State leaders ask business community
for help with Hurricane Isabel recovery

Senate President Pro Tem Marc Basnight and three other state senators from Northeastern North Carolina, as well as Gov. Mike Easley, are appealing for help from the business community in the wake of last month’s Hurricane Isabel. Basnight contacted NCCBI and asked for an opportunity to communicate with you. In their letter, the senators appeal for donations to the Hurricane Isabel Relief Fund managed by RBC Centura Bank. Donations are tax-deductible. The money will be used for emergency housing needs, food and medicine.

NCCBI plans to spotlight the disaster in the December issue of the North Carolina magazine. We usually focus on corporate philanthropy in the December issue, and this year we will feature businesses that do their part to help the state recover from Hurricane Isabel. If you know of some worthwhile contribution by a business to the cause, please let us know so we can include them in the story. There’s more information about the December issue on page 6.
 

Above right: The Category 2 storm ripped a new inlet in the Outer Banks near Cape Hatteras Village. Above left: The same section of the Outer Banks before the hurricane hit.

Below is the text of the letter from Senator Basnight to NCCBI members

Dear Business Leader:

Hurricane Isabel made landfall on North Carolina’s coast on September 18, 2003, leaving in its pathway a trail of destruction that in places exceeded the damage of Hurricane Floyd, the state’s most damaging flood event ever. Early estimates of the destruction are in the hundreds of millions of dollars. State and federal emergency relief and recovery officials have been working tirelessly around the clock for the past few weeks to meet the needs of the disaster victims.

Both the state and federal government provide individual assistance to victims of Hurricane Isabel through grants and loans for property restoration. Private insurers will also be responding by moving additional adjustors into the impacted area and processing claims for loss on an expedited basis. Inevitably, however, as we have seen in previous disasters, these programs can often leave some individuals without adequate assistance to provide even the most basic of recovery needs.

In many of the communities that were hit by Isabel, poor economic conditions were already wreaking havoc among families. Farmers and fishermen, in particular, have already been suffering as a result of poor crop yields, reduced harvests from previous years and overextended debt burdens from previous disasters. In addition, traditional governmental disaster programs have been diminished. For many, Isabel will be the final nail in an imminent economic coffin.

Because state and federal relief efforts provide a limited safety net of assistance, several of the elected officials representing this area have come together to request assistance from the state’s business community to come to the aid those individuals who slip through the safety net. That’s why the Governor’s Hurricane Isabel Relief Fund has been established.

Many businesses throughout North Carolina have already provided help to those in need, through donations of goods and funds immediately after Isabel hit, and we thank you so very much for your generosity and your compassion for your fellow North Carolinians.

Your continued support will be appreciated and needed throughout what is certain to be a lengthy and difficult recovery process. We all know that there are times at which bureaucratic rules and regulations fail to match up with the specific disaster needs of an individual. Rather than simply leaving the individual to chance, it is our hope that this special relief fund would be available to help in these unique circumstances.

The Hurricane Isabel Relief Fund for which we are seeking your support is held by RBC Centura Bank. Donations to the fund are tax-deductible. Funding will be used for emergency housing needs, food and medicine. Local Unmet Needs committees from the affected area will meet to determine the approval of funds for those individuals who have fallen through the cracks. This fund would in no way duplicate insurance claims payments, other government programs or other voluntary contribution efforts under way for disaster victims. People wishing to make monetary donations may make checks payable to the Hurricane Isabel Relief Fund and mail them to:

Hurricane Isabel Relief Fund
Office of the Governor
20301 Mail Service Center
Raleigh NC 27699-0301

I hope that you will consider contributing to the Hurricane Isabel Relief Fund. If we can provide further information on the needs of these disaster victims or if you would like to direct your contribution to a particular community, please let us know.

Sincerely,
Senator Marc Basnight
Senator Robert Holloman
Senator Scott Thomas
Senator Clark Jenkins

NCCBI News

Area meetings attract more than 1,600 people to 19 events

The series of 19 fall membership meetings drew more than 1,600 people and provided NCCBI with a prime opportunity to receive input on issues. The association wishes to thank the dozens of member companies who hosted the events. Pictures from the meetings are being published in the North Carolina magazine.

Planning begins
for Annual Meeting
NCCBI is beginning to accept reservations for the Expo trade show at the 2004 Annual Meeting. The Expo has grown in size and numbers of exhibitors each year.

The cost of exhibiting is $400 for members, $500 for non-members. We’ve included a form on page 7 you can use to reserve your booth at the Expo.

The 2004 Annual Meeting will be held on Wednesday, March 17, at the Raleigh Convention and Conference Center.

