VI. Quality Of Life Indicators

Final Project of

AEC 653 Local Economic Developments

Economic Development Report

April, 2009

Written by

Devie Poerwanto and Kelly Davidson

Table of Contents

I. Executive Summary

II. Introduction

A. Project Charter

B. Project Supervisors

C. Project Managers and Authority

D. Scope Statement

E. Business Need and Project Justification

III. Background

A. History and Culture

1. General History and Culture

2. Political Information

3. Industrial History

4. Economic Development History a. Alignment with Kentucky and the Kentucky Chamber of Commerce Economic

Development Goals b. Features That May Facilitate Economic Development c. Features That May Impede Economic Development d. Desired Economic Development Initiatives

B. Current Economic Development Issues

C. Successful Recent Economic Development Projects

D. Regional Perspective for Economic Development

IV. Economic Analysis

A. Population

B. Income Information

C. Employment Information

V. Economic Development Analysis

A. Location Quotient

B. Shift-Share Analysis

VI. Quality of Life Indicators

A. Educational Information

Postsecondary Education Information a. Kentucky Community and Technical College System b. Kentucky Technical Schools/ Area Technical Centers (ATC) c. Colleges and Universities within 75 miles of Elliott County

B. Environment

C. Tourism a. Lodging b. Elliott County Tourist Attractions c. Neighboring Tourist Attractions

D. Healthcare

E. Housing

F. Government

Government Expenditures, Fiscal Year 2004

Government Indicators

Local Government Indicators

G. Leadership a. Federal Leadership b. State Leadership c. Elliott County Elected Officials

H. Public Safety

I. Transportation

VII. Economic Development Inventory

A. Number of Businesses

B. Business Tools

1. One Stop Center

2. Financing Opportunities a. Economic Development Grants b. Business Financing Opportunities c. Public Funding Opportunities

3. Small Business Development Centers

4. Women’s/Minority Enterprises

5. Group Marketing Systems

6. Promotion and Tourism Programs

7. Research and Design Programs

8. Incubation Centers

9. Micro-Enterprises

10. Technology and Business Parks

11. Enterprise Zones

12. Entrepreneur Development Courses

C. Workforce Development

1. Kentucky Department of Workforce Investment

2. Kentucky Adult Education Center

3. Bluegrass State Skills Corporation

D. Industrial Parks

E. Transportation

F. Infrastructure

1. Electric

2. Natural Gas

3. Sewage

3. Water

G. Technology

VIII. Conclusions and Recommendations

A. Conclusions

B. Recommendations

I. Executive Summary

Elliott County was formed on April 1 1869, the 114th in order, out of parts of Morgan,

Carter, and Lawrence County. One of 120 counties in Kentucky, and is one of about 3,141 counties and county equivalents in the United States. Elliott County, it is generally understood, was named in honor of Judge John M. Elliott. Located in the Eastern Coal Field region of the state and measure 235 square miles, of which 234 square mile is land and 1 square mile is water. According to census 2000, there were 6,748 people, with average density of 13 per square mile. The county seat is Sandy Hook.

Elliot County was chosen for this study mainly because of it faces an economic transition. It was selected because of its capacity, resources, and its performance on a variety of economic and quality of life indicators including the high percentage of residents living in poverty, high unemployment rate, and low education attainment rates.

Elliott County, and the county seat, Sandy Hook are indeed progressive in nature.

One thing is Laurel Gorge. It is located between Sandy Hook and Newfoundland, one of the most scenic areas of Eastern Kentucky. A new bridge has recently been constructed at the lower end of the gorge taking KY Rt. 7 and Rt. 32 out of the gorge. The gorge is being transformed into a recreation area.

Elliott County location lies in the foothills of the Appalachian Mountains in North

Eastern Kentucky. Their land is characterized by small family farms scattered through the hills. Just like any other county in Kentucky, agriculture is the main stay of the local economy such as tobacco and corn were the major cash crops. With the 2005 tobacco buyout many farmers are diversifying their farms and the county is working toward a new economy focusing on asset based development (Gwenda).

INTRODUCTION

II. Introduction

A. Project Charter

Planning and Sustaining Economic Development in Elliott County

B. Project Supervisors

For the purpose of this overview paper, the following served as project supervisors:

Elliott County

Gwenda L. Adkins

Elliott County Extension Agent

University of Kentucky

Dr. Alison Davis

Economic Development Extension Specialist

C. Project Managers

For the purpose of this overview paper, the following student as project managers:

Devie Poerwanto

M.S. Student

College of Agriculture


D. Scope Statement

Kelly Davidson

M.S. Student

College of Agriculture


The project required meetings with extension specialist to discuss strategies for developing a sustainable economy for Elliott County. Information gathered from the meetings (along with additional research) was used to develop a strategy for completion of an economic development plan for Elliott County. The strategy paper was submitted to two audiences:

1) Dr. Davis for fulfillment of University of Kentucky MPA/AEC Course 653:

Local Economic Development

2) Mrs. Gwenda for her use in working with community leaders will enhance community and economic development planning efforts in the

Elliott County Area Development District.

E. Business Need and Project Justification

Elliott County is situated in the north-eastern part of the state, and bounded North by

Carter, East by Lawrence, South by Lawrence and Morgan, and West by Rowan county.

It is surrounded by high hills on three sides, the waters from which shed outwardly into Big

Sandy and Licking rivers, but inwardly into Little Sandy river, forming along its tributaries a succession of moderately rich and very pretty valleys. One of the most scenic areas is

Laurel Gorge 1 .

Six other state parks are within an hour’s drive.

However, Elliott County is one of rural county in eastern Kentucky. In 2008, population shows that 7280 people living in with area wide 235 square miles. About 20.80% of families and 25.90% of the population were below the poverty line. Based on 2000

Census, Elliott had high unemployment rate (7.7%) and low education attainment rate

(7.8% Bachelor’s Degree and more) 2 .

As current condition, Elliott County, and the county seat, Sandy Hook is indeed progressive in nature. A new bridge has recently been constructed at the lower end of the gorge taking KY Rt. 7 and Rt. 32 out of the gorge. The gorge is being transformed into a recreation area. Improving the unemployment rate and low quality of life indicators requires creative thinking and unique strategies. In the past, industrial park and business environment were failed. Such that Assets Based Development is more needed to maximize natural eco-tourism that will definitely improve and sustaining local economic development.

1 http://www.kykinfolk.com/elliott/index.html

2 http://www.stats.indiana.edu/uspr/a/usprofiles/21/us_over_sub_pr21063.html

BACKGROUND

III. Background

A. History and Culture

1. General History and Culture

Elliott County is one of 120 counties in Kentucky, and is one of about 3,141 counties and county equivalents in the United States. Elliott County, the 114th in order, and was formed on April 1 1869 out of parts of Morgan, Carter, and Lawrence. Elliott County, it is generally understood, was named in honor of Judge John M. Elliott. Martinsburg, formerly

Sandy Hook, [Note: the current name for the city is Sandy Hook] is the county seat.

Elliott County, Kentucky 3

Elliott County is located in the Eastern Coal Field region of the state, elevation in the county ranges from 645 to 1340 feet above sea level 4 . According to the U.S. Census

Bureau, the county has a total area of 235 square miles (609 km2), of which 234 square miles (606 km2) is land and 1 square mile (2.6 km2) is water. Adjacent counties:



Carter County (north)



Lawrence County (east)



Morgan County (south)



Rowan County (west)

3 http://www.kykinfolk.com/elliott/index.html

4 http://en.wikipedia.org/wiki/Elliott_County,_Kentucky

This map, drawn from the description in Elliott County, Kentucky Deed Book 1, shows the location of the different precincts of Elliott County when it was formed in 1869.

These precincts were the census precincts when the first census was taken in 1870.

5

In the last three decades of the 1900s its population grew by 13.7% 6 . As of the census of

2000, there were 6,748 people, 2,638 households, and 1,925 families residing in the county.

The population density was 29 per square mile (11 /km2). There were 3,107 housing units at an average density of 13 per square mile (5.0 /km2) 7 . The racial makeup of the county was:



99.04% White



0.03% Black or African American



0.07% Native American



0.01% Pacific Islander



0.01% from other races



0.83% from two or more races



0.59% of the populations were Hispanic or Latino of any race

5 http://www.kykinfolk.com/elliott/pctmap.htm



2. Political Information 8

Elliott County has voted for the Democratic Party's nominee in every Presidential election since it incorporated in 1869. This is the longest ongoing streak of any county voting

Democratic in the United States. According to Dave Leip’s Atlas, 2009 Presidential Election results:

Presidential

Candidate

Barack H. Obama

Vice Presidential

Candidate

Joseph R. Biden, Jr.

John S. McCain, III Sarah Palin

3. Industrial History 9

Political Party

Democratic

Republican

Popular Vote

1,535 (61.03%)

902 (35.86%)

As of 2007, about 11.5 percent of total population of Elliott County is employed in industry. Followed is the table summary of industries in Elliot County.

Employment by Major Industry by Place of Work, 2007

All Industries

Agriculture, Forestry, Fishing and Hunting

Mining

Construction

Manufacturing

Trade, Transportation, and Utilities

Information

Financial Activities

Services

Public Administration

Other

Elliott County

Employment Percent

838 100

N/A

0

0

N/A

71

N/A

20

185

36

N/A

N/A

0

0

N/A

8.5

N/A

2.4

22.1

4.3

N/A

Unfortunately, in agriculture forestry, fishing, hunting, manufacturing, and information industry data were not available. Mostly, because people in this area are operating based on family orientation and the data are difficult to get.

8 http://uselectionatlas.org/RESULTS/

9 http://www.thinkkentucky.com/Edis/cmnty/BusInd.aspx?cw=111

Additional detailed information regarding Agriculture follows: 10



Average size of farms: 131 acres



Average value of agricultural products sold per farm: $6601



Average value of crops sold per acre for harvested cropland: $244.50



The value of livestock, poultry, and their products as a percentage of the total market value of agricultural products sold: 35.34%



Average total farm production expenses per farm: $8490



Harvested cropland as a percentage of land in farms: 13.30%



Irrigated harvested cropland as a percentage of land in farms: 0.12%



Average market value of all machinery and equipment per farm: $39943



The percentage of farms operated by a family or individual: 96.49%



Average age of principal farm operators: 53 years



Average number of cattle and calves per 100 acres of all land in farms: 10.59



Milk cows as a percentage of all cattle and calves: 0.78%



Corn for grain: 131 harvested acres



Vegetables: 11 harvested acres

Elliott County historical area-adjusted tornado activity is significantly below Kentucky state average. It is 3.6 times below overall U.S. average. Tornadoes in this county have caused 3 injuries recorded between 1950 and 2004. On 4/1/1974, a category 1 (max. wind speeds 73-112 mph) tornado injured 3 people and caused between $50,000 and $500,000 in damages. Follows are population and income overview, compare to the total industry overview 11 .

10 http://www.city-data.com/county/Elliott_County-KY.html


People & Income Overview

(By Place of Residence)

Value

Rank in

U.S.

