State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_143B > GS_143B-434_01

§ 143B‑434.01. Comprehensive Strategic Economic Development Plan.

(a)        Definitions. – The following definitions apply in thissection:

(1)        Board. – The Economic Development Board.

(2)        Department. – The Department of Commerce.

(3)        Economic distress. – The presence of at least one trendindicator or at least one status indicator:

a.         Trend indicators:

1.         Weighted average age of industrial plants exceedingstatewide average age.

2.         Loss of population over the most recent three‑ to five‑yearperiod.

3.         Below average job growth over the most recent three‑to five‑year period.

4.         Outmigration over the most recent three‑ to five‑yearperiod.

5.         Decline in real wages over the most recent three‑ tofive‑year period.

6.         Above average rate of business failures over the most recentthree‑ to five‑year period.

b.         Status indicators:

1.         Per capita income below the State average.

2.         Earnings or wages per job below the State average.

3.         Unemployment above the State average.

4.         Poverty rate above the State average.

5.         Below average fiscal capacity.

(4)        Plan. – The Comprehensive Strategic Economic DevelopmentPlan.

(5)        Region. – One of the major geographic regions of the Statedefined in the Plan as an economic region based on compatible economicdevelopment factors.

(b)        Board to Prepare Plan. – The Board shall prepare the Plan byApril 1, 1994.  The Board shall review and update this Plan by April 1 of eachyear.  The original Plan shall cover a period of four years and each annualupdate shall extend the time frame by one year so that a four‑year planis always in effect.  The Board shall provide copies of the Plan and eachannual update to the Governor and the Joint Legislative Commission onGovernmental Operations.  The Plan shall encompass all of the components setout in this section.

     (c) Purpose. – The purpose of this section is to require the Board to applystrategic planning principles to its economic development efforts.  Thisrequirement is expected to result in:

(1)        The selection of a set of priority development objectivesthat recognizes the increasingly competitive economic environment and addressesthe changing needs of the State in a more comprehensive manner.

(2)        The effective utilization of available and limitedresources.

(3)        A commitment to achieve priority objectives and to sustainthe process.

(d)        Public and Private Input. –

(1)        At each stage as it develops and updates the Plan, the Boardshall solicit input from all parties involved in economic development in NorthCarolina, including:

a.         Each of the programs and organizations that, for Statebudget purposes, identifies economic development as one of its global goals.

b.         Local economic development departments and regional economicdevelopment organizations.

c.         The Board of Governors of The University of North Carolina.

(2)        The Board shall also hold hearings in each of the Regions tosolicit public input on economic development before the initial Plan iscompleted.  The purposes of the public hearings are to:

a.         Assess the strengths and weaknesses of recent regionaleconomic performance.

b.         Examine the status and competitive position of the regionalresource base.

c.         Identify and seek input on issues that are key to improvingthe economic well‑being of the Region.

TheBoard shall hold additional hearings from time to time to solicit public inputregarding economic development activities.

(3)        Each component of the Plan shall be based on this broadinput and, to the extent possible, upon a consensus among all affectedparties.  The Board shall coordinate its planning process with any Statecapital development planning efforts affecting State infrastructure such asroads and water and sewer facilities.

(e)        Environmental Scan. – The first step in developing the Planshall be to develop an environmental scan based on the input from economicdevelopment parties and the public and on information about the economicenvironment in North Carolina.  To prepare the scan, the Board shall gather thefollowing information.  Thereafter, the information shall be updatedperiodically.

(1)        Compilation of the latest economic and demographic data onNorth Carolina by State, Region, and county including population, populationprojections, employment, and employment projections, income and earnings statusand outlook, migration and commuting patterns, unemployment, poverty, and othersimilar data.

(2)        Compilation of the latest data on the strength of thebusiness environment by State, Region, and county with emphasis on the dynamicsof job creation:  start‑ups, expansions, locations, contractions, andfailures.  Special assessments are to be made of rural, small, and minoritybusiness components of overall activity.

