Legislative Bulletin

March 3, 2001

"We will not be an anti-solution group. We will not automatically oppose revenue enhancements, but we put up a vigorous fight to keep the tax relief gains we have achieved for businesses and individuals during the past six years."



Phil Kirk's Legislative 
Conference Speech

Below is the text of the remarks NCCBI President Phil Kirk (above) had prepared to deliver at the association's Legislative Conference last week. However, the program ran long and Kirk, who was the last speaker before the luncheon, gave up his time so the food wouldn't get cold.

Thank you for being here today and for staying with us throughout a "bad weather" morning. I'm sure you've gotten the impression this morning that serving in state government is neither a pleasant nor easy job these days…if it ever was. Budge shortfalls - congressional and legislative redistricting - health care, transportation, education, environment - you've heard perhaps more than you ever wanted to know.

Let me point out that many of our legislative positions require funding and many do not. The positions were arrived at after considerable study and conversation last fall. That was before the seriousness of our state's financial picture was known. Rather than drop the spending issues, we will not be advocating strongly for them until the budget picture improves considerably. However, we want to keep them on the radar screen. 

I am pleased to report that we are making progress on defeating the ergonomics rule on the state and federal level. As George Teague told you, in Washington we have joined in a lawsuit to overturn the rule if Congress doesn't … although we haven't given up on them yet. Please contact your congressman or congresswoman and senators and ask them to vote to overturn this rule. 

In North Carolina, we are working closely with our new Commissioner of Labor, Cherie Berry - a member of NCCBI - to get rid of the state ergonomics regulation.
The former Labor Commissioner filed a suit against the Rules Review Commission, which helped us stop the rule before. Commissioner Berry wisely dropped that suit in her first major regulatory action in office. Now we have filed a legal document asking her to drop the rule entirely. We are hopeful for a positive ruling from Commissioner Berry soon. The battle is not won yet, but it is both helpful and refreshing to have a Commissioner of Labor who is intent on keeping her campaign promises.

As you know, NCCBI enjoys our role of leadership in education reform. As has been mentioned, we led the successful $3.1 billion bond campaign for the public universities and community colleges last year and the $2.75 billion campaign for public schools K-12 and highways in 1996.

We joined with Governor Hunt and the bipartisan leadership in the General Assembly to bring strict accountability to our public schools through the nationally-acclaimed and much copied ABCs program. We support the State Board of Education's policy ending of social promotion and requiring the passage of a rigorous exit exam and a computer competency exam in order to get a diploma.

We worked hard - again with Governor Hunt and the legislature - to get our teacher salaries from 43rd in the nation to 19th or 20th - the national average.

At the same time, we have increased standards for students, we have also done the same for teachers. Our tests for teachers to enter the profession are among the toughest in the nation and so are our requirements for staying in the profession.

Outside, objective observers give the business community much of the credit for our schools being "First in Progress" in many areas, along with Texas.

But let me tell you, our job is far from finished. Too many of our schools are not performing at the level we need them to produce world-class graduates for you to hire. To maintain and strengthen the standards and accountability, we need your voices to be heard again.

Please tell your legislators and educators-- We're doing better, but we can't let up. We need to stick to the reforms and higher standards and expectations for all children and all educators. I can tell you that the anti-accountability whiners and complainers are being heard.

I'm not only asking for your help, but I'm begging for it. Our students and educators need your advocacy and your pushing and prodding. We can't meet our audacious goal of being First in America by 2010 by backing down or weakening the tougher standards we now have in place.

NCCBI also supports expanding the number of charter public schools in North Carolina now because we believe in choice and competition within the public schools. We support remediation, intervention, and more early childhood education, and we support changing the statutory requirements for being a local school superintendent in North Carolina. 

For example, Governor Hunt could not be hired as the Superintendent of Wilson County Schools if the School Board wanted him and if he wanted them. Neither could a Bill Friday or Elizabeth Dole be a local school superintendent in North Carolina. They could be one in Seattle, Los Angeles, New York City, or Washington but not in North Carolina.
That is archaic - it makes no sense - we will work to change it!