Industry Overview (2007)

(By Place of Work)

Population

(2008)

Growth (%) since 1990

Households

(2000)

Labor Force (persons)

(2007)

Unemployment Rate

(2007)

Per Capita Personal Income

(2006)

Median Household Income

(2007)

Poverty Rate

(2007)

H.S. Diploma or More –

% of Adults 25+ (2000)

7,280

12.80%

2,638

3,026

7.7

$16,439 3096

$27,215 3059

27.4

2643

1396

2696

2743

204

128

52.6 3,122

Covered Employment

Average wage per job

Manufacturing -

% all jobs in County


Transportation & Warehousing –



Health Care, Social Assist. –



Finance and Insurance –


Bachelor's Deg. or More –

% of Adults 25+ (2000)

7.8 3,020

Source: table was taken directly from www.stats.indiana.edu


Value

Rank in

U.S.

838 2981

$26,926 2432

N/A

N/A

N/A

N/A

0.80% 2444

$34,507 2129

14.70% 464

$24,342 1656

2.40% 1609

$20,498 2747

4. Economic Development History

Being a rural county in the state, Elliott County has very limited infrastructure, such that industrial park was build but it was failed in development. This was one of the factor why Elliott has not succeeded in large business recruitment.

In 1992, several agencies such as KIDC (Kentucky Industrial Development Center),

U.S Forest Services, Division of forestry, and U.K Specialist joined together with county officials and volunteers to review and determine the best suitable economic strategy for

Elliott County. The report from the Kentucky Economic Development Council suggested eco/heritage tourism as the best suited industry for the county, relying on the assets and eliminating the liabilities.

The council collaborated with the University Of Kentucky Department Of Landscape

Architecture in 1999 to create a development strategy for the area. The result was the 2000

Heritage Plan, a document which mapped out a sequence of projects to enhance Elliott

County’s natural resources, improving the economic status of the community. One project from the Heritage Plan which was successfully established is the Laurel Gorge Cultural-

Heritage Center. The center is located at the start of the Laurel Gorge trail and offers an interactive exhibit of Elliott County’s history and culture. Inside the Heritage Center visitors find displays telling the story of the area’s key industries since pre-historic times (such as agriculture), an educational exhibit of the natural resources found in Elliott County, and a display of works of art created by local community members. Some of the art is available for sale to visitors.

The primary job creation project for Elliott County occurred in 2005 with the establishment of the Little Sandy Correctional Complex. Although initially a controversial project, the prison, located in the Sandy Hook area, provided jobs ranging from correctional officers to accountants and librarians 12 . a. Alignment with Kentucky and the Kentucky Chamber of Commerce Economic

Development Goals

The Kentucky Chamb er of Commerce’s Development objectives encourage higher wage jobs and economic expansion through improved education and workforce development, and by keeping Kentucky’s laws and regulations competitive with other states. The following are the development goals of the Kentucky Chamber of Commerce as indicated in the 2008 Kentucky Business agenda 13 :

12 http://www.corrections.ky.gov/lscc/employee.html

13 http://www.kychamber.com/docs/governmentaffairs/agenda08.pdf



Promote Education and Workforce Development



Entice Business Development (i.e. incentive programs to attract new companies but also to help small Kentucky businesses grow)



Promote an Equitable Civil Justice System



Enact Employee Choice (i.e. dues payments and union)



Let Kentucky Vote on Expanded Gaming



Develop Employment Opportunities o “More Kentuckians working and higher productivity for Kentucky employers”

The Kentucky Cabinet for Economic Development is the primary office for job creation and investment in the state. Innovative measures are taken by the Cabinet to attract new industries to the state, develop existing industries, and assist communities in preparing for economic development opportunities.

Elliott County’s development efforts align with some but not all of the Kentucky Cabinet for Economic Development and Kentucky Chamber of Commerce development goals. The construction of the prison met the goals of both agencies by providing new jobs and a new industry to the area. The asset-based development efforts have the potential for job creation but are less focused on the “business and industry” spectrum and more towards culture and heritage. One could argue, however, that eco-tourism as an industry preserves and even enhances the quality of life in the area, which would satisfy the chamber’s goal for

“More Kentuckians working and higher productivity for Kentucky employers.” It can be assumed that individuals who enjoy a high quality of life are likely to be more productive employees.

b. Features That May Facilitate Economic Development

The Elliott County Tourism Development Council, UK Cooperative Extension Service,

U.S. Army Corps of Engineers, and local officials and community members possess a dedication to community development in Elliott County; such passion and dedication will facilitate economic development through innovative ideas and a collaborate effort to make things happen. Many programs are in place bring members of the community together to educate them on the value of tourism, the strengths of the area, the importance of natural resources, and especially the importance of community support in terms of development projects.

Elliott County now has a city water system, and broadband internet access is available across the entire county. Two bank branches are located in Elliott County, so local financing is available. . These infrastructural features will facilitate development efforts, mostly in terms of business development and expansion. Also, the Elliott County

Industrial Park still exists and therefore constitutes a feature designed to facilitate development c. Features That May Impede Economic Development

One challenge faced by development coordinators in Elliott County is getting people involved. The county is a very family oriented community so sometimes individuals don’t see bigger picture for community outside their family; people have focused a lot on family and their individual career rather than community projects and the need for development.

Infrastructure has been a major constraint to economic development; the city water system was only recently established, and a city sewer system is yet to be available. The prison had to install its own sewer system when it was constructed. Transportation is also

an issue, especially when considering large business/industry attraction, as the main highways in the county are “scenic byways.” No railroads run through the county.

Alignment of development goals among government officials and the development council can also sometimes be a constraint in the economic development process. For example one may be focused on industry attraction while the other is more focused on tourism efforts. In order for development goals to be successful, a strong collaborative effort between the two groups must be established.

d. Desired Economic Development Initiatives

The interview with a key coordinator of community development efforts in Elliott

County reinforced the idea that asset-based development through natural resources and people’s talents is the main development initiative and strategy today. The 2000 Heritage

Plan seems to serve as the economic development plan for the area and highlights the same resources.

“Buying Local” is also a significant development strategy for Elliott County, with promotion efforts for local restaurants and growers (through the local Farmers’ Market).

Very few chain retailers exist in the county.

Finally, entrepreneurship is a focus of Elliott County growth. The Kentucky

Entrepreneur Coaches Institute, which is discussed in detail below, is heavily present in the area to encourage innovation and entrepreneurial vision/attitude in the community. Elliott

County hopes to enhance its economic status through its small business owners, entrepreneurs, and talents of the local people.

B. Current Economic Development Issues



Community education is currently a major effort to encourage community involvement in the development projects, but also to overcome the negative feeling that “nothing will ever get better” in the area



Funding is an important issue; several grants are currently in progress for the development of hiking trails, biking trails, camping facilities and other tourism efforts.

The Laurel Gorge Cultural-Heritage Center was funded by grants and donations.



Infrastructure and transportation improvement are key development issues faced by

Elliott County officials currently. The department of transportation has a six year improvement plan for the major highways serving Elliott County, and construction is currently underway.

 “Buy Local” campaigns to encourage community support of its local businesses are continuously promoted. Support of local growers, producers, and retailers will help keep earned income inside of Elliott County, enhancing the economic status of the area.



The Economic Tourism Development Council recently received a grant for capacity development; at present some of the funds are being used to explore other examples of economic development projects in rural areas such as the Handmade in

America venture in North Carolina.

C. Successful Recent Economic Development Projects



The Little Sandy Correctional Complex created a wide variety of jobs for the local community



The Laurel Gorge Cultural-Heritage Center attracts visitors from the around the world and has been especially successful as an educational attraction for schools in the region. Overall, tourism promotion seems to be successful so far in Elliott

County economic development



The Laurel Gorge is accessible to persons with disabilities, an uncommon characteristic of scenic trails.



Broadband internet access is available across Elliott County



Family-owned businesses and farms are successful in the area, as opposed to big business recruitment efforts

D. Regional Perspective for Economic Development

A Map of Eastern Kentucky Counties 14

Elliott County is part of Appalachian Kentucky and is bordered by Rowan, Carter,

Lawrence and Morgan Counties. Several economic development efforts exist for

Appalachian Kentucky; many funding opportunities and special programs for the region are discussed in greater detail throughout this paper. Appalachian Kentucky is known for its historic coal mines, heritage in tobacco and moonshine, folk artists, and regional music.

From a regional perspective in Elliott County, the main regional development project is the Eastern Kentucky Foothills Eco/Agri-Tourism Corporation. The project involves

Morgan, Menife, Wolfe, Elliott and Carter Counties, where officials have collaborated to create a marketing strategy for the natural and agricultural resources of those counties.

The project is still in its early stages, but the ultimate goal is to promote eco- and agritourism for FEAT, bringing visitors to the regional bed and breakfasts, U-Pick farms, wildlife viewing opportunities, hiking trails, campgrounds, and more.

14 http://www.kentuckyipl.org/EastKentucky.jpg

ECONOMIC ANALYSIS

IV. Economic Analysis

A. Population

Elliott County population is experiencing some trend. Based on census, peak time was on 1900 when total population was 10,387. Since then the number of people lived in that area are residing. In the last three decades of the 1800s Elliott County population grew fast at rate 16.40 and then decrease significantly during 1990s by 6.6 percent. But during period 2000, populations once again increase by 4.5 percent. Detailed information follows.

Historical populations

15

Census Pop. %± Census Pop. %±

Population Change

1870

1880

1890

1900 10,387 12.70% 1970 5,933 −6.3%

1910

4,433 —

6,567 48.10%

9,214 40.30%

9,814 −5.5%

1940 8,713 15.10%

1950 7,085 −18.7%

1960 6,330 −10.7%

1980 6,908 16.40%

12 000

10 000

8 000

6 000

4 000

2 000

0

1920 8,887 −9.4% 1990 6,455 −6.6%

1930 7,571 −14.8% 2000 6,748 4.50%

Population change (4/1/00 to 7/1/05)

Births: 432 (63 per 1000 residents)

Deaths: 368 (53 per 1000 residents)

Net internal migration: +104 (+15 per 1000 residents)

Top counties to which taxpayers relocated from this county between 2005 and 2006:

To Carter County = 0.85% ($26,000 Average AGI)

To Rowan County = 1.21% ($26,800 Average AGI)

Top counties from which taxpayers relocated into this county between 2005 and 2006:

From Carter County = 1.19% ($29,800 Average AGI)

From Lawrence County = 0.77% ($22,308 Average AGI)

From Rowan County = 0.77% ($16,000 Average AGI)


In order to see where the county stands, we compare Elliott County with Labor

Market Counties. Labor market counties are composed of counties which significantly exist within the sixty (60) minute drive range of the originating county’s county seat (Sandy

Hook). 16 Below is the figure showing the Labor Market Counties.

Total Population

Total Population

Labor Market Area

2004 2005 2006 2007

86,878 87,539 87,413 87,605

Elliott County 6,835 6,960 6,939 6,955

Sandy Hook 685 687 714 710

Source: Applied Geographic Solutions, Simi Valley, CA (Labor Market Area and County, 2005 and later);

U.S. Department of Commerce, Bureau of the Census (all other).

To compare how the county stands with its neighboring counties, in the following data we include Carter County (North adjacent), Lawrence County (East Adjacent), Morgan

County (South adjacent), and Rowan County (West adjacent).

