, Harris County. HUI plans to construct a 127,500 square-foot facility on 27 acres in the Northwest Harris Business Park, which is located six miles from the KIA facility. The Company will manufacture interior automotive components, such as seats and door panels, as a Tier 1 supplier to KIA Motors Manufacturing Georgia, Inc. Hoover Universal is a wholly-owned subsidiary of Johnson Controls, Inc. (JCI) which was established in 1883. JCI employs over 140,000 worldwide.
EDGE Award: $1 million / Total Project Cost: $35.2 million
310 new jobs in two years / Interstate competition: Alabama
Development Authority of Walton County/General Mills Operations, LLC
EDGE grant funds will be used to assist with the purchase of machinery and equipment to outfit a new distribution facility in support of General Mills Operations, LLC (GMO). GMO is a subsidiary of General Mills, Inc. (GMI), a Fortune 500 company and one of the world’s premier consumer foods companies with products in over 100 countries around the world. With a current manufacturing facility in Covington, Newton County, Georgia since 1989, the Company seeks to expand in the southeastern region of the U.S. by constructing a regional distribution center. General Mills plans to construct a 1.5 million square-foot LEED certified (Leadership in Energy and Environmental Design) facility on 130 acres that will be one of the largest of its kind in the U.S. Some of General Mills’ more notable products and brands include: Cheerios, Wheaties, Yoplait, Hamburger Helper, Green Giant, Betty Crocker and the most recognized icon of GMI – the Pillsbury Dough Boy.
EDGE Award: $500,000 / Total Project Cost: $46.7 million
112 new jobs in two years / Interstate competition: Florida and Tennessee
HoustonCountyDevelopment Authority / Little League Baseball, Inc.
EDGE grant funds will be used to assist with site preparation in support of the location of Little League Baseball (LLB), Inc. LLB, a non-profit organization which organizes local youth baseball and softball leagues, has helped to organize over 200,000 teams (2.3 million players) in every state in the US and over 80 countries throughout the world. The Company is relocating its Southeastern regional headquarters from St. Petersburg, Florida to Warner Robins in Houston County to a new facility best suited for growth and expansion. LLB plans to construct 10,000 square-feet of administrative office/meeting space, practice fields, and enclosed one-story maintenance facility on 26 acres adjacent to the existing 29.56-acres Warner Robins American Little League complex. The location is expected to attract approximately 20,000 annual visitors to the area which over a 10-year period is estimated to have a $32 million regional impact.
EDGE Award: $598,640 / Total Project Cost: $5.5 million
5 new jobs and indirect impact of $3+ million annually across the region
Interstate competition: North and South Carolina
ThomasvillePayroll Development Authority / Senior Life Insurance Company
EDGE grant funds will be used to assist with site preparation and construction for the expansion of Senior Life Insurance Company (SLIC) in Thomasville. SLIC is a Thomasville based insurance company that has been in business more than 37 years. The Company is licensed to underwrite life and health insurance products in 20 states and the District of Columbia. It is a niche company which offers insurance products to senior citizens. SLIC has 75 employees in Thomasville and occupies 9,000 square feet of rental office space. In 2000, SLIC operated in Georgia and five other southeastern states and in 2002 and 2003, expanded to eight additional states, with two other state applications currently pending. With rapid growth, SLIC has outgrown its current facility, prompting management’s decision to expand its corporate headquarters in Thomasville or move to Florida. The Company plans to construct a 40,000 square foot facility on a 10-acre tract located at the intersection of West Jackson Street and U.S. Hwy 319 South in Thomasville.
EDGE Award: $350,000 / Total Project Cost: $7.9 million
200 new jobs in three years; retain 75 jobs / Interstate competition: Tallahassee, Florida
The Equity Fund is designed to assist communities and regions in building the necessary infrastructure to support economic development. The program’s flexibility also provides financial assistance to enhance publicly-owned tourism initiatives, workforce development opportunities and downtown revitalization projects. In addition, loan funds are available through the Equity Revolving Loan Fund to assist small business owners with business growth and expansion opportunities. Today, 12 Equity awards, totaling $5.1 million, are leveraged against approximately $202 million in total project costs.
City of Vienna - Sewer Infrastructure Improvements
Equity grant funds will be used for sewer infrastructure improvements to benefit the Tyson Poultry Plant located in the City of Vienna, Dooly County. Tyson Foods, the City’s largest employer, processes chickens and has the contract for the Wendy’s food chain in the Southeast. Due to the large amount of waste material associated with chicken processing, the wastewater conveyance system often gets backed up and spills into the environment which has resulted in a Consent Order from the Georgia Environmental Protection Division. If the backups last more than a day, plant production ceases. This could jeopardize Tyson’s contract with Wendy’s which could in turn mean the direct loss of 600 jobs for the region. In addition, closure of the plant would affect hatchery employees, poultry farmers, poultry wranglers, feed processors, truck drivers and employees of other related industries in the area.
Equity Grant Award: $500,000 / Total Project Cost: $2.5 million / Retain 600 jobs
City of Cordele – Road Infrastructure
Equity loan funds will be used to assist with road widening improvements along Frontage Road and Kelly Road to State Route 300 in order to open up the area to commercial development opportunities and encourage tourism to the area by accommodating the heavy traffic from I-75 and SR 300. The City of Cordele is located in Crisp County in south middle Georgia in a federally designated Empowerment Zone. Crisp, Dooly and Wilcox Counties have some of the worst poverty levels in the state. The proposed road improvements would increase the number of customers willing and/or able to access businesses along Frontage Road. Businesses to benefit from the road widening improvements are McDonald’s, Flash Foods, Papa’s Southern Meats and Eats, Back Woods Outdoors and Shelby’s Market Place. These Companies and the developer have provided a firm letter of commitment that assures the creation of 68 jobs and the provision of $7,960,648 in private investment.
Equity Loan Award: $500,000 / Total Project Cost: $9.5 million / Create 68 jobs
Downtown Development Authority of the City of Arlington – Facilitating Business Growth / Land, Site Prep, and Public Infrastructure
Equity loan funds will be used to assist with the expansion of Damascus Fertilizer Company, d/b/a Early Trucking Company (ETC), located in Arlington, Calhoun County, Georgia. ETC is one of the largest employers in Calhoun County with 42 full-time employees who reside in 9 counties. The Company provides several levels of services to Southwest Georgia’s peanut industry. These services include transporting peanuts from farmer to purchaser, transporting peanuts in the hull from buying locations to shelling plants, shipping shelled product to storage, shipping hull fiber to regional feed mills and chicken processors, and delivering bulk oil grade peanuts to regional processors. Increased demand has required an expansion of its truck fleet from 28 to 42 trucks, the purchase of 26 additional trailers and 14 additional full-time drivers. The existing location is no longer adequate for ETC’s expanded operations. Equity funds will be loaned to ETC for land acquisition, site preparation and building construction.
Equity Loan Award: $300,126 / Total Project Cost: $2.5 million/ Create 20 jobs
Grady County Joint Development Authority – Capacity Building/ Land Acquisition
Equity grant funds will be used to assist with the acquisition of 175 acres of land ($2.2million) to expand the existing 179-acre Milestone Industrial Park in Cairo, Grady County. The property is located just off Hwy 84, has CSX rail access and is attractive for companies needing access to the tri-state market of Georgia, Florida and Alabama. The City of Cairo has committed to provide all utilities ($1 million) including water, sewer, electricity and natural gas extensions. The Industrial Park was established in 1990 and has become the primary location for much of the industry located in the County, currently serving 17 industries with an estimated 950 workers. Because only small (4 to 10 acre) tracts remain in the original park, Grady County recognized the need to expand the Park, having larger sites available for prospective industries.
Equity Grant Award: $500,000 / Total Project Cost: $3.3 million
City of Madison Downtown Development Authority - Enhancing Regional Tourism / Building Construction
Equity grant funds will be used to assist with the development of the new Town Park Event Center in downtown Madison. The requested funds will be used for the construction of Harris Bicentennial Pavilion and an Art Guild Cottage, the Park’s primary venue and tourist welcome center. Although a center for education and agriculture in the 19th century, Madison is best known today as a popular tourist destination which already hosts over 50,000 visitors each year by marketing its historic downtown and attractions such as the Madison-Morgan Cultural Center, the African American Museum, Heritage Hall, the Rose Cottage, and others. Town Park will accommodate approximately 3,000 people and has already been a tremendous economic development catalyst in the City and Region. The new event center will attract visitors and tourists as it revitalizes a portion of downtown Madison, resulting in the generation of new jobs and tax revenues for the City, County, Region, and State.
Equity Grant Award: $300,000 / Total Project Cost: $2.5 million
Clayton-Rabun County Water and Sewer Authority – Enhancing Regional Competitiveness / Sewer Infrastructure Improvements
Equity grant funds will provide gap financing for needed sewer infrastructure along the northern sector of US Hwy 441 between Mountain City and Dillard to sustain existing businesses. The community has executed documents with GEFA for a $1 million loan and received an Appalachian Regional Commission grant of $300,000. With the Georgia Department of Transportation's completion of the widening/improving of the Northern section of Hwy 441, acceleration of tourism and commercial business sectors is anticipated in an area where topography and environmental protections often limit development opportunities. Because the northernmost portion of this highway (1.25 miles) is without sanitary sewer, existing businesses are threatened by failing onsite septic systems, and new businesses are unable to locate without this basic infrastructure. For example, both the Feed Mill Restaurant and Osage Farms are considering expansions due to business growth. However, due to failing sewer systems, these expansions are in jeopardy. Located in the northeastern corner of the state, Rabun and Habersham Counties are strategically positioned to attract and conduct business within a four-state region which includes Georgia, Tennessee, North Carolina, and South Carolina.