There’s still time to register to attend
NCCBI seminars on workplace law issues

NCCBI kicks off its series of four workplace law seminars next week with sessions in Greenville and Raleigh. The seminars continue the following week with sessions in Charlotte and Greensboro. More than 100 NCCBI members already have pre-registered to attend one of the legal seminars. We urge you to consider sending someone from your staff and to act soon because the classrooms are filling up. 

Three credentialing organizations have approved the seminars for continuing education credit: The North Carolina State Bar has determined that attorneys who attend the seminars will receive 4.5 hours of continuing legal education credit hours. The North Carolina State Board of Certified Public Accountant Examiners has determined that CPAs who attend the seminars will receive six hours of CPE credit hours. The national Human Resources Certification Institute has determined that human resources professionals who attend the seminars will receive seven hours of credit toward their PHR and SPHR recertification. 

The seminars are tailored for business owners and the attorneys and CPAs who advise business clients. NCCBI is staging the events in partnership with the respected law firm of Haynsworth Baldwin Johnson & Greaves. Registration is $225 for NCCBI members, $250 for non-members. NCCBI members sending three or more employees will receive a special discount of $199 per person. For more information on the seminars, and to register online if you choose, go to http://www.nccbi.org/ecommerce/. To claim your discount when registering online, type the word “member” at the line that asks for your discount code. Members also may register by returning the brochure we’ve mailed you, or simply calling the association at 919-836-1400 and asking to be billed later.

Seminar attendees will receive expert instruction on complying with such complex topics as:

  Wage and hour issues;
  Discrimination;
  Family and Medical Leave Act;
  Overtime and recordkeeping;
  Americans with Disabilities Act;
  Negligent hiring, and
  Employment relationships.

North Carolina Chief Justice I. Beverly Lake Jr. will deliver the keynote address at the Raleigh seminar. U.S. District Court Judge Malcolm J. Howard of the Eastern District of North Carolina will speak at the Greenville seminar. U.S. District Court Judge Graham C. Mullen of the Western District of North Carolina will speak at the Charlotte seminar. U.S. District Court Judge Frank W. Bullock Jr. of the Middle District of North Carolina will speak at the Greensboro seminar.

The main presenters at the seminars will be Haynsworth Baldwin attorneys Thomas A. Farr and Gretchen W. Ewalt, co-authors of NCCBI’s new book, “The Employment and Labor Law Resource Guide.”  Seminar attendees will receive a free copy of the book, a $112 value, plus a notebook complete with copies of all the texts and graphics from the seminar.

 

NC Access to Quality Healthcare Coalition
Statement on Senate Tort Reform Bill

Members attending the fall area meetings heard President Phil Kirk criticize the state Senate for passing a medical malpractice reform bill that doesn’t contain a cap on noneconomic damages. NCCBI is participating in a broad coalition of groups, called the N.C. Assess to Quality Healthcare, that issued the following statement on the Senate bill:

The Senate clearly recognizes that the rising cost of medical liability insurance is a serious issue facing all North Carolinians.  This special session underscores that fact and the pressing need for meaningful reform.

The bill approved by the Select Committee is not the proven reform we sought.  While it may have some helpful provisions, we do not support this bill in its current form. 

The North Carolina healthcare and business communities are disappointed that the Senate has failed to include proven reforms that are protecting access to healthcare and controlling medical liability costs in other states.  These reforms include a cap on non-economic damages, limits on attorney’s contingency fees, the elimination of double recoveries and stronger requirements for periodic payments of future damages.

SB 802 is built on a series of experimental measures, and there is no evidence that it will address the underlying problems facing our doctors, hospitals, nursing homes and other healthcare providers. We will study these proposed reforms closely to determine their impact.

This is an issue of paramount importance to the North Carolina healthcare community and we will continue to fight in the House and Senate for meaningful reform.

NC Access to Quality Healthcare Coalition: NC Medical Society, NC Neurological Society, NC Hospital Association, NC Obstetrical & Gynecological Society, NC Health Care Facilities Association, NC Orthopaedic Association, American Association of Clinical Endocrinologists, NC Pediatric Society, Carolinas Healthcare System, NC Psychiatric Association, Duke University Health Systems, NC Society of Anesthesiologists, National Federation of Independent Business, NC Society of Eye Physicians & Surgeons, NC Academy of Family Physicians, NC Society of Otolaryngology and Head & Neck Surgery, NC Assisted Living Association, NC Society of Pathologists, NC Association of Long Term Care Facilities, University Health Systems, NC Association of Non-Profit Homes for the Aging, Wake Medical Center, NC Citizens for Business & Industry, NC College of Emergency Physicians, NC Dermatology Association.


