RURAL ILLINOIS: LOOKING TO THE FUTURE

Annual Report to the Honorable Rod R. Blagojevich, Governor and the Illinois General Assembly

Prepared by

Governor’s Rural Affairs Council Lieutenant Governor Pat Quinn, Chair and Illinois Institute for Rural Affairs Western Illinois University

2005

Member Agencies of the Governor’s Rural Affairs Council Department on Aging Department of Agriculture Department of Commerce and Economic Opportunity Department of Employment Security Department of Human Services Department of Natural Resources Department of Public Health Department of Revenue Department of Transportation Environmental Protection Agency Illinois Community College Board Illinois Development Finance Authority Illinois Farm Development Authority Illinois Housing Development Authority Illinois Institute for Rural Affairs Illinois State Board of Educations Rural Partners Southern Illinois University University of Illinois Extension

STATE OF ILLINOIS OFFICE OF LIEUTENANT GOVERNOR PAT QUINN

To: Governor Rod R. Blagojevich January 3, 2006 Senate President Emil Jones, Jr. House Speaker Michael J. Madigan Senate Minority Leader Frank C. Watson House Minority Leader Tom Cross Members of the General Assembly

As chairman of the Governor’s Rural Affairs Council (GRAC), I am pleased to submit to you our 2005 Annual Report. This report documents the Council’s commitment to strengthening the rural economy and improving education, transportation and human services opportunities in rural Illinois while providing a link between state and local government.

The past year offered both challenges and opportunities. The year began with extensive flooding along the Ohio and Wabash rivers, which I surveyed first hand at Metropolis and Mt. Carmel, advocating for effective water management practices. The late Senator Paul Simon suggested that the Rural Affairs Council address rural public transportation issues, and we accomplished this task with the passing of HB 2222.

In 2005, I joined with law enforcement agencies, community groups, and elected officials as we distributed more than 35,000 free child safety gun locks to firearm owners across the state as part of Project Child Safe. In an effort to promote the use of All American Energy with homegrown energy sources, I have joined millions of drivers who have discovered E85, a blend of fuel made with corn-based ethanol, which is cleaner, more economical and produced here in Illinois.

I traveled to Jacksonville and Carmi to salute the Laborer’s Home Development Corporation as a leading provider for affordable housing. The Laborers have also completed housing projects in Olney, McLeansboro, and other communities. Through the Rural Affairs Council, funding was provided for seven new Earned Income Tax Credit sites in Illinois--Aurora, Effingham, Kankakee, Karnak, LaSalle, Macomb and Quincy providing relief to working poor families and individuals.

As the chairman of the new Broadband Deployment Council established by executive order, we are addressing recommendations by the Rural Affairs Council and the Governor’s Broadband Task Force to find a solution to the digital divide in rural Illinois. The Rural Affairs Council most recently provided two $20,000 Wireless Main Street grants to the communities of Mt. Vernon and Quincy.

Rural progress cannot be achieved without hard work and entrepreneurship. The Rural Affairs Council stands side by side with rural families as we work together to improve the economy and quality of life in rural Illinois. For more information, please visit RuralAffairsCouncil.il.gov. Thank you for your interest.

Sincerely,

Pat Quinn Lieutenant Governor of Illinois The Governor’s Rural Affairs Council shall develop and implement a comprehensive strategy for improving delivery of state services to rural Illinois with the aim of expanding opportunities and improving the quality of life for rural residents.

Executive Order Number 1 (2000) George H. Ryan Governor

The Annual Report of the State of the Rural Illinois Economy shall assess rural economic indicators and make recommendations to the Governor and General Assembly on rural infrastructure needs.

Executive Order Number 13 (1991) Jim Edgar Governor

Copies of these Executive Orders are located in the Appendices. Table of Contents

Rural Illinois: Looking to the Future ...... 1 Demographic Trends ...... 3 Quality of Life in Rural Illinois ...... 5 Satisfaction with Public Services ...... 7 Issues Affecting the Future ...... 8 Increasing Access to High Paying Jobs ...... 9 Poverty ...... 13 Housing ...... 16 Transportation ...... 19 Clean Energy ...... 20 Strengthening Local Decisionmaking Capacity ...... 22 Health Care ...... 27 Information Technology ...... 29 Looking to the Future ...... 30 References ...... 33 Appendices ...... 35

Illinois is a diverse state with major cities, small towns, and open spaces. Illinois waterways, wetlands, forests, and prairies provide recreational opportunities, havens for wildlife, and preserve native species. The state’s farmers help to feed the nation and many of the goods manufactured in rural Illinois are used around the world. Rural towns and cities offer a high quality of life and are good places for Illinois families to raise children and for retirees to settle. Rural residents are building businesses and communities, and are preserving the values that built the nation. Rural Rural Illinois faces challenges; however, and has experienced major population, economic, and social changes in recent years, especially Illinois: following the economic recession in the early 2000s. More importantly, rural areas have had to respond to global, technological, and economic shifts that, in some cases, have eroded markets. These changes offer Looking opportunities for those areas able to take advantage of the changes. During the 1990s and early 2000s, rural Illinois lagged behind rural to areas in surrounding states in most population and employment trends including in its ability to retain elderly residents. Likewise, the number the of very young (less than 10 years) residents has declined more in rural Illinois than in adjacent states which may refl ect fewer employment opportunities for young families. Future Nevertheless, rural economies offer opportunities to promote overall statewide economic development especially in light of changing energy needs, expansions in bio-tech, and advancements in other industries. Rural areas also offer competitive advantages in some quality of life considerations. Metro areas are increasingly congested and place unsustainable demands on the environment and public services. Rural areas, on the other hand, can accommodate economic growth and development in a much more controlled and sustainable way. Housing prices, for example, are rising in some metro areas and have placed affordable high quality housing beyond the means of young families with low or moderate incomes. Jobs are often located far from affordable housing and may require long commutes. This, in turn, limits business expansions when suffi cient high quality workers are unavailable. Rural areas, on the other hand, offer affordable housing and high quality public services at acceptable tax levels with a short commute. The challenge facing policymakers is to understand the changes and development opportunities suffi ciently to formulate strategies that benefi t both urban and rural areas. Locally determined development strategies are crucial but state and Federal programs are an integral part of effective solutions that build on rural assets. Quality of life There is growing evidence that perceived quality of life has become is important more important when people evaluate places to live. During the 1990s, rural counties experiencing growth were those with tourist if rural areas attractions or were especially suitable as retirement destinations. are to retain In fact, national surveys reveal a stated preference by many respondents to live in less densely populated rural areas with less residents and expensive housing, high-paying jobs, and advancement opportunities businesses. (W. K. Kellogg 2001). Thus, statewide economic development strategies that recognize a need to attract high-paying employment opportunities to rural areas and foster a high quality of life make most sense and have a side benefi t of removing pressures on metro areas. For more than two decades, Illinois has made a concerted effort to understand rural needs and formulate policies to promote rural revitalization and development. A statewide Rural Initiative in 1986, following a major recession in the early 1980s, created the Governor’s Rural Affairs Council (GRAC) and the Illinois Institute for Rural Affairs (IIRA), located at Western Illinois University, to identify and coordinate public policies especially suited for issues facing rural Illinois. The GRAC and the IIRA are a central point of contact for part-time elected offi cials, volunteers, and development practitioners in rural areas to access state programs addressing development issues. They work daily with state agencies on programs that improve the quality of life in rural areas. The Rural Initiative also mandated that the GRAC, working with IIRA, prepare an annual report on the status of rural with policy recommendations to the Governor and the General Assembly. The 2005 annual GRAC report includes several sections. First, population and economic trends, including employment, are described briefl y to show changes in rural Illinois in recent years. Special attention is paid to recent data regarding rural residents’ perception of changes in the quality of life.

2 Governor’s Rural Affairs Council Second, an update on services and programs provided by the GRAC and member agencies to rural areas shows how state agencies have responded to rural concerns. Special attention is paid to results of collaborative programs coordinated by the GRAC. Third, issues that continue to plague rural Illinois are described with suggested policy recommendations to address these concerns. The issues described are a priority of the Governor’s Rural Affairs Council and will be addressed in the 94th Legislative Session as well as through programmatic efforts.