County

Elliott, KY

Carter, KY

Lawrence, KY

Morgan, KY

2003

6,799

27,243

15,788

14,170

2004

6,765

27,183

15,968

14,267

2005

6,891

27,324

16,130

14,192

2006

7,087

27,443

16,231

14,182

2007

7,135

27,424

16,307

14,225

5-yr Avg Change

6,935 4.94%

27,323 0.66%

16,085 3.29%

14,207 0.39%

Rowan, KY 22,222 22,023 22,146 22,408 22,573 22,274 1.58%

KY state total 4,110,922 4,135,567 4,165,958 4,199,440 4,236,308 4,169,639 3.05%

Note: Avg= Year 2003-2007 average; *change= (2007-2003)/2003 based year

Source: http://www.bea.gov/regional/reis/drill.cfm

16 http://www.thinkkentucky.com/Edis/cmnty/Workforce.aspx?cw=111

Population by Selected Age Groups, 2008

Under 15

15-24

Elliott County

Labor Market

Area

Number Percent Number Percent

1,351

896

18.4

12.2

15,860

13,486

18

15.3

25-34

35-44

45-54

55-64

1,066

893

1,026

852

14.6 13,353

12.2 11,731

14 11,906

11.6 9,842

15.2

13.3

13.5

11.2

65-74

75 and older

692

547

9.4

7.5

6,695

5,234

7.6

5.9

Median Age 38.9 36.1

Source: Labor Market Area and County, 2005 and later); Applied Geographic Solutions, Simi Valley, CA

Population by Race and Hispanic Origin, 2008

White

Black

Am. Indian & Alaska Native

Asian

Native Hawaiian & other Pacific Islander

Other/Multi-race

Elliott County Labor Market Area

Number Percent Number Percent

7,243

3

5

98.9

0

0.1

85,791

1,046

192

97.4

1.2

0.2

0

2

70

0

0

1

279

11

788

Hispanic Origin 47 0.6 778

Note: Hispanic is not a race category. A person can be white, black, etc. and be of Hispanic origin.

Source: Labor Market Area and County, 2005 and later); Applied Geographic Solutions, Semi Valley, CA

0.3

0

0.9

0.9

B. Income Information

In 2007, based on City Data, they estimated median household income $25,129 increase slowly ($21,014 in 1999) while the state median was $40,267. The per capita personal income for the county was $7,137 while the state was $ 30,824. About 26% of the population was below the poverty line. In order to compare how the county stands with its neighboring counties, in the following data we include Carter County (North adjacent),

Lawrence County (East Adjacent), Morgan County (South adjacent), and Rowan County

(West adjacent).

1. Median Income and Poverty

County

Median

Household

Income in

1999

Median

Household

Income in

2007

Elliott, KY

Carter, KY

$21,014 $25,129

$26,427 $31,602

Lawrence, KY $21,610 $25,842

Morgan, KY $21,869 $26,152

Rowan, KY $28,055 $33,549 http://www.city-data.com/county/Elliott_County-KY.html

Percentage of People

Living in

Poverty

25.90%

22.3%

30.70%

27.20%

21.30%

2. Per Capita Income *Change (in thousands of dollars)

County

Elliott, KY

2003

6,799

2004

6,765

2005

6,891

2006

7,087

2007

7,135

5-yr Avg Change

6,935 4.94%

Carter, KY 17,848 18,568 19,338 20,297 21,434 19,497 20.09%

Lawrence, KY 16,657 17,632 18,440 19,689 20,849 18,653 25.17%

Morgan, KY 15,358 15,891 16,624 17,168 17,648 16,538 14.91%

Rowan, KY 19,726 20,645 21,012 21,610 22,399 21,078 13.55%

Note: 5-yr Avg= Year 2003-2007 average; *change= (2007-2003)/2003 based year


3. Wage and Salary Disbursements *Change (in thousands of dollars)

County

Elliott, KY

2003 2004 2005 2006 2007 5-yr Avg Change

18,224 19,015 22,279 24,482 25,222 21,844 38.40%

Carter, KY 146,734 155,260 165,247 168,310 176,028 162,316 19.96%

Lawrence, KY 88,204 93,150 98,100 103,074 107,671 98,040 22.07%

Morgan, KY 84,697 85,433 90,892 92,779 94,083 89,577 11.08%

Rowan, KY 263,716 274,953 278,638 284,097 292,569 278,795 10.94%



4. Private Earnings *Change (in thousands of dollars)

County 2003 2004 2005 2006 2007 5-yr Avg Change

Elliott, KY 13,740 14,933 14,601 13,695 13,829 14,160 0.65%

Carter, KY 146,392 157,136 169,404 171,544 180,120 164,919 23.04%

Lawrence, KY 93,810 100,444 107,184 110,502 116,915 105,771 24.63%

Morgan, KY 74,276 76,295 83,478 83,100 83,624 80,155 12.59%

Rowan, KY 236,028 240,099 240,290 242,517 252,720 242,331 7.07%



5. State and Local *Change (in thousands of dollars)

County

Elliott, KY

Carter, KY

2003 2004 2005 2006 2007 5-yr Avg Change

10,816 10,997 16,196 19,963 20,946 15,784 93.66%

44,184 46,610 49,645 51,294 53,116 48,970 20.22%

Lawrence, KY 22,744 24,610 25,011 26,753 27,287 25,281 19.97%

Morgan, KY 38,246 39,405 41,405 43,564 45,506 41,625 18.98%

Rowan, KY 108,226 114,435 120,388 124,837 128,241 119,225 18.49%



6. State Government *Change (in thousands of dollars)

County

Elliott, KY

2003 2004 2005 2006 2007 5-yr Avg Change

1,552 1,681 6,318 9,864 10,555 5,994 580.09%

Carter, KY 7,861 7,797 8,031 8,257 8,317 8,053 5.80%

Lawrence, KY 3,083 3,236 3,284 3,400 3,530 3,307 14.50%

Morgan, KY 20,917 21,259 22,009 23,427 23,706 22,264 13.33%

Rowan, KY 79,881 84,953 89,132 92,422 93,692 88,016 17.29%



7. Local Government *Change (in thousands of dollars)

County

Elliott, KY

2003 2004 2005 2006 2007 5-yr Avg Change

9,264 9,316 9,878 10,099 10,391 9,790 12.17%

Carter, KY 36,323 38,813 41,614 43,037 44,799 40,917 23.34%

Lawrence, KY 19,661 21,374 21,727 23,353 23,757 21,974 20.83%

Morgan, KY 17,329 18,146 19,396 20,137 21,800 19,362 25.80%

Rowan, KY 28,345 29,482 31,256 32,415 34,549 31,209 21.89%



8. Personal income and employment summary of Elliott County

Personal income ($000)

Nonfarm personal income *1/

Farm income *2/

Population (persons) *3/

Per capita personal income (dollars) *4/

Derivation of personal income ($000)

Earnings by place of work

Less: Contributions for government social ins *5/

Employee and self-employed contributions for government social insurance

2003 2004 2005 2006 2007

100,480 103,719 109,531 115,035 119,554

101,607 104,406 110,656 117,348 122,602

-1,127 -687 -1,125 -2,313 -3,048

6,799 6,765 6,891 7,087 7,135

14,779 15,332 15,895 16,232 16,756

24,466 26,344 30,930 32,588 33,007

3,094 3,309 3,995 4,530 4,717

1,876 2,043 2,475 2,958 3,148

Continue…

Employer contributions for government social insurance

Plus: Adjustment for residence *6/

Equals: Net earnings by place of residence

Plus: Dividends, interest, and rent *7/

Plus: Personal current transfer receipts

2003 2004 2005 2006 2007

1,218 1,266 1,520 1,572 1,569

31,942 32,346 33,395 33,824 34,519

53,314 55,381 60,330 61,882 62,809

10,391 8,366 7,538 8,286 8,374

36,775 39,972 41,663 44,867 48,371

Components of earnings by place of work ($000)

Wage and salary disbursements 18,224 19,015 22,279 24,482 25,222

Supplements to wages and salaries

Employer contributions for employee pension and insurance funds

Employer contributions for government social insurance

4,612 4,977 6,560 7,255 7,362

3,394

1,218

3,711

1,266

5,040

1,520

5,683

1,572

5,793

1,569

Proprietors' income *8/

Farm proprietors' income

Nonfarm proprietors' income

Employment (number of jobs)

1,630

-1,452

3,082

2,352

-1,009

3,361

2,091

-1,377

3,468

851

-2,608

3,459

423

-3,304

3,727

Total employment

Wage and salary employment

1,695 1,660 1,778 1,824 1,802

857 828 944 999 986

Proprietors employment

Note:

838 832 834 825 816

* 1. Nonfarm personal income is total personal income less farm income.

* 2. Farm income is farm earnings less farm employer contributions for social insurance.

* 3. Census Bureau mid-year population estimates

Estimates for 2000-2007 reflect county population estimates available as of April 2009.

* 4. Per capita personal income is total personal income divided by total midyear population.

* 5. Contributions for government social insurance are included in earnings by type and industry, but they are excluded from personal income.

* 6. The adjustment for residence is the net inflow of the earnings of inter-area commuters. For the

United States, it consists of adjustments for border workers and for certain temporary and migratory workers: Wage and salary disbursements to U.S. residents commuting or working temporarily outside U.S. borders less wage and salary disbursements to foreign residents commuting or working temporarily inside U.S. borders.

* 7. Rental income of persons includes the capital consumption adjustment.

* 8. Proprietors' income includes the inventory valuation adjustment and the capital consumption adjustment.

C. Employment Information

Over time, employment in Elliott County is increasing slowly. More over, unemployment declined from 8.2 in 2006 to 7.7 in 2007 regardless still 0.7 percent higher compare to Local Market

Area. Detailed employment information is provided below.

1. Total Employment

County

Elliott, KY

Carter, KY

Lawrence, KY

Morgan, KY

Rowan, KY

2003

1,695

9,896

4,508

5,199

12,941

2004

1,660

10,251

4,663

5,185

13,257

2005

1,778

10,622

4,729

5,124

12,956

2006

1,824

10,639

4,688

5,083

12,925

2007

1,802

10,577

4,742

5,071

13,088

5-yr Avg Change

1,752 6.31%

10,397 6.88%

4,666 5.19%

5,132 -2.46%

13,033 1.14%

KY state total 2,301,328 2,340,169 2,386,635 2,412,477 2,438,265 2,375,775 5.95%



2. Employment by Major Industry Compare with Labor Market Area

Employment by Major Industry by Place of Work, 2007

All Industries


Mining

Construction

Manufacturing


Information



Employment % Employment %

838

N/A

0

0

N/A

71

N/A

20

100

N/A

0

0

N/A

8.5

N/A

2.4

23,429

N/A

59

663

N/A

4,361

N/A

686

Services 185 22.1 3,054

Public Administration 36 4.3 1,601

Source: Labor Market Area and County (2005 and later); Applied Geographic Solutions, Simi Valley, CA

100

N/A

0.3

13

6.8

2.8

N/A

18.6

N/A

2.9

3. Total Available Labor

Available Labor, 2007 Future Labor:

Total Unemployed

Labor Market Area 4,845 2,768

Potential

Labor Supply

2,077

Becoming 18 Yr

(in 2008 - 2011)

4,705

Elliott County 487 233 254 372

Source: U.S. Department of Labor, Bureau of Labor Statistics; Kentucky Cabinet for Economic Development (KCED); U.S. Department of

Commerce, Bureau of the Census. Note: Total Available Labor = Unemployed + Potential Labor Supply. Unemployed - people currently not employed, but actively seeking work. Potential Labor Supply: Determined by the national labor force participation rate minus each county’s labor force participation rate. Labor force participation rates are calculated by dividing the labor force by the population.

