Statement of Joy Padgett, Director
Ohio Governor's Office of Appalachia
Testimony before the Transportation and Infrastructure
Subcommittee of the Committee on Environment and Public Works
August 8, 2000
Nelsonville, OH

Good morning, my name is Joy Padgett, Director of the Governor's Office of Appalachia (GOA). I appreciate the opportunity to testify before you as Governor Bob Taft's State Alternate. Governor Taft sends his regrets for not being able to attend personally; however, he had this entire week scheduled for almost a year.

I would like to welcome you Chairman Voinovich and members of the Subcommittee to Appalachian Ohio. We appreciate that you chose Nelsonville to serve as the site for this hearing as it truly symbolizes the struggling communities in Appalachian Ohio that once were thriving, bustling centers of transportation, mining, manufacturing and industry. The resiliency of these communities is self-evident as local residents are learning that solutions to meaningful change must be initiated locally.

In my testimony, I would like to focus on an overview of the Governor's Office of Appalachia, the socioeconomic status of the Appalachian Region of Ohio, and the cultural uniqueness that exists here.

OVERVIEW OF GOVERNOR'S OFFICE OF APPALACHIA

The Ohio General Assembly created the Governor's Office of Appalachia (GOA) in 1988. The mission of GOA as it always has been is to promote opportunities to achieve an improved quality of life for the people of the Appalachian Region of Ohio. I am very proud to have previous directors here who have mentored me throughout this past year.

The GOA manages the federal ARC dollars and state matching dollars. It serves as an advocate for the region by developing policy in conjunction with other state agencies and it promotes specific projects and proposals that originate from the region's residents.

The state of Ohio can only be as strong as each of its counties. Realizing the validity of this statement, Governor Taft put forth a plan in conjunction with the ARC to further development opportunities. Some actions include:

· Encouraging a holistic approach in dealing with the distressed counties by asking each state department head to work with the GOA as they re-examine their missions in relation to the special needs of the distressed counties as well as across the Appalachian Region. · Matching the federal ARC dollars with state dollars. Sixty percent of the Ohio match is targeted to distressed and at-risk counties to further the ARC goals and to provide planning grants that are largely focused on distressed communities. · Adding a Community Development Specialist to each of our Appalachian Regional offices. This will provide more hands on technical assistance for building community capacity. · Encouraging philanthropic investment in the Appalachian region by providing a one million dollar challenge grant to the Appalachian Foundation. This is a dollar for dollar match grant. · Appointing a Rural Revitalization Task Force that has completed its hearings and is working with the Governor's staff to develop a prioritized list of recommendations from throughout the region. This has been an excellent opportunity for folks to come together to identify regional issues and to offer solutions. A final report is due in September.

Just as Dr. Jesse White described the unique partnership between the federal government and the 13 states, GOA accomplishes its mission through communication, cooperation and collaboration with the three Local Development Districts (LDDs), the three Governor's Regional Economic Representatives, the Ohio Department of Development and other state agencies to aid local efforts in the five ARC goal areas including: 1. Education 2. Physical Infrastructure 3. Community Capacity 4. Dynamic Local Economies and 5. Health Care. Representative Nancy Hollister will describe in her testimony the history of ARC's involvement in Ohio since 1990 and discuss projects within each of the goal areas.

I cannot stress enough the strong relationships and partnerships that have evolved into our T.E.A.M. approach of Together Everyone Accomplishes More.

OVERVIEW OF APPALACHIAN OHIO

Due to our limited time today, I have attached a few documents describing Ohio's Appalachian region. The first is from Ohio's Fiscal Year 2001 State Strategy Statement detailing the socioeconomic status of the Appalachian region. The second provides a snapshot of the status of our distressed counties and the final document outlines Ohio's progress on the Appalachian Development Highway System.

With a population of 1.5 million (based on 1998 population estimates), Appalachia Ohio represents only 13 percent of Ohio's total population of 11.3 million. The region, however, makes up one-third of the state's total geographic area. Of our 29 Appalachian counties stretching from Columbiana County in Northeastern Ohio to Clermont County in Southwestern Ohio, ten are considered distressed (Adams, Athens, Gallia, Jackson, Meigs, Monroe, Morgan, Pike, Scioto, and Vinton.) Six counties are considered at-risk of becoming distressed within the next year including Belmont, Guernsey, Harrison, Lawrence, Noble and Perry counties.

CULTURAL UNIQUENESS

As Director of the GOA, my personal number one goal is to shatter the misguided perceptions that Appalachia as a region cannot thrive economically.

A step back into the cultural history of Appalachian Ohio shows that during the late 1700's until the 1870's, migration through the Cumberland Gap into Southeastern Ohio occurred in small numbers of people that did not settle into towns or communities but on mountains and near streams, therefore there was not an early-on structured religious tradition or organized school system. This created a lack of generational knowledge of institutions which is still an influence particularly in communities where only a generation ago the coal companies controlled all structured activities including political, religious, health care, and educational activities. Only recently have remaining residents come to realize that decision-making requires their direct participation through visioning, leadership training, and community capacity building.

Building civic capacity is even more important in those communities where industries have left and eroded the tax base. From 1999 through 2001, we calculate that 5,667 direct jobs or 22 percent of the total manufacturing employment in ten of our 29 counties will be lost. Please refer to the "Job Loss Chart" at the back of your packets.

Folks in many of these communities believe it is not even remotely possible to make life better. Often as I travel and listen, people are surprised when I respond that we have programs to teach them "how to fish". Recently, I met with five mayors from small communities on the Ohio River to talk about untapped opportunities. By 9:00 a.m. the next morning, two of them had called and are now "rollin' on the river". More will follow them.

ARC is about hands-on facilitation. Many communities have difficulty with the 20% or more match. We are working creatively to make sure that the old adage of "where there is a will, there is a way". ARC provides the gap financing that leverages other resources. This financing often makes the difference as to whether a project is first doable, but secondly sustainable. Communities whose citizens have very high LMI (Low-to-Moderate Income) cannot afford operating and maintenance fees without significant up-front capitalization costs covered in the form of grants.

Senator, these people really do understand your slogan of "doing more with less". Appalachian Ohio represents citizens who work hard and play fair and yet have missed the rewards of a vibrant economy.

This may be the result of the extractive industries for which we are known. . .coal, oil and gas, and timber.

The ARC is providing opportunities for putting back much of what has been extracted. It is not about giving away fish, but teaching citizens of character how to fish.

The ARC five goal area structure assists communities who choose to do something about their problems. Later testimony will discuss the role of the Local Development Districts as they identify, assist, and trouble-shoot selected projects.

Our additional state funds will enable us to fund projects this coming year that have had difficulty making it to the top due to lack of dollars. Examples would include Community Health Access Program (CHAPs) demonstration project targeted at screening of diseases such as diabetes, high blood pressure, and cholesterol. Another example is a full-scale Appalachian Community Learning Program (ACLP) for community capacity building.

These are both high priority projects for me.

CONCLUSION

My major complaint about the ARC and the LDDs is that they refuse to claim their bragging rights. The good stories haven't been told nearly enough about the positive differences in so many places. I agree with Yogi Berra who said, "If you did it, it ain't braggin'!!!" The ARC has done a great amount of good for a great amount of people over a great amount of time. It is important that the unique relationships and partnerships that have been created continue.

Thank you, Senator Voinovich and others for the opportunity to tell the story.