Equity Grant Award: $300,000 / Total Project Cost: $2.1 million / Retain 12 jobs
Toccoa-StephensAirportAuthority – Building Construction
Equity grant funds will be used to assist with construction of a 5,948 SF terminal facility at the Toccoa-Stephens County Regional Airport at R.G LeTourneau Field. Presently a small office within a privately-operated maintenance hangar serves as the airport terminal. The airport, located in the northeastern corner of the state, is centrally located near the Georgia and North/South Carolina borders and serves as a gateway to the Northeast Georgia Mountains. Statistics reflect that this Level II airport handles comparable traffic to other Level III airports (Cornelia, Blairsville) and is Georgia's northernmost airport before entering mountainous terrain, serving as a hub for Blue Ridge and Smoky Mountain tourist traffic. While neighboring Franklin and Hart Counties are served by two airports, neither have adequate facilities to welcome/meet prospective business clients. This proposed airport terminal will play a pivotal role in attracting regional business and tourism prospects to the Northeast Region. After losing 2,000+ furniture manufacturing jobs and similar amount of textile jobs, this region has adopted a plan to attract smaller diversified industry.
Equity Grant Award: $500,000 / Total Project Cost: $3.2 million
RandolphCountyDevelopment Authority – Agri-business
Equity loan funds will be used to assist with the purchase of machinery and equipment in support of the location of A.G. Daniel Industries, LLC to Randolph County, Georgia. A.G. Daniel Industries is a Georgia company which will manufacture cattle feed product from cotton gin waste material which is currently being disposed of via burning. This product can replace high quality cattle feed at a price that is significantly lower than the market price of other like feed products. The Company will also reclaim 11.5% good quality cotton lint which will be baled in industry standard 500 pound bales and sold to cotton product manufacturers. The processing equipment will also collect and separate what is known as mote cotton which will also be baled and sold to either a mote processor or a company that manufactures products from the short fiber material, such as money, insulation and furniture padding. A.G. Daniel will create at least 70 new jobs within two years and invest over $5 million in the community.
Equity Loan Award: $400,000 / Total Project Cost: $6.4 million / Create 70 jobs
Development Authority of Jefferson County – Water Infrastructure
Equity grant funds will support water infrastructure improvements in the new 664 acre Kings Mill Commerce Park located 3 miles south of Wrens and 10 miles from Louisville. The project will consist of constructing 17,700 linear feet of 12-inch waterlines to serve the park. Jefferson County is contracting with the City of Wrens to operate and maintain the system. The property is strategically located near the junction of US Hwy 1 and S. R. 80 and is bordered by nearly one mile of Norfolk Southern main rail line. Natural gas service is available via the City of Wrens. Jefferson County became Georgia’s first Certified Work Ready Community. In addition, the County is recognized as a Community of Opportunity. Known as a bedroom community on the outskirts of Augusta, Jefferson County is one of 14 counties that comprise the Central Savannah River Area. Although no tenants have been secured for the Park thus far, the projected impact in terms of job creation is 1,650 jobs at full build-out.
Equity Grant Award: $500,000 / Total Project Cost: $3.9 million
City of Barnesville – Water Infrastructure
Equity grant funds will assist with public water infrastructure improvements, specifically the installation of a dual feed loop to the City’s existing water system, to support the location of Piedmont Green Power, LLC (PGP) on 50 acres in the Legacy Industrial Park in Barnesville. Having a reliable, continuous supply of water at the required pressure will be a critical factor in the operation of the plant. The company plans to begin construction in March 2010 with anticipated operations/commissioning of the plant in the spring of 2012. PGP, a subsidiary of North Carolina-based Rollcast Energy, Inc, is a producer of clean, sustainable electrical energy. PGP plans to construct a 60,000 SF renewable power generation facility using native, regional biomass materials to generate nearly 50 megawatts of electricity that will be sold through a power purchase agreement (PPA) to Georgia Power.
Equity Grant Award: $500,000 / Total Project Cost: $161.1 million
Create 22 jobs and unspecified number of indirect jobs via trucking, forest products and ancillary services
City of Colquitt Downtown Development Authority – Regional Tourism/Building Rehab
Equity grant and loan funds will be used to renovate a 4,600 square foot 1950s era movie theater on the town square into a regional multi-use conference/ meeting/performance center to be called The Woodstork Center. The Center has a seating capacity of 300 and would accommodate all types of events. This facility is seen as an enhancement and expansion of the cultural tourism initiative started in 1992 with the first production of Swamp Gravy, Georgia's Folk Life Play. Over the last several years Colquitt has hosted multiple conferences including "Building Creative Communities" Conferences (2006-2009) with the 4th scheduled for February 2010 and also three Southwest Georgia Film Festivals held each September. Colquitt has also been selected to host the 2010 "Global Mural, Arts and Cultural Tourism" Conference next October, which will bring people from all over the world. Over the years, Colquitt has expanded its performance repertoire to include May-Haw, a musical variety theater offered during the year as well as summer and Christmas Youth Theater Programs. An estimated 55,000 people visit Colquitt and Miller County annually for performances, events, festivals, mural tours, and restaurants. The project will be another asset to build on the cultural tourism industry of the region.
Equity Grant/Loan Award: $500,000 / Total Project Cost: $1.2 million
Hart County Water and Sewer Utility Authority – Water Infrastructure
Equity grant funds will be used to assist with water improvements to benefit Cobb-Vantress, Inc. (CVI) and Crystal Farms, Inc. (CFI), two of the state’s leading poultry industries. Cobb-Vantress is a leading supplier of broiler breeding stock. They are currently served by three groundwater wells. A consistent, reliable water source is needed to hydrate and cool the 60,000 great grandparent birds at the location. Their 43 employees also take approximately 100 showers a day. Crystal Farms, Inc. is the largest commercial egg producer in the state of Georgia. The southwestern Hart County facility houses 1.4 million hens. The site currently has sixteen wells, three of which are dry. With a cumulative $24 million private investment and nearly 100 jobs, both poultry companies, located along an un-served 10-mile stretch of Hwy 29, are without fire protection and must solely rely on private wells for water. Over the past several years, both companies have had to rotate water supplies to sustain operations. Improvements include an interconnection between Hart County's Water Authority and the City of Royston.
Equity Grant Award: $300,000 / Total Project Cost: $4.9 million
The AIRGeorgia Fund is intended to accelerate the completion of critical airport infrastructure improvements. Today’s AIRGeorgia award of $651,835 is leveraged against more than $1.8 million in total project costs.
City of Reidsville – Level I Airport – Runway Extension
AIRGeorgia grant funds will be used to assist with improvements to Swinton Smith Field at Reidsville Municipal Airport that includes an extension of the 3,802 ft runway to 5,000 ft, a taxiway addition and installation of aviation lighting. The Airport is located in Tattnall County in SE Georgia. Situated on 297.83 acres, this Level I airport is owned by the Reidsville Airport Authority and is operated by the City of Reidsville. The request for AIRGeorgia assistance equals 36% of the $1,820,884 total project cost. Project partners include the City, Airport Authority, Federal Aviation Administration, Georgia Department of Transportation’s Aviation Division, and the engineering firm of Wilbur Smith Associates. Benefits of the airport improvements will include improved safety as well as increased economic activity. In addition, the Georgia State Patrol (GSP) has two helicopters that are permanently stationed at the airport. Plans are underway to add a new hangar and to add a fixed-wing aircraft to the fleet of the GSP aircraft.
AIRGeorgia Grant Award: $651,835 / Total Project Cost: $1.8 million
The OneGeorgia Authority was created utilizing one-third of the state’s tobacco settlement to assist the state’s most economically challenged areas. The OneGeorgia Authority is expected to receive about $1.6 billion over the 25-year term of the settlement. From the Authority’s inception to-date, OneGeorgia has made 458 awards totaling $251 million leveraged against total project investment of $5 billion, a return on investment of 20:1. Impacting 132 economically-depressed counties, more than 45,000 jobs have been retained and created.
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Tuesday, December 8, 2009
Governor Perdue Announces $8.3 million in OneGeorgia Awards
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Wednesday, September 30, 2009
HHS Awards $46 Million in Recovery Act Funds to Create Jobs and Spur Economic Improvement
Georgia grants awarded go to DeKalb County, Spalding County Collaborative Authority for Families & Youth, and Athens based Area Committee To Improve Opportunities Now, Inc.
The U.S. Department of Health and Human Services (HHS) today awarded $46 million to 84 grantees under a new program, the Strengthening Communities Fund (SCF), created by the American Recovery and Reinvestment Act. The purpose of the grants is to improve the ability of nonprofit organizations to promote the economic recovery of people with low incomes.
"We are pleased to support nonprofit organizations that train people to land and keep jobs, earn higher wages, and reach economic independence," said HHS Secretary Kathleen Sebelius. "This is what the Recovery Act was meant to do-provide the help people need to help themselves."