Demographic Trends Population changes. An examination of population trends illustrate the challenges faced by rural areas. During the 1990s rural Illinois (non-metro counties) lagged behind metro counties in population growth (1.1 percent versus 8.7 percent) partly because of declines in elderly (over 65 years of age) popu- lation and the young (less than 10 Figure 1. Population 1990-2004 years old). That trend has continued into the 2000s with the rural Illinois population growing an estimated 0.4 percent compared with 2.6 per- cent for metro counties between 2000 and 2004. Statewide, 28 counties, all rural and mainly in western Illinois and southeastern Illinois reported continuous population declines between 1990 and 2004 (Figure 1). Both areas depend heavily on agriculture as an economic base and neither has had major transportation access in the past. Preliminary forecasts show that these trends could continue in the near term. For instance, population forecasts between 2000 and 2010 for rural counties suggest 4.8 percent growth compared with 7.0 percent for metro counties. The forecasts further suggest that 16 rural counties scattered across rural Illinois will experience relative population declines at least until 2010. Counties in the west central and south central Source:Source: Institute for GovernmentGovernment and Public Affairs,Affairs, 2003. U.S. Bureau of the Census, 2004.

Annual Report to the Governor and General Assembly 3 regions are projected to have the slowest population growth. Northern Illinois is expected to have the most growth because of proximity to expansions in the Chicago suburbs. Additional insights into population shifts are gained by comparing the recent rate of population change with previous periods, namely whether population declines in the past decade were higher than in the previous two decades. Higher rates of decline suggest that economic conditions are worsening and additional programmatic attention may be needed. Across Illinois, eight counties had percentage population declines in the 1990s higher than the declines in the previous two decades. While this small a number is a positive sign, the counties are mainly in southeastern Illinois with a few counties in western Illinois. Income changes. Changes in per capita income also shed considerable light on the economic well-being or prosperity of rural Illinois. A comparison of changes in infl ation adjusted per capita income Figure 2. Per Capita Personal Income 1993-2003 between 1993 to 2003 shows that the vast majority of counties had increases but four counties, scattered around the state had declines (Figure 2). Counties with relatively slow infl ation-adjusted per capita income growth are mainly in eastern Illinois, southern Illinois, or along the Wisconsin border. A comparison of income changes from 1969 to 1999; however, shows that most counties in the lowest quartile of income growth are rural and mainly in west-central or southern Illinois. Employment changes. While many factors contribute to slow population growth and stagnant income changes, limited employment and economic development opportunities are especially important. Rural counties differ widely in unemployment rates with higher rates typically in southern Illinois (Figure 3). Counties in western Illinois with greater population declines have relatively low unemployment but with lower Source: U.S. Department of Commerce, Bureau of Economic Analysis, Local Area Personal Income, 1993-2003. wages. Downstate metro areas,

4 Governor’s Rural Affairs Council however, are clearly differentiated Figure 3. Unemployment Rate, September 2005 by lower unemployment rates, refl ecting better economic opportunities. Differences in population declines, per capita income changes, and unemployment may justify a targeted statewide economic development strategy to revitalize specifi c rural areas. This philosophy underlies the Opportunity Returns program managed by the Illinois Department of Commerce and Economic Opportunity. Specifi c programmatic efforts, building on local assets and regional strengths, are implemented. A recent focus on stimulating coal research and production in central and southern Illinois is an example as is the investment in 4- lane highways in western Illinois. These programmatic initiatives will do much to revitalize the regions affected and improve economic opportunities for urban and rural residents.

Quality of Life in Rural Illinois Source: Illinois Department of Employment Security, 2005. There is much evidence to suggest that the economic ties between metro and rural areas have increased in recent years. For example, the 2000 Census of Population showed that residents commute longer distances to work. This fi nding indicates that residents will trade longer commutes to work and shop for a perceived higher quality of life. Residents displaced from jobs in relatively remote rural communities have chosen to stay in those areas and commute to regional centers for employment. Perceived quality of life in rural areas, including satisfaction with public services, is important in understanding population trends in rural Illinois. In 1989, the Illinois Institute for Rural Affairs, working with the Governor’s Rural Affairs Council, started the Illinois Rural Life Panel (IRLP) to collect the views of rural residents on community or policy issues as a basis for recommending policy changes. The most recent IRLP (spring 2005) asked about perceived quality of life for both family and community since 2000 and about satisfaction with local public services.

Annual Report to the Governor and General Assembly 5 The 640 IRLP responses are briefl y described with special attention paid to the views of elderly residents, a group who seem to have migrated from rural areas in the 1990s contributing to the population declines. Overall, rural residents were not as positive about quality of life in their communities between 2000 and 2005 as in previous surveys. In the 2005 survey, only 16.2 percent reported that quality of life in their community had become somewhat or much better. Comparable fi gures for 1996-2000 were 25.6 percent. The responses for residents 65 years and older in 2005 were even lower with only 11.9 percent reporting that the quality of life in their community had improved (Figure 4). Figure 4. Quality of Life Age is an important factor in overall perceptions about changes in quality of life for family. Younger residents (25 to 54 years) reported the most positive perceptions, followed by pre-retirees (55-64), and then those 65 years and older. However, respondents between 55 and 65 years most often reported a worsening quality of family life and, for unknown reasons, the 55-64 year cohort was most pessimistic about the next fi ve years.

Source: Illinois Rural Life Panel Survey, 2005 Income levels are also important determinants of changes in quality of life for families. The wealthiest families ($50,000 and over) most often reported improvements, followed by other income levels in order of income level. Somewhat unexpected is that the highest income groups were more pessimistic about the future than the other income groups which all reported positive expectations. Respondents are more positive about changes in quality of life for their family with 27.4 percent reporting improvements during the past fi ve years. This response, however, compares with 38.7 percent between 1996 and 2000. A poorer economy is one explanation. Especially important, though, is that only 14.8 percent of elderly respondents reported improvements.

6 Governor’s Rural Affairs Council Changes in family fi nancial condition can help explain the responses as well. On average, 22.7 percent of IRLP respondents reported improved fi nancial condition from the previous year but many fewer (11.8%) of elderly reported this trend, substantially below the 16.7 percent in the previous period. Clearly, the elderly did not do as well during the early 2000s. Statewide, one in fi ve (21.2%) respondents expect quality of life to improve in their community during the next fi ve years. While 31.2 percent of respondents expected improvements in quality of life for their family, only 18.6 percent of elderly respondents are in this category. In summary, many elderly in rural areas face fi nancial pressures that may affect perceptions about expected changes for their family in the near future. Financial concerns as well as an increased need for health care services could contribute to decisions by elderly residents to leave rural areas. Access to public services Satisfaction with Public Services affects quality Access to, and availability of, local public services can infl uence residential location, and state programs affect the quality and of life. quantity of these services. GRAC member agencies are engaged in programs to coordinate and/or improve access to rural health care and public transit services for example. IRLP respondents rated satisfaction regarding local public services (Figure 5) with special interest paid to how quality of life for respondents had changed. The quality of public services, overall, was rated 3.18 where 5.0 means that residents are “very satisfi ed. Services with highest levels of satisfaction include libraries, parks and recreation, and education (K-12). Not surprisingly, respondents reported least satisfaction with availability of entertainment, public transit/transportation, and retail shopping. Respondents also reported dissatisfaction with the overall responsiveness of state agencies to local requests. GRAC member agencies are involved with several key program areas including education, housing, medical care, public transit, and mental health. The IRLP questions are not an evaluation of specifi c programs; rather they focused on the quantity or quality of services available, whether provided by state or local agencies. Elderly residents rated satisfaction with every service or program category higher than the average respondent. In general, the satisfaction level with services, except for public transit, is relatively high. Statewide efforts to remove duplication of public transit services and to increase overall access will be discussed later.

Annual Report to the Governor and General Assembly 7 Figure 5. Satisfaction with Public Services How satisfi ed are you with each of the following? All Respondents Service 1Mean Public Library services 4.14 Parks and recreation 3.89 Education (K-12) 3.82 Solid waste disposal 3.76 Senior centers and services 3.64 Housing 3.64 Law enforcement 3.63 Head Start programs 3.60 Basic medical care services 3.51 Day care services 3.46 Streets 3.19 Quality of public services 3.18 Mental health services 3.11 Local government in general 3.06 Responsiveness of state agencies to local requests 2.86 Public Transit and Transportation 2.77 Private Restaurants 2.74 Retail shopping 2.73 Entertainment 2.64

1Coding: 1=Very Dissatisfi ed; 5=Very Satisfi ed

Source: Illinois Rural Life Panel Survey, 2005

Overall, respondents reporting that the quality of life for their family had worsened also consistently reported signifi cantly lower satisfaction with overall and specifi c services than residents reporting improvements in quality of life. These comparisons suggest linkages between public services and quality of life that could play an instrumental role in explaining population changes. Thus, programmatic efforts of GRAC member agencies are vital to ensuring a prosperous rural Illinois.