4. Labor Force


2007 Feb. 2009 2007 Feb. 2009

Civilian Labor Force

Employed

Unemployed

3,026

2,793

233

3,185 39,608

2,813 36,840

372

Unemployment Rate (%) 7.7 11.7

Source: U.S. Department of Labor, Bureau of Labor Statistics.

2,768

7

40,165

35,705

4,460

11.1

5. Unemployment Rate (%)

Year

2003

2004

2005

Elliott

County

8.4

10.4

9.8

Labor Market

Area

7.9

7.6

7.8

2006 8.2 7.3

2007 7.7 7


Kentucky U.S.

6.3 6

5.5

6

5.5

5.1

5.7

5.5

4.6

4.6

6. Average Weekly Rate

All Industries


Mining

Construction

Manufacturing


Information


Services


Other


Elliott

County

$518

N/A

0

0

N/A

346

N/A

399

402

330

N/A

Kentucky U.S.

$702 $855

555 487

1,096 1,577

761

901

897

1,030

661

749

927

608

763

856

742

1,293

1,418

754

978

857

ECONOMIC DEVELOPMENT ANALYSIS

V. Economic Development Analysis

We used analytical tools, such as Location Quotient and Shift Share Analysis, to analyze Elliott County economic development.

A. Location Quotient 17

The location quotient (LQ) is a useful tool used to identify the concentration of an industrial sector in a local economy relative to a larger reference economy. Location

Quotients is shown as a ratio between the percentage of employment in an industry locally to the percentage of employment in the same industry found in the state (or nation) being used as a reference.

If ratio is less than one, it means that the industry is locally underrepresented. In other words, there is not enough employment in that sector to meet the local demands for those goods/services. A location quotient of one, it means that the local area and the reference economy are on-par with employment in the same sector. It also means that all of the employment is used for local demands and there is just enough to meet those demands. If ratio of the local to the reference economy greater than one, it means that the industry is concentrated (overrepresented) in the local area compare to the reference economy. It may indicate economic self-sufficiency. If an industry sector exceeds the state’s average, then goods produced by that industry are likely being exported to other areas. Large location quotients may indicate an over-reliance on that particular industry.

Areas relying on a particular industry for economic prosperity are at risk of economic depression or regression if demand for that particular good falls.

17 The information of LQ comes from “Planning Local Economic Development” by Blakely and Bradshaw as well as Alison Davis’

Spring 2009 lectures.

Local sectoral employment

Total local employment

LQ =

Reference sectoral employment

Total reference employment

LQ > 1 means overrepresented

LQ < 1 means industry sector is locally under represented

LQ = 1 means on-par

Employment, percentage of employment, and Location Quotient are calculated from

Quarterly Census of Employment and Wages Data from the Bureau of Labor Statistics

(BLS). And Location Quotients were calculated using the BLS Location Quotient Calculator.

In order to make comparison, analyses were including four counties with the same Local

Area Market that surrounding Elliott County, such as Carter, Lawrence, Morgan, and

Rowan.

The location quotients on the following page are based on the North American

Industry Classification Codes (NAICS, formerly SIC). You may see this data are not the same like earlier statistics. For the purpose of LQs’ calculation, we follow data from BLS.

BLS has defined a total of twelve Super-Sectors, one of which is Public Administration. The eleven Super-Sectors used for classifying private-sector activity are: Natural Resources and

Mining, Construction, Manufacturing, Trade Transportation and Utilities, Information,

Financial Activities, Professional and Business Services, Education and Health Services,

Leisure and Hospitality, Other Services, Unclassified Industry. Unfortunately, data for

Natural Resources and Mining, Construction, Manufacturing, and Unclassified industry was not available for Elliott County so that LQ for these industries could not be calculated.

LQs are calculated by first, dividing Elliott industry employment by the all industry total of Elliott County employment. Second, Kentucky area industry employment is divided by the all industry total for the Kentucky area. Finally, the Elliott County ratio is divided by the Kentucky area ratio. Below are the details.

Employment in 2007

Industry

Base Industry: Total, all industries



Professional and Business Services

Education and Health Services

Leisure and Hospitality

Other Services

Note: ND= Not Disclose-able

Percentage of Employment in 2007

Kentucky Elliott Carter Lawrence Morgan Rowan

1,501,470 304 5,210 2,427 1,858 6,932

382,379 72 1,208 996 554 1,977

92,405 20 251 127 131 270

182,098 9 1,216 114 52 168

223,435 124 462 580 265 1,881

172,228 27 648 315 162 1,072

46,048 34 180 ND 96 183

Industry


Kentucky Elliott Carter Lawrence Morgan Rowan

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Trade, Transportation, and Utilities 25.47% 23.68% 23.19% 41.04% 29.82% 28.52%

Financial Activities 6.15% 6.58% 4.82% 5.23% 7.05% 3.89%




Other Services


12.13% 2.96% 23.34% 4.70% 2.80% 2.42%

14.88% 40.79% 8.87% 23.90% 14.26% 27.14%

11.47% 8.88% 12.44% 12.98% 8.72% 15.46%

3.07% 11.18% 3.45% ND 5.17% 2.64%

Location Quotient in 2007

Industry







Other Services


Elliott Carter Lawrence Morgan Rowan

1 1 1 1 1

0.93 0.91 1.61 1.17 1.12

1.07 0.78

0.24 1.92

2.74 0.6

0.77 1.08

3.65 1.13

0.85

0.39

1.61

1.13

ND

1.15

0.23

0.96

0.76

1.68

0.63

0.2

1.82

1.35

0.86

Based upon these estimations, it appears that Elliott County is too concentrated on service industry. Especially compare to other county, Elliott County accounted more than twice in number. As our analysis earlier mention about limited infrastructure in this area, this

result was not surprising. Elliott County is indeed experiencing self-sufficient in services industry. In fact, they provided services to another labor market area. Below is information of LQ for Elliott County over 5 year period from 2003-2007.

Location Quotient in 5 years Period

Industry in Elliott County







Other Services


2003 2004

1 1

0.96 0.86

ND

ND

2.34

ND

ND

2.26

ND 0.35

2.91 3.29

2005

1

0.81

ND

ND

2.42

0.48

3.13

2006

1

2007

1

0.91 0.93

1.55 1.07

ND 0.24

2.61 2.74

0.68 0.77

3.72 3.65

This large number of LQ also indicates over-reliance on services industry. Areas relying on a particular industry for economic prosperity are at risk of economic depression or regression if demand for that particular industry falls. The local economy could be devastated. This is an important reason why Elliott County should continue attempts to diversify its economy further not just focused on services.

However, it is important to note that analysis should not stop at LQs for determining where competitive advantage lies. Most importantly, this technique should not be used as the only justification for more employing more resources to expand in these areas. Instead,

LQs should be used as a first step, to highlight potential areas for more evaluation. For example Professional and Business Services industry definitely needs to improve. This industry just started about 2 years ago and in development process. As we mention before that Business Park was failed in this area mainly because of limited infrastructure. In order to make improvement, it needs creative thinking and unique strategy to support this industry.

Regarding Leisure and Hospitality industry, LQ is indicated that this industry still under-represented. But if we take a closer look, overtime this industry experiencing slowly growth as shown in table LQ in 5 years Period. This is a good thing. In fact, Elliott County is indeed in progress to enhance eco-tourism program. Such that Laurel Gorge at this point in development process. No doubt in following year this industry will make improvement.

B. Shift Share Analysis 18

Shift Share Analysis is a powerful technique for analyzing changed in the structure of the local economy in reference to the state. Shift-share deals with the changing economy not just one period of time (Blake and Bradshaw, 2002). The purpose of shift-share analysis is to disaggregate the growth of an industry into its three contributing parts: economic growth, proportional shifts, and differential shifts.

The economic growth factor represents overall changes when a local community benefits or suffers from national, state, or regional economy. The second factor, proportional shift, is the relative change of an industry to the total of all industries. In other words, it examines how industries are performing when compared to performance of an economy. For example, if an industry is seeing positive increases even when the economy is in a decline, local communities will benefit from these increases. The last factor, differential shift, is where competitive advantage can be addressed. It examines how industries within a region are performing when compared to that same industry on a national level.

18 The information of Shift-Share analysis also comes from “Planning Local Economic Development” by Blakely and Bradshaw as well as Alison Davis’ Spring 2009 lectures.

To calculate shift-share analysis, we used shift-share online calculator located at http://www.georgiastats.uga.edu/sshare1.html

. The data used in this website comes from

U.S. Bureau of Labor Statistics' Census of Employment and Wages . The information that follows was copied and pasted largely verbatim, with some modification. For the purpose of this shift-share calculation, data that we used are from 1999-2007.

Analysis of Employment Changes

First, consider this county area's employment trend over 1990-2007, presented in above figure. During that time period, employment averaged 630.9, with a high of 852 in

2006 and a low of 468 in 1990.

Table 1 Employment Changes

Sector




Other Services




Construction

Natural Resources and Mining

Information

Manufacturing

Employment

1990

Employment

2007

Employment

Change

.

.

.

.

184

14

102

52

16

.

.

.

0

0

.

.

329

124

79

36

34

27

20

9

.

.

.

.

89

110

-23

-16

18

.

.

.

Percent

Growth

1990-2007

785.7

-22.5

-30.8

112.5

.

.

.

.

.

.

.

The industries are ordered according to how many people they employed in the latest year that you selected 2007. The Education and Health Services sector employed the most workers, so it is first, followed by Trade, Transportation, and Utilities, and the Public

Administration sector is third. This area had 838 employees in 2007, in all industries including some jobs that BLS could not classify into the 11 sectors listed.

During the period 1990 to 2007, employment in Elliott County increased by 89 jobs.

In terms of employment growth, the most important industry was Education and Health

Services (110 jobs). It is followed by Other Services (18 jobs), and Public Administration

(-16 jobs). Within a single sector it is possible to observe both of these effects simultaneously. For example, a new large retailer such as Wal-Mart can hire 100 workers or more, but these gains may come at the expense of retail jobs at smaller shops. The net gain in employment could be either positive or negative. These effects can be felt more acutely in the rural counties of the country, such as Elliott.

Table 2 Shift-Share Analysis for Elliott County, 1990-2007.

Sector

National

Growth

Components,

Percent

National

Growth

Component,

Jobs

Industrial

Mix

Component,

Percent

Industrial

Mix

Component,

Jobs

Education and Health

Services

24.7 3 23.2 3

Other Services

Public

Administration

Trade,

Transportation, and Utilities

Leisure and

Hospitality

Financial

Activities

Professional and Business

Services

24.7

24.7

24.7

24.7

24.7

24.7

4

13

25

.

.

.

3.1

-10

-8.7

17.9

-5.4

44.8

1

-5

-9

.

.

.

Construction

Natural

Resources and Mining

24.7

24.7

.

.

19.3

-20.3

.

.

Information 24.7 . -15.2 .

Manufacturing

24.7 . -47.2 .

45 -10

SOURCES: Output location was http://www.georgiastats.uga.edu/sasweb/cgi-bin/broker

Calculator found at http://www.georgiastats.uga.edu/sshare1.html

Competitive

Share

Component,

Percent

737.8

84.7

-45.5

-38.6

.

.

.

.

.

.

.