The Strengthening Communities Fund is comprised of two programs, both of which will boost the ability of community and faith-based organizations to handle the broad economic recovery issues in their communities, including job training and retention and access to state and Federal benefits. All grants are one-time, two-year awards. The State, Local, and Tribal Government Capacity Building Program provides funds for government entities, which then in turn work with community-based organizations. The Nonprofit Capacity Building Program funds intermediary agencies, which also work with community organizations to enhance their economic recovery activities.
"The Strengthening Communities Fund is an important part of the overall recovery effort," said Assistant Secretary for Children and Families, Carmen Nazario. "The activities funded under this program will fortify organizations in distressed communities so that they can improve their services to people who need jobs and opportunities to secure healthier, more prosperous futures."
Under the State, Local, and Tribal Government Capacity Building Program, 29 states and the District of Columbia, Puerto Rico, the Virgin Islands and American Samoa are receiving awards between $167,000 and $250,000. Awardees include seven state governments, the District of Columbia, three U.S. territories, nine city governments, eight county governments, four tribal governments, and 18 nonprofit organizations that have been designated by governments as eligible to apply.
One of the grantees receiving funds under this part of the program is the Wisconsin Department of Children and Families in Madison. Wisconsin has been hit hard by the recession, and this project is directly focused on Recovery Act goals. The grantee will give training and technical assistance, education, and easily accessible information on Recovery Act opportunities to up to 500 organizations that serve the state's most vulnerable populations
Under the Nonprofit Capacity Building Program, 35 applicants will receive grants between $765,000 and $1,000,000. Catholic Charities of Kansas City-St. Joseph in Missouri is one noteworthy project in this category with a long history of providing training and technical assistance to nonprofits. Their use of this grant will increase the operational capacity of about 40 local organizations through comprehensive education, mentoring, and funding. Further, the project requires that each nonprofit sponsor one young person who will learn how to manage and grow these organizations, thus creating the next generation of nonprofit leadership.
Another project in this category is in Knoxville, Tennessee. The Knoxville Leadership Foundation will work with partners from the Temporary Assistance to Needy Families (TANF) program as well as organizations focused on general economic recovery. Through a combination of direct funding and intensive technical assistance, the project will help 50 grassroots organizations improve their service to families in need of support.
"Faith and community-based organizations have been the backbone of strong neighborhoods for generations," said Joshua DuBois, executive director, Office of Faith-Based and Neighborhood Partnerships. "The Strengthening Communities Fund is an acknowledgement of their key role in reaching the goals of the Recovery Act by helping people weather tough economic times."
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Monday, March 16, 2009
Number of grandparents raising grandchildren likely to rise, Georgia State conference reveals
The number of grandparents raising children or helping to take care of children is likely to increase during the current recession, and support for these grandparents is even more critical, experts said this week during a symposium sponsored by Georgia State University.
Georgia State’s Symposium on Grandparents Raising Grandchildren brought together more than 100 experts and advocates for grandparents from around the United States and Canada to address challenges facing these caregivers and those who work for them. The symposium was sponsored by the National Center on Grandparents Raising Grandchildren.
The most recent U.S. government estimates show that 2.5 million children are being raised by their grandparents. In Georgia, more than 164,000 children live in households headed by grandparents, and more than 98,000 live in households with grandparents without either parent present.
Advocates and researchers of grandparents caring for grandchildren are concerned that as states look for ways to trim budgets, needed financial and health care resources — especially critical as many grandparent care givers live close to or in poverty — may be cut.
“This will be a very difficult economic time, and it will last for a while. In the face of the downturn, we need to be very proactive for our families,” said Debbie Whitley, director of National Center on Grandparents Raising Grandchildren and associate professor of social work at Georgia State.
Increasing the urgency is the economic situation, which will likely lead to more grandchildren being raised by their grandparents or living in households where grandparents aid in care giving, said Esme Fuller-Thomson, associate professor of social work at the University of Toronto and speaker at the symposium.
“Adding to several risk factors, there is a growing issue of unemployment and foreclosures of homes, as a lot of adult children are moving back home because they don't have a house anymore, or they don't have a job,” Fuller-Thomson said.
There is historical precedent, also, for grandparents raising grandchildren during tough times, she said.
Fuller-Thomson explained that African-American grandparents in 1940 — just before the United States’ entry into World War II, while the country was still reeling from the Great Depression — were taking care of grandchildren at higher rates than today, where nearly 29 percent of African-American women over 45 will take care of a grandchild for more than six months at some time in their lives.
Georgia State has long been an advocate for grandparents raising grandchildren. Since 1995, Project Healthy Grandparents has provided resources for grandparents raising grandchildren, and has served more than 635 families, including over 1,451 children.
The National Center on Grandparents Raising Grandchildren was founded in 2001 to inform service professionals, decision makers and the general public on the unique social and health service issues confronted by grandparents raising grandchildren.
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Monday, February 9, 2009
UGA Fanning Institute Reports on a Leadership Development Program for Rural Georgia
A new study by the University of Georgia Fanning Institute shows that community leadership programs are helping to support economic viability in Georgia’s rural counties. The report—Georgia’s Community Leadership Initiative—was released today at the Georgia Rural Development Council’s 8th Annual Leadership Day program in Atlanta.
“Broad-based community leadership is critical to building and maintaining a community’s ability to respond to the state, national and global changes that alter local opportunities,” said Michael A. Beatty, commissioner of the Georgia Department of Community Affairs, in the foreword to the report.
In 2002, the Georgia Rural Development Council started the Community Leadership Initiative to broaden the state’s leadership base and build local capacity to address social and economic issues in communities. The initiative provides seed-grants on a competitive basis to rural counties that lack sustained leadership development programs. Today’s report examines the results of the initiative’s first five years (2002 to 2007).
During that period, 94 rural counties received 184 grants and more than 3,200 Georgians completed grant-supported training. Program graduates devoted more than 96,000 hours to improving their skills and learning about their community’s problems, assets and resources.
Participants said the program improved their ability to build partnerships, facilitate discussions, manage conflict, find solutions to problems in group settings, and other leadership skills.
In 75 percent of the counties that received grants, graduates became more involved in their communities—running for elected office, leading local task forces to address community problems, and serving on local boards for community groups such as downtown development authorities, economic development authorities, and philanthropic organizations. Some 46 percent of participants immediately assumed leadership roles as officers, committee chairs and organizers.
The Community Leadership Initiative increased program activity in 70 percent of the grant receiving counties and the number of self-sustaining programs increased by 47 percent during the five-year period.
The complete report is available at www.fanning.uga.edu.
The GRDC Community Leadership Initiative now is funded by OneGeorgia, administered by the Georgia Department of Community Affairs, and managed by the Fanning Institute at the University of Georgia.
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Wednesday, January 14, 2009
Governor Proposes Investments in Georgia's Future, Encourages Long-Term Perspective
Governor Sonny Perdue today delivered his annual State of the State address before a joint session of the General Assembly detailing how the state continues to fulfill its core mission through challenging economic times. The Governor’s Amended FY 2009 and FY 2010 budgets and policy initiatives continue his commitment to education, economic development and government transformation to deliver better value for the taxpayer’s dollar.
“We must not allow ourselves to be trapped in a short-term mindset where rash decisions result in dire long-term consequences,” said Governor Perdue. “Our perspective must be one of optimism even in the face of difficult economic cycles.”
Governor Perdue used his State of the State address to formally submit his Amended FY 2009 and FY 2010 budget recommendations to the General Assembly. Governor Perdue’s recommended Amended 2009 budget totals $19.2 billion and the 2010 budget stands at $20.2 billion.
The Governor thanked the legislature for working with his administration to help replenish the Rainy Day Fund, which now stands at $1.2 billion. In these budgets, Governor Perdue recommended using the maximum amount available for appropriation from the reserves, appropriating $187 million for the education midyear adjustment, $50 million in 2009 and $408 million in 2010. In 2009, a number of one-time strategies unavailable in 2010 will be implemented to balance the budget. Therefore, Governor Perdue recommended the largest portion of available reserve funds be committed to the 2010 budget.
The Governor’s 2010 budget includes a $1.2 billion bond package that will create an estimated 20,000 jobs and features projects in which both design and construction are funded in the same year.
“These projects touch every corner of the state and include new construction at our universities, technical schools, local school systems and libraries; harbor deepening at the Savannah port and needed improvements at state facilities.,” said Governor Perdue.
Governor Perdue also outlined a proposal to restructure the Department of Human Resources. Currently, $3.8 billion is spent within DHR every year. The plan calls for the creation of a new Department of Behavioral Health which will include all mental health and addictive disease programs. The bill also establishes a Department of Health, a combination of the public health and oversight programs in DHR and the current functions of DHR. Remaining social services, such as Developmental Disabilities, Aging, DFCS and Child Support, will come together under a reconstituted Department of Human Services.
Governor Perdue will also introduce legislation to ask those who receive Medicaid payments to help fund the system. This proposal takes advantage of the fact that every dollar used toward Medicaid purposes draws down almost two additional dollars from the federal government. The budget will reflect, and an accompanying bill will propose, a 1.6 percent fee on hospitals and health insurance plans to, not only fill the hole in Medicaid, but also to do what the healthcare community has asked of Governor Perdue’s administration. This proposal will significantly raise Medicaid rates, particularly for hospitals; and in conjunction with the SuperSpeeder legislation, provide $60 million for trauma to sustain and expand the state’s trauma hospitals, EMS and trauma physician infrastructure.
