Out of the box thinking for rural North Carolina

Published August 18, 2017

By Tom Campbell

by Tom Campbell, Producer and Moderator, NC SPIN, August 17, 2017.

The plight of rural North Carolina, like the weather, generates lots of talk but little action. Conditions in the rural east and west continue to deteriorate while urban and suburban areas are thriving.

UNC’s Carolina Population Center reports that between 2010 and 2016 nearly 75 percent of the cities and towns in North Carolina either lost population or grew slower than the state average. The hardest hit were located in Eastern North Carolina. The litany of rural problems includes not just the loss of population, but also business closures, high unemployment rates, crumbling infrastructures and tax base declines making it impossible to adequately support education, healthcare, roads, clean water and other amenities.

The history of North Carolina since colonial times is one of population migration, generally westward, in search of better economic opportunities. Small towns grew up with local stores and banks, courts, local governments, roads and rails that aided farm to market and other commerce in these “crossroads” communities. Later, mechanization and manufacturing lured residents from the family farm to improved incomes. This migration reality continues today.

Back in 1663, King Charles I granted eight Lords Proprietors dominion over Carolina and these eight landlords recognized that to prevent attacks and gain wealth from the venture they had to attract settlers to farm, fish and timber the land. They offered free land and greatly reduced taxes in exchange for settling here and many took them up on their offer.

Let’s think out of the box regarding present day rural areas. Perhaps what is old might become new again. North Carolina has established a precedent of offering economic incentives to big industry to locate or expand in our state.

Let us propose a pilot project - offering free land and economic incentives for those willing to locate in our hardest hit regions. Is it possible we could incentivize excellent teachers, doctors and healthcare providers, small business owners and retirees sufficiently enough to get them to live and work where they are most needed? The economic impact wouldn’t be so great as that 200 or 2,000 employee plant we are so eager to land, but in many communities another 50 or 100 people could greatly help restore viability. And to offset those who will surely protest we don’t have the money for such a project we would remind them that our recently passed state budget that included tens of millions of dollars for pork barrel projects. Evidence indicates many of those who received funds never requested them.

What could be more important than addressing our rural crisis? Every taxpayer, every resident, every corporation in our state has a stake in finding solutions, because the burden of supporting these impoverished rural areas, whether enforced by court action or moral obligation, will consume more and more taxpayer resources. We are not suggesting that the solution is the obligation of government alone but would also require assistance from philanthropists, corporations, landowners and others.

Maybe our proposal won’t work and maybe there are better solutions, but it is increasingly obvious that just talking about the problem isn’t helping. Our state cannot prosper if 75 percent of its cities and towns are dying or stagnant. Let’s try some new approaches. We are all in this together.

August 18, 2017 at 2:37 pm
Bruce Stanley says:

Tom, Rural NC needs help but I don't believe what you suggest is thinking out of the box by any means, but more along the lines of the corporate incentives plan to attract "elephants" while competing with other surrounding states with who can offer the best "bribery" package with taxpayer money which we have practiced over the past couple of decades, and which the NCGA has reformed (successfully in my opinion) in this decade, replacing it with a lower corporate tax rate for all C Corps, and a lower individual rate for S Corp owners.

I don't believe it is a good practice for NC politicians to essentially "bribe" NC citizens with money from other taxpayers.

Sen. Harry Brown was thinking outside the box during the MCCrory administration when he proposed dividing up sales tax revenue more equitably to our rural counties. This is the solution. This would allow rural NC towns to modernize their downtowns in order to attract business people who then might be willing to live there, especially since there is a less costly work force.

The Democrats ridiculed Republicans for "redistribution" hypocrisy, and Gov McCrory (former Mayor) opposed it. But why should the counties with large metropolises keep the bulk of the sales tax revenue. Much of that revenue is generated from rural shoppers. Isn't that a valid question?

August 20, 2017 at 3:38 pm
Bill Bush says:

Getting real high speed internet into rural areas could allow people who would like our beautiful rural environment to work from home. Companies that need high speed would also be able to move into small towns.

Another issue is that the larger cities can afford high public emploiyee salaries or supplements to state salaries. Of course people go for the money. They have to, especially if they have college debts.