(3)        Compilation of the latest data on labor compensation,construction costs, utility rates, payroll costs, taxes, and other cost datanormally considered by manufacturing firms and new businesses and shall betabulated by State, Region, and county.

(4)        Compilation of data on assets within the State and by Regionand county to include the following:

a.         Available buildings, bona fide industrial parks, and sites.

b.         Characteristics of the available labor force (number,demographic attributes, skill levels, etc.).

c.         Special labor situations, such as military base dischargesand large plant closings.

d.         Available infrastructure capacities by county and Regionincluding water, sewer, electrical, natural gas, telecommunication, highwayaccess, and other pertinent services.

e.         The fiscal capacity of counties and localities withincounties to support the infrastructure development necessary to participate inthe development process.

f.          Analyses of assimilative capacity of riverine, estuarine,or ocean outfalls, or other environmental cost considerations.

g.         Proximity analyses of counties in close alignment with majorurban areas in bordering states.

h.         Special educational and research capabilities.

i.          Special transportation situations such as major airports,ports, and railyards.

j.          Available data on the performance, contribution, and impacteach economic sector (including, but not limited to, agriculture, finance,manufacturing, public utilities, trade, services, tourism, and government) ishaving on individual counties, Regions, and the State.

k.         Available tourist and service assets.

l.          Analyses of seasonal population and absentee ownership inresort and tourism areas and their impact on the delivery of public services.

m.        Cost and availability of natural gas and electricity.

(5)        Compilation and analyses of data on economic and industrialchanges in competitor states by Region, as applicable.  This data shall beentered into a database and kept current.  It shall include, specifically, allnew plant location information such as origin of the plant, Standard IndustrialClassification Code, employment, and investment.

(6)        Compilation of cost data, policies, and strategies incompetitive Southeastern states as well as other United States regions andforeign countries.

(7)        Compilation of incentives and special programs being offeredby other states.

(8)        Compilation and analyses of other data relating to economicdevelopment such as regulatory or legal matters, structural problems, andsocial considerations, e.g. unemployment, underemployment, poverty, supportservices, equity concerns, etc.

(9)        The cost of doing business in North Carolina and other competingstates, as it may affect decisions by firms to locate in this State.

(10)      Competitive assets within the State and by Region and county,including infrastructure, tourist assets, natural resources, labor, educationaland research resources, and transportation.

(11)      Other information relating to economic development such asregulatory or legal matters and social considerations.

(f)         Needs Assessment. – The Board, using data from the publicinput sessions and the environmental scan, shall prepare an assessment ofeconomic development strengths, weaknesses, threats, and opportunities withinthe State by Region and by county.  An assessment shall also be conducted ofeach county to determine distressed areas existing within the county. Theassessment will include the identification of key development issues withineach geographic area and options available to address each issue.

(g)        Vision and Mission Statements. – The Board shall develop avision statement for economic development that would describe the preferredfuture for North Carolina and what North Carolina would be like if all economicdevelopment efforts were successful.  The Board shall then develop a missionstatement that outlines the basic purpose of each of North Carolina's economicdevelopment programs.  Because special purpose nonprofit organizations areuniquely situated to conduct the entrepreneurial and high‑risk activityof investing in and supporting new business creation in the State, they shouldbe assigned a dominant role in this key component of economic developmentactivity.

(h)        Goals and Objectives. – The Board using data from the publicinput and the environmental scan, shall formulate a list of goals andobjectives.  Goals shall be long‑range, four years or more, and shalladdress both needs of economically distressed Regions and counties as well asopportunities for Regions and counties not distressed.  The goals shall bedeveloped with realism but should also be selected so as to encourage everyRegion and county within the State to develop to its maximum potential. Objectives shall be one year or less in scope and shall, if achieved, lead tothe realization of the goals formulated by the Board as provided in thissection.

