Cumberland County ranked one of most economically distressed

Cumberland County has been designated as one of the most economically distressed counties in the state, but the classification happened only because the state changed the way the rankings are calculated and could help the county recruit companies.

The state Department of Commerce ranks the state’s 100 counties based on their economic well-being. Each is assigned a Tier 1, Tier 2 or Tier 3 designation.

The state designates the 40 most distressed counties as Tier 1. The next 40 counties are Tier 2, while the 20 least distressed counties are Tier 3.

The tier system is used by some state programs “to encourage economic activity in the less prosperous areas of the state,” a statement released by the department said.

Cumberland County moved from a Tier 2 to a Tier 1 county, according to the recent rankings. The county was the 20th most economically distressed county, state records show.

Robert Van Geons, president of the Fayetteville Cumberland Economic Development Corp., said the move was a result of recent legislation that changed the way the rankings are calculated. Economic growth in the county has been generally flat over the last several years, he said.

Marshall Faircloth, the county commissioners’ vice chairman, said he is OK with the designation.

“I feel like the economy, if anything, is getting better around here,” he said.

Faircloth said some counties prefer the Tier 1 designation.

“I don’t think it will be a stigma,” he said.

The designations are based on the average unemployment rate, the median household income, the percentage growth in population, and the adjusted property tax base per capita, according to state records. Cumberland County ranked 21st in worst unemployment, 54th in median household income, 31st in population growth, and 12th in tax base, the records show.

Additional factors were used to adjust the designations in previous years, but the state General Assembly eliminated those adjustments for this year’s rankings.

Van Geons said population was previously used in the calculations. Counties with fewer than 12,000 people were listed as Tier 1. Counties with less than 50,000 and also met other criteria also were included, he said.

Cumberland was one of 12 counties to move from Tier 2 to Tier 1, according to state records. Hoke and Sampson counties were among the other 11.

The new designation will make Cumberland County eligible for more state grants and make it easier for companies to receive incentives for bringing jobs to the county, Van Geons said.

“We want to move forward and push our way out of Tier 1,” he said. “Meanwhile, we appreciate the tools and resources we have now.”

Faircloth said the designation is an advantage when the county is competing for grants on the state level.

“For that reason, I applaud it,” he said.

Staff writer Steve DeVane can be reached at sdevane@fayobserver.com or 910-486-3572.