The North Carolina Department of Commerce released the county tier designations for 2024 on Wednesday, with one Greater Outer Banks county holding on to the state’s top economic ranking while two others dropped into a more distressed category.
The designations, which are mandated by state law, play a role in several programs that assist in economic development.
But they can be a “double-edged sword” when a county seeks assistance for further economic development and access to grants for capital projects such as building new schools.
Holding on to the top spot on the list is Currituck County, which has the state’s third highest adjusted tax base per capita for Fiscal Year 2023-24, the second highest population growth between 2019 and 2022, fourth highest median household income in 2021, and 21st lowest unemployment rate between October 2022 and September 2023.
Pasquotank and Gates moved down from Tier 2 to Tier 1 for next year, which means they are in the group considered the most economically distressed. The rest of the region remained in the same tiers from 2023.
After moving up to Tier 2 in 2022, Pasquotank’s economic distress rank is 31st, a drop of eight spots from a year ago.
“This shift was largely driven by a change in the county’s median household income rank, which moved from #73 last year to #45 this year,” according to the commerce department.
Gates’ economic distress rank is 38th for the upcoming year, a decline of three spots.
“This shift was largely driven by a change in the county’s unemployment rate rank, which moved from #73 last year to #60 this year,” state officials said.
Camden and Currituck are the only Tier 3 counties in the northeast corner of the state, with Dare and Perquimans the lone Tier 2 counties.
Dare County again has the highest per capita property tax base in North Carolina, but median household income dropped eight spots to 15th in 2021, population growth from 2019-22 was ranked 24th, and Dare’s average unemployment rate over the 12 month period ranked 75th highest.
That kept Dare in Tier 2 by just one spot after its overall rank came in at 21st, the same ranking as 2023.
Hyde County had the state’s biggest decline in population from 2019-22, and second highest unemployment in FY 2022-23.
The statue identifies four economic factors to be compiled and calculated by N.C. Commerce and then used to analyze and rank each of North Carolina’s 100 counties.
Each county is then assigned its tier designation ranking from one to three. Tier 1 counties are generally the most economically distressed and Tier 3 counties are generally the least economically distressed.
The rankings are based on an assessment of each county’s unemployment rate, median household income, population growth, and assessed property value per capita.
The law calls for 40 counties to be designated as Tier 1, 40 counties to be designated as Tier 2, and 20 counties to be designated Tier 3.
Other counties moving to a less distressed tier are Burke, Davie, and Randolph. Avery, Beaufort, Gates and Pasquotank are the state’s only counties to move to a more distressed.
Tier designations determine eligibility and guidelines for several different grant programs that N.C. Commerce administers including the One North Carolina Fund, building reuse, and water and sewer infrastructure grants among others.
Tier designations also play a role in the state’s performance-based Job Development Investment Grant (JDIG) program, serving as a mechanism to channel funds into the Industrial Development Fund – Utility Account for infrastructure improvements into more economically distressed areas of the state.
For more information about the tier designation system visit: nccommerce.com/grants-incentives/county-distress-rankings-tiers.
Related story: Currituck has state’s best economic ranking for 2023, Pasquotank improves to Tier Two
