144 metropolitan areas could be recast as ‘micropolitan’
Bye-bye, Bismarck. So long, Sheboygan.
Those cities in North Dakota and Wisconsin, respectively, are two of 144 that the federal government is proposing to downgrade from the metropolitan statistical area (MSA) designation, and it could be more than just a matter of semantics.
Officials in some of the affected cities worry that the change could have adverse implications for federal funding and economic development.
Under the new proposal, a metro area would have to have at least 100,000 people in its core city to count as an MSA, double the 50,000-person threshold that has been in place for 70 years.
Cities formerly designated as metros with core populations between 50,000 and 100,000 people, such as Bismarck and Sheboygan, would be changed to “micropolitan” statistical areas instead.
A committee of representatives from federal statistical agencies recently made the recommendation to the Office of Management and Budget, saying it’s purely for statistical purposes and not to be used for funding formulas. But as a practical matter, that is how it’s often used. Several housing, transportation and Medicare reimbursement programs are tied to communities being metropolitan statistical areas, so the designation change concerns some city officials.
In Corvallis, Ore., the state designates certain funding sources to metropolitan statistical areas, and any change to the city’s status could create a ripple effect, particularly when it comes to transportation funding, said Patrick Rollens, a spokesman for the city that is home to Oregon State University.
“I won’t lie. We would be dismayed to see our MSA designation go away. We aren’t a suburb of any other, larger city in the area, so this is very much part of our community’s identity,” Rollens said in an email. “Losing the designation would also have potentially adverse impacts on recruitment for local businesses, as well as Oregon State University.”
If the proposal is approved, it could be the first step toward federal programs adjusting their population thresholds when it comes to distributing money to communities, leading to funding losses for the former metro areas, said Ben Ehreth, community development director for Bismarck.
“It won’t change any formulas ... but we see this as a first step leading down that path,” Ehreth said. “We anticipate that this might be that first domino to drop.”
Rural communities are concerned that more micropolitan areas would increase competition for federal funding targeting rural areas. The change would downgrade more than a third of the current 392 MSAs.
Statisticians say the change in designations has been a long time coming, given that the U.S. population has more than doubled since 1950. Back then, about half of U.S. residents lived in metros; now, 86% do.
“Back in the 1950s, the population it took to create a metro area is different than it would be to create a metro area in 2020,” said Rob Santos, president of the American Statistical Assn.
Nancy Potok, a former chief statistician of the Office of Management and Budget who helped develop the new recommendations, acknowledged that officials in some cities will be upset with the change because they believe it could hurt efforts to lure jobs or companies to their communities.
“There are winners and losers when you change these designations,” Potok said. “A typical complaint comes from economic development when you are trying to attract investments. You want to say you are part of a dynamic MSA. There’s a perception associated with it. If your area gets dumped out of an MSA, then you feel disadvantaged.”