Released October 2, 2009
MOUNTAIN HOME, Ark. - Collaboration in grants and accurate Census counts are two ways local governments can build fiscal safety nets during tough economic times, according to speakers at a recent economic development forum.
The Local Government Fiscal Crisis was held in Mountain Home on Sept.18, hosted by North Central Arkansas Economic Development, or NCARED.
"We are in a crisis - with our economy and our country," stated Baxter County Judge Joe Bodenhamer. "We are not feeling the effects as badly yet, but our sales tax has started to level off, and our real estate sales are flat at best."
Mountain Home Mayor David L. Osmon echoed Bodenhamer’s observation. "Mountain Home has not gone through much of a financial crisis, but for the first time, we have had a reduction of our sales tax income."
Grants, while competitive, are one financial option for municipal and county governments that see declines in sales taxes and other revenues due to a slow economy.
"Hiring a grant writer could be a cost small communities could share," said Wayne Miller, Ph.D., a professor-extension economist with the University of Arkansas Division of Agriculture. The planning and development districts help local governments with grant applications from government sources, but are not able to assist with grant applications to foundations or charitable organizations.
"Funders are looking for collaborative solutions - for regional projects that address real issues," according to Roby Robertson, Ph.D., director of the University of Arkansas at Little Rock Institute of Government. "Combining economic development and local government needs across the region have real merit.
"When you change the dynamic to this perspective, you will be more pro-active," he said.
The decennial Census, to be conducted next year, provides local governments another opportunity to prevent further economic erosion.
Van Thomas and Mike Norton, directors of the White River Planning and Development District and Northwest Economic Development District, described the Census as an important economic issue.
"For every 10 people that are not counted in your community or county, this represents a loss of $1 million in government turnback funds over the next 10 years," said Thomas.
Suggestions that emerged from the forum include the importance of civic clubs and churches in spreading the word about how the Census can help the community, as well as encouraging everyone to complete the Census form.
The seminar was co-sponsored by the University of Arkansas Division of Agriculture, the UALR Institute of Government, the Northwest Arkansas Economic Development District, and the White River Planning and Development District.
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http://www.uaex.edu/news/october2009/1002econdev.htm
Contact: Elizabeth Fortune, (501) 671-2120, efortune@uaex.edu