Competitive

Share

Component,

Jobs

103

14

-24

-39

.

.

.

.

.

.

.

54

The purpose of shift-share analysis is to disaggregate the growth of an industry into its three contributing parts: economic growth, proportional shifts, and differential shifts. In detail, to analyze it further below are the following three contributing parts:

1. The National Growth Component

2. The Industrial Mix Component

3. Competitive share

1. The National Growth Component

The first source of change is the growth or contraction in the United States economy.

During the time period 1990 to 2007, the nation's employment grew by 24.7 percent

(i.e., America's employment in 1990 and 2007 was 108.6 million and 135.4 million, respectively. The growth rate is therefore (135.4 - 108.6) / 108.6) * 100 = 24.7 percent.)

This growth rate is the national growth component. The effect of the national growth component is felt most acutely during the peaks and valleys of the business cycle, i.e. during recessions and boom times. Local businesses are very aware of how the general business climate affects them.

As reported in Table 2, this area's biggest employer, the Education and Health

Services sector, had the highest national growth component. The 24.7 percent national growth component led to this sector's employment growing by 3 jobs (i.e., 24.7 percent times the sector's base employment, 14, equals 3 jobs). Overall, the national growth component was responsible for a total of 45 jobs in this county area.

An understandable goal of some local leaders is to make their economy more

'recession proof'. Economies with more employment in government, military and education will experience less fluctuation because those sectors are not directly related to the business cycle. Also, economic sectors that are experiencing more growth will provide larger employment gains to a local economy.

2. The Industrial Mix Component

Insight into these growing sectors is provided by the second aspect that shift-share analysis considers the industrial mix component. This component is found by calculating the percent growth rate for an economic sector at the national level and subtracting from it the national growth component. Thus, the industrial mix component measures how well an industry has grown, net of effects from the business cycle.

Table 2 lists these components for each sector. The highest industrial mix component was 44.8 percent in the Professional and Business Services sector, and it was responsible for jobs. If this area's employment were concentrated in these sectors with higher industrial mix components, then the area could expect more employment growth. After adding up across all eleven sectors, it appears that the industrial mix component was responsible for decreasing your area's employment by -10 jobs. Thus, the area has a concentration of employment in industries that are decreasing nationwide, in terms of employment. The majority of these jobs can be attributed to decreases in the Manufacturing sector.

Shift-share analysis does not explain why an economic sector has slower or faster growth. Rather, the local development official must use knowledge about the business conditions facing particular industries to understand this. For example, in some rural counties the manufacturing sector was once dominated by apparel firms. The availability of low-priced imported clothing in the 1990's has meant that many apparel firms have gone out of business. Many counties therefore have a negative industrial mix component for manufacturing.

3. The Competitive Share

The third and final component of shift-share analysis is called the competitive share.

It is the remaining employment change that is left over after accounting for the national and industrial mix components. If a sector's competitive share is positive, then the sector has a local advantage in promoting employment growth.

For example, the Education and Health Services sector employment grew by 785.7 percent (from Table 1). Of this 785.7 percent, 24.7 percent was due to the national growth component and 23.2 percent was due to the industrial mix (from Table 2). This leaves a remainder of 737.8 percent that is attributable to the local conditions facing this economic sector. For the Education and Health Services sector, the competitive share translated into 103 jobs (i.e., 737.8 percent times the base employment level of 14 equals 103 jobs).

The top three sectors in competitive share were Education and Health Services,

Other Services, and the Public Administration sector. Across all sectors, the competitive share component totals to 54 jobs. This indicates that your area is competitive in securing additional employment.

A positive competitive share component would indicate that your area has a productive advantage. This advantage could be due to local firms having superior technology, management, or market access, or the local labor force having higher productivity and/or lower wages. A negative competitive share component could be caused by local shortcomings in all these areas.

By examining the competitive share components for each industry, the development official can easily identify which local industries have a positive competitive share component. This also indicates which industries have competitive advantages over other counties and regions. Local officials can then devise strategies to improve local conditions faced by particular industries selected for focus. These strategies may include specialized training programs for workers and management, improved access to input and product markets through transportation and telecommunications, or arranged financial alternatives for new machinery and equipment.

QUALITY OF LIFE INDICATORS

VI. Quality of Life Indicators

The cost of living index for Elliott County in 2008 was a low 75.3 (U.S. average is

100). The county also experiences low population density at 31 people per square mile, yet is within a 20 mile drive of Morehead, Kentucky where the population density is 640.8.

Elliott County High School and Infinite Possibilities Christian Academy (est. enrollment of 19 students) are Elliott County’s secondary education institutions, both located in Sandy Hook. The county benefits from its close proximity to Morehead State University, in neighboring Rowan County, where 174 Elliott County citizens are currently enrolled.

Several state postsecondary education institutions are located within a 75 mile radius of

Sandy Hook, the county seat.

Elliott County has a competitive advantage in terms of quality of life indicators due to its abundance of natural resources. The county houses seven natural gorges and is located within an hour of six state parks. Four watersheds are located in the area, and the residents experience high water quality from the Little Sandy River. Such natural amenities have provoked movements toward eco-tourism efforts, as well as community education about tourism.

Tourism is also promoted via the arts in Elliott County. The Kentucky Quilt Trail, a project sponsored by the Kentucky Arts Council which preserves Kentucky barns and represents the hand-quilting culture of the state. Seventy quilt squares, each embodying a regional story, can be found hanging on barns and other buildings around Elliott County.

A. Education

Education statistics for the county are comparable to state statistics, with the state graduation rate (85.5%) slightly above Elliott County’s.

Level of Education

Education Status

Less than a high school diploma or equivalent

High school diploma or equivalent

Some college, no degree

Associate’s degree

Bachelor’s degree or higher

Elliott County Education Statistics 19

Elliott County High School Graduates, 2006

Graduation Rate

In-State-College-Going Rate for ‘06 Grads

GEDs awarded in 2006-07

Kentucky Adult Education enrollments in 2006-07

B.S. six-year graduation rate for 2006

Number of additional bachelor’s degree holders needed in this county to match U.S. average

Average ACT Score

Private School Enrollment, grades 9-12

% of Population

47.4

31

11.5

2.2

7.8

59

76%

64.4%

8

247

35.0%

734

18.8

19 students (4.6%)

School District:

Elliott County has one school district and one private high school (Infinite Possibilities

Christian Academy)

School Years

Avg. Attendance

Membership

2004

1,052.81

1,158.00

2005

1,040.51

1,145.00

2006

1,026.18

1,117.00

2007

1,025.76

1,147.00

2008

1,025.96

1,121.00

Elliott County School District

John C. Williams, Superintendent

School Grades City Principal

Elliott Co. High School 7-12 Sandy Hook Larry S. Salyer

Teachers

(#)

42

Isonville Elementary

Lakeside Elementary

K-06 Isonville Felicia Dickerson

K-06 Sandy Hook Marisa L. Adkins

11

18

Sandy Hook Elementary K-06 Sandy Hook Vanessa G. Maggard 19

Est.

Enrollment

540

150

250

280

19 http://www.city-data.com/school/elliott-county-high-school-ky.html

Postsecondary Education Information 20 a. Kentucky Community and Technical College System

(87 Elliott County Citizens Currently Enrolled and 80 Alumni)

 Maysville Community and Technical College – Rowan Campus

 Morehead, KY (19 miles from Sandy Hook)



Maysville, KY (51 miles from Sandy Hook)

 Total enrollment: 3,635

 Ashland Community and Technical College

 Ashland, KY (36 miles from Sandy Hook)

 Total Enrollment: 4,785

 Bluegrass Community and Technical College

 Winchester, KY (Clark Co. Campus; 58 miles from Sandy Hook)

 Lexington, KY (73 miles from Sandy Hook)

 Regional enrollment: 11,000



Big Sandy Community and Technical College



Paintsville, KY (26 miles from Sandy Hook)

 Prestonsburg, KY (35 miles from Sandy Hook)

 Pikeville, KY (51 miles from Sandy Hook)


 Hazard Community & Technical College

 Jackson, KY (39 miles from Sandy Hook)

 Hindman, KY (Knott Co. Branch; 53 miles from Sandy Hook)

 Hazard, KY (Main Campus; 58 miles from Sandy Hook)

 Total Enrollment: 4,458 b. Kentucky Technical Schools/ Area Technical Centers (ATC)

 Carter County Career and Technical Center

 Olive Hill (15 miles from Sandy Hook)

 Enrollment: 163

 Morgan County ATC

 West Liberty (15 miles from Sandy Hook)

 Enrollment: 413

 Boyd County High School Vocational School

 Ashland (36 miles from Sandy Hook)

 Enrollment: 643

20 http://cpe.ky.gov/NR/rdonlyres/D6F5DB59-96E4-4023-A406-A4516B5276B4/0/Elliott.pdf

 Martin County ATC

 Inez (36 miles from Sandy Hook)

 Enrollment: 235

 Foster Meade Career and Technical Center

 Vanceburg (36 miles from Sandy Hook)

 Enrollment: 506

 Greenup County ATC

 Greenup (37 miles from Sandy Hook)

 Enrollment: 402 o Russell ATC

 Russell (37 miles from Sandy Hook)

 Enrollment: 345

 Breathitt County ATC

 Jackson (39 miles from Sandy Hook)

 Enrollment: 344

 Floyd County ATC (GARTH)

 Martin (41 miles from Sandy Hook)

 Enrollment: 289

 Montgomery County ATC

 Mt. Sterling (45 miles from Sandy Hook)

 Enrollment: 618

 Lee County ATC

 Beattyville (48 miles from Sandy Hook)

 Enrollment: 329

 Mason County ATC

 Maysville (51 miles from Sandy Hook)

 Enrollment: 198

 Knott County ATC

 Hindman (53 miles from Sandy Hook)

 Enrollment: 295

 Belfrey ATC

 Belfrey (58 miles from Sandy Hook)

 Enrollment: 384

 Clark County ATC

 Winchester (58 miles from Sandy Hook)

 Enrollment: 301

c. Colleges and Universities within 75 miles of Elliott County

 Morehead State University

174 Elliott County Citizens currently enrolled; 294 alumni

 West Liberty Location (15 miles from Sandy Hook)

 Morehead (19 miles from Sandy Hook)

 Prestonsburg (35 miles from Sandy Hook)

 Ashland (36 miles from Sandy Hook)

 Jackson (39 miles from Sandy Hook)

 Mount Sterling (45 miles from Sandy Hook)


 Eastern Kentucky University


 Richmond, KY (67 miles from Sandy Hook)


 University of Kentucky


 Lexington, KY (73 miles from Sandy Hook)


 Kentucky Christian College

 Grayson, KY (19 miles from Sandy Hook)

 Enrollment: 632

 Ohio University Southern Campus

 Ironton, OH (39 miles from Sandy Hook)

 Huntington Junior College

 Huntington, WV (44 miles from Sandy Hook)

 Marshall University

 Huntington, WV (44 miles from Sandy Hook)

 Shawnee State University

 Portsmouth, OH (47 miles from Sandy Hook)

 Alice Lloyd College

 Pippa Passes

 Total Enrollment: 621

 National College- Pikeville Branch


 Pikeville College



B. Environment

Environment Indicators / Elliott County Statistics

Facilities that produce and release air pollutants

Average lifetime diesel soot cancer risk



EPA acceptable level = 1 in a million

Facilities that have reported toxic releases

0

1 in 7,417

*135 times larger than acceptable level

0

Facilities that have reported hazardous waste activities

Potential hazardous waste sites that are part of Superfund that exist

Facilities that generate hazardous waste from large quantity generators

5

0

0

15

1

Facilities issued permits to discharge to waters of the United States

Community Water Systems that serve the same people year-round

(e.g. in homes or businesses)

Watersheds in area

Total withdrawal of fresh water for public supply

Most commonly used house heating fuel



Electricity



Bottled, Tank, or LP Gas



Wood



Coal or Coke



Fuel oil, kerosene, etc…



Utility Gas



Other Fuel

4

0.14 million gallons/day

Apartment House/Condo

44.3% 39%

24.4%

16.1%

6.9%

3.6%

3.2%

1.5%

32.6%

16.8%

4.5%

2.1%

2.9%

2.0%

C. Tourism

The Elliott County Tourism Development Council was established in 1992 to identify local tourism opportunities and develop promotion techniques to attract visitors to Elliott

County. The Elliott County Extension Service has been highly involved with tourism-based development projects.