Issues Affecting the Future IRLP respondents also rated the importance of issues in the future of their communities and these responses provide a basis for evaluating future policy alternatives. Highest on the list of important future issues is lack of jobs that pay a “living wage” (Figure 6). This fi nding emphasizes the importance of continued efforts to revitalize rural economies. The second most important issue in the future is quality of schools even though rural residents reported fairly high satisfaction with current public schools. However, major differences are reported

8 Governor’s Rural Affairs Council between residents reporting that family quality of life had improved and those reporting it had worsened. Declines in number of students and pending shortages of teachers will plague rural schools in the near future and school closings are as serious an issue as concerns about the quality of rural schools.

Figure 6. Perception of Issues Affecting the Future of Communities How much will each of the following issues affect the future of your community? Quality of life for your family has become . . . Worse Same or Better City Attribute 1Mean Number 1Mean Number t-value Lack of jobs that pay a “living wage” 1.2 104 1.3 405 -2.51* Crime 1.3 101 1.5 419 -2.05* Small business closings 1.3 98 1.4 414 -1.41* People leaving your community 1.4 97 1.6 406 -2.13* Alcohol and drug abuse 1.3 100 1.5 418 -1.94* 1Coding: 1=Highly Affect; 3=Won’t Affect Source: Illinois Rural Life Panel Survey, 2005

Respondents are also concerned about small business closings which affect not only availability of goods and services but also travel time to obtain essential items. Elderly residents, because of relative immobility, may be more adversely affected by business closings. Respondents reporting better family quality of life reported that a lack of jobs that pay a living wage; crime; people leaving the community; access to health care; loss of high school graduates; and shortage of skilled labor were highly importance in their perception of quality of life. These findings offer insights into statewide initiatives that could possibly foster a better perception of quality of life in rural areas and could lead to population gains. Many of the programmatic initiatives of the GRAC and member agencies address these issues. Some of these efforts during FY05 are described next.

Increasing Access to High Paying Jobs The IRLP respondents reported that one of the most important issues rural communities will face in the future will be access to high paying jobs in rural areas. Employment opportunities are essential to attracting young families to rural locations. While manufacturing employment during the recession of the early 2000s did not decline as much in rural as in metro areas, it nevertheless declined substantially more than in adjacent states. Competition from foreign locations as well as loss in markets caused by business closures in metro areas adversely affected rural communities.

Annual Report to the Governor and General Assembly 9 Entrepreneurial Network. The Department of Commerce and Economic Opportunity initiated an Entrepreneurship program to For more help start-up businesses as well as those poised to expand fi nd the knowledge and resources to successfully expand their operations. information on This program launched the Illinois Entrepreneurial Network IEN, check the that brings together the major technical assistance and education Web site at programs currently working with businesses on expansion plans. Focusing on entrepreneurship stimulation and development offers a www.ienconnect. decided advantage over industrial attraction in rural areas because com many rural areas have neither a full-time economic development staff nor a set of fi scal incentives that can compete with large metro areas. Therefore the most suitable approach for rural communities is to start businesses that can grow into larger companies. The Entrepreneurial Network follows that approach.

Brownfi eld Redevelopment and Higher Paying Jobs. Another approach to attracting high paying jobs involves efforts by the Illinois Environmental Protection Agency (IEPA) to assist with the remediation and redevelopment of Brownfi eld properties. Often, these properties are in prime locations for economic development but because of a fear of legal responsibility for cleanup costs the properties remain idle. The IEPA, Offi ce of Brownfi eld Assistance has aggressively worked with local offi cials, community leaders, and business investors to obtain a No Further Remediation letter on properties and to stimulate private investment. The program has succeeded in many rural communities. For instance, Mendota (pop. 7,272) worked with a private business to remediate and redevelop a former motor wheel manufacturing site with the result that a company invested $1.75 million in the business and created high-paying jobs. In September 2005, the IEPA approved $425,000 in Brownfi eld Cleanup Revolving Loan Funds to complete cleanup and abatement activities at the former Pepsin Syrup Company complex in Monticello. The IEPA has already provided a total of $240,000 in

10 Governor’s Rural Affairs Council Municipal Brownfields Redevelopment Grants and $17,500 for an underground storage tank cleanup grant to Monticello for assessment and remediation at the Pepsin complex and adjoining properties. The loan will be used for further environmental cleanup activities so the site can acquire the No Further Remediation Letter necessary for redevelopment. Cleanup and redevelopment of the brownfield will help both the environment and the economy of Monticello and Piatt County. The Brownfield Pepsin complex has been abandoned for almost two decades and posed reuse problems because of asbestos and lead contamination. redevelopment However, the city-owned site is so close to thriving downtown protects the Monticello that retail, commercial, and residential developers all find the location desirable. Cleanup and redevelopment are therefore environment vital to Monticello’s economic growth. Local officials believe and creates redevelopment of the Pepsin complex will spur future projects in the central business district. opportunities. Piatt County, of which Monticello is the seat, is largely agricultural. At the same time that redevelopment of the former Pepsin complex will allow for expansion of the thriving downtown area, it will also prevent productive agricultural land from being lost to new development. Brownfield redevelopment, in Monticello as in other places, is an integral part of efforts to sustain the environment. In May 2005, the IEPA approved $33,515 in Brownfields Redevelopment Grant Funding to complete cleanup activities at a Cairo site. The site includes two abandoned service stations; it has also been used as a railroad transfer station. The Brownfields fund will be used to conduct environmental site assessments, prepare necessary reports, enroll the site into the Illinois EPA’s Site Remediation Program, and do any necessary remediation. A comprehensive No Further Remediation Letter is the desired outcome of the cleanup process and will enable redevelopment to proceed. A company wanting to locate a warehouse on the site has expressed interest to the City of Cairo about redeveloping it. Such a project could set a standard for future redevelopment in the city. The important ecosystems of Southern Illinois can be preserved if development is focused on brownfields rather than greenfields. The effort in Cairo to cleanup and reuse a vacant site helps preserve the natural resources of the area while contributing to Cairo’s economic development. In September 2005, the IEPA approved an additional $38,072 in Brownfields Redevelopment Grant Funding for cleanup of the former Bear’s Motel and Carnival Video site in Hoopeston.

Annual Report to the Governor and General Assembly 11 The funds will be used to complete environmental site assessments and prepare necessary reports leading to acquisition of a No Further Remediation Letter from the IEPA. Commercial developers are interested in the site because of its location at a major intersection of two state highways. Some of the area has already been redeveloped into a CVS Pharmacy. Since roads and other infrastructure already exist, the development is free from the negative environmental consequences of developing surrounding rural lands. Brownfi eld redevelopment in this area of east central Illinois will bring revenue, jobs, and services.

Nature-Based Tourism. The Illinois River is a major national resource and is vital to the Illinois economy as a major transportation system. Its potential as a major nature-based tourism destination has not always been recognized in the past. Currently, several counties along the river south of Peoria have banded together to market this stretch of the river as Illinois River Country. This economic development initiative will build on several large nature sites including the Chautauqua National Wildlife Refuge, Jim Edgar Panther Creek State Fish and Wildlife Area, Nature Conservancy Emiquon Project, and several other resources in the area. When combined, these nature-based attractions represent a major tourism destination. Completion of this project along with several industrial projects relating to processing fi sh from the river will add a substantial number of higher paying jobs to the local economy. The GRAC has helped community leaders to organize their efforts. Havana (pop. 3,577) has taken the lead in this initiative and recently announced selection of a developer for a hotel and conference center on the waterfront. This conference center and hotel could be a major attraction for nature-based tourists and will provide a signifi cant impetus for the surrounding area. On a broader scale, Lt. Governor Quinn chairs the Illinois River Coordinating Council (IRCC) which has provided the leadership for rejuvenating the Illinois River to make it a major tourism attraction as well as expand its capacity as a transportation system. The IRCC applied for Federal funds to assist in the clean-up effort and has

12 Governor’s Rural Affairs Council organized local initiatives to promote revitalization of the river. These efforts continue with clear evidence of substantial progress in restoring the river to its former prominence.

