Warren County improves economically

LISA HOBBS - News Editor

According to McMinnville-Warren County Industrial Development Board Executive Director Wendy Sneed, Warren has advanced from At-Risk to Transitional on the Appalachian Regional Commission’s index-based county economic classification system, which is one metric for tracking progress in rural communities.

"Warren County's designation as a Transitional County by the ARC is an encouraging sign that our community is moving in the right direction,” she stated. “This recognition reflects the hard work of our existing industries, local businesses, education and workforce partners, and community leaders who have worked together to strengthen our economy. We are growing an environment where businesses can invest, and people can build rewarding careers.”

 The ARC system designates each county as distressed, at-risk, transitional, competitive, or attainment by comparing each county's averages for three economic indicators - three-year average unemployment rate, per capita market income, and poverty rate - with national averages. 

Breaking it down:

·         Distressed – Worst 10 percent of counties nationally. These counties face the most severe economic challenges.

·         At-Risk – Between the worst 10 percent and worst 25 percent nationally. These counties are vulnerable to becoming distressed.

·         Transitional – Between the worst 25 percent and best 25 percent nationally. These counties are in the middle of economic change.

·         Competitive – Between the best 10 percent and best 25 percent nationally. These counties can compete in the national economy but are not among the strongest.

·         Attainment – Best 10 percent of counties nationally. These counties have the strongest economies in the region.

In Tennessee, there are 10 distressed, 20 at-risk, 54 transitional, 8 competitive, 3 attainment counties.

What sounds like good news for the community contains bad news for those who pursue those grants. This distinction is used to determine grant contributions – how much the organization or local government must contribute when a grant is obtained. As communities improve economically, the higher their contribution rate is.

A Distressed County’s required grant match is 20 percent, with ARC’s share being 80 percent. At-Risk counties pay 30 percent, Transitional counties pay 50 percent, and Competitive counties pay 70 percent.

“This marks only the second time since 2014 that Warren County has achieved a Transitional designation, having previously reached this milestone in fiscal year 2019,” said Sneed. “While the new designation recognizes economic progress, it also highlights the importance of continuing investments in workforce development, infrastructure, and job creation to ensure that every resident has the opportunity to benefit.”