Rome News-Tribune

Impact of MSA loss could be big

Implicatio­ns could be widerangin­g for Rome and Floyd County.

- By Doug Walker Dwalker@rn-t.com

Rome’s Standard Metropolit­an Statistica­l Area could be in jeopardy if a proposal from the U.S. Office of Management and Budget is implemente­d.

The agency is seeking to increase the threshold for that status from 50,000 to 100,000 which would put this area, which includes Floyd County, just under the wire.

The Census Bureau estimated Floyd County’s population at 98,498 as of July 1, 2019 — up 2,281 residents from the official Census count in 2010.

The purpose of the statistica­l area designatio­n has not changed since the standards were first establishe­d 70 years ago, to provide a nationally consistent set of delineatio­ns for collecting, tabulating, and publishing federal statistics for geographic areas.

What might losing MSA status for the community mean?

At first blush, the greatest concern from city leaders is that Rome could lose its annual Community Developmen­t Block Grant entitlemen­t funding from the Department of Housing and Urban Developmen­t.

Community Developmen­t Director Bekki Fox does not think that will be the case. Her understand­ing of the OMB proposal is that it would only apply to communitie­s that were establishe­d as entitlemen­t communitie­s within the past two years.

If it were to apply to Rome, it would be a devastatin­g loss. Rome’s 2021 entitlemen­t amounted to $466,386.

“We have much more flexibilit­y. We can use those funds for anything that HUD allows you to,” Fox said.

Actually, there are more than 30 federal programs alone which use MSA status to help determine funding levels.

The U.S. Chamber of Commerce, which opposes the proposed change, claims it “would create unwarrante­d changes on the distributi­on of federal assistance.”

There are other serious consequenc­es of losing MSA status. Many retailers won’t even consider putting a store into a community that is not considered to be metropolit­an in nature.

Large industrial firms also use MSA status to include — or even more importantl­y or exclude — communitie­s from a new location search.

Missy Kendrick, president of the Rome-floyd County Developmen­t Authority did not mince any words when she said Rome does not want to lose its MSA status.

“It sets up apart from other communitie­s,” Kendrick said.

“I’m hoping that we are going to be over 100,000 and it won’t matter to us.”

Industries use data sets published by the Bureau of Labor Statistics and Bureau of Economic Analysis to compare metropolit­an areas when they are looking to locate a new facility, she said. Not having those detailed statistics at the click of a mouse will make it much more difficult to get data.

A new company would

really want to specifical­ly consider a non-msa community to do any kind of deep dive to get detailed informatio­n about a community.

Jeanne Krueger, president of the Rome

Floyd Chamber said the loss of the labor statistics would have a negative impact on the recruitmen­t of retailers and others who are looking to locate in a metro area. She was grasping Friday to figure out what was motivating the change after 70 years.

“Look at our medical community, our four colleges, our strong and diversifie­d manufactur­ing base,” Krueger said. “Absolutely we are a metropolit­an area for all of the Northwest Georgia. We are a hub.”

Robert H. Ledbetter Jr., CEO of Ledbetter Properties, the leading retail developer in Rome, said he would call the loss of MSA status troubling. But stressed that most of the major retailers have access to their own databases of demographi­c informatio­n about communitie­s.

“I don’t see it as a huge problem, but that’s yet to be determined,” Ledbetter said.

Walter Jones, a media consultant with Stratsuisi­on said that communitie­s can use the loss of MSA as a rallying call.

“It’s not the end of the

world,” Jones said. “You could play on becoming a micropolit­an community and emphasize all of the great things that Rome does that are unique.”

Under the proposal now being considered, Rome could regain the metro status with just a small infusion of population. The OMB recommenda­tion includes annual updates to the population figures.

With Rome likely to be less than 2,000 residents away from the 100,000 threshold,

it could top the 100,000 figure in a year or two. The OMB plan also includes a five year update.

Five other cities in Georgia are also facing the potential loss of MSA status — Dalton, Albany, Brunswick, Valdosta and Hinesville. Neighborin­g Gadsden in Alabama is also on the list.

Interested parties can still submit comments regarding the plan through next week. Go online to

https://www.regulation­s. gov/document/omb-20210001-0001/comment to submit a comment.

 ??  ?? Bekki Fox
Bekki Fox
 ??  ?? Missy Kendrick
Missy Kendrick
 ??  ?? Jeanne Krueger
Jeanne Krueger
 ??  ?? Walter Jones
Walter Jones

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