To answer the initial question - LAs came into existence because there was a bridge between the local representative (the "state rep" for us racers) and the USCF (at the time, meaning Colorado) that ended up a bit too much. The rep could upgrade you, could answer some basic questions, but for any race promoting questions you had to go to the feds, the USCF. And with one USCF person responding to a huge area, the USCF rep would get overwhelmed.
So the idea of a LA came into existence. They'd fill that gap. USA Cycling (by then) would answer the tough, maybe legal questions, like questions on permits or insurance or whatever. The LA would handle calendar questions, upgrades (except Cat 1), resolve conflicts (like between promoters), etc. The "state rep" was briefly volunteer (I was the CT rep for 3-4 years, which is documented in exactly zero places). NEBRA had five? state reps, strictly volunteer, then the reps were rolled into a paid "regional rep" position.
Our LA, NEBRA, receives money from primarily the license contribution. I think it's now $20 per license? The primary cost for NEBRA is paying the NEBRA rep (others include grants for Juniors for travel like to Nationals or Worlds, not sure what else). The 501(c)3 process was done by a racing lawyer for free. Even so the job is such that no one really wanted to do it once the long time rep stepped down - at the time based on budget the pay was in the $18-20,000 range. Someone privately put up $100,000 to pay a new rep for two years, initially intending to pay for just one year salary at $50,000, but then quickly realizing that the structure would not be in place to pay the same salary the second year. So this individual simply doubled their donation. I have no idea who this person is but it's an incredible act of selflessness. I think now there is a NEBRA fee to help raise that money, but I'm so out of the racing world I have no idea anymore.
Our LA rep does a bunch of things. He's trying to homogenize the race calendar so racers can expect certain categories, have some consistency among the events. He's put together a regional calendar (of events that fit the required categories) so that it encourages attendance to some of the further events. He helps answer questions on promoting, on upgrades, etc. It's a full time job.
I can tell you that I applied for the job and I'm very thankful I didn't get chosen (and it was down to two people when I got eliminated). It's a tough, tough job and I don't think I could do it justice with where I am right now, or where I was then.
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