Are you interested in serving on an NCCBI policy committee?
We rely on the policy committees to develop legislative positions that provide a framework for NCCBI’s work with the N.C. General Assembly. The committee structure provides our members with an opportunity to hear firsthand from state policymakers on a variety of issues and a real chance to make an impact on the laws and regulations that govern the state’s business community. 

We are in the process of updating our committee membership lists and adding new members.  If you are interested in serving on a committee, contact Debbie Twiford, legislative assistant, at dtwiford@nccbi.org

Following are the NCCBI policy committees and a brief description of each:

• Economic Development: Works to sustain a strong business climate through support of workforce development programs, the state ports, improved water and sewer service, business growth and recruitment incentives, the seven regional partnerships and travel and tourism.
• Education: Supports continued high accountability standards for public schools and a strong system of community colleges and public and independent colleges and universities.  NCCBI advocates strong teacher training programs and funding for information technology.
• Environmental Concerns: Examines legislative and regulatory issues related to the environment with  subcommittees looking specifically at air, water and solid waste issues.
• Health Care:  Works to control the rising cost of health care coverage for employers.  Health care mandates are opposed as they drive-up costs of premiums and can limit business’ ability to provide coverage for their employees.  Medical malpractice insurance reform is strongly supported.
• Legal Issues and Workplace Policies: Explores issues related to the courts and how state laws impact employment and business operations. Legal reform continues to be a major focus, and the committee continues to support changes to limit punitive and non-economic damages.
• Taxation & Fiscal Policy: Researches tax issues that affect business and industry and advocates changes in tax policy to keep North Carolina business-friendly and competitive with other states.
• Transportation: Supports dedicated funding for all modes of transportation to meet current and anticipated needs. The committee also supports legislation requiring state and federal agencies to better coordinate their decision-making processes regarding transportation and economic development to prevent delays of much-needed projects.  Opposes diversion of transportation monies to the General Fund.
  

State Government 

Tax Category	Month of September			Year-to-Date
	Monthly Budget	Actual Collected	Variance	Quarterly Budget	Actual Collected	Percent Realized
Individual Income	$742.5	$727.7	-$14.8	$1,889.6	$1,854.9	98%
Corporate Income	168.4	159	-9.4	173.9	167.3	96%
Sales and Use	345.6	354.2	8.6	1,101.3	1,111.0	101%
Franchise	11.9	8.6	-3.3	85.1	79.3	93%
Insurance	1.1	1.8	0.7	6.7	7.9	118%
Beverage	17.9	18.3	0.4	44.1	46.6	106%
Inheritance	8.9	10.1	1.2	26.9	25.6	95%
Privilege License	1	0.8	-0.2	12.7	10.5	83%
Tobacco Products	3.4	3.8	0.4	10	11.2	112%
Real Estate	-9.1	-9.1	—	5.1	5.1	100%
Gift	0.3	0.4	0.1	1.1	1.2	109%
White Goods Disposal	0.4	0.4	—	1.3	1.3	100%
Scrap Tire Disposal	1	1	—	3.1	3.1	100%
Piped Natural Gas	-3.3	-1.9	1.4	5.6	2.9	52%
Other	—	0.1	0.1	—	0.2	—
Total Tax Revenue	$1,290.0	$1,275.2	-$14.8	$3,366.5	$3,328.1	99%
Non-Tax Revenue
Treasurer's Investments	9	7.8	-1.2	26.4	21.1	80%
Judicial Fees	11.5	11.4	-0.1	34.5	34.7	101%
Insurance	0.5	0.8	0.3	2.5	3.3	132%
Disproportionate share	—	—	—	—	—	—
Highway Fund Transfer In	—	—	—	2.8	2.8	100%
Highway Trust Fund Transfer In	—	—	—	—	—	—
Other	4.6	9	4.4	125.4	132.6	106%
Total Non-Tax Revenue	$25.6	$29	$3.4	$191.6	$194.5	102%
Total Revenue	$1,315.6	$1,304.2	-$11.4	3,558.1	$3,522.6	99%

At end of first quarter, state falls a bit behind budget
Total tax revenue flowing into the General Fund was about $38 million below budget at the end of the state’s fiscal first quarter, according to NCCBI’s analysis of data released by the state Controller’s Office. Not only was the $3.328 billion in total tax collections less than the $3.367 billion budgeted, it’s below the $3.345 billion the state collected in the same quarter last year.

As the chart above shows, both individual and corporate income tax collections are below target but sales taxes are strong. The continued weakness in individual income tax collections is a reflection of the state’s weak jobs market. However, the state unemployment rate fell a tenth of a point in September to 6.4 percent. Manufacturing shed a further 3,800 jobs in September although construction rebounded by adding 1,300 jobs. Since the beginning of the year, the manufacturing sector has lost 23,000 jobs. An estimated 248,800 North Carolinians were unemployed in September.