West Central Illinois: Looking Forward. The announcement by Maytag that it was closing its Galesburg plant and the closing of several other industrial plants caused city officials to ask IIRA to design a project to create a regional effort to help small communities in west central Illinois respond to the employment declines and economic stagnation. Industry The IIRA, working with the Workforce Investment Board-14, the U.S. Economic Development Administration, and Opportunity clusters are Returns, undertook a 12-county regional analysis to identify an important potential business clusters that could prosper in the region. The project also worked with Entrepreneurship Centers in the region to tool for rural find ways to strengthen their operations and work toward a more regions to tightly organized delivery system. A third phase of the project involved creation of regional focus groups to improve health care, improve their tourism promotion, and value-added agriculture. economies. The planning project has been completed and regional leaders will convene in spring 2006 to set priorities on regional projects. Economic development practitioners and community leaders are now considering the 25 or so potential business clusters that could be organized in the region.

Development of Cooperatives. The Illinois Cooperative Development Center (ICDC) at the Illinois Institute for Rural Affairs was established in 2004 with funding from USDA-Rural Development. The ICDC works with rural municipalities, economic development agencies, farmers, entrepreneurs, and community leaders to promote rural economic growth through producer cooperatives, consumer and shared service cooperatives, and other collaborative ventures. The ICDC provides technical assistance, training, applied research, and networking activities. Cooperatives are currently active in creating new markets for Dried Distillers Grains, a co-product of ethanol; the production of ethanol and biodiesel; agri-tourism; and organic dairy production.

Poverty Poverty, usually identified with urban areas, is also a significant issue in rural Illinois. A recent Poverty Summit, organized by GRAC, reported that nearly one in six Illinois residents living in poverty live in rural areas (Rural Poverty Summit 2004). These residents

Annual Report to the Governor and General Assembly 13 encounter the same limited job opportunities, limited access to health care, and inadequate housing as residents of inner cities. More skilled and mobile residents, faced with a lack of economic opportunities, leave rural areas for metro centers, contributing to rural population declines. High poverty reduces the vitality of rural communities and leads to a continuing cycle of diminished quality of life, reduced tax revenues, and fewer resources for public services. The GRAC, working with member agencies, addressed poverty concerns in several ways.

Earned Income Tax Credit. Through the Earned Income Tax The EITC Credit (EITC) program, taxpayers are eligible for both federal and lets working state income tax credits. However, many do not apply for them because they are not aware of the program or because they fi nd the families keep tax forms too complex to complete. To address this issue, the Center more of their for Economic Progress started the Tax Counseling Project to help working families in Illinois keep more of their income each year. income. Volunteers provide tax preparation assistance in libraries, community colleges, homeless shelters, and churches across rural Illinois to help residents apply for an EITC. The counseling service is offered free to families with incomes of $36,000 or less and individuals with incomes of $15,000 or less. The Tax Counseling Project provides electronic fi ling of tax returns and, through a partnership with banks, helps people open accounts for the direct deposit of their refunds. The Tax Counseling Project has existed for ten years with multiple sites throughout the state. To increase access to this service for rural residents, the Offi ce of Lt. Governor Pat Quinn funded seven additional sites including fi ve rural locations: Karnak (Pulaski County), Quincy (Adams County), Macomb (McDonough County), Effi ngham (Effi ngham County), and LaSalle (LaSalle County). The additional sites allowed volunteers to prepare 246 federal tax returns and helped residents secure $330,078 in refunds putting money into the pockets of Illinois’ working families and into Illinois communities (Center for Economic Progress 2005).

Illinois Food Illinois Food Banks. Nine food banks in Illinois supply more than 750 food pantries and 2,220 community agencies, soup kitchens, Banks provide and homeless shelters. These food pantries provide vital support for needed help Illinois residents; often making the difference between having enough to eat and going hungry. The GRAC provided $27,000 to to Illinois the Illinois Food Bank Association to fund equipment to be used families. to improve the acquisition, processing, storage, and distribution of food. These funds were divided among the nine food banks and are expected to increase the amount of food provided to Illinois’ residents by as much as 3 percent.

14 Governor’s Rural Affairs Council Department of Human Service. The Department of Human Services (DHS) funded two community-based organizations in Stark County to begin developing a mental health/wellness system. Triggered by the closing of the Zeller Mental Health Center, Serving this system addresses serious mental health concerns including education, advocacy, and access to and availability of clinical the needs services as identified by county residents. of Illinois’ The Mental Health Association of Illinois Valley (for education residents! and advocacy) and North Central Behavioral Health (for clinical services) formed a partnership to design services to meet community needs. DHS, Division of Mental Health, will work with these agencies to monitor their progress on developing a smooth delivery system. On another front, the Douglas County Prevention Partnership worked to address the language barriers of its Hispanic-speaking population and to provide educational programing to residents so that they can make healthy choices and achieve their full potential in a variety of areas. Douglas County’s most recent success was the opening of the Mi Raza Hispanic Outreach Center. Center plans include: • hire a bilingual coordinator/advocate to serve the Hispanic Community; • hire a full time bilingual police officer for the Arcola Police department; • increase the Spanish fluency and cultural awareness of law enforcement agencies, fire department officials, and other service providers to improve the caliber of service delivery; • work with service providers to assess, coordinate, and improve childcare and out of school time programming for Hispanic families; • work with community providers to coordinate and improve the transportation system for the Hispanic community; • expand the existing English as a Second Language program in Arcola; • enhance collaboration and networking within service providers to ensure families are being effectively served; and • expand HIV/STD education, programming, and services to include counseling and testing services in the county. The Cass County Interagency Council’s Community Assessment Project recently completed a community capacity assessment conducted by the Medical Foundation of Boston to identify Cass

Annual Report to the Governor and General Assembly 15 County needs. Focus groups, data collection, and the input from the Community Advisory Committee will be evaluated with policy recommendations presented in January 2006. TEAM Illinois. TEAM Illinois, a program of the Illinois Department of Human Services (IDHS), provides a targeted approach to community and economic development to needy communities. TEAM Illinois worked with four communities including Savanna in Carroll County and Alexander County in Southern Illinois. Using an approach focused on innovative partnerships, local leadership, and targeted services, TEAM Illinois has had impressive results. Savanna, in partnership with Carroll County, funded a county health department building with grants from IDHS and the Illinois Department of Public Health. The main street was resurfaced and paved and the Illinois Department of Commerce and Economic Opportunity is currently working with the city to revise a fi ve-year infrastructure plan. A VISTA volunteer, partially funded by the Illinois Institute for Rural Affairs, is working on economic development and graduates of the Savanna Youth Entrepreneurship program who have created two businesses. Alexander County, working through the IIRA MAPPING the Future of Your Community program, is assessing economic opportunities in the county. The county also received a federal Job Access and Reverse Commute Grant to improve the public transportation system. Finally, a steering committee is updating its 501(C) 3 status and prioritizing local goals. Many other DHS initiatives are underway focused on coordinating program delivery so that multiple state agencies can contribute resources to help needy communities respond to a changing economic environment. Although the program has only operated for a few years, it has made a signifi cant impact on several communities.

Developing Housing affordable An aging housing stock and lack of investment in new units of housing housing has led to a shortage of adequate, affordable housing in rural Illinois. This shortage can have far-reaching effects on rural for rural communities as lower income residents with limited options are often residents forced to move or live in inappropriate housing. Faced with an aging housing stock, residents, especially the elderly, have few housing alternatives in rural areas and often must live in houses that are too large and expensive to maintain. These residents are not ready to move to nursing homes which are the only other local

16 Governor’s Rural Affairs Council living arrangement. This situation keeps older homes off the market and young families often cannot afford newly constructed homes in subdivisions. GRAC member agencies have several programs designed to address the affordable housing issue in rural areas.

USDA-Rural Development. Housing programs offered by USDA-Rural Development (RD) for moderate, low and very-low income households are responsible for much of the growth in homeownership by moderate income residents. In FY05, USDA- Rural Development in Illinois provided 3,891 loans, guarantees and grants for home purchases, construction, or repairs; more than any other state. The gains in home ownership as a result of these efforts are significant. During FY05, 146 new housing starts were financed in Illinois by USDA-RD, a 12 percent increase over the previous year. The agency estimates that each newly constructed house translates into seven jobs. The agency’s Home Repair Loan and Grant Program, aimed at seniors and people with more limited incomes, helped a record 1,162 rural Illinois residents purchase or improve their homes.