Visitor attractions in Elliott County a re centered on the location’s plethora of natural resources and cultural identity. Opportunities for hunting, fishing, boating/canoeing, hiking, camping and picnicking are available throughout the county. The Laurel Gorge Cultural

Center is a product of the Elliott County Tourism Development Council’s efforts. The center marks the beginning of the Laurel Gorge hiking trail, which prides itself on being the only

handicap-accessible walking trail in the nation. The Laurel Creek, which carved the sandstone gorges, flows into the Little Sandy River – a good waterway for canoeing. Elliott

County is also part of the Kentucky Quilt Trail; 70 quilt squares can be found on barns and buildings around the county. a. Lodging

 Laurel Gorge Inn

Sandy Hook, KY 41171

(606) 738-5515 www.laurelgorgeinn.com

 Grayson Lake Camp Ground

Olive Hill, KY 41164

(606) 474-9727 b. Elliott County Tourist Attractions

 Laurel Gorge Cultural Heritage Center


(606)738-5543

The Laurel Gorge Cultural Heritage Center is a museum and education center focused on natural resources and outdoor recreation. A set of exhibits depict the history of the region and culture of Elliott County inside the museum. A conference room is available for small meetings and family gatherings.

 Laurel Gorge Trail


Beginning at the Laurel Gorge Cultural Heritage Center, the trail offers recreational opportunity to explore the sandstone gorge and cliffs (as high as 300 ft.) formed by the Laurel Creek. 0.2 miles of the trail is accessible to individuals with disabilities, a unique characteristic among outdoor trails.

 Little Sandy River

The Little Sandy River is born in southern Elliott County and contributes to the

Grayson Kentucky Water Trails for flat-water paddling and canoeing.

 Kentucky Quilt Trail Driving Tour www.kentuckyquilttrail.com

70 quilts squares representing the county’s heritage in arts and agriculture can be found around Elliott County on barns and buildings. Maps of the Kentucky Quilt Trail can be found at local tourist offices (in Elliott County maps can be found at the UK

Cooperative Extension Services office and the Laurel Gorge Cultural Heritage

Center).

 Elliott County is home to Minnie Adkins, Internationally known folk artist

Several folk artists can be found in Elliott County, Kentucky, many of whom welcome visitors to their homes with prior notice. c. Neighboring Tourist Attractions

 Grayson Lake State Park


(606) 474-9727

Camping, Golf Course, Boating, Beech-Hemlock Forest Trail, Lick Falls Trail

 Carter Caves State Resort Park


(606) 286-4411

Cave tours, Camping, Hiking and Horseback Riding Trails, Boating, Golf



Paintsville Lake State Park

Staffordsville, KY 41256

(606)297-8486

Camping, Mountain Home place, Boating, Outdoor Recreation and Picnic

 Kentucky Folk Art Center

Morehead State University

Morehead, KY 40351

(606) 783-2204

The Kentucky Folk Art Center is a museum dedicated to traditional and contemporary folk art from the Appalachia region, including textiles, foods, and performing arts.

D. Healthcare

Although Elliott County is healthy in terms of low rates of diabetes and good physical activity, it ranks 83 rd in the state of Kentucky’s comparative assessment of health risk. The ranking is relative to Kentucky’s 120 counties from 1 (best) to 120 (worst). Major health challenges contributing to this ranking include high obesity, high smoking rates, and numerous cases of lung/bronchus and colorectal cancers.

Access to healthcare in Elliott County includes the health department and one family medicine practice, the St. Claire Regional Medical Center of Elliott County, both located in

Sandy Hook. There are three dentists providing care in Elliott County, and three pharmacists are located in the county. For additional care, residents are in close proximity to services in Grayson, West Liberty, and Morehead.

Hospitals/Medical Centers near Sandy Hook, KY 21

 MORGAN COUNTY ARH CRITICAL ACCESS HOSP

(about 14 miles; WEST LIBERTY, KY)

 ST CLAIRE MEDICAL CENTER

(about 23 miles; MOREHEAD, KY)

 PAUL B HALL REGIONAL MEDICAL CENTER

(about 31 miles; PAINTSVILLE, KY)

Health Statistics 22

Persons enrolled in Medicare, July 2003

Total Births per 100,000 July 2005-July 2006

Total Deaths per 100,000 July 2005-July 2006

Infant Deaths per 1000 live births 2000-2003

860 (630 elderly, 230 disabled)

30.29

43.47

10.4

21 http://www.city-data.com/city/Sandy-Hook-Kentucky.html


The following table of health indicators is found in the Kentucky Institute of Medicine’s The

Health of Kentucky: A County Assessment on page 59.

Health Indicators 23

Behavioral/ Social Factors

Prevalence of Smoking (percent adult population)

Prevalence of Youth Smoking (percent high school students)

Prevalence of Obesity (percent adult population)

Lack of Physical Activity (percent adult population)

Oral Health (percent adults missing 6 or more teeth)

Motor Vehicle Deaths (per 100,000,000 miles driven)

Violent Crime Offenses (per 100,000 population)

Drug Arrests (per 100,000 population)

Occupational Fatalities (per 100,000 workers)

Demographics

High School Graduation (percent adults 25 or older)

Per Capita Personal Income

Population Age 65 or Older (percent)

Health Access

Uninsured Population (percent under age 65)

Primary Care Physician to Population Ratio (1:3,500)

Adequacy of Prenatal Care (percent pregnant women)

Immunization Coverage (percent children 19-35 months)

Health Outcomes

Low Birth Weight (per 1,000 live births)

Infant Mortality (per 1,000 live births)

Infectious Disease (per 100,000 population)

Prevalence of Diabetes (percent adults)

Limited Activities in Previous Month (percent adults)

Cardiovascular Deaths (per 100,000 population)

Cancer Deaths (per 100,000 population)

Total Mortality (per 100,000 population)

Premature Death (years lost per 100,000 population)

Cancer Death Rates (per 100,000 population)

Lung/Bronchus

Colorectal

Breast

Prostate

23 www.kyiom.org/healthy2007a.pdf

7

12

2

5

48

313

251

970

6,576

County

33

29

35

21

40

1.3

303

1,581

0

State

29

25

29

32

37

2.1

267

1,046

8

53 72 80

$15,392 $27,625 $33,689

13 11 13

18

0.0

86

81

15

2.5

85

80

16

3.7

75

81

99

32

23

28

8

7

8

9

28

409

237

987

9,111

80

23

27

33

8

7

23

7

19

326

202

842

7,562

Nation

21

23

24

24

33

1.5

469

700

5

55

20

26

28

E. Housing

In 2007, the median home price in Elliott County was $64,904, an increase from the

$43,700 medium home price recorded in the 2000 U.S. Census. 2,732 households were reported in 2008, with an average household size of 2.66 and the 2008 median household income being $24,801.

Housing Statistics 24

Median Household Income, 2008

Number of Households, 2008

Housing Units, 2007

Average Household Size, 2008

Average Number of Vehicles

Median year householder moved in

Median year structure was built

Median Home Price, 2000

Median Home Price, 2007

Home Ownership Rate, 2000

Average Number of Rooms of owned houses, 2000

Housing Units in Multi-Unit Structures, 2000

Percentage of renters

Average Number of Rooms of Rented Units

Rent As % of Household Revenue

Fair Market Rent for a 1 BR apartment, 2006

Median Rent, 2000 Census

Median Rent Asked for Vacant Units

Median Monthly Cost with Mortgage for Homes/Condos, 2000

Median Monthly Cost without Mortgage, 2000 Census

Median price asked for vacant for-sale-houses, 2000

Housing Units Lacking Complete Plumbing Facilities

Housing Units Lacking Complete Kitchen Facilities

F. Government

In the 2008 U.S. Presidential Election, Elliott County favored the democratic

$24,801

2,732

3,269

2.66

1.32

1997

1973

$43,700

$64,904

82.3%

5.73

4.6%

18%

4.79

32%

$378/month

$148

$259

$555

$220

$26,300

8%

8% candidate, with 61% voting for Obama. This is consistent in terms of political party with the

2004 U.S. Presidential Election, when 69.8% of voters selected Democrat John Kerry and

24 Data was taken from website Epodunk, CityData, and Thinkkentucky

29.5% voted for Republican George W. Bush. The state legislators for the area are

Representative Rocky Adkins (D) and Senator Walter Blevins (D).

Government Indicators 25

Number of Voters in 2008 Presidential Election



Obama/Biden (Democratic)



McCain/Palin (Republican)



Other

633

61%

36%

3%

Median Real Estate Taxes, 2000 Census

Government Expenditures, Fiscal Year 2004

Federal Government Expenditure

Department of Defense Expenditure

$291

$34,231,000 or $5008 per capita

$127,000

Federal Direct Retirement and Disability Payments

Federal Other Direct Payments to Individuals

Federal Direct Payments Not to Individuals

$13,587,000

$6,042,000

$172,000

Federal Grants

Federal Procurement Contracts

Federal Salaries and Wages

Federal Government Loans

Federal Guaranteed/insured Loans

Federal Government Insurance

$13,784,000

$134,000

$513,000

$80,260,000

$74,000

$770,000

Kentucky

Elliott Co.

Carter Co.

Morgan Co.

Local Government Indicators 26

Local Government

Employment

General

Revenue per

Capita

Property Taxes as a Percent of

Total Taxes

168,339

284

1288

550

$2,136

$1700

$1510

$1874

54.9%

79.1%

62.1%

66.0%

Debt

Outstanding per

Capita

$4,881

$1156

$1300

$507

G. Leadership a. Federal Leadership



Mitch McConnell

U.S. Senator

London, KY 40741

25 Data was taken from Washington Post

26 http://www.census.gov/prod/2008pubs/07ccdb/tabb13.pdf



Jim Bunning

U.S. Senator

Hazard, KY 41701



Hal Rogers

U.S. Representative

Somerset, KY 42501 b. State Leadership



Rocky Adkins

State Representative




Walter Blevins

State Senator

West Liberty, KY 41472 c. Elliott County Elected Officials



David Blair

Judge Executive




Reeda Ison

County Clerk



Lovell Mayse

Property Valuation Administrator (PVA)



John D. Lewis, Jr.