The Governor asked the General Assembly to carefully consider the consequences of cutting healthcare coverage.
“I implore you, do not rush into a short-sighted cut that would have long-term consequences for Georgia’s most needy,” the Governor said.
Governor Perdue highlighted the efforts by Gwinnett County schools to increase student achievement. Last week, the State Board of Education approved an IE2 contract and committed to be held accountable for increased student achievement above and beyond state and federal requirements.
For the 2009 session, Governor Perdue is proposing merit pay legislation that will award teachers who show evidence that their classroom instruction leads to increased student achievement. Governor Perdue is also proposing differentiated pay for math and science teachers. Additional legislation will ensure every student in Georgia has the benefit of responsible leadership at the school system level. This legislation will clearly define what citizens expect from Georgia’s school board members, and it will give the state the ability to replace board members who aren’t serving in the best interests of their students.
“Education means opportunity,” said Governor Perdue. “We spend more than half of our state budget on education because we know that opportunity is discovered in Georgia’s classrooms.”
Governor Perdue’s encouraged legislators and all Georgians to remember the resiliency of our great state, and while we confront the short-term challenges of today we will continue to prepare to take advantage of future opportunities.
“As I think about the American promise of freedom and economic opportunity, I know that rich promise will mean great things for Georgians in the years to come. The soil has proven too rich to dare believe anything else,” the Governor said. “As I look within, I find something within the human constitution that bounces back, something within this collective American spirit that rebuilds. This is the time to continue building our state, to prepare for the future, to plant the seeds that will enrich our children’s inheritance. Together, we will do just that.”
The text of the Governor’s State of the State speech is below…
Mr. President, Mr. Speaker, President Pro Tem Williams, Speaker Pro Tem Burkhalter … Members of the General Assembly. Constitutional officers and members of the judiciary. The Consular Corps and other distinguished guests. And, most of all, my fellow Georgians.
I want to begin this morning with the story of a young Georgian who embodies the resiliency of our state.
Just three years ago, Jeremy Lee was a 14-year old student from Clayton County on his way to the Ireland Youth Development Campus in Milledgeville because he and some friends made a bad decision.
He could have seen this as an indictment not only of his crime, but of his potential. He could have settled for a life marked by disappointment.
But Jeremy made a life altering decision, one that will benefit the lives of others for years to come. He chose to focus on what he could be, not wallowing in the self-pity of tough times, and invested his time and energy in preparing himself to emerge from that campus a better person.
Last summer, Jeremy walked out of those gates with a high school diploma and is now enrolled at Morehouse College.
Jeremy is now pursuing his goal to be a doctor, and that pursuit is a testament to his inner-resilience. I am pleased that he could join us this morning. Jeremy, please rise so we can recognize your efforts.
It’s Jeremy’s resilience and the resilience of thousands like him across our state that gives me confidence that we will emerge from these challenging times stronger.
This is a pivotal moment in our nation’s history. It is a moment in which we are asked to see beyond what George Will calls the “tyranny of the short-term,” beyond the circumstances of the moment, to the big picture – a picture that is informed by our history, bolstered by our character and steeled by our will to succeed.
Despite the stresses of a moment like this, we must not allow ourselves to be trapped in a short-term mindset where rash decisions result in dire long-term consequences. We must remain focused on the big picture … Our perspective must be one of optimism even in the face of difficult economic cycles.
… I look forward to attending President-elect Obama’s inauguration next week and I am confident that he and the new administration will do everything in their power to meet the challenges that face this nation.
However, we cannot plan by relying on the unknown, and the budgets I present to you today are balanced and do not assume money from Washington. Our latest revenue estimate for this fiscal year shows a decline of $2.2 billion, resulting in a $19.2 billion amended budget.
Political mantras aside, cutting more than 10 percent from a budget cannot be achieved by simply cutting waste. While we have worked for six years to do more with less, at some point, in business or in government, it becomes less with less.
The job of budgeting is hard right now, but it’s not because the directions are complicated. Like families sitting around their kitchen tables all over Georgia, we are doing what is necessary to balance our checkbook.
… I want to thank the legislature for working with us to replenish the Rainy Day Fund, which now stands at $1.2 billion. As you all know, at my request, you wisely passed legislation requiring us to retain at least four percent of previous year’s revenue in the reserve fund for balancing the budget at the end of the year if needed.
So I have recommended using the maximum amount available for appropriation from the reserves, appropriating $50 million this year and $408 million next year, as well as $187 million for the midyear education adjustment. We are using some one-time strategies to help balance this year’s budget that won’t be available next year. Therefore, I have recommended that the largest portion of available reserve funds be committed to next year’s budget, which stands at $20.2 billion.
I want to applaud our department leaders -- men and women who are on the ground, who know their mission, their people and their customers. This past spring, agencies willingly responded to my call for restrained spending and returned over $200 million to our state’s Rainy Day Fund at the end of last year.
And then this summer, when I asked them to identify potential budget reductions, their response was thorough and strategic. They were able to find the cuts and maintain the ability to execute their core missions.
That is a testament to those leaders and to the culture change we’ve made in state government!
In six years, we have transformed government making it more efficient and more accountable by instilling a customer-focused culture of public service.
Sometimes this difference isn’t seen in a budget document. But even then, it often impacts thousands of Georgians, who spend less time waiting on government and more time doing what they want to do.
Over the last three years, Joe Doyle and his team at the Office of Customer Service have led this culture change. For example, in Child Support Services, the time between a parent’s initial contact with the agency and meeting with a case worker, has gone from a 30 day wait to same-day service.
A year ago, when a prospective teacher seeking certification called the Professional Standards Commission, they waited nine minutes, on average, to speak with a person … 37 percent just hung up out of frustration. Now, those folks wait eight seconds.
The wait for a new driver’s license has gone from two hours to six minutes and the Medicaid approval process has gone from nine weeks to twelve days, with half of all applicants getting same day approval. And those changes didn’t cost a penny!
This year, we experienced a historic early voter turnout and this same group partnered with the Secretary of State’s to assist 13,000 voters: telling them where and how to voter early. They will continue their work with projects ranging from improving financial aid response times to speeding up DCH’s approval process for children with special needs.
Ladies and gentlemen, I want you to help me recognize Mr. faster, friendlier and easier … Joe Doyle.
We are working in every area of government to ensure that we are getting the best possible value for our investment and that we are providing the best possible service to every Georgian.
To that end, in February, I signed an executive order forming a task force to look at a possible restructuring of the Department of Human Resources. Folks, we spend $3.8 billion within DHR every year – an agency that hasn’t undergone major change since it was formed over three decades ago.
After a thorough review by the Health and Human Services Task Force, we have determined a course of action that will re-orient our approach to healthcare by shifting the focus from inputs to results.
First, we are proposing the creation of a new Department of Behavioral Health which will include all mental health and addictive disease programs. This will improve our responsiveness to mental health needs and will make funding more transparent.
We will continue to improve care by moving towards a community-based delivery system. I know some folks will be concerned with how this might affect jobs in their area, but when it comes to mental health, I believe we have an obligation to provide services to Georgians as close as possible to where they live.
Second, the bill would establish a Department of Health – a combination of the public health and oversight programs in DHR and the current functions of DCH. This agency, which will be led by Dr. Rhonda Medows, will deliver workable solutions on the key healthcare issues we face …
Issues affecting Georgians like how to best facilitate and finance healthcare coverage and how to provide needed access.
Preventative medicine will play a bigger role, inefficiencies and redundancies will be eliminated and every stakeholder in Georgia’s healthcare system – from county boards of public health to Medicaid providers – will work as part of a more coordinated effort.
The remaining social services – Developmental Disabilities, Aging, DFCS and Child Support – will come together under a reconstituted Department of Human Services led by Commissioner B.J. Walker.
We have made progress in the delivery of these safety-net services to our critical populations: we have improved from 50th to 5th in the nation for moving people from state hospitals to community facilities; DFACS has reduced out-of-home placements by 21 percent, and recurring child abuse rates have dropped from 9 percent to 3 percent in the last two years, 2 percent below the national average. I believe a more targeted focus on these programs will lead to even further improvement.
We know that improved lines of communication and enhanced coordination are critical, and I fully expect that these agency heads will meet regularly to coordinate policy and cross-agency service delivery.
I have charged the affected agencies to make this transition within their current budgeted amounts and, in the long term, we believe this reorganization will bring greater efficiency and greater value for the taxpayer dollar.
I want to thank all those who have helped make this happen, particularly the legislative members of the task force: Senators Jack Hill and Renee Unterman, and Representatives Ben Harbin and Mark Butler.
I look forward to working with the legislature and health and human service leaders and providers throughout this state to improve healthcare delivery for every Georgian.
When I came into office, Medicaid was growing annually at rates as high as 17 percent. Over the last four years, growth averaged just 3.4 percent, saving the state a staggering $4.7 billion. Those are numbers that any business would envy.
Even though we have controlled the growth of our Medicaid budget, we faced some very difficult choices this year. The federal government has told states that we can no longer fund Medicaid as we have since 2006. That decision could not have come at a worse time. Washington, in its infinite wisdom, has decided that if we assess a fee against our Care Management Organizations as we currently do, we must impose it on all commercial health plans.