Building for Success: Illinois’ Comprehensive Housing Plan (2005). The Illinois Comprehensive Housing Plan identifies priority populations on which state coordinated housing efforts should focus. These populations include very low-income households; low-income senior citizens; low-income people with disabilities; homeless people and families and those at-risk of becoming homeless; low and moderate-income people unable to find affordable housing near employment or transportation; and low- income households living in existing affordable housing that is in danger of becoming unaffordable.

Rural Housing Initiative. To better serve rural Illinois, the Illinois Housing Development Authority (IHDA) continues to partner with USDA-Rural Development and the Partnership for Homeownership in an award winning program it helped to create. Known as the Rural Housing Initiative, this program provided 68 first-time home buyer loans in 22 counties for a total loan amount of approximately $4.7 million in FY05. It has been especially effective in reaching lower- income home buyers.

Annual Report to the Governor and General Assembly 17 These same partners continue to provide funding and services for a unique “live near work” employer-assisted housing program with the City of Quincy and Blessing Hospital. Lower wage workers Live near are encouraged to buy housing near the hospital. Down payment assistance and home repair programs are available through IHDA’s work! Affordable Housing Trust Fund. The City of Quincy’s Single Family Owner-Occupied Rehabilitation program received $153,500 from IHDA. This program will help preserve fi ve units of affordable housing for elderly residents. IHDA continues to support sweat equity programs, such as the Knox Habitat project in Galesburg. Funded with the Affordable Housing Trust Fund, this project utilizes $45,000 in IHDA dollars to provide three units for low-income families. During FY05, IHDA’s Board approved fi nancing and tax credit allocations of approximately $70 million for 18 rental housing projects for families and senior citizen populations in rural communities in Illinois. This funding helped to create/preserve 850 units of affordable housing for low-income residents of rural communities. Examples include the following: • County Estates – new construction of 68 single-family homes to be rented to families. The construction will occur on scattered sites in Greenville, Athens, and Petersburg, Illinois. There will be a mix of two, three, and four bedroom units affordable to low- and very low-income households. This project, approved by IHDA’s Board of Directors in May 2005, is being developed by Central Illinois Services NFP. Land owned by the Menard County Housing Authority will be donated. Thus far, $4,328,655 in Trust Fund resources have been committed to the project, with the idea that loan may be replaced with bond fi nancing if enough resources for bond issuance can be pooled by the housing authority. The project also uses State Donation Tax Credits and Low Income Housing Tax Credits. • Green View Estates in Morrison – a 28-unit apartment building (25 income restricted units) provides housing opportunities for elderly and low- and very low-income families. This development will also provide “live near work” opportunities. • Coatsworth – by using tax exempt bonds to refi nance and repair this very-low income elderly development, 18 units of affordable housing have been preserved in Galena. • Mosaic at Bushnell Housing – provides eight units of housing for very-low income, developmentally disabled tenants in Bushnell.

18 Governor’s Rural Affairs Council Transportation Illinois Rural Life Panel respondents expressed considerable concern about public transportation services in rural Illinois. Lack of transportation limits access to jobs, goods, services, education, and medical care. Rural residents, isolated by distance, are especially hurt by lack of a comprehensive transportation system. Currently, 27 rural counties have no county-wide public transportation system and four additional counties have public transportation systems serving cities only. Not only do residents in these counties without access to private cars often encounter difficulties getting to work, medical appointments, and shopping; rural business also suffers since their customers find it easier to shop Access for using mail order or the Internet rather than relying on catching rides with relatives and neighbors. transportation GRAC member agencies, especially the Illinois Department of means rural Transportation and the Rural Transit Assistance Center in the Illinois Institute for Rural Affairs have worked with local transportation residents agencies to improve access for all residents and reduce duplication can get to of transit services in rural areas. school, work, Increasing Availability of Public Transportation. In a and medical November 2003 Rural Health Care Summit hosted by the late Paul Simon, participants reported that unavailability of public appointments. transportation in large parts of rural Illinois affected residents’ access to health care as well as other vital goods and services. The GRAC worked with legislators on Public Act 094-0070 to increase the amount paid into the Downstate Transportation Fund. The additional funds are available to communities, counties, and local mass transit districts and will increase the number of rural areas with general mass transit service.

Illinois Coordinating Council on Transportation. In 2004, under an Executive Order by President Bush, the Federal Transit Administration (FTA) launched the United We Ride (UWR) initiative to more effectively coordinate transportation for human services. Before this initiative, more than 30 federal programs funded transportation services for the “transportation- disadvantaged,” and these disparate efforts resulted in a complex system of service delivery. Earlier (2003) the Illinois Department of Transportation, Division of Public Transit working with the Rural Transit Assistance Center (RTAC) in the IIRA, had worked with transit providers to identify ways to expand services and better coordinate the delivery system.

Annual Report to the Governor and General Assembly 19 The State of Illinois, in response to Public Act 93-0185, formed the Illinois Coordinating Committee on Transportation (ICCT), which applied for an FTA-sponsored state coordination grant to accomplish the objectives of the UWR initiative. The ICCT is charged with creating a strategic plan for transit coordination in Illinois, as well as with assisting local transit providers in solving problems. The ICCT hired a staff person located in the RTAC in IIRA, and will submit a report to the Governor and General Assembly by February 2006 outlining progress made by the committee including recommendations for statutory and regulatory changes to promote coordination.

Clean Energy Illinois must protect and preserve all of its resources including the environment. A clean healthy environment adds to the quality of life of all Illinois residents and allows rural areas to promote tourism and recreation opportunities. A major component of a clean environment is to reduce air pollution resulting from automobile engines. Several programs are underway to reduce pollution and stimulate the demands for agricultural products at the same time.

Renewable Fuels. Through the Governor’s Renewable Fuels Working Group, the Illinois Department of Agriculture (IDOA) works with other state agencies to increase the renewable fuel infrastructure in the state as well as increase the use of renewable fuels by state employees. The Governor issued Executive Order 2004-7 on April 12, 2004, directing executive agencies to use alternative fuels whenever practical in the state fl eet of vehicles. The order is intended to increase the use of alternative fuels such as E-85 or 2% biodiesel blends. Key provisions include: • procure 2% blends of biodiesel (B2) fuel for the state’s diesel- powered vehicle fl eet; • strengthen the infrastructure to increase the availability of B2 and E-85 for the state’s fl exible fuel fl eet; • facilitate the use of E-85 and B2 in the state’s fl exible fuels vehicle fl eet;

20 Governor’s Rural Affairs Council • Establish additional E-85 and biodiesel refueling facilities at public retail outlets; and • Establish reasonable priorities for the purchase or rental of flexible fuel E-85 vehicles. The Executive Order created an interagency working group to Renewable implement the provisions. Aside from the working group activities, IDOA also manages a value-added agriculture grant program, which fuels help allows the agency to establish a stronger working relationship with renewable fuel companies and the individuals pursuing those protect the projects. environment The AgriFIRST grant program works to develop value-added and expands agricultural businesses to help farmers diversify their operations and to maintain the state’s rural communities by introducing the market new businesses. AgriFIRST has been the force behind several for Illinois renewable fuel projects within the state. During the first four years of the program, more than 11 renewable fuel projects were funded agricultural including ethanol, biodiesel and biomass projects. products. Several successful renewable fuel projects were funded including those in the following discussion. Lincolnland Agri-Energy, located near Palestine in the southeastern corner of Illinois, started in 2001 to build and operate a dry mill ethanol facility in Crawford County. AgriFIRST funded a portion of the preliminary expenses associated with the development and construction of the facility. The Illinois Institute for Rural Affairs assisted in the organizational phase of this effort. The plant began ethanol production in 2004 and produces 40 million gallons of ethanol and 128,000 tons of dried distillers grains with solubles (DDGS) annually. A recent grant funded the Mid-America Biodiesel feasibility study to evaluate the viability of a biodiesel production facility in southern Illinois. This project is on-going and more information will be available in the coming months as the project develops. IDOA has funded biomass renewable fuel projects in addition to funding traditional renewable fuel projects such as ethanol and biodiesel. Environmentally Correct Concepts successfully obtained an AgriFIRST grant to evaluate the potential for Miscanthus as an alternative energy source. A Miscanthus test plot was created near Monticello. The crop was harvested and combustion tests were conducted to identify the energy potential from the biomass. Rural Illinois received $2 million from USDA-Rural Development renewable energy and value-added agriculture grants in FY05. Both programs were authorized in the 2002 Farm Bill. Seven grants are

Annual Report to the Governor and General Assembly 21 currently used to develop renewable energy projects including four wind projects, two ethanol plants, and a biodiesel facility. Illinois applicants have received $7.7 million in grants since the USDA-Rural Development programs started. Eligible recipients include independent producers, agricultural producer groups, farmer or rancher cooperatives, and majority-controlled producer-based business ventures and small rural businesses. These programs provide rural entrepreneurs with funds that ultimately help communities thrive by creating jobs, increasing producer income, developing new markets, and supporting other businesses.

