State
Government Watch
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Signs Our Robust Economy Continues Expanding
Nicely
  The state collected
almost $50 million more in taxes during the first
month of this fiscal year than last year,
the state Controller's Office reported. As shown
in the chart at right, the 6 percent increase in
General Fund revenues in July, compared to the
year-ago month, was mainly due to higher
individual income taxes and sales taxes.
Fitch, Standard
& Poors and Moody's reaffirmed North
Carolina's Triple-A bond rating, State
Treasurer Harlan Boyles said. The decision by the
ratings agencies was a prerequisite to the sale
of $300 million in bonds -- $295 million in
public school construction bonds approved by
voters in 1996 and $5 million in natural gas
bonds approved in 1998. The reaffirmation of the
Triple-A bond rating will also help supporters of
the $3.1 billion bond issue for state
universities and community colleges on this
fall's ballot. The bond sale was the last state
offering managed by Treasurer Boyles, who is
retiring. See below to read Boyles' support
for the bonds.
North
Carolina’s seasonally-adjusted unemployment
rate decreased to 3.2 percent in July, down from
3.4 percent in June, said Parker
Chesson, chairman of the Employment Security Commission of
North Carolina (ESC). "We're fortunate that
North Carolina's economy remains very
healthy," said Chesson. A year ago at this
time North Carolina’s jobless rate was 3.1
percent. Unemployment here is way below the U.S.
rate, which remained steady at 4.0 percent in
July. North Carolina’s labor force now
stands at 3,922,200.
The N.C. Industrial
Commission determined that the maximum
workers' comp benefit check will be $620 next
year, a figure that's 1.1 times the
average weekly insured wage of $563.74 in
calendar 1999. The minimum weekly unemployment
check next year will be $30.
 Quick
Clicks: SAT scores for Tar Heel students
were just released. See how your school system
fared.
NCCBI President Phil Kirk often visits schools in
his role as chairman of the State Board of
Education. Check his schedule. See the agenda for upcoming
meetings
of the Industrial Commission.
 Quotable
Quotes:
"In my 23 years as State Treasurer, I have
seen few bond issues as critical to the state's
future prosperity as (the $3.1 billion higher
education facilities bonds on the Nov. 7 ballot).
Failure to pass the bonds will mean lost
educational opportunities and lost economic
opportunities." -- Treasurer Harlan
Boyles (left), in an Aug. 17 letter to Governors
Hunt, Martin, Holshouser and Scott, the honorary
co-chairs of the NCCBI-led bond campaign.
"In my 30 years as an economic forecaster,
there has never been another year remotely like
this one. All of us, even the most wildly
optimistic, have had to increase our forecasts of
real GDP growth several times and are now doing
it again." -- Dr. James F. Smith,
professor of finance at UNC-Chapel Hill's
Kenan-Flagler Business School. Smith was named
The Wall Street Journal's most accuract economic
forecaster three times in the past five years.
News from State Regulatory
Agencies
By a 3-1 vote, the State Board of
Elections decided to put Pat
Buchanan's name on the North Caroline
presidential ballot as the Reform Party candidate
instead of John Hagelin, who was favored by
followers of party founder Ross Perot. The board
reached the decision after a four-hour meeting.
North Carolina was the first state to have to
decide between the rivals for the Reform Party
leadership.
The N.C. Utilities
Commission on Aug. 22 issued an order approving CP&L's pending
acquisition of Florida Progress Corp..
The Securities and Exchange Commission regulatory
approval is needed to complete the acquisition,
which is expected to close in the fall. As part
of the approval order, CP&L will provide a
total of $29.5 million in rate reductions for its
N.C. customers. The reductions include rate cuts
totaling $19.5 million over the time period
2002-2005 and a one-time reduction of $10 million
in fuel costs to settle the 2000 fuel case. In
addition, the Utilities Commission included a
series of conditions designed to protect N.C.
customers from any adverse effects of this
proposed combination.
State Insurance
Commissioner Jim Long issued a letter to the
Federal Reserve Bank of Richmond notifying it of
approximately $400 million in automobile
insurance refunds due North Carolina
policyholders. The refunds are a part of
an agreement reached earlier this year between
the Department of Insurance and automobile insurers to
settle prior disputes dating to 1994, 1996 and
1999 automobile rate filings. The $400 million
refund includes $250 million in premiums plus
four years of interest at 11.5 percent per year.
The monies are to be refunded between Sept. 1 and
Dec. 1, 2000.
Construction across
North Carolina climbed to more than $14 billion
in 1999, a jump of 3 percent compared to 1998
building activity, according to the N.C.
Department of Labor. Residential
construction accounted for $9.3 billion of the
$14 billion total, while business construction
reached approximately $4.8 billion. Mecklenburg
and Wake counties posted the most activity in
North Carolina, with Mecklenburg recording about
$2.25 billion in overall construction and Wake
listing approximately $2.23 billion. Statewide,
62,616 home construction permits were issued in
1999 at an estimated value of $7.9 billion. That
compares to 61,319 single-family home permits at
a value of some $7.3 billion in 1998. Local
governments issued 18,157 commercial construction
permits in 1999 for approximately $3.1 billion.
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