We had to choose: everyone or no one. If we said “no one,” it would have cost Georgia $96 million in state Medicaid funds.
While I’m recommending cuts to many agencies and programs above ten percent, even a five percent cut to the state Medicaid budget would mean an additional $112 million reduction.
That one-two punch of federal mandates and declining revenues means we faced a $208 million hole in the state’s Medicaid budget. To be clear, this $208 million represents the funds paid to providers on behalf of Georgia’s most needy.
To ensure these needed services continue, I had to choose between some tough options. The first option was to eliminate discretionary Medicaid programs – the ones that the federal government does not require us to fund.
This would mean eliminating the medically needy category for eligibility, which serves 7,100 Georgians; eliminating the Katie Beckett Program for 3,100 Georgians; eliminating dental benefits for the 60,000 pregnant women that were covered last year; and eliminating Medicaid coverage for foster children over the age of 18.
In PeachCare, we would have had to eliminate dental benefits, freeze enrollment and reduce the enrollment cap, as well as increase premiums and – for the first time – impose premiums on children between the ages of two and five. All of those cuts combined would still have left a gap exceeding $150 million.
A second option, I could have cut reimbursements to our providers by $208 million. Providers have consistently told us – rightly or wrongly – they believe even our present reimbursement rates are already too low.
A third option would have been to impose the same 4.5 percent fee on commercial and Medicaid managed care and preferred provider plans, that we currently impose only on CMOs. While that remains an option, I prefer a broader based approach that spreads the burden.
I chose to ask those who receive Medicaid payments to help fund the system. This proposal takes advantage of the fact that every dollar we send to Washington for Medicaid draws down almost two additional dollars.
So my budget will reflect, and an accompanying bill will propose, a 1.6 percent fee on hospitals and health insurance plans to fill the hole in Medicaid, and to do what the healthcare community has asked of us for so long: one, to significantly raise reimbursement rates for providers, particularly for hospitals; and two, in conjunction with SuperSpeeder legislation, provide $60 million to sustain and expand the state’s trauma network.
Like most things we address here at the Capitol, this plan will not be universally acclaimed, but I have arrived at this solution after thoughtful, careful deliberation. I implore you … Do not rush into a short-sighted cut that would have long-term consequences for Georgia’s most needy.
Finally, for those that would wait for Washington … we have waited before. And while I am hopeful that we may receive additional federal funds, when I put the budget together, I did not have the option to budget for money that may never materialize.
… We all say, whether it’s in a campaign or a State of the State speech like this, that education is our number one priority. But what does that mean? To me, it means providing opportunity. We spend more than half of our state budget on education because we know that opportunity is discovered in Georgia’s classrooms.
In these budget times, there are certain things we can do to help our local school systems. We have already informed schools of our intention to relax expenditure controls, giving them additional flexibility. This move will allow those closest to the students to manage funds in the most efficient way.
… Last year, I proudly signed IE2 legislation. Let me boil it down for you … this is true local control with real accountability! In exchange for this flexibility, systems entering into a contract with the State Board of Education are held accountable for increased student achievement above and beyond state and federal requirements. And they will face serious consequences if they fail to meet those goals.
It’s exactly the kind of clear, straightforward and results-driven program local school districts have asked for since I came into office. And, just last week, the State Board of Education approved the first IE2 contract with Gwinnett County.
This means that ten percent of the students in Georgia will be under a performance contract to increase student achievement. I commend Alvin Wilbanks and the Gwinnett County School Board for continuing to lead by example.
In the weeks and months to come, I believe you’re going to see progressive school systems from all around the state sign on, and if you’re in a parent in Georgia, that’s something to be excited about!
As I outlined yesterday, I am proposing legislation that will ensure that every student in Georgia has the benefit of responsible leadership at the school system level.
Most local school board members in this state are in that position for all the right reasons and they do a great job for our students, but unfortunately, that isn’t universal. And we must take action, because when a school board is failing, every student that depends on them is cheated.
This legislation will clearly define what citizens expect from school board members and it will give the state the ability to replace board members with responsible, local citizens when accreditation is threatened. Never again, do I intend for the state to be handcuffed by our current law and powerless to help students who are being failed by the adults in their community.
Also, I will propose legislation to establish a high school principal incentive pay program for those principals who increase student achievement – raising graduation rates and improving SAT and End of Course Test scores.
I am proposing merit pay legislation that will award teachers who show evidence that their classroom instruction leads to increased student achievement. Currently, extraordinary teachers are locked into a compensation model that fails to reward excellence. This is the next step in moving education from a culture of compliance to one based on performance.
We are also proposing differentiated pay for math and science teachers. It astonishes me that this state produced just three physics teachers last year. We must introduce a market dynamic into the salary schedule to address these critical needs areas. Some may be surprised to hear these ambitious plans in these times, but, this more than any other period, is a time to continue improving education and the basic institutions of government.
We are fortunate to live in a state where people want to be. Last year, Georgia was the fourth fastest growing state in the nation. And in the last eight years, we have added 1.5 million people.
Not only do people move here, they stay here. Georgia ranks third in the nation for keeping our native-born population, with over 69 percent of people who were born in Georgia still living here. I don’t say all this just to share statistics, there is a story there, and it’s a story about Georgia’s competitive advantages and a great quality of life.
This enormous growth brings its own challenges … I call those the “problems of prosperity.”
We continue to work to protect our most precious natural resource … water. Last year, I signed into law Georgia’s first Comprehensive Statewide Water Management Plan to help our state balance water use and growth.
I want to, again, thank all of you for participating in what I consider to be the most inclusive piece of legislation we’ve worked on since I’ve been Governor.
The Lieutenant Governor, Speaker and I will soon announce our appointments to the Regional Water Councils. We are working to ensure that those selected will represent a good cross-section of Georgia talent – both in their personal experiences and geographically. These councils are going to put our Statewide Water Plan in action.
I am confident the rains will come, and I am encouraged by the fact that our new management plan will make us better stewards, both now and over the long term.
Our experience in working together on the water plan will be needed again as we address our transportation needs. A growing Georgia will depend upon a transportation network that supports mobility and commerce. Like most government programs, the money available is short of what our needs are, so we must guard every dollar that is spent to make sure we maximize its value. Reforming DOT has been one of the toughest challenges my administration has faced, and we are not through yet.
Last summer, I commissioned Investing in Tomorrow’s Transportation Today, or IT3, so that we as policymakers could understand the value of additional investment, while we continue to bring our transportation planning, funding and building policies up to date.
Transportation improvements providing access to markets, reliable and stress-free commutes and speedy freight movements can be the catalyst that propels our economy forward, just as we have seen over our state’s history.
The Lieutenant Governor, Speaker and I share a mutual commitment to address our transportation needs, and we will continue reforming DOT with a goal of standing up a system that can take that funding and provide the value Georgians deserve. Once I feel certain that we can deliver transportation value to Georgia citizens, I will support responsible measures to raise additional revenues.
… As Georgia grows, so do our energy needs and Georgia is meeting this challenge by creating a fertile environment for alternative energy production. Those efforts have been rewarded with $2.4 billion of investment over the last two years. That investment means new jobs for Georgians.
In November, Norcross-based Suniva, birthed right here in one of our research universities, began fabricating the most advanced solar technology in the world.
This summer, we will host more than 15,000 energy innovators for the biggest bio-lifescience conference in the world – BIO 2009. This is an outstanding opportunity to showcase Georgia’s progress in life sciences, and our potential to help heal, fuel and feed the world.
As we continue to attract new investment in biotechnology, we can secure our position as a leader in this industry by enacting laws that respect the role of the federal Food and Drug Administration as the regulator of the safety of drugs and medical devices.
But the best incentive we can offer an employer is a talented workforce that is ready to meet their needs, and our Work Ready program does just that.
We began Work Ready two years ago and Georgia workers have responded. There are now 111 counties – 70 percent of the state – working toward Certified Work Ready Community status.
As Georgia workers compete with peers as far away as China or as close as South Carolina, Work Ready puts them a step ahead. That is certainly the case with Joy Anthony.
Joy’s Work Ready Certificate distinguished her and gave her the edge she needed in her job search. Her employer was impressed by the skills Work Ready identified and they have designated her as a “Rising Star” in their company.
Joy is one over 35,000 Georgians to take control of their future, making themselves more marketable to employers looking for a talented workforce.
Ladies and gentleman, Georgia is ready to take advantage of our workforce and our strong balance sheet. We remain one of seven states with a triple-A bond rating and we will invest in projects that will be of long-term value to Georgians.
This year’s bond package, totaling over $1.2 billion in new investment, will put Georgians to work and build critical infrastructure. In the past, we have often funded the design phase of a project one year and construction at some later date. This year’s package will feature many projects in which both design and construction are funded in the same year, ensuring their timely completion.
In a time that we have trimmed our budget in other areas, we are aggressively increasing our bond package by a full twenty percent over last year. This will take advantage of low construction costs and create an estimated 20,000 new jobs in an industry that is ready to go to work.
These projects touch every corner of the state and include new construction at our universities, technical schools, local school systems and libraries; harbor deepening at the Savannah port and needed improvements at state facilities.
As I said at the outset today, we’re going to maintain a long-term perspective – we are not going to panic and make knee-jerk decisions that will have negative long-term consequences.