Wind Energy. Illinois Wind, a program of the Illinois Institute for Rural Affairs, funded by the Illinois Clean Energy Community Foundation, helps rural communities understand and assess the benefi ts and limitations of wind energy. During FY05, the program focused on gathering data on the feasibility of wind turbines. Met towers were installed in fi ve Illinois counties (Christian, Coles, Henry, Knox, and McDonough Counties) to record the wind speed high above ground level. Recording and analyzing wind speed data is essential to accurately locate viable sites for wind energy production. Site location, local terrain, and physical features infl uence wind quality, so measuring the wind in proximity to a proposed turbine installation is important. Data will be collected at each site for a year and will then be used to forecast the amount of electricity that could be generated by one or more wind turbines at the site. The data is available to the public on the Illinois Wind’s Web site (www. illinoiswind.org). The IIRA is working with the Rural Electrical Cooperatives to identify fi ve communication towers and with municipalities and landowners to identify additional sites to be used for wind monitoring. This could result in sites in 12 Illinois counties.

Strengthening Local Decisionmaking Capacity Most relatively small rural communities are managed by part-time elected offi cials with limited experience and training in economic

22 Governor’s Rural Affairs Council development practices. Usually, these communities have little or no staff to conduct sophisticated planning efforts. Consequently, DCEO funds several programs aimed a strengthening the ability of local leaders to make sound and informed decisions about community and economic development strategies.

MAPPING the Future of Your Community. Building community capacity and development is crucial to improved quality of life and strategic visioning provides a foundation for community development initiatives. Strategic visioning engages the community and builds capacity to meet the challenges facing communities. The MAPPING (Management And Planning Programs Involving Nonmetropolitan Groups) program, managed by IIRA since 1991, started in collaboration with GRAC, and is now financed by DCEO to help community leaders improve decision-making processes for community and economic development. Although MAPPING has a strong record in working with communities on employment enhancement, it focuses on community development, a broader concept than economic development. MAPPING has also been an integral part of TEAM Illinois efforts in Savanna, Hopkins Park, and Alexander County.

MAPPING helps residents create a long-range vision for the economic development of their communities and create an action plan to achieve it. More than 90 communities, ranging in population from 300 residents to 18,500 have completed the program. Alpha, Colchester, Havana, and Mendota completed MAPPING programs during FY05. Colchester and Havana are typical MAPPING communities. Colchester (pop. 1,493). In spring 2004, residents in Colchester held a town meeting with state and elected officials, DCEO representatives, and other agencies to express residents’ concerns about the long-term future. As an outcome of this meeting, residents decided that a MAPPING program was the first step in an organized planning strategy. Thirty-six residents and community leaders identified six high-priority goals that form the basis for a community action plan. Several action teams, targeting these goals, have begun meeting and the MAPPING participant groups will host a town meeting in late January. Havana (pop. 3,610). Following the MAPPING program in Havana in 1996, a local development group, “Hav-a- Vision” was formed as a 501(c)3 nonprofit organization.

Annual Report to the Governor and General Assembly 23 In 2000, Hav-a-Vision again partnered with MAPPING to conduct a follow-up program “Planning for Compatible Development.” The community identifi ed additional high-priority goals, resulting in the city hiring a full-time economic developer. Again, fi ve years later, the still active Hav-a-Vision, in collaboration with the city of Havana and the Chamber of Commerce, requested a MAPPING Update to take stock of the progress to date, recruit additional volunteers, and revitalize the efforts. For ten years, Hav-a-Vision has worked closely with the city and other civic and business organizations in the community with signifi cant outcomes. Results have been impressive. With a goal of revitalizing the historic downtown, funds were raised through individuals and businesses to purchase and install 52 antique-theme streetlights in the downtown. Plaques acknowledging the donations decorate the base of each light. A $140,000 grant from USDA was used to upgrade more than 20 downtown facades. New businesses in Havana include a specialty coffee shop/restaurant, a printer/ publishing company, a renovated historic theater, two grocery stores, and dinner theater. The city of Havana also created a shovel-ready business park with roads, sewer, water, and electricity. In close collaboration, the city of Havana, the U.S. Fish & Wildlife Service, The Nature Conservancy, and the Illinois River Coordinating Council, are creating an unparalleled nature area on the Illinois River. Emiquon is one of the largest fl oodplain restorations in the U.S. This project is restoring 7,000 acres of farmland to its natural wetland conditions. The restoration of the wetland will restore habitat, help control fl ooding and sedimentation, and improve water quality.

Rural Community Development Initiative. In response to growing requests from MAPPING communities for additional assistance, the MAPPING program requested a three-year Rural Community Development Initiative (RCDI) grant from the USDA- Rural Development to augment and enhance services to MAPPING communities. RCDI provides fi nancial and technical assistance to low-income MAPPING communities and designated nonprofi t

24 Governor’s Rural Affairs Council organizations to enhance their capacity to undertake projects related to community and economic development. Through financial and technical assistance specifically focused on building capacity, low- income rural communities will be able to support sustainable rural revitalization efforts in their communities. Ultimately, these efforts Helping will serve to improve the quality of life for rural residents. Illinois During FY05, RCDI delivered training to participants on E-Business and the Location One Information System. Location One is a tool communities used by DCEO for Illinois communities to market themselves to help potential businesses. E-Business training was offered to small business owners so that they could more effectively use the Internet themselves. to conduct business. Technical assistance was delivered to the City of Savanna and the Savanna Chamber of Commerce, the Southern Illinois Regional Planning and Development Commission, the Village Board of Hopkins Park, the Western Illinois Economic Development Partnership, the Southernmost Illinois Delta Empowerment Zone, the Astoria Chamber of Commerce, the Brown County Development Corporation, the City of Havana and the Havana Chamber of Commerce, and the Pike County Economic Development Corporation as part of the RCDI program.

Competitive Communities Initiatives. The Competitive Communities Initiative (CCI) Program, administered by DCEO, works with communities to attract and retain the investment necessary to support a high quality of life. Program staff facilitate a community self-assessment and assist in leadership development, thereby fostering community self-sufficiency. The outcome of the program is a strategic plan developed by the community that outlines and prioritizes economic and community development goals. The plan is prepared using the six “Foundations for Growth”: 1) a skilled and adaptive workforce; 2) basic and advanced infrastructure; 3) access to capital; 4) access to technology; 5) pro-competitive policies affecting the local business climate; and 6) social infrastructure necessary for a high quality of life. The final stage of the program involves assisting communities locate resources to meet the goals in their strategic plan.

Annual Report to the Governor and General Assembly 25 The CCI Program assisted 34 communities during FY05. Two communities, Riverwoods in Lake County and Carlinville in Macoupin County, were added to the program. CCI communities move through fi ve stages as they become more self-suffi cient in their economic and business development efforts. Seven communities were recognized for achievements and advanced to another stage of development. Of the seven communities, one graduated from the program, four advanced to Stage 4, and two advanced to Stage 3. Graduate communities continue to be part of the CCI Program, relying on CCI staff for assistance and mentoring. The graduate community, DuQuoin, progressed through the fi ve stages of development. It demonstrated enhanced leadership skills and the ability to assess and improve the community with little assistance from CCI Program staff. The accomplishments of DuQuoin include: • Community Development Corporation (CDC) formed to address objectives of the community; • Transportation Advocacy committee formed to direct attention to the community’s transportation needs; • Wastewater Treatment Plant replacement – completed the design process and applied for a $400,000 CDAP construction grant. The city will invest $1,000,000 in the project and has a $1,500,000 federal EDA application in process; • Southern Illinois Coal Belt Champion – as a full member of this program, the community will work closely with USDA, SIU, and Rural Partners in community and economic development; and • New School Construction – Voters approved a special tax to fi nance $3,000,000 of this project that will include the demolition of two abandoned school buildings. Five CCI Program application workshops were held and 105 participants representing 72 communities attended. Three Main Street applications were submitted and reviewed with two communities promotes selected in FY05. economic Main Street. Main Street is a grass roots effort at community development run by volunteers at the local level. Illinois Main Street development promotes historic preservation and economic development of Illinois while preserving traditional business districts. The Main Street program provides technical assistance to local communities and training programs historical rural on the Main Street approach. An advisory council appointed by downtowns. Lt. Governor Pat Quinn oversees the program.

