CHARLESTON -- Poverty has been a pervasive problem in some regions of West Virginia for decades. It is a problem state and federal leaders have been trying to address and remedy for years. One area that has garnered a lot of attention has been southern West Virginia, which has gone through cycles of high unemployment, poverty and declining population as local coal mines and other employers have opened and closed.
The State Journal reporter Michael Hupp recently asked Rep. Nick Joe Rahall, D-W.Va., about poverty in southern West Virginia and steps that have been taken to address it.
The State Journal: What do you think is keeping high concentrations of poverty in the district you represent (Southern W.Va.)?
Rahall: West Virginia, like the rest of Appalachia, has long struggled with a multitude of special challenges that are exceedingly difficult to overcome. Congress recognized those needs in the 1960s when it created the Appalachian Regional Commission -- the only of the commissions created at the time that is still in operation. The longevity of the ARC speaks to how difficult its mission has been. But, in fact, if you use ARC's economically distressed counties as a gauge, you will note we have made significant progress. In 1997, 13 counties now in the 3rd Congressional District were on the list. Currently there are six.
The rugged topography led to the creation of small pockets of population and small communities. The isolation of rural communities has also made it very hard to attract a new business sector.
Much of the interstate highway system skirted vast areas in the Appalachian states because the mountainous terrain made construction so expensive. Lack of modern highways has made it more costly to ship goods out of our state, which means manufacturers were less inclined to locate here.
That is something that the ARC highway system has been intended to address, and where those highways have been completed in recent years, we have seen much growth.
A lack of large population pools has kept the tax base relatively modest, meaning that vast needs -- health services, education, water and sewer systems, roads -- have had to compete for small allocations of revenue.
Add to all that, the nature of some of traditional industries, most notably coal. Depending on energy prices, coal mines can be lucrative and times are good. But when the economy dips and less coal is burned, our coal mining communities suffer.
As we all know, coal is a finite resource and the history of coal is one of mines opening, a period of mining and steady jobs, and, after a period of time, mines close, jobs disappear and whole communities are sometimes lost when mines shut down.
For these reasons, I have worked for many years with local leaders to help broaden and diversify the economy of our region. We need different kinds of jobs that require different skills to take advantage of the talents of our people. And we need jobs with staying power that will allow our children and our children's children to remain in the state, working and rearing their own families.
SJ: As the representative from the southern part of the state, are there any initiatives you are working on towards curbing the issue?
Rahall: I am working with state and local officials throughout the 3rd District to help provide the foundation for private-sector growth. I have long advocated a broad-based approach, with emphasis on transportation, technology and tourism -- three areas, the three T's as I have dubbed the effort, that show a lot of promise for job growth in southern West Virginia. Let me provide a few examples.
I am trying like heck to get more money to build better highways, modern bridges, water and sewer systems, flood control projects. I am supporting and will continue to support needed funding to keep our airports up and running.
Building on the model developed by the Mingo County Redevelopment Authority, and with the assistance of the Rahall Transportation Institute, I have encouraged counties to develop land use plans to serve as a map for more coordinated development and as springboards for seeking additional federal assistance to partner with the private sector.
I developed the Southern West Virginia Infrastructure Program employing the U.S. Army Corps of Engineers to engage their expertise and funding to complement and often complete funding packages for water and wastewater projects throughout southern West Virginia.
There has been $27.5 million appropriated ($4.79 million of which is from ARRA). Twelve projects have been completed and eight are under construction or design.
I have long supported the Appalachian Regional Commission, the Economic Development Authority, I have worked to help bring Community Development Block grants into the district, and to promote redevelopment of previous industrial sites through the federal Brownfields program. I am pressing to make broadband universally available throughout the district so that we can bring more high-tech jobs into the region. And I am promoting technology corridors that enable employment to overcome traditional barriers, like lack of good roads, to spread well-paying jobs throughout West Virginia.
The Connected Technologies Corridors Program is a collaborative effort I began with the Greenbrier Valley Economic Development Corp., 4-C Economic Development Authority, the Development Authority of Mercer County, the McDowell County EDA, Webster County EDA, the Wyoming County EDA, Region 1 Planning and Development Council, and the Region IV Planning and Development Council.
These entities, representing 11 county commissions and more than 50 municipalities, have come together for the purpose of broadband development and deployment, entrepreneurial startups, retention and expansion of technology based businesses and regional marketing for the 11-county area of southeastern West Virginia and what it has to offer the world.