We stand at a crossroads, and as a father and a grandfather ten times over, I can say, we all recognize how important it is to the next generation that we get it right … right now.
Don’t hear me dismissing the scope or severity of this downturn. But, more importantly, don’t leave failing to hear the message that we need to look beyond this downturn.
Think about it, you don’t get anywhere in life without a long-term perspective and a long-term plan. You have to weather the turbulence - that’s true in a career, that’s true in the history of every successful marriage. Isn’t that right, Mary?
When the economy takes a downturn, you don’t give up on the economic promise of America that has proven true over the centuries. You don’t discard the promise … you build for the future with that promise in mind.
There is much to do in Georgia in this coming year but it can be summarized in that overarching mission to continue executing on the fundamentals of good government; to improve our competitive advantages, to make Georgia a better place to live and a better place to do business.
As I look back and think about our history, I am certain that this is not the tallest mountain we’ve been asked to climb.
As I think about the American promise of freedom and economic opportunity, I know that rich promise will mean great things for Georgians in the years to come. The soil has proven too rich to dare believe anything else.
As I look within, I find something within the human constitution that bounces back, something within this collective American spirit that rebuilds.
I’ll never claim to be a Nehemiah; but the prophet’s call, “Let us rebuild the walls,” rings true today. This is the time to continue building our state, to prepare for the future, to plant the seeds that will enrich our children’s inheritance. Together, we will do just that!
Thank you! God bless you. God bless America … and may God bless the great state of Georgia!
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Wednesday, January 7, 2009
VSU's CBER Announces Economic Analysis Project
The Center for Business and Economic Research at Valdosta State University launched the Georgia Regional Economic Analysis Project on January 1, 2009.
The Web-based program, available at www.pnreap.org/georgia , is a great source of data at the county, metropolitan statistical area and state levels. Within seconds, users can view annual data, spanning 38 years, on population, income, employment, total industry earnings and average earnings per job for all 159 Georgia counties.
Unlike other resources, the GA-REAP provides more than just statistics - it gives users actual analysis of data. Interactive tools allow for in-depth research and analysis and reports can be generated to clearly explain trends and implications for a local area in terms easily understood by non-experts.
"The CBER is proud to offer this service to folks in Georgia wishing to conduct their own research using publicly available data," said Dr. Cliff Lipscomb, CBER director and assistant professor of economics at VSU. "What makes the GA-REAP different is that actual analysis of the data accompanies the tables - you have to see it for yourself to believe the insight into Georgia counties that can be gained after a few clicks."
VSU's CBER provides the GA-REAP in collaboration with the Pacific Northwest Regional Economic Analysis Project. The most recent data is provided for 2006; however additional information will be added as updates are received from the U.S. Bureau of Economic Analysis.
CBER will begin offering an annual conference and training session, the first of which will be scheduled this spring. Economic development personnel, city and regional planners and other users will receive an overview of the CBER's services, faculty research related to economic development and GA-REAP training on use of the powerful data tool.
A service arm of VSU's Harley Langdale College of Business Administration, the CBER supports regional economic development and promotes activities that strengthen the competitive positions of regional business within VSU's 41-county service area. Call Lipscomb at (229) 245-3774 or e-mail him at calipscomb@valdosta.edu for more information.
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Thursday, January 1, 2009
Poll: 77% of Americans Blame Media for Making Economic Crisis Worse
/PRNewswire/ -- Seventy-seven percent of Americans believe that the U.S. media is making the economic situation worse by projecting fear into people's minds.
The majority of those surveyed feel that the financial press, by focusing on and embellishing negative news, is damaging consumer confidence and damping investment, making a difficult situation much worse. The poll was conducted via telephone, December 4 - 7.
The US survey of 1000 adults was conducted by Opinion Research Corporation and is statistically representative of the total U.S. population. The survey question: "Do you think the financial press is making the economic crisis worse by projecting fear into people's minds?" While the overall response indicated that 77% of Americans answered YES, here are highlights of note:
Household Incomes:
$25k - $35k -- 79% answered YES
$35k - $50k -- 88% answered YES
$50k - $75k -- 76% answered YES
$75k - more -- 78% answered YES
Demographics:
85% of young adults (18-24 yrs old) answered YES
77% of males and females alike answered YES
65% of blacks answered YES
Richard L. Scheff, a national expert on corporate liability and white collar crime issues, warns media that they could potentially be exposed to liability despite apparent constitutional protections:
"Although statements by the media are protected by the First Amendment, the survey results demonstrate that the public believes that the press bears some responsibility for the lack of confidence in the economy. One would hope that the media would act less out of self-interest in these times of national crisis," said Mr. Scheff, vice chairman and partner with Philadelphia-based law firm Montgomery McCracken Walker & Rhoads.
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Tuesday, December 9, 2008
National Urban League Brings The Economic Empowerment Tour to Atlanta December 9th
/PRNewswire/ -- The National Urban League Economic Empowerment Tour heads to Atlanta on Tuesday, December 9th from 4pm - 9pm at the Atlanta Marriott Marquis, 265 Peachtree Center Avenue. Presented by the National Urban League and the Atlanta Urban League, the tour features empowering workshops and a lively town hall meeting entitled The Path to Empowerment.
The tour focuses on job attainment and growth, home ownership, and economic stability, particularly in this time of government transition and economic down-fall. In these troubling economic times, the tour seeks to heighten awareness of economic disparities that exist between minorities and whites and connect people with real tools and resources that will help improve their financial situation on all fronts - from landing a better-paying job to avoiding foreclosure. The event opens at 4pm with a career and resource fair and concludes with a town hall meeting starting at 7:00pm.
The Path to Empowerment town hall meeting will address some of the important issues that face all Americans and features National Urban League President and CEO Marc H. Morial; Hip Hop Summit Action Network CEO and Co-Chairman Dr. Benjamin Chavis; Atlanta's famed V-103 FM radio personality Frank Ski; Atlanta Urban League President Nancy Flake Johnson; CEO of the Douglin Group and foreclosure expert, author, and spokesperson for the American Homeowner's Association, Carla Douglin; President & CEO of the Atlanta Business League Leona Davenport and nationally-syndicated radio personality Warren Ballantine. The panel will be moderated by award winning journalist Ed Gordon.
The Career & Resource Fair will provide actionable information to attendees interested in employment, personal finances, home ownership, entrepreneurship and education/job training. Exhibitors will include banks, homeownership organizations, educational institutions/job training programs, entrepreneurship/small business resources and others who will be available to cover topics ranging from understanding credit to how to manage home mortgage loans to securing employment, upgrading education and job skills and entrepreneurship.
"The need for economic empowerment is not exclusive to the African American community. Americans of all walks of life, colors, religions and economic background are feeling the pinch of the ever-widening gap between the haves and have-nots in this nation," said Marc H. Morial, President and CEO of the National Urban League. "In light of this competitive yet uncertain global economy, we owe it to future generations to stand as role models of economic empowerment, especially during these times, and encourage them to prepare themselves for a more prosperous future."
On the thresh-hold of the inauguration of the country's first African-American president, new leadership preparing to be installed on Capitol Hill, and the current financial crisis causing uncertainty in the financial markets, the Economic Empowerment Tour is also designed to provoke U.S. decision-makers to put the issue of economic inequality on the national agenda.
"There is no doubt that economic empowerment is at the core of the 21st century civil rights movement. In the 1950s and 1960s, African Americans made great strides on numerous fronts. The Civil Rights Act and the Voting Rights Act paved the way for greater political and civic participation. Affirmative Action opened the doors of the nation's educational institutions and corporations," said Marc H. Morial.
"The final challenge our community faces in achieving equality in the United States is improving our bottom line. We need to equip ourselves with the tools and skills needed to raise our standard of living and close the economic divide existing between us and mainstream America," he added.
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Wednesday, December 3, 2008
Consumer Reports Survey: 56 Percent of Americans Think U.S. Needs to Help Citizens More in Tough Economy
/PRNewswire-USNewswire/ -- Consumer Reports' latest national survey finds that more than half (56%) of respondents think that government hasn't done enough for them in these tough economic times.
Only 17 percent of those polled said the government needs to do more for banks and financial institutions. In the poll, 29 percent said the government went too far in bailing out the financial industry. Thirty-nine percent were unsure.
The Consumer Reports National Research center calculated results based on a nationally representative telephone survey of 2000 adults, conducted in late October 2008. The full report is available in the January issue of Consumer Reports on sale December 2 or at www.ConsumerReports.org.
"The results show that people largely think the bailout won't help average citizens," said Noreen Perrotta, Consumer Reports money editor. "We took a look at the responses and came up with dos and don'ts for consumers dealing with financial distress."
When asked which reforms could help Main Street the most, respondents to CR's poll cited these top actions:
-- Ensuring the financial health of the Social Security system. (88 %)
-- Reducing the national debt. (87%)
-- Protecting pensions and other retirement accounts when companies or
financial institutions go under. (85%)
-- Increase spending on energy exploration, energy efficiency, and
alternative energy sources. (84%)
-- Ensure affordable health care for all Americans. (82%)
-- Increase regulation of financial institutions to ensure responsible
practices. (78%)
-- Extend federal insurance to all deposits in savings and money market
accounts. (78%)
-- Cut taxes for working Americans. (77%)
The rescue plan enacted in October gave broad authority to the Secretary of the Treasury to use as much as $700 billion to shore up the ailing financial industry. Economists say that it will ultimately help millions of people of who are falling victim to the souring economy.