26 Governor’s Rural Affairs Council During FY05, seven communities became new associate programs and will receive intensive training and technical assistance during the coming year. Main Street communities also participated in a Cyber Sidewalk Sale to raise funds for local programs and projects. The auction, hosted by E-Bay, featured more than 1,000 items including goods, services, and experiences donated by Main Street communities. During FY05 the Main Street program awarded Wireless Main Street grants to Quincy and Mt. Vernon. The goal of both projects is to expand access to wireless Internet service to both communities. Quincy plans to extend its wireless service beyond the downtown business district to the Mississippi River so that boaters and visitors using the riverside park can also access the Internet. Mt. Vernon plans to improve public safety through mobile Internet service for police and fire units. Wireless Internet Protocol cameras are also being discussed to act as “extra eyes” at busy intersections, concerts, and public places.

Health Care Quality of life in communities depends on the availability of basic services including health care. Providing high-quality health care in Meeting rural areas is challenging due to lower population densities and large the medical numbers of uninsured, underinsured, and unemployed residents. The Illinois Department of Public Health identifies counties and professional service areas that do not have a minimum number of health care shortage professionals. Counties and service areas can be designated by the state as a health professional shortage area, a medically underserved population, a physician shortage area, or an area qualifying for rural health clinic development. The Medical Student Scholarship Program and the Allied Health Care Professional Scholarship Program both focus on increasing the number of health care practitioners in designated shortage areas in Illinois. The Medical Student Scholarship programs targets medical students with specialties in family practice, general internal medicine, general pediatrics, and obstetrics/gynecology. Students are awarded scholarships for tuition, fees, and living expenses. The Allied Health Care Professional Scholarship Program targets students training to be nurse practitioners, physician assistants, and certified nurse midwives. The recipients of both programs are required to practice in a designated shortage area.

Annual Report to the Governor and General Assembly 27 Automatic External Defi brillators. Automatic External Defi brillators (AEDs) can mean the difference between survival and death from heart attacks. This is especially true in remote rural areas with limited access to hospital emergency rooms and trained emergency medical technicians. Cardiac arrests are most commonly caused by ventricular fi brillation for which defi brillation is the only known treatment. The time a heart attack victim must wait before receiving defi brillation is critical to survival; indeed, after 10 minutes the chances of survival are small. According to the American Red Automatic Cross, one out of fi ve heart attack victims could be saved through the External widespread use of AEDs. Defi brillators In 2003 the Colleen O’Sullivan Law made it mandatory for health clubs, school gymnasiums, and indoor park district facilities to have save lives! an AED and staff trained in its use. The Heartsaver AED Fund, sponsored by the Offi ce of Lt. Governor Quinn, is designed to place AEDs in public places across Illinois. The Fund provides a 50 percent match toward the purchase of a defi brillator by public schools, colleges, and park districts. Many local groups and agencies have worked to increase the availability of AEDs in their locales. Edgar County initiated a Public Access Defi brillator (PAD) Program after several young adults in the county died from heart attacks. After publicity about the need for and value of AEDs, many organizations purchase units. The county accepted donations from residents and service clubs to defray the costs for organizations that could not fi nance the purchase. Edgar County now has approximately 45 AEDs in key locations giving it one of the best AED coverages in the state. The need to increase the availability of AEDs is crucial for rural areas and GRAC will continue to work on this initiative.

Emergency Medical Services. Emergency Medical Service (EMS) providers delivering services in rural Illinois face unique challenges, including low population density, limited human and fi scal resources, and burdensome state and federal regulations. The Illinois Rural Health Association (IRHA) created a working group to investigate the challenges facing rural EMS providers and to make recommendations to remediate those challenges. This workgroup held a series of town meetings at which approximately 350 individuals from 48 counties participated. Participants included EMS providers, hospital staff, local health departments, fi re departments, physicians, nurses, sheriff departments, IDPH staff, and elected offi cials. The IRHA developed a report outlining the fi ve major issues raised in the meetings: 1) inability to recruit and retain EMS personnel; 2) inability to generate revenue to pay expenses;

28 Governor’s Rural Affairs Council 3) lack of community awareness of the complexities involved with providing emergency services; 4) burden of regulatory requirements; and 5) lack of collaboration within rural EMS system. The IRHA report, Emergency Medical Services in Rural Illinois, discusses solutions and recommendations generated at the town meetings. The For more recommendations include the following: information • a state income tax credit for volunteer EMS providers; on EMT services • scholarship programs for required training programs; in Illinois see the • training programs delivered using technology; full report at • management training for EMS agencies including fundraising, www.ilruralhealth.org volunteer management, and community relations; • low interest loans to EMS agencies for capital purchases; • statewide information resources; • authority to public entities to impose fees for EMS services; • assistance to communities in assessing the appropriate level of EMS support; and • creation of an agency to coordinate the support, licensing, and planning of EMS in Illinois.

Information Technology Information technology (IT) provides access to essential goods and services for rural residents who are isolated by distance from metro areas. The Internet can give rural businesses access to suppliers and new customers either locally or globally. IT providers often hesitate to invest in the necessary infrastructure because they will not see the same return on their investment as they do in more densely populated areas. Rural communities must aggressively pursue this infrastructure if they are to be competitive in attracting businesses and residents.

Wireless Communities. The Wireless Main Street program, described elsewhere in this report, assists communities in bringing Internet connectivity to their residents. Other communities are initiating efforts to enhance their IT infrastructure.

Annual Report to the Governor and General Assembly 29 For example, Monticello will soon provide high speed, wireless Internet service to their residents. Through an innovative agreement with a private telecommunications company, the city will install a wireless antennae on its water tower. The city expects the service will be available throughout the city by the end of November.

Northern Illinois Technology Triangle. The Northern Illinois Technology Triangle is a joint venture of Rochelle Municipal Utilities and the Illinois Municipal Broadband Communications Association (IMBCA) and will provide a looped broadband fi ber network in an area bordered by I-88 from Rock Falls to Naperville; I-90 from St. Charles to Rockford; and I-39 from Rockford to Rochelle. The network will create new opportunities for education, research, and business and allow for the sharing of municipal resources, enhance economic opportunities, increase educational and research collaboration, provide security services and, more generally, create opportunities within the rural areas of the region. The IMBCA has already leased fi ber along I-88 and is now negotiating leases for fi ber on I-90. RMU will install the remaining fi ber from Rochelle to Rockford. This will make the Northern Illinois Technology Triangle the fi rst municipal fi ber optic network in Illinois. The network will be vital for the long-term sustainability of business located within the triangle as well as create opportunities for new start-up companies. It will also serve as a vital anchor to attract businesses to a proposed business park and is intended to serve as a disaster recovery center for the region (Cohill n.d.) . The Governor’s Looking to the Future Rural Affairs Member agencies of the Governor’s Rural Affairs Council worked on Council: a variety of issues impacting the quality of life for residents of rural Illinois during FY05. Many of these issues, however, need long-term Looking to the solutions and collaboration by member agencies in order for rural Future residents to see lasting changes in their standard of living. In some cases, legislation may be needed or policies developed so that new and innovative approaches may be pursued.

Deployment of Broadband Technology Illinois must develop a comprehensive broadband deployment plan for rural areas in Illinois. Components of this plan must include the centralization of responsibility for broadband deployment to a single entity. This state-level “e-champion” could serve as a central source of information, technical assistance, research and policy development, and administration of state funding. Such an entity would work with local communities, consumers, and providers to

30 Governor’s Rural Affairs Council assist them with developing local solutions to meet the information technology needs.