We are pleased to stand side-by-side with our new Governor - Mike Easley - and his plans to reduce class size, to provide more early childhood education, to require the teaching of character education in every classroom, to stay the course and strengthen accountability and standards, and to require the local adoption of dress codes. 

The business community is concerned about health care costs. Legislatures and the U.S. Congress addressed this problem many years ago, and one way they did so was through managed care.
Just think what health care costs to you and your business, industry, non-profit, or education institution would be today had this action not been taken.

Of course, the managed care system is not perfect. It has made its share of mistakes over the years. I might add, the horror stories are what you hear about, not the many stories of success and satisfaction. Bashing HMOs is a popular past-time for many politicians, and they are aided by the national news media.

Governor Easley's HMO reform bill has been introduced into the legislature. While there are elements of the bill we will likely support, we will continue to vigorously oppose making our health care system a financial boon for the plaintiffs' attorneys.

That is exactly what the Governor's bill does. And unlike what's being discussed as a compromise in Washington, it places no limit on the money which can be taken from the HMOs by the courts and ultimately from those in business.

And let me tell you another shocker about the Governor's bill. The right to sue beyond any limits applies to the private sector, but the state employees health care plan is exempt. In other words, the business community and state government are being treated differently.

That is not right and NCCBI will fight this huge windfall for plaintiffs' attorneys and unequal treatment between the public and private sectors. Passage will ensure higher insurance costs for employers and ultimately for employees because many small businesses in particular will lose their coverage.

NCCBI prefers the independent review panel approach as advocated by such leaders as Senator David Hoyle. That gives everyone the right to appeal harmful wrongful actions, and it will be much less expensive. We will continue to vigorously oppose costly, even though well-intended, mandates on health care benefits. Again, actions such as these will drive up the cost of health insurance and will result in less coverage for more people.

Transportation issues are big ones for NCCBI and the state. As you heard this morning, the needs are huge and the solutions are neither easy nor painless. We must demand that the Department of Transportation be more efficient and more trustworthy with the more than $3 billion they spend each year.

But we must also recognize how fast our state is growing - more than a million people in the last decade. We have the second largest state-maintained highway system in the nation. NCCBI will join a statewide effort to be announced within the next week or so which will seek to educate all North Carolinians about our transportation system and its challenges. We will continue to play a leadership role - working with our state and federal officials - to determine how best to address these challenges.

We'll be involved in many other issues such as protecting the environment, limiting the length of legislative sessions, opposing the use of your tax money to finance political campaigns, and many more important issues.

In closing, let me simply say - we've enjoyed some good times in the past decade. The economy has been strong. North Carolina has made so much progress in so many areas. Hundreds of thousands - in fact, more than a million people - have moved here to enjoy "the good life" in the past decade. We face many challenges and the business community - through NCCBI and other trade associations - will be a responsible voice in helping to address these challenges.

We will not be an anti-solution group. We will not automatically oppose revenue enhancements, but we put up a vigorous fight to keep the tax relief gains we have achieved for businesses and individuals during the past six years.

But we need your help. We need your best ideas, and we need your involvement and participation in NCCBI and with our local, state and federal officials.

I can assure you our adversaries are being heard. Many of them don't have to meet a payroll like you do. They have time to be in the legislature everyday arguing against what we think needs to be done. If the business community doesn't stay together - if we don't make our voices heard loudly and clearly - we will deserve what we get. Thank you.

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Speakers at the Legislative Conference
(in alphabetical order)


Senate Minority Leader Patrick Ballantine




Senate President Pro Tem Marc Basnight




House Speaker Jim Black




House Appropriations Subcommittee on Transportation Co-chair Nelson Cole




Senate Appropriations Subcommittee on Education/Higher Education Chair Walter Dalton




House Minority Leader Leo Daughtry




Senate Appropriations Subcommittee on Transportation Chair Wib Gulley




State Treasurer Richard Moore




NCCBI FIrst Vice Chairman Gordon Myers, who moderated in the adsence of Chairman Mac Everett




House Appropriations Subcommittee on Education Co-chair Gene Rogers



 

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