Both goals and objectives should be stated largely in economic terms,that is, they should be related to specific population, employment, demographictargets, or economic sector targets.  Both efficiency and equity considerationsare to be addressed and balanced with special emphasis placed on the needs ofdisadvantaged or economically distressed populations and communities.  Thegoals and objectives should not state how the economic targets are to bereached, but rather what the economic conditions will be if they are obtained. So that the progress of North Carolina's economic development efforts can bemonitored, the Board shall set objectives for each goal that allow measurementof progress toward the goal.  Objectives should be quantifiable and time‑specificin order to serve as performance indicators.

(i)         Formulation of Economic Development Strategy. – The Planshall have as its action component a strategy set forth in a blueprint fordirecting resources of time and dollars toward the satisfaction of the goalsand objectives stated in subsection (h) of this section.  As a practicalconsequence of the economic environment, a focus on the competitiveness ofindigenous industries and entrepreneurial development is required.  The Planshall include a strategy for the coordination of initiatives and activities forworkforce preparedness, funded by federal or State sources, including, but notlimited to, vocational education, applied technology education, remedialeducation, and job training, and the achievement of the economic developmentgoals of the Plan.  A balance of opportunity between rural and urban regionsand between majority and minority populations should be an overridingconsideration.  Equity of opportunity for counties and communities across theState will involve the explicit consideration of local fiscal capacity and thefiscal ability to support development activities.

The concept of differentiation should be employed.  The Plan shouldrecognize the various strengths and weaknesses of the State and its componentregions, subregions, and, in some cases, individual counties.  The concept ofmarket segmentation should be employed.  Different Regions and subregions ofthe State should be promoted to different markets.

(j)         Implementation Plan. – Based upon all of the foregoingsteps, the Board shall establish an implementation plan assigning to theappropriate parties specific responsibilities for meeting measurableobjectives.  The implementation plan shall contain all necessary elements sothat it may be used as a means to monitor performance, guide appropriations,and evaluate the outcomes of the parties involved in economic development inthe State.

(k)        Annual Report. – The Plan shall contain a section devoted tomeasuring results, to be called "An Annual Report on Economic Developmentfor the State of North Carolina".  The Annual Report shall contain acomparison of actual results with stated goals and objectives and significantand meaningful statistics to allow policymakers to adjust strategy and tacticsas necessary to achieve the formulated goals.

The Annual Report shall break down data by Regions and countiesincluding:

(1)        The net job change (expansions minus contractions) by thevarious economic sectors of the county, Region, and State.

(2)        Realized capital investment in plants and equipment by newand expanding industry in each county, Region, and State.

(3)        Manufacturing changes by county, Region, and State thataffect the value of firms, total payrolls, average wages, value of shipments,contributions to gross State product, and value added.

(4)        The net change in the number of firms by county, Region, andState with statistics on the dynamics of change:  relocations in versusrelocations out; births versus deaths; and expansions versus contractions.

(5)        A measure of the status and performance of all sectors ofthe county, Region, and State economy including, but not limited to,manufacturing, agriculture, trade, finance, communications, transportation,utilities, services, and travel and tourism.

(6)        An assessment of the relative status and performance ofrural business development as opposed to that in urban areas.

(7)        An analysis of the status of minority‑owned businessesthroughout the State.

(8)        An assessment of the development capability of the variousRegions of the State in terms of their environmental, fiscal, andadministrative capacity.  Those areas that are handicapped by barriers todevelopment should be highlighted.

(9)        An evaluation of the State's economic performance asindicated by the above statistics with the goals and objectives outlined in thePlan.

(l)         Accountability. – The Board shall make all data, plans, andreports available to the General Assembly and the Joint Legislative Commissionon Governmental Operations at appropriate times and upon request.  The Boardshall prepare and make available on an annual basis public reports on each ofthe major sections of the Plan and the Annual Report indicating the degree ofsuccess in attaining each development objective. (1993, c. 321, s. 313(c); 1997‑456, s. 27.)