Creating Businesses and Jobs in Rural Agencies For rural communities to survive, residents must be able to find jobs that pay living wages. Illinois must continue to develop innovative programs that promote the creation of businesses in rural areas. The Illinois Entrepreneurship Network assists small business owners to successfully open and operate businesses in rural communities and those efforts must continue. However, Illinois must continue to look at additional innovative programs to encourage entrepreneurship at greater levels. These efforts may include the development of industry clusters, value-added agriculture and alternative agriculture, school- based entrepreneurship training programs, and the development of “entrepreneurial clusters.”

Renewable Energy Illinois must continue its commitment to renewable energy, including wind energy, ethanol, and biodiesel. The promotion of renewable energy reduces the nation’s dependence on imported oil, promotes the use of Illinois’ agricultural products, helps conserve natural resources, and protects the environment. Efforts to promote renewable energy must include support for research on renewable fuels, support for value-added and alternative agriculture, technical assistance to entrepreneurs and others wishing to develop renewable energy sources, and legislation and tax incentives that not only encourage the use of renewable fuels but also remove the barriers to its use.

Affordable Housing Illinois must continue the efforts of the Illinois Housing Task Force; most specifically, the state must begin to implement the recommendations of the Rural and Small Cities Working Group. These recommendations include developing programs and funding that increases the capacity of rural communities to build affordable housing and preserve existing housing. Policies must encourage the participation of local banks in building affordable housing and the support of local developers interested in building housing that meet the needs of the elderly.

Public Transportation Rural areas of Illinois need good, affordable public transportation systems to maintain quality of life and retain residents and

Annual Report to the Governor and General Assembly 31 businesses. The Paul Simon Rural Transportation Bill (PA 094-0070) increases the amount of funding available to rural transit providers, and this is a signifi cant step toward universal access to public transit in Illinois. However, areas with public transit are often characterized by multiple providers serving different but overlapping clients. At the same time, gaps in service in these communities mean that many residents do not receive any services. For example, a community may have one agency providing transportation to the elderly and another providing services to people with disabilities, yet low income residents have no way to get to jobs, medical appointments, and training programs. The Illinois Coordinating Council on Transportation will submit a report to the Governor and General Assembly in February 2006 outlining recommendations for legislation and needed changes to regulations to promote coordination of public transit. The recommendation of this committee should be supported in the coming years. The Governor’s Rural Affairs Council can play an important role as a champion of a coordinated, comprehensive, and locally-based rural transportation system and can assist communities to fi nd solutions to their transportation issues that best meet the needs of local communities.

32 Governor’s Rural Affairs Council References Center for Economic Progress. 2005. 2005 statistical profile. Available online: . Downloaded: June 2, 2005. Cohill, Andrew. n.d. Northern Illinois grabs hold of the Future. Available online: www.designnine.com/news/?q=node/256. Downloaded: July 15, 2005. Illinois Department of Employment Security. 2005. Local area unemployment statistics (LAUS). Available online: . Downloaded: May 18, 2005. Illinois Housing Development Authority 2005. Building for success: Illinois’ comprehensive housing plan. 2005. Available online: . Downloaded: June 9, 2005. Illinois Rural Poverty Summit. 2004. 2004 Report on Illinois poverty: An analysis of rural poverty. Illinois Rural Poverty Summit. Institute of Government and Public Affairs, University of Illinois (IGPA). 2003. 01-03 total populations, 1880 to 2000 and population estimates for 2001 to 2003. Available online: . Downloaded: May 18, 2005. U.S Bureau of the Census. 2004. 2004 census of population. Available online: . Downloaded: May 18, 2005. U.S. Department of Commerce, Bureau of Economic Analysis. 2003. Local area personal income. Available online: . Downloaded: May 18, 2005. W. K. Kellogg Foundation. 2001. Perceptions of rural America. Battle Creek, MI: W.K. Kellogg Foundation.

Annual Report to the Governor and General Assembly 33 34 Governor’s Rural Affairs Council Appendices

A. Executive Order Number 1 (2000)

B. Executive Order Number 13 (1991)

Annual Report to the Governor and General Assembly 35 36 Governor’s Rural Affairs Council EXECUTIVE ORDER NUMBER 1 (2000)

EXECUTIVE ORDER REGARDING THE RURAL AFFAIRS COUNCIL

WHEREAS, the Governor’s Rural Affairs Council was created in 1986 to maintain the rural emphasis in Illinois government, strengthen the rural economy, increase the capacity and viability of local governments and improve education and human service opportunities in Illinois; and

WHEREAS, these goals remain priorities of the State of Illinois in order to improve the capacity and viability of rural residents into the 21st Century; and

WHEREAS, the needs of rural residents and communities vary greatly from one part of the State to another; and

WHEREAS, the rural challenges and opportunities continue to evolve over time; and

WHEREAS, rural residents are best served by a comprehensive approach to rural development and planning;

THEREFORE, I, George H. Ryan, hereby order the following:

The Governor’s Rural Affairs Council shall include the Illinois Departments of Aging, Agriculture, Commerce and Community Affairs, Employment Security, Human Services, Natural Resources, Public Health, Transportation, Environmental Protection Agency, Community College Board, State Board of Education, University of Illinois Cooperative Extension Service, the Farm Development, Development Finance and Housing Development Authorities, Southern Illinois University, Rural Partners, the Illinois Institute for Rural Affairs, and the Illinois Rural Bond Bank. Membership may be expanded at the discretion of the Governor, however, membership shall not exceed a total of 20 members.

The Governor’s Rural Affairs Council shall be chaired by Lieutenant Governor Corinne Wood.

The Chair of the Governor’s Rural Affairs Council may appoint representatives from government, private industry and not-for-profi t organizations to serve on Council committees and to provide input to the Council as a whole.

The Governor’s Rural Affairs Council shall develop and implement a comprehensive strategy for improving delivery of state services to rural Illinois with the aim of expanding opportunities and improving the quality of life for rural residents.

This Executive Order Number 1 (2000) shall be effective upon fi ling with the Secretary of State.

GEORGE H. RYAN Governor

Filed: January 11, 22000

Annual Report to the Governor and General Assembly 37 38 Governor’s Rural Affairs Council EXECUTIVE ORDER NUMBER 13 (1991)

AN EXECUTIVE ORDER CREATING AN ANNUAL REPORT ON THE STATE OF THE RURAL ILLINOIS ECONOMY

WHEREAS, the Institute for Rural Affairs at Western Illinois University is the State’s academic clearinghouse for rural development data and initiatives; and

WHEREAS, the Governor’s Rural Affairs Council and the Institute for Rural Affairs coordinate rural development initiatives through the Offi ce of the Lieutenant Governor; and

WHEREAS, the Lieutenant Governor as the Chairman of the Governor’s Rural Affairs Council is given authority to organize government and private sector resources to secure assistance for and to enhance the quality of life in rural Illinois; and

WHEREAS, the Institute for Rural Affairs at Western Illinois University has developed a format for an Annual Report on the State of the Rural Illinois Economy and has agreed to produce this report.

THEREFORE, I, Jim Edgar, hereby order the following:

A. Executive Orders Number 6 and 7 (1986) are hereby amended in accordance with the provisions of this Executive Order.

B. There is created an Annual Report on the State of the Rural Illinois Economy.

C. The Annual Report on the State of the Rural Illinois Economy shall replace the Rural Fair Share Initiative created by Executive Order Number 6 (1986).

D. The Institute for Rural Affairs at Western Illinois University shall organize the Annual Report in cooperation with the Governor’s Rural Affairs Council.

E. The Annual Report on the State of the Rural Illinois Economy shall assess rural economic indicators and make recommendations to the Governor and General Assembly on rural infrastructure needs.

F. The Governor’s Rural Affairs Council and the Institute for Rural Affairs Western Illinois University shall issue the Annual Report on the State of the Rural Illinois Economy no later than August 1 each year to the Governor and General Assembly.

G. For the purposes of the Annual Report on the State of the Rural Economy the following United States Bureau of the Census defi nitions as detailed in Rural Revitalization: The Comprehensive State Policy For The Future shall apply:

a. Rural County – No municipality over 50,000 population. Under this defi nition Illinois has 76 non-metropolitan or rural counties.

b. Rural Area – Under 2,500 population regardless of whether they are in a Metropolitan Statistical Areas or not.

This Executive Order Number 13 (1991), shall become effective upon fi ling with the Secretary of State.

JIM EDGAR Governor

Filed: October 11, 1991

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