But back on Main Street, the rescue plan may seem like a bitter pill because the money is going to the financial institutions that many see as the cause of the problem. The people CR polled blamed several factors for the economic crisis, including poor lending practices by banks and mortgage companies (27 percent), lack of government oversight (26 percent), Wall Street greed (19 percent), and excessive borrowing by consumers (15 percent).
Lost jobs, lost health care
The top worry of poll respondents was the health of Social Security; 88 percent called the issue important or very important. It most likely looms large because of the increasing fragility of other sources of retirement income. Only about half of working Americans are enrolled in a pension or 401(k) plan. Americans have lost as much as $2 trillion in retirement savings over the past year and a half.
While retirees cope with diminished nest eggs, younger workers worry about unemployment increasing. It could reach 8 percent nationally, according to some estimates. With the loss of jobs comes the loss of health-care coverage. Twenty percent of respondents in CR's survey said they're unable to afford medical bills or drugs; 15 percent said they lost coverage or their benefits were reduced because of the downturn.
Seventy percent of poll respondents would like to see government regulation of mortgage lenders. Only 4 percent said they've missed a mortgage payment, but families stuck with subprime loans are at risk of falling behind.
Some economists fear that the credit-card defaults could be the next shoe to drop in the economy, as overextended borrowers can't meet their payments. Defaults are expected to reach record highs as unemployment increases. Fifty-seven percent of poll respondents said they've reduced their credit-card spending; Eighteen percent said they have had their interest rates increased, been hit with penalty fees, or had their credit lines reduced.
CR's Dos and Don'ts of Dealing with Financial Distress
DO contact your lender immediately if you can't pay your mortgage. You might be able to restructure your loan or get your lender to agree to a lesser amount to pay it off.
DON'T borrow against your 401(k). You'll probably need to repay the loan within five years or it will count as a withdrawal. If you leave your job before then, you'll owe federal and state income taxes on the outstanding loan, plus a ten percent penalty if you're younger than 59 1/2.
DO take advantage of your employer contribution to your 401(k). Put away at least as much as you need to get the maximum matching amount.
DON'T take a refund anticipation loan. They are short-term loans that you pay back with your tax refund. Interest rates can run into the triple digits on an annualized basis. Filing your taxes online and having the refund direct-deposited can get cash to you almost as fast.
DO consider raising your insurance deductibles. That will reduce your premiums. Home-insurance policies, for instance, typically carry a $250 deductible. If you're willing to bear more risk, you can save upward of 15 percent per year in premiums with a $500 deductible.
DON'T take cash advances. Credit-card advances can come with up-front charges of 2 to 4 percent and have a higher interest rate than regular card purchases. Payday loans, which are cash advances on your wages, can cost you $15 to $30 for every $100 you borrow.
DO cut what you can from your budget. You can save a lot on groceries by taking advantage of sales and buying less-expensive store brands. Look at your other monthly expenses to see what you can trim, including premium cable service or pricey coffee drinks.
The Consumer Reports National Research Center calculated results based on a telephone survey of a nationally representative probability of 2,000 adults, 18 years or older in the month of October 2008. The margin of error is +/- 2.2% among a 95% confidence level.
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Wednesday, November 19, 2008
No “Real” Recovery Until Late 2010 says Georgia State University
No “real” recovery until late 2010; credit market volatility leads to slowdown in spending and increased corporate job losses says Georgia State University forecaster
The current volatility in the credit markets has spawned a weakened economic climate (including a recession) that will last through late 2010 and will ultimately change the definition of normal growth for the foreseeable future, according to Dr. Rajeev Dhawan, director of the Economic Forecasting Center at Georgia State.
In his Forecast of the Nation, released today, Dhawan said that even though growth will technically turn positive in the third quarter of 2009, the economy will still experience a somewhat large number of job losses in the second half of next year. From mid-2009 to mid-2010, the economy will grow at an anemic rate of 1% improving slightly to 1.9% in the second half of 2010. But, the growth rate will remain far below its potential of 3%, and it will be 2011 before the economy experiences a “proper recovery”.
“This recession is much more severe than projected in our August report. So far, we have lost a million jobs and I expect we will lose two million more within the next 12 months,” said Dhawan who compares the severity of this recession to what we experienced in 2001.
“Each recession is unique but what’s different between the modern recessions and those that occurred in the 70s, 80s, and even 90s is the negative impact on corporate jobs. Unlike earlier recessions, the corporate job loss rate in 2001 was 4.8% or one-third of the total jobs lost which made for a very severe corporate recession,” he said. “This time around we’re looking at a corporate job loss rate of 5.6%, which will again make up one-third of the total job losses.”
The ongoing job losses combined with a dramatic fall in stock and home prices and the volatility in the credit market has put the squeeze on consumers who have responded by putting the brakes on spending.
“The decrease in consumption is the culprit for the subpar growth performance in my current forecast,” said Dhawan. “That’s why we’re seeing the Treasury’s Troubled Asset Relief Plan (TARP) – aka the bailout – morph into help for consumers.”
But despite the Treasury’s best efforts, Dhawan is cautious about future growth prospects beyond this recession.
“Growth will be subpar as the credit that greases the wheel of a modern economy will be in short supply for the near future. Will it ever climb back to old levels after 2010? I doubt it.”
Highlights from the Economic Forecasting Center's National Report:
Real GDP growth for 2008 will be 1.3%, decelerating sharply to a negative 1.3% in 2009. In 2010, real GDP will grow by a subpar 1.2%.
For 2008, consumption growth will average only 0.4%, decline by 1.1% in 2009, and then grow weakly by 1.0% in 2010.
The unemployment rate will rise sharply from its 5.7% average to 7.6% in 2009 and then rise further to 8.3% in 2010. During this recession the economy will lose a total of three million jobs.
Vehicle sales will drop from their 13.3 million pace in 2008 to only 11.2 million units in 2009. A modest recovery is expected in 2010 with projected sales of 13.5 million units.
After averaging $100 per barrel in 2008, oil prices will average only $54.2 per barrel in 2009 and then rise to $66.7 per barrel in 2010. For 2008, the inflation rate will average 4.2%, but is expected to moderate sharply to a 0.6% rate in 2009. In 2010, the inflation rate will be a somewhat higher 2.0%.
Georgia and Atlanta – Volatile Economic Climate Damages Georgia’s Job Growth
Georgia’s economic picture has gone from bad to worse as job losses mount, bankruptcy rates increase and home prices continue to depreciate. According to Dhawan, the prognosis for the coming year is just as bleak as weak corporate spending brings with it a flood of layoffs looming on the horizon before giving way to a tepid recovery in 2010.
In his Forecast of Georgia and Atlanta, also released today, Dhawan said that the intensity of the job losses over the last few months has been more severe than expected.
“Since our forecast in August, job growth has been substantially downgraded,” he said. “So far this year, we have lost almost 41,100 jobs and job losses are expected to continue at this heavy rate for the next quarter as we lose another 34,000 jobs. Thus, for the calendar year 2008, we will show a net loss of 75,100 jobs and another 72,000 jobs in 2009 making our total losses from the second quarter of 2008 to the end of 2009 170,000 jobs or 4.0% of the employment level.”
According to Dhawan, not even government jobs, which grew during the last recession and served as a cushion from the technology meltdown will help Georgia this time around as several government entities have announced layoff plans.
When will Georgia see better days?
"Given the expectations of a recession in the U.S. and increasing numbers of job losses and bankruptcy filings in Georgia, combined with the closing of GM and the merger of two of the state’s largest employers, Delta (with Northwest) and Wachovia (with Wells Fargo), we expect significant layoffs in the state,” he said. “As for recovery, we’ll have to wait until FY’11 when job growth finally turns positive though still far below its potential.”
Highlights from the Economic Forecasting Center’s Local Report:
For calendar year 2008, we anticipate 75,100 total job losses (25,800 premium jobs). In 2009, 48,500 job losses are expected in the first half of the year, followed by 23,600 job losses in the second half, making for 72,100 job losses (24,600 premium jobs losses). The recovery will be modest in 2010 when 27,800 jobs will be created (3,100 premium jobs).
Georgia’s unemployment rate will increase from its projected 6.0% rate in 2008 to 7.5% in 2009, and further to 8.0% in 2010. However, it will still be less than the national number.
Atlanta’s employment growth will remain negative for the remainder of 2008 for a total loss of 45,600 jobs (17,000 premium job losses). In calendar year 2009, we anticipate another 42,100 job losses (16,400 premium job losses). In 2010 recovery in the form of 17,200 jobs (1,900 premium jobs) is expected.
Atlanta’s total housing permits will plummet by in 2008 by 54.0% after a 34.6% decline in 2007. Permits will again decrease by 13.5% in 2009 before recovering mildly in 2010 (2.7% increase).
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Monday, November 10, 2008
Financial Advisers Lack Confidence in Obama's Ability to Heal U.S. Economy, According to InvestmentNews Survey
PRNewswire/ -- The majority of financial advisers have little confidence in President-elect Barack Obama's ability to put the U.S. back on sound economic footing, according to a new online survey by InvestmentNews, the leading news source for financial advisers. Of the 968 financial advisers surveyed on November 6 and 7, 61% said they lack confidence in the new commander-in-chief's ability to resolve the country's economic woes.