County Attorney




Ronnie Stephens

Elliott County Sherriff



Jason Ison

County Circuit Clerk



Charlie Howard

County Jailer



Mark Lewis

County Coroner

H. Public Safety

Number of Reported Criminal Offenses in Elliott County, By Type, 2004 27

Murder

2004

0

2007

0

Rape

Robbery

Assault

Burglary

1

1

8

18

0

0

3

31

Larceny

Auto Theft

10

4

8

4

Arson 3 2

Total 45

Source: Kentucky State Police, Crime in Kentucky Annual Report, 2004, 2007.

48

Kentucky Office of Highway Safety Statistics, Elliott County, 2008 28

Alcohol Collisions

Injury Collisions

3

CMV Collisions

Motorcycle Collisions

Speed Collisions

Total Collisions

Total Fatal Collisions

Total Injury Collisions

Source: Kentucky Office of Highway Safety, Stats by Year

2

3

2

115

2

22

Total Collisions

13

4

5

3

I. Transportation

The primary means of transportation in Elliott County is by automobile. The mean number of vehicles per household is 1.32. The graph below categorizes the most common modes of transportation to work in the county. The majority, 66%, drove a car alone to work, while carpooling was also prevalent, 26%.

There are no railroads in Elliott County, and no formalized public transportation systems (i.e. city bus, subway). KY-7 and KY-32 are the state highways serving Elliott

County, each of which is currently under construction and renovation.

27 http://www.kentuckystatepolice.org/pdf/crimefacts2004.pdf

http://www.kentuckystatepolice.org/pdf/cik_2007.pdf

28 http://highwaysafety.ky.gov/tr_county_year.asp?Q_COUNTY_NAME=ELLIOTT&Q_YEAR=2008&Submit=Submit

Left: 29 Methods of Transportation to work in

Elliott County, KY



66% Drove a car alone (1,395)



26% Carpooled (557)



1% Bus or Trolley Bus (11)



2% Walked (37)



1% Other Means (21)



4% Worked at Home (88)

The average travel time for commuting workers in Elliott County is 49 minutes. In the

2000 Census 2,021 workers reported employment away from home (Economic

Development Intelligence System). 342 workers traveled over 90 minutes to work; this figure would encompass those individuals who profited from the jobs created by the Toyota

Motor Manufacturing of Kentucky facility in Georgetown, KY.

Working Commuters Statistics, 2000 Census 30

Travel to Work

Worked in State/County of Residence

Worked in State/County Outside of Residence

Worked Outside State of Residence

Commuters

751

1,079

279

Percent by Residence

35.6%

51.2%

13.2%


30 https://edis.commerce.state.nc.us/docs/countyProfile/KY/21063.pdf

Economic Development Inventory

VII. Economic Development Inventory

A. Number of Businesses

Elliott County Businesses By Industry (NAICS), 2006

NAICS Code Description

23

44

48

52

Construction

Retail Trade

Transportation & Warehousing

Finance & Insurance

54

62

72

81

Professional, Scientific & Technical Services

Health Care and Social Assistance

Accommodation & Food Services

Other Services (except public administration)

99 Unclassified establishments

Total Establishments in 2006 = 50

Local Businesses/ Total Private Industry Establishments in 2007 = 63 http://censtats.census.gov/cgi-bin/cbpnaic/cbpsect.pl

2007 Establishments Source: Economic Development Intelligence System County Profile

4

6

1

5

4

3

6

Total

Establishments

6

15

B. Business Tools

A key strategy for economic development is to have means of encouraging business development. This ranges from information services for new small businesses to incentives that attract established businesses to relocate in the area. Development projects which sustain and expand existing local firms are also important. These strategies are crucial to improving and sustaining a healthy local economy. Each development objective is unique to its community

(i.e. to encourage entrepreneurship vs. attracting large businesses, or a mix of objectives). The twelve basic tools central to business development include: one-stop centers, start-up and venture financing companies, small business development centers, women’s enterprises, group marketing systems, promotion and tourism programs, research and development programs, incubation centers, micro-enterprises, technology and business parks, enterprise zones, and entrepreneur development courses.

1. One-Stop Centers – Usually housed in local government, one-stop business centers offer a central location for information and advice a liaison between local businesses and government.

Businesses can consult the centers for information about planning and development in the community, labor market statistics, building regulations and permits and finance among other things. No one-stop centers currently exist in Elliott County, however an active Chamber of

Commerce does exist and could potentially assume this role.

2. Financing Opportunities – The majority of current economic development efforts in Elliott

County have been dependent upon grants and donations. a. Economic Development Grants

Below is some of the list of grants that currently in progress and will be in the future.

Trail Project ( July 2007-June 2008)

The work consist of construction of new trails, maintenance of existing recreational trails, provision of features which facilitate the access and use of trails by persons with disabilities.

New trails will be loops and spurs that connect to the existing Laurel Gorge Hiking Trail. The project creates network of educational and recreational trails in the area of Laurel Creek in

Elliott County. A short hike and a beautiful float down the Little Sandy River to the Marina on

Grayson Lake connect the nature enthusiast to more hiking trails.

Elliott County Recreation Area (since February 2008)

The grant expand Elliott County recreation area, that work consists of trenching one side of roadway 4’ wide and 3” deep, Speed Bumps, Crosswalk Thermoplastic Marking, 4’ x 2’

Bicycle only Thermoplastic Markings, Signs, Treated wood posts, and Roadway Striping with total cost $189,155.00 based on 5280 Ft length area.

TEA 21 the Laurel Gorge

This grant is for maintaining and improving the Laurel Gorge, such that for lighting, parking lot for bicycle shelters, 50 security lamps at the Laurel Gorge, walking trail, and also for building new bathroom.

Flex-e Workshop grant

The goal of this project is to expose Elliott county leaders to successful rural communities through workshops. The grant worth $9,730 matches with Elliott County $4,500 with total cost is $14,230. Phase 1 – three to four days of inspirational community development professionals teaching local people about places similar to Elliott County that have been successful in creating the vision they had for their communities. Phase 2 -

After Becky’s workshop, ten-twelve people will participate in an Eastern North Carolina Study tour that will include four of the towns from Becky’s case study group. They will talk with the “spark plugs” that kept the initiative alive. They will learn what worked, what didn’t; they will learn how to handle and the power of positive thinking. Phase 3 - University of Kentucky

Community Planning Specialist, Lori Garkovich will spend three days with the group creating a long range plan that will carry Elliott County into and beyond the year 2020.

Below are the schedules:

February & March

April 3

– 7

May

June

Becky Anderson workshop

Study Tour to North Carolina

Community engagement meetings

Lori Garkovich long range planning meetings.

Arts Build Communities (since 2008)

The grant worth $10,000 and it last for 24 month’s period. The goal of this project is to bring in accomplished authors of personal narratives and creative/expressive non-fiction to teach an interested group of people to write so that others will read. Once the skill of writing is

captured Kentucky Story tellers will teach the group how to present personal experiences, traditional tales, and creative non- fiction so they will be fun, interesting, and educational to anyone listening. Once the skill of writing and story telling is captured by the group, participants will have opportunities to use their new skills for entertainment and education of tourists who visit the area to experience the Appalachian culture.

b. Business Financing Opportunities

1) Venture Financing Companies - Alternative sources of capital lending for business startup and expansion



Appalachian Development Alliance (ADA) eight business lenders of Appalachian

Kentucky merged to form the ADA. Each lending organization assists businesses by offering technical assistance and a revolving loan fund. The organizations themselves are funded by private and/or public sources. In its years of operation,

ADA has leveraged $55million and created or retained 265 jobs. ADA offers large project loans, s tructured finance loans based on the member’s portfolio value, and

Agriculture Diversification Loan and a Value-Added Wood Products Guarantee

Program.



Mountain Association for Community Economic Development (MACED)

MACED is a venture financing group that works with Appalachian communities to provide capital and technical assistance to individuals, businesses, and communities. The company offers a variety of loans and other financing opportunities and also researches public policy, advocating for Appalachian communities. Additionally, MACED designs and implements innovative development tools for these communities and the region. The maximum loan size is $300,000.

o Small Loan Program – Small business and start-up financing; less than $35,000 o Natural Assets Lending Strategy – Designed for businesses supporting sustainable natural resource development and protection o Community Critical Care Lending Strategy – For businesses with an emphasis in health care, community service, child care, and elder care o Cultural Assets Lending Strategy – For businesses promoting the culture of Appalachian communities: art, music, and heritage tourism o Technical Assistance Loans – Low-interest loans to be used for technical assistance o Common Cents Financial Initiative – Alternative to payday advance loans to help customers break the “cycle of debt”



Human/Economic Appalachian Development Corporation (HEAD Corp .)

HEAD Corp. offers financing and technical assistance to small and mid-sized companies during startup and expansion. The firm ’s mission is to encourage, organize, and implement community development projects. It acts as a “onestopcenter” for businesses in Appalachian Kentucky. Most HEAD projects range from $200,000 to $2.5 million. o Long-term working capital needs for inventory, receivables, and other operating needs o Equipment to expand production capacity or increase operating efficiency o Land and building costs when conventional bank financing alone is not sufficient to cover expenses o Short term financing needs that cannot be met by other lenders c. Public Funding Opportunities



Appalachian Regional Commission (ARC) federally funded program that serves the Appalachian region in public infrastructure, human resource development, and business development projects. Elliott County is in Kentucky’s FIVCO Area

Development District. The development districts provide public funding for projects through the revolving loan program.

o FIVCO Area Development District Revolving Loan Program –

These loans are to be used as supplemental sources of capital, not as a substitute of conventional lending. The maximum loan amount per applicant is $150,000 and can be used to purchase land/buildings, construct new or renovate existing structures, purchase machinery and equipment, and provide permanent working capital.



Kentucky Business Incentives The state offers a variety of incentive programs for business attraction, retention, and expansion. The Kentucky Industrial Development

Act and the Kentucky Rural Economic Development Act are two examples of programs, each offering tax incentives for businesses. A list of the state’s business incentive programs and their descriptions can be found at http://www.thinkkentucky.com/kyedc/pdfs/kybusinc.pdf.

3. Small Business Development Centers – The Kentucky Small Business Development

Center network includes 15 locations throughout the Commonwealth. The KSBDC, cosponsored by the U.S. Small Business Administration, provides assistance for startup and existing small businesses. Services include one-on-one management consultations, educational training programs, and a library of resources. Each office also offers training courses on issues such as starting a business, recordkeeping and women and minority business issues. The KSBDC also offers online training courses aimed at developing and enhancing entrepreneurial skills.



Morehead State University- Ashland SBDC

Ashland, KY 41101

(606) 329-8011 o Successful Business Info o Training Courses:

 Pre-Business Orientation

 Basic Recordkeeping

 Women & Minority Business Issues o Online Training

 Over 25 free training courses to develop and enhance entrepreneurial skills at own pace, according to own schedule o Library of Resources o Consulting Services

4. Women’s Enterprises – organizations formed with intentions of providing an information network for women entrepreneurs and/or small business owners.



None specific to (local) Elliott County



East Kentucky Women in Leadership



Kentucky Foundation for Women o Grants for travel, research, entrepreneurship o Artist enrichment & art meet activism



Women in Agriculture

5. Group Marketing Systems- situations when several self-employed individuals or companies assemble to share marketing and distribution activities.



