Kentucky Highlands Empowerment Zone

Latest Progress Reports

Annual Report 2003 2002 2001 2000 1999

Funding Report Benchmark Summary Report

Wayne County Benchmark Projects
Jackson County Benchmark Projects
Clinton County Benchmark Projects

State: Kentucky
Counties (Census Tracts): Clinton (9701, 9702), Jackson (9601, 9602, 9603), Wayne (9801, 9804)
Zone Population: 27,219
Zone Area: 753 sq. mi.
Poverty Rate: 37.7 % of residents live in poverty
Unemployment Rate: Clinton County 8.8%, Jackson County, 9.0%, Wayne County 7.9%
Median family income range: $12,700 to $16,400 Per Capita Income: $11, 402 (1994 estimate)

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Overview

The Kentucky Highlands Empowerment Zone consists of three counties in southeast Kentucky that lacked development opportunities due to deficient infrastructure, geographic isolation, limited job skills and a shortage of business investment capital. The per capita income of Zone residents has generally been 65% of the state average and only 55% of the U.S. average. The transportation system in the zone has historically been poor and there has been little manufacturing base. Generally, when young people left the area for college they did not return because there were few, if any jobs available. Thus, the skill and education levels of much of the remaining population were low.

Significant Project: The focus of the Kentucky Highlands Empowerment Zone to date has been on job training and business development. The Development Venture Fund, a revolving loan fund, has committed more than $12.5 million to new and expanding business ventures which have created 1,900 new jobs. Projects presently under construction will add another 1,300 new employees. Jackson County Rehabilitation Industries has 102 trainees in their new 24,000 s.f. building, learning tool & die, injection molding and telecommunication skills. Private industry has committed to hire all those who complete the training. In addition, by combining three projects in Clinton County into a learning center, the local residents were able to obtain $6.5 million from the State of Kentucky and $2.2 million from the U.S. Department of Labor to construct and operate a vocational/post-secondary education center.

Quantitative Measures: Since the Kentucky Highlands Empowerment Zone was established, new businesses financed in part through the Zone have created 1902 new jobs and committed to an additional 1,300 positions. Other new manufacturers in the Zone have created another 350 jobs. Two major employment training centers have been established, an entrepreneur training program began operation, two hospitals have been expanded, schools have been given 700 computers, the first residential natural gas has been provided, and water services have been extended to more than 2,000 additional households.

• Venture Capital Fund--Established a Development Venture Capital Fund that has approved eleven Empowerment Zone investments totaling more that $12,500,000 that will leverage more than $64,000,000 in private capital. More than 1900 new jobs have already been created with another 1,300 committed.
• Rehabilitation Workshops--Established the first of two rehabilitation workshops to assist disadvantaged workers, and those persons impacted by welfare reform, develop life and vocational skills training in a manufacturing setting. The first workshop in Jackson County currently has 102 employees and is producing telecommunications equipment, sporting goods and appliance components.
• Water Line Extensions--Wayne County has utilized $500,000 in Empowerment Zone proceeds to leverage more than $11 million in other funds to extend water lines to almost 1,600 households in the county. With the completion of these extensions, more than 95% of the county will have potable water available.
• Entrepreneurial Training--In Jackson County, Eastern Kentucky University is conducting entrepreneurial training courses with funds provided by the local EZ board. The sixth 24-session course began in March 1999 with a full class of 15 zone residents. To date, through this ten-year initiative, more than 100 persons completed the training and 25 have launched new businesses to date.

• Jobs created or saved:1902


• Revolving Loan Funds Created: 4


• Leveraged funding: $120,000,000





Contact:	Jerry Rickett
Address:	P.O. Box 1738
	London, KY 40743
Telephone:	(606) 864-5175
Fax:	(606) 864-5194
Email:	khicnet@khic.org
Website:	www.khic.org/empowerment_zone.html

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