Franklin Graham to accept 
NCCBI award for his father
Franklin Graham (right), the chairman and president of Samaritan’s Purse who gives much of his time as an evangelist for the Billy Graham Evangelistic Association, will come to the NCCBI Annual Meeting on Wednesday to represent his father as this year’s recipient of the Citation for Distinguished Public Service. Because of his health, Rev. Graham himself will not be able to attend the event. Friends of the family told NCCBI that the Grahams are deeply touched by the honor. The fact that Franklin Graham will be cutting short a mission to Alaska by two days so that he can be in Raleigh on Wednesday is a reflection of their appreciation, the friends said. Other family members also may attend.

Samaritan’s Purse has an annual budget of more than $130 million and supports offices in Canada, Australia, United Kingdom and the Netherlands and provides relief and assistance in more than 130 countries worldwide. Franklin Graham conducts an average of seven crusades a year for the Billy Graham Evangelistic Association (BGEA) and has preached to more than two million people since 1989.

Franklin Graham was elected as the first vice chairman of the Billy Graham Evangelistic Association in 1995 and was named its CEO in 2000. He is the author of four books. Graeme M. Keith of the Keith Corp. in Charlotte, a family friend, will present the Citation for Distinguished Public Service.

In other news about the annual meeting, contributions to the Second Mile Campaign have grown to more than $93,000, with additional contributions coming in daily. The campaign goal is $115,000, which NCCBI needs to achieve to meet its objectives for the year. Members wanting to contribute to the fund should immediately call NCCBI Vice President of Development Rosemary Wyche at 919-836-1413. See the complete list of Second Mile contributors below.

The number of exhibitors at the NCCBI Expo, the trade show that will be going all day during the Annual Meeting, has grown to more than 80. See the complete list of exhibitors below.

Also, Gov. Mike Easley’s office confirmed that he will attend the Annual Meeting to demonstrate his appreciation for NCCBI’s support of his budget reform efforts (see story below).

It’s not to late too register to attend the Annual Meeting. Call us at 919-836-1411 to reserve your tickets.

NCCBI endorses governor’s budget framework
NCCBI announced Tuesday that its Executive Committee had voted to endorse as a package several government reform and budget initiatives made by Governor Mike Easley in his State of the State speech and proposed budget for the coming biennium. Specifically, in its lobbying activities NCCBI will:

• Support the proposed cap on state spending.
• Support legislative session limits.
• Support the level of spending cuts proposed in the Governor’s budget.
• Support implementation of the recommendations contained in the Governor’s Commission to Promote Government Efficiency and Savings on State Spending.
• Support a constitutional amendment to grant line-item veto power to the Governor.
• Not oppose the Governor’s proposal to freeze the existing tax structure for a period of two years.

“We believe these proposals, taken together, constitute a road map that will help return North Carolina to a sound financial footing and set the stage for a more efficient, more accountable state government in the near future,” said Jim Hyler of Raleigh, the First Citizens Bank vice chairman and COO who is the current NCCBI chair

One of the taxes scheduled to expire on June 30 is the 8.25 percent state income tax rate on high-income individuals, one of the highest rates in the nation. It was raised from 7.75 percent by the General Assembly two years ago in one of the first steps taken to deal with the state’s current budget crisis. Continuing it for two more years, as Governor Easley has proposed, would generate more than $120 million in additional tax revenue, according to the Governor’s Office. Another tax scheduled to expire is the additional half-cent on the state sales tax. Continuing it for another two years would generate more than $734 million in additional tax revenue.

Hyler said deciding not to oppose continuing the existing tax structure “was a tough decision for us because NCCBI is opposed to higher taxes. But the times demand some flexibility. The Governor has taken a reasonable approach in his budget that during this economic downturn deserves an in-kind response from not only NCCBI, but also everyone. We’re all in this together.”

NCCBI President Phil Kirk said the Executive Committee’s action demonstrates that “the business community will accept its share of the financial pain necessary to achieve a greater good. Our state has suffered through an extended period of budget uncertainty that if allowed to continue would hurt our economy.”

Hyler emphasized that NCCBI’s position on continuing the taxes “is built on good faith that the Governor will hold the line on his proposed cap on state spending, follow through on spending cuts and begin implementing steps to bring about structural reform to take cost out of state government.”  He added that NCCBI would press for ending the higher taxes effective in 2005.

A white paper providing more detail about each of the points in the package is reprinted at the end of this newsletter. Also, the Governor's Office issued a press release concerning NCCBI's action. Read the press release.

General Assembly receives report from Efficiency Commission
This week in a joint meeting of the Senate and House Appropriations Committees and a joint meeting of the Senate and House Finance Committees, members of the General Assembly heard reports from the Governor’s Commission to Modernize State Finances and the Governor’s Commission to Promote Government Efficiency and Savings on State Spending.

Tom Ross, executive director of the Z. Smith Reynolds Foundation and chair of the Governor’s Commission to Modernize State Finances, spoke at a joint meeting of the Senate and House  Finance Committees on Tuesday. Ross said the overall recommendation of the commission is “that state and local taxes have a broader base and in some instances, lower rates. The commission felt that this general recommendation is the best way to ensure simplicity, fairness, sufficiency and stability in the state’s revenue picture.” The report and recommendations have been forwarded to the governor, but have not been submitted to the General Assembly in the form of legislation. Included in the report or the following recommendations:

* State income tax should tie more closely to the federal tax code.
* Eliminate or simplify the use of tax credits.
* Simplify taxation by moving to combined reporting by related entities, as required at the federal level.
* Modernize the franchise tax.
* Consider the effect of establishing a throwout provision
 * Conform more closely to the federal definition of corporate income.
 * Shift Medicaid program costs from counties to the state.
* Review the state unemployment insurance tax laws.

A copy of the complete report and recommendations can be found online at www.osbm.state.nc.us/files/pdf_files/final_rpt_gov_comm.pdf.

On Wednesday, Dan Gerlach, Governor