Besides restoring economic stability, 39% of 997 advisers said the development of a workable energy policy was the most important issue facing the country, the survey found. Terrorism, the war in Iraq and health care were picked as the No. 1 issue by 23%, 21% and 17% of respondents, respectively.
"Despite Obama's historic election last week, our survey reveals that financial advisers are still unsure about his ability to resolve our nation's most pressing economic issues," said Jim Pavia, editor of InvestmentNews. "This just goes to show that the President-elect has his work cut out for him in the months ahead - not just in creating a path to prosperity but in proving himself with the financial community."
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Monday, November 3, 2008
Circuit City Stores, Inc. Provides Update on Liquidity and Announces Store Closing Plan
GFP Note: 19 Circuit City Stores are slated for closing due to the economy. Store locations include several around the metro Atlanta area.
/PRNewswire-FirstCall/ -- Circuit City Stores, Inc. (NYSE:CC) today provided an update on its liquidity position and its previously announced ongoing comprehensive business review. Due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases. The company also is considering all available options and alternatives to restructure its business.
Business and Liquidity Update
Over the past several weeks, a number of factors have impacted severely the company's liquidity position. These factors include the following:
-- Waning consumer confidence and a significantly weakened retail environment have impacted negatively the company's sales and gross profit margin rate to a greater degree than management had anticipated previously.
-- Following the company's second quarter results announcement, the company's liquidity position and the sharply worsened overall economic environment led some of Circuit City's vendors to take restrictive actions with respect to payment terms and the credit they make available to the company. Additionally, the recent disruption in the financial markets has contributed to certain of the company's vendors experiencing insurmountable challenges with obtaining credit insurance for the company's purchases. As a result of this and other considerations, certain of the company's vendors have set more restrictive payment terms than in previous quarters, including in some cases requiring payment before shipment. Vendors also have limited the credit available to the company for purchases, including in some cases not providing customary increases in credit lines for holiday purchases. While management is working diligently to secure the support of its vendors and believes it has maintained good relationships with these important partners, the current mix of terms and credit availability is becoming unmanageable for the company.
-- To date, the company has been unable to collect an income tax refund of approximately $80 million that the company believes it is owed from the federal government.
-- Due primarily to the weakened economic environment and its potential impact on the timing of sales of the company's inventory and costs and expenses associated with such sales, a recent third-party appraisal conducted for the company's asset-based credit facility resulted in a reduction of the estimated net orderly liquidation value of the company's inventory. This valuation adjustment was made despite the mix of merchandise remaining consistent with the previous appraisal in November 2007. This reduction has led to a lower borrowing base and reduced availability for the current period compared with what the company had expected previously.
James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc. said, "Since late September, unprecedented events have occurred in the financial and consumer markets causing macroeconomic trends to worsen sharply. The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company's financial situation as quickly as possible."
Domestic Segment Real Estate Actions
As a result of the company's ongoing asset productivity assessment and working capital situation, the company has determined to take the following initial actions with respect to its domestic segment real estate portfolio and strategy:
-- Close 155 stores and exit certain markets: Circuit City plans to close 155 stores that are underperforming or are no longer a strategic fit for the company. The stores identified for closure are located in 55 U.S. media markets, of which Circuit City will exit 12 U.S. media markets.
The list of closing stores can be found by visiting the company's investor information home page at http://investor.circuitcity.com/ and clicking the link regarding today's announcements. The company expects that impacted stores will not open on Tuesday, November 4, and the store closing sales will begin on Wednesday, November 5. The company expects the sales to be completed no later than calendar year end.
For fiscal 2008, the stores that are being closed generated in total approximately $1.4 billion in net sales. When results were viewed at the individual comparable store level, the closing stores, as compared to the stores remaining open, on average had lower net sales, a lower close rate and a lower gross profit margin rate. The stores, on average, were also unprofitable when marketing expenses were allocated to the individual store-level results.
Circuit City will continue to honor its customer commitments and serve its guests through 566 stores in 153 U.S. media markets, via its Web site at www.circuitcity.com and via phone at 1-800-THE-CITY (1-800-843-2489). During this transitional period, Circuit City is executing a plan to minimize disruption to the operations of stores that are remaining open. No international segment stores are closing as a result of the real estate plans announced today.
-- Further reduce new store openings: The company has revised its store opening plans for the current fiscal year and will not open at least 10 locations that were previously expected to be opened. The company still expects to open up to two incremental stores during the remainder of fiscal 2009. As previously announced, other than existing commitments, management intends to suspend store openings beginning in fiscal 2010.
-- Renegotiate certain existing leases: Circuit City intends to begin immediately renegotiating certain of its existing leases with the goal of significantly lowering rents. In some cases, the company may choose to negotiate with landlords to exit leases if rents are not reduced. The company also plans to work with landlords to terminate the leases for the stores included in today's closing announcement, as well as leases for a number of inactive locations that were closed previously and for the locations that are no longer being opened.
As a result of the store closures, Circuit City expects to reduce store operating, payroll and marketing expenses. The store closures will result in a reduction of approximately 17 percent of the domestic segment workforce. The company also expects to incur charges in fiscal 2009 associated with the above real estate actions. The company is currently evaluating the benefits and expenses associated with these changes, which are subject to the outcome of negotiations and store closure agreements. Presentation on the financial statements is currently being evaluated for accounting treatment.
"We deeply regret the impact today's announcement will have on our associates, our guests and the communities where these stores are located. We truly are grateful to each of our associates for their many contributions to the company. We are also grateful for the loyalty and support we have received from our guests in the impacted communities. Circuit City will continue to serve guests through 566 stores in 153 U.S. media markets, via its Web site at www.circuitcity.com and via phone at 1-800-THE-CITY (1-800-843-2489)," concluded Marcum.
Evaluating All Options
As a result of unfavorable macroeconomic conditions and the company's deteriorating liquidity position, the company is considering all available options and alternatives for the business. Consistent with this evaluation, the company will continue to take appropriate actions to conserve cash, reduce expenses and improve liquidity. In addition, the company is continuing to evaluate additional near-term cost reduction initiatives that may be necessary to address its financial condition. The company is also in negotiations with its lenders and other third parties regarding various financing alternatives.
The company plans to operate its business without interruption while it engages in discussions with its lenders and works with advisors to determine the most appropriate restructuring alternatives. The company can make no assurance that the discussions will result in any agreements or transactions.
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Thursday, October 30, 2008
Land Banking Key Solution For Vacant, Abandoned Properties, Says Emory Professor
The federal government needs to play a critical role in the use of land banking programs to alleviate one of the consequences of the nation's mortgage foreclosure crisis – vacant and abandoned properties, says Emory Law professor Frank S. Alexander, one the nation's leading experts on local government land banks.
In a paper released Oct. 29 by the Brookings Institution's Metropolitan Policy Program, Alexander says that more and more communities are "stressed by the catastrophic mortgage foreclosure crisis and the long-run decline of older, industrial regions," and are struggling to deal with vacant and abandoned properties. Read the paper at: http://www.brookings.edu/papers/2008/1028_mortgage_crisis_alexander.aspx .
"To alleviate this drag on national prosperity, the federal government should advance policies that support regional and local land banking for the 21st century," writes Alexander, who directs the Project on Affordable Housing and Community Development at Emory's Center for the Study of Law and Religion (CSLR). Alexander, CSLR's founding director, is the author of the leading text in the country on land banking, "Land Bank Authorities: A Guide for the Creation and Operation of Local Land Banks."
Land banking enables local governments to acquire vacant and abandoned properties and convert them to productive use or hold them for long-term strategic public purposes. Common re-uses of such property are affordable housing, mixed-use developments, or mixed-income housing, all provided by not-for-profit entities.
The Emergency Assistance Act in the Home and Economic Recovery Act of 2008, passed in July, recognized land banking as a federal concern and funded it with $3.92 billion, but Alexander says neither the bill's clarity for implementation nor the amount of funding it provides are enough.
"It does not come close to meeting the costs associated with the two million foreclosures projected by the end of 2008 and the local revenues lost from vacant and abandoned properties," he writes, adding that earlier drafts of the bill called for $15 billion in loans and grants.
"The role of land banking is not to replace or supplant the open market; it steps in when there is a failure of market conditions," says Alexander.
Alexander reports that during the mortgage crisis of the past two years, foreclosures doubled nationwide -- in August 2008 alone, one of every 416 households received a foreclosure notice. And, almost 600,000 vacant, for-sale homes were added to weak real estate markets. This decline has compounded the long-term problem of vacancies and abandonments in older, industrial regions.
"When left unaddressed, these problem properties impose severe costs on neighborhoods, including reduced property values and tax revenues; increased arson and crime; and greater demands for police surveillance and response," explains Alexander.
In addition to capitalizing local and regional land banking, Alexander recommends that federal policy provide incentives for reforming local code enforcement and state tax foreclosure procedures, and incentives for communities to develop inter-jurisdictional entities that will allow them to address property issues across city and county boundary lines.
"Forty years ago, land banking was encouraged to be a part of federal housing and urban development policy. It is time for it to be implemented. The need is greater than ever; the time is now; and the opportunity is here," he concludes.
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