The economy is growing in Iowa and other key states, but it is struggling to rebound in rural areas.
The state’s rural economy is about 6.7 percent of the U.S. economy, but only 4.4 percent of its jobs are held by rural counties, according to a report from the Economic Development and Tax Analysis Center at the University of Iowa.
The report comes as the U, and to a lesser extent other major countries, struggle with economic crises as well.
In a letter to Iowa Governor Terry Branstad, Gov.
Mike Beebe said the state is “struggling with a growing rural population, a stagnant economy and a rising cost of living.”
Beebe noted that many of the counties with the highest percentage of rural employment in the state are in the Midwest and West, as well as the Great Plains.
Beebe’s letter said the economic recovery in rural counties is “the best of all worlds.”
In a press release, the governor said, “These are the people who have been left behind by a changing economic and cultural landscape.”
The economic downturn began when the housing bubble burst in the mid-2000s, and a string of large and deep recessions have eroded economic growth.
In Iowa, there were 8,500 more layoffs in May, compared to the same month a year ago, according the state’s Bureau of Labor Statistics.
Beebee’s letter to Branstad calls for $100 million in state and federal grants to help rural counties rebound.
The governor has proposed spending $25 million a year to help counties recover.
Beeves request comes on the heels of a similar proposal from Republican Gov.
Terry Branstalk that also calls for additional federal funding for rural counties.
Beebes proposal also calls on the U., the U of I and other federal agencies to create a National Rural Economic Development Fund, which Beebe would use to support rural economies in states.
The Iowa Republican Party has called for Branstad’s plan, but the Republican governor has said that his budget would not include any additional federal money for rural communities.
BeeBe has not announced when he plans to announce his proposal.
The Economic Development Development and Analysis Center says rural counties in Iowa are now experiencing a 10 percent drop in population since the 2008 recession, which began when housing prices crashed and the U housing bubble popped.
The county economy is not growing fast enough to support a middle class, according Beebe.
Beees proposed federal funding to help the states recovery could provide more funds to rural counties that are already struggling.
The U. S. Bureau of Economic Analysis says that rural counties have experienced the biggest decline in jobs in the country, but have also experienced a drop in the population.