NC’s Tier designations (Map: commerce.nc.gov)
A bill authorizing a study about how North Carolina’s 100 county’s are ranked based on economic well-being received a favorable report in the House Local Government Committee on Tuesday. House Bill 1044 has bipartisan support. It was referred to the House Appropriations Committee.
The rankings are especially important to the state’s low-wealth, rural counties because the data used to decide them determine eligibility for government funding and other assistance.
Currently, the state’s 40 most distressed counties are designated as Tier 1, the next 40 as Tier 2 and the 20 least distressed as Tier 3. Those designations are based on a county’s average unemployment rate, median household income, percentage growth in population and adjusted property tax base per capita.
Rep. Jake Johnson (Photo: NC General Assembly)
Jake Johnson, R-Polk, called HB 1044 “one of the most important bills” his colleagues have probably never heard about. Johnson is a primary bill sponsor along with House Democratic Leader Robert Reives.
There are more than 30 government programs that use the tier system to determine eligibility, Johnson said. Billions of dollars have moved through such programs since the tier system was established in 2007, he said. The tier system is incorporated into those programs to encourage economic activity in less prosperous areas of the state.
“What we saw during COVID over the past few years was some of the metrics that we were using were not accurately reflecting the rankings of those counties,” Johnson said. “That’s also difficult because there’s a cap on the amount of counties that can be in each rank. So what this bill would do is go back and look at what metrics we’re looking at, and how those affect those rankings.”
Johnson said the North Carolina Collaboratory at the University of North Carolina at Chapel Hill will look at how data is collected, how to ensure accuracy, then recommend adjustments. The Collaboratory will consult with the Department of Commerce, the Department of Health and Human Services and the Department of Public Instruction.
“If we’re going to be sending billions of dollars through this system, which we have, and we’ll assume continue to do, we’ve got to know whether it’s right on the front end,” Johnson said. “I think it’s a wise investment.”
HB 1044 calls for the study to focus on changing the criteria used to rank counties, changing the way in which tier designations are assigned and changing the time frame in which counties are ranked.
“I think this is a great bipartisan effort going forward to make sure that the money’s getting where it needs to go and counties are accurately reflected,” Johnson said.
Rep. John Torbett, R-Gaston, said it will be important for the working group to take a close look at counties that have both pockets of poverty and prosperity.
Johnson said the study will be thorough. “A lot of studies we do up here is a way to put things on the back burner,” he said. “I will say with with pretty good solid confidence this will result in a bill next year, whether that bills for better or for worse, it will be the result of this study.”
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