None currently exist in Elliott County (no co-ops)



FEAT: Eastern KY Foothills Eco-Agri-tourism Corporation FEAT was designed to assist farmers and landowners in tobacco dependent Greenup, Carter, Elliott,

Menifee, Morgan and Wolfe counties to create Eco/Agri-tourism businesses on their farms. FEAT and the Appalachian Regional Commission are working together to identify marketable goods and resources in these five counties, and to develop marketing strategies for the assets. Once the FEAT program is more established it will be a good example of a group marketing system.

6. Tourism & Promotion Tourism can enhance the economic development efforts of a rural area if it is well planned and managed.



Elliott County Tourism Development Council established in 1992 to evaluate the county’s resources and limitations, and to design a plan to attract visitors to the area.

Through the council the Laurel Gorge Cultural Heritage Center was constructed in an effort to attract visitors to the gorge while educating them on the culture and history of Elliott County.



Kentucky Quilt Trail Driving Tour- Large quilt squares are hung on barns across

Kentucky to represent the family farm culture and tradition of the state. 70 squares embellish Elliott County’s barns and buildings. Maps of the driving tour are available at local tourist centers throughout the commonwealth.

7. Research & Development community investments made to develop infrastructure which supports new technological firms.



West Liberty Campus (Morehead State University)- Elliott County’s resource for entrepreneurial help with patents, technology and innovation

8. Incubation Centers – usually through an application process, clients are selected for assistance with business development and support. The incubator provides initial support resources with intentions that the business will “graduate” to be successful on its own.



Morehead State University Regional Enterprise Center

West Liberty, KY 41472

(606)743-4005



Eastern Kentucky University Center for Economic Development

Entrepreneurship and Technology (CEDET)

Richmond, KY 40475

(859) 622-2334

9. Micro-Enterprises- groups of small loans for borrowers in the same industry in a community

(small, labor-intensive businesses)



Mountain Association for Community Economic Development (MACED) o FIELD: Microenterprise Fund for Innovation, Effectiveness, Learning and Dissemination MACED works with the national project, FIELD, to promote best business practices for Microenterprises. FIELD is a project of the Economic Opportunities Program housed at the Aspen Institute in

Washington DC, and seeks to educate funders, policy makers, and others about anti-poverty strategies through microenterprise.

10. Technology and Business Parks areas of concentrated commercial activity



One industrial park exists in Elliott County, created through the Kentucky Industrial

Development Act, however the park never established due to lack of infrastructure in the area. The initial constraint was a lack of city sewer system which has recently been established, the road systems still remain unattractive for industrial and manufacturing firms.

11. Enterprise Zones- areas with limited planning and zoning controls where incentive packages are offered to prospective developers and occupants. The commonwealth has the

Kentucky Enterprise Zone Program, established in 1982; however Elliott County is not a participating area for this business tool.

12. New Entrepreneur Development Activities



Kentucky Entrepreneurial Coaches Institute – implemented by the University Of

Kentucky College Of Agriculture and the Cooperative Extension Service, and funded by the Agricultural Development Board and the Governor’s Office of Agricultural

Policy. The program seeks to build rural entrepreneurship in Kentucky’s 41 tobacco dependent counties. Local leaders are designated as “Entrepreneurial Coaches” to guide local entrepreneurs and strengthen the entrepreneurial infrastructure and culture of the area. There are 4 coaches in Elliott County to assist county entrepreneurs in the processes of visioning, financing, etc …

C. Workforce Development

Information on state and regional technical and community colleges, and technical schools

(ATCs) can be found above in section VI A. Education.



Kentucky Department for Workforce Investment serving a mission to connect

Kentucky to employment, workforce information, education and training. http://workforce.ky.gov/index.htm o Office of Employment and Training o Office of Vocational Rehabilitation o Office for the Blind o Office of Career and Technical Education o One-Stop Career Center

 Ashland, KY (606) 920-2024

 Morehead, KY (606) 784-7538

 Maysville, KY (606) 564-3347



Bluegrass State Skills Corporation - established in 1984 to encourage economic development through customized business and industry specific skills training programs. The BSSC works with the Kentucky Cabinet for Economic Development to establish skills training for businesses and industries through Kentucky’s educational institutions. The BSSC also has a grant program available to new, expanding, and existing business and industry for training activities.



Kentucky Adult Education Center o Elliott County Adult Education Center

Sandy Hook, KY

(606) 738-5796

Free Services available through KY Adult Education include:

* GED Preparation

* Career Planning

* Adult Basic Education

*Job Application

* Career Counseling

* Interview Skills

* Vocational and ACT Preparation

* Resume Development

* Family Literacy

* Computer Skills

* Job Readiness Testing

* Job Search Skills

* Work Keys

* Employability Skills

* Corrections

* Kentucky Employability Certificate

* Life Skills Classes

* Transition to College

D. Industrial Parks

* Workplace and Leadership Teambuilding Classes

Elliott County has one industrial park- no firms have established there



Road of Access: Interstate 64 exit 123, 51 miles East via KY-32/KY-7



Closest Commercial Airport: Tri-State Airport, Huntington, WV, 46 miles



No rail access



Utilities: broadband access, electricity, sewer and water supplies

E. Transportation 31

31 http://transportation.ky.gov/planning/maps/SPRS/cnty%20maps/elliott.pdf

As shown in the above image, Elliott County has a few state highways providing transportation routes and several county roads.

State System



KY 7



KY 32



KY 173

State highway 32 is currently under construction and improvement. Details of the six-year highway plan for Elliott County renovations by the Kentucky Transportation Cabinet are given in the following chart 32 .

32 http://transportation.ky.gov/progmgmt/2002-syp/clinton_grayson.pdf

F. Infrastructure

Utility Service Provider Average

Electric

AEP-Kentucky Power Company

East Kentucky Power Cooperative

Grayson RECC

Licking Valley RECC

Natural Gas

Sewer

Water

Sandy Hook Sewer Department 185,000 gallons per day

Sandy Hook Water District 174 gallons per day

G. Technology Broadband internet access is available across Elliott County.

33

33 www.connectkenctucky.org

CONCLUSIONS

AND

RECOMMENDATIONS

VII. Conclusions and Recommendations

A. Conclusions

Elliott County is a progressive county with several development efforts underway.

The asset-based development project which encourages eco-tourism and emphasizes the area’s culture and arts has high potential. Once fully established, the Eastern Kentucky

Foothills Eco/Agritourism Corporation will serve as a group marketing system for those five counties including Elliott County. FEAT will facilitate the marketing efforts of the county by highlighting the region as a whole yet still preserving the culture and heritage of Elliott

County. The Kentucky Quilt Trails Driving Tour has attracted visitors and is marketed as a statewide tourism opportunity. Tourism efforts bring people into the community and serve as one outlet for economic development.

The Little Sandy Correctional Complex opened in 2005 and has provided several job opportunities for the local citizens. The main employment industry of the community is agriculture with many households having additional off-farm employment in the service industry, construction, and trade jobs.

Due to the tobacco buyout the county, once dependent on the tobacco industry, is under transition to new forms of income. Agricultural diversification and agri/eco-tourism have been the main focuses in the move away from tobacco. Elliott County strives to preserve its culture and heritage in agriculture, tobacco, and the arts through exhibits such as the Kentucky Quilt Trail and the Laurel Gorge Cultural-Heritage Center.

In 1999 Elliott County was adopted by the University of Kentucky Landscape

Architecture department to develop a plan for its future. As a result, the 2000 Heritage Plan was created and now serves as a guide for Elliott County development efforts. The projects

encompassed by the plan highlight the asset-based development opportunities for the community. The Elliott County Tourism Development Council is actively seeking funding to make these projects a reality.

B. Recommendations

1. Encourage community and local government participation and maintain communication lines regarding projects. Such that continue to assign an economic development strategic planning team with member from locally elected officials, economic development extension agent, secondary and post secondary education, recreational officials, and other communities’ member.

2. Elected officials and community leaders need to work across county and state lines to remove political barriers that have inhibited growth in the past. This becomes more important because of the lack of funding in the area. Although this cooperations seems to have started (e.g. county is now working with other Kentucky counties and Appalachian States to create the “Appalachian Clothesline of Quilts” a driving trail emphasizing cultural skills) there are a lot of things to be done. This cooperation could help both Elliott County and the neighboring counties achieve competitive advantage and increase the potential budget and become more appealing to tourists and investors.

3. Continue to collaborate with other counties in the region to promote “group marketing” of the area. Once established, FEAT will be a successful means of group marketing, and given its success other industries could model regional marketing strategies off of the eco/agri-tourism example.

4. Market Arts & Crafts Heritage

– tourism is one means of generating income in a community, however since the tourism is mostly natural resource-based, the sale of regional goods and products is very important. a. Downtown shops to buy local art (souvenirs for tourists)- a cluster of arts and craft shops could be established downtown to sell local products and creations from the area’s artisans. b. Work in conjunction with Kentucky Folk Art Center located in Morehead

– the center highlights the folk art of Elliott County-raised Minnie Adkins, so it would be an easy outlet to promote “Come see Minnie’s hometown” and other artists of the area. c. Scenic Byways- movements are in place to designate Elliott County roads as scenic byways, so encouraging entrepreneurial activities along those highways could be one method of generating local revenue. For example, local farmers could sell their products (or even value-added products: jams, jellies, sauces) by advertising along the scenic highway. The same idea could be established along the Kentucky Quilt Trail- maybe those individuals displaying quilt trails have a special talent or hobby which could be marketed.

5. Tourism is only one facet of development, the county should be sure to diversify efforts to business and economic development. Entrepreneurial coaching and small business support are a start, but maybe incentives could be given for local citizens to open shops downtown (since family-owned businesses have been more successful than business recruitment).

6. Continue to encourage small business development and entrepreneurship. This can be done by organize an annual entrepreneurship contest and awards the winners for student and/or member of community. Also manage a summer entrepreneurship workshop to teach high school and college students about organizing, owning, and operating new business ventures.

7. Establish One-Stop Business Center in community (Chamber of Commerce). To be one stop advice service for business, the center must contain information an all planning and development matters of interest and concern to businesses-local economic indicators and labor market statistics, local development plans, land availability, building regulations and permits, all aspects of finance, and other useful business information.

8. Improved transportation and creation of basic infrastructures, mainly for water, are also of major importance. Those two factor combined can make the county more appealing to possible businesses

VI. Quality Of Life Indicators - UK College of Agriculture

Final Project of

AEC 653 Local Economic Developments

Economic Development Report

April, 2009

Written by

Devie Poerwanto and Kelly Davidson

Table of Contents

I. Executive Summary

II. Introduction

III. Background

IV. Economic Analysis

V. Economic Development Analysis

VII. Economic Development Inventory

VIII. Conclusions and Recommendations

I. Executive Summary

INTRODUCTION

II. Introduction

BACKGROUND

III. Background

ECONOMIC ANALYSIS

Historical populations

Population Change

Total Population

Population by Selected Age Groups, 2008

Population by Race and Hispanic Origin, 2008

* 8. Proprietors' income includes the inventory valuation adjustment and the capital consumption adjustment.

ECONOMIC DEVELOPMENT ANALYSIS

Analysis of Employment Changes

QUALITY OF LIFE INDICATORS

VI. Quality of Life Indicators

Economic Development Inventory

CONCLUSIONS

AND

RECOMMENDATIONS

Related documents

Add this document to collection(s)

Add this document to saved

Suggest us how to improve StudyLib