The initiative will strengthen the existing efforts under way with the I-64 Technology Corridor from Beckley to Lewisburg, the I-77 High Technology Corridor from Beckley to Bluefield, Corridor L from Beckley to Summersville and work to complement other regional economic development efforts ongoing throughout southern West Virginia.
Mindful of the value of West Virginia's natural spaces, I have long worked to grow and strengthen our tourism industry in southern West Virginia, and we can see many successes in that regard. I am working closely with the West Virginia Music Hall of Fame, which recently opened a permanent revolving exhibit at Tamarack in Beckley. I want to encourage and grow that partnership.
SJ: What do you believe economically needs to happen (development, tax regulation/deregulation, social programs) to alleviate poverty in the region?
Rahall: I do not think that anyone in West Virginia believes that a dependence on social programs will solve our economic ills. Quite the contrary, West Virginians are hardworking, independent people who want to stand on their own feet and who are some of America's greatest natural resources.
State governments have the ability to provide a tax system that can be attractive to businesses; for example, there are many instances in which states provide tax incentives as a means of competing against other states for private sector businesses. I am a big advocate for small businesses and support a number of programs aimed at helping our small businesses compete and grow. Technology corridors, for example, are helping to enable our small businesses to access modern telecommunications services, ensuring their competitive strength.
Most economists agree that while the federal government can help to provide some of the basic infrastructure needed for economic growth by providing funding for highways, water systems, education the bulk of jobs are created and sustained by the private-sector. However, we are forging ahead trying to develop the necessary infrastructure to provide the development climate.
The ultimate success of our economic development initiatives in West Virginia -- in fact, anywhere -- therefore, relies upon the work of the many, many energetic local leaders and business representatives to build upon the foundations that government provides. And there have been some big successes in southern West Virginia. For example, many of our economic development authorities have been making good strides in attracting new businesses and helping existing businesses to grow.
We also need to maintain the wonderful way of life we all cherish in West Virginia. We care for family, our neighbors, our community. We love to live surrounded by natural beauty. We want to practice our faith. I think this way of life is attractive to so many people that it is one of our best selling points for attracting private sector interest.
SJ: What kind of industry besides coal do you think will help bring jobs into McDowell, Mingo, Logan, Boone and Lincoln Counties?
Rahall: I continue to believe that technology and tourism are two of the best areas of growth for the region.
The Hatfield McCoy Trails have been a really bright spot for southern West Virginia. The trails have been incredibly successful at attracting visitors, who bring with them an infusion of cash into the local economy.
Technology corridors that provide modern telecommunication links and industrial space for businesses to operate efficiently and effectively are enabling numerous communities to attract cutting-edge businesses and provide the jobs of the future.
But I also think that the possibilities are limited only by imagination and determination. The Mingo County Redevelopment Authority, for example, has a track record of success that I believe can be a model for other counties. The Redevelopment Authority has made impressive strides to bring about new economic opportunities to a traditionally struggling area. The Authority has established a successful aquaculture facility and a golf course on former mine lands. It is working to build roads, a housing development, and an airport, all on formerly mined lands.
SJ: Do you think the federal government is doing enough to help the issue in our state?
Rahall: I am always fighting against accusations of pork and wasteful spending to get more federal investment into southern West Virginia.
Fortunately, my position as the vice chairman of the Transportation and Infrastructure Committee affords me an opportunity to be influential in seeing that West Virginia gets needed transportation investment. I'd like to see that pot of money continue to grow, but that will be a big challenge in the near future given the federal budget constraints our nation faces.
And I have fought against trade policies that I think unfairly penalize domestic industry. I opposed NAFTA, and I continue to think that trade agreement was a mistake. I would like to see the federal government do a better job of ensuring that American workers have a level playing field when it comes to competing against foreign interests for jobs.
SJ: What are your general thoughts on the fact one in five adults and more than one in four children live in poverty in this state?
Rahall: No state wants to see high poverty rates for their citizens, but as the West Virginia Center for Budget and Policy stated, the state's poverty rates rose in tandem with unemployment during previous recessions and as the recessions end, poverty rates decrease and stabilize. West Virginia has seen this happen over time, as have other states. Fortunately right now, West Virginia's unemployment rate is still below the national average by almost 2 percent and as a state, things have been improving as we continue to work on building infrastructure that will help to level the playing field between West Virginia and more populous, more prosperous states. This turnaround may take time as the nation of a whole is struggling to recover from the worldwide economic downturn, but as I said before, the possibilities for West Virginia are only limited by imagination and determination. As a state, we continue to look for ways to bring businesses, create jobs and improve educational opportunities in southern West Virginia, and I am proud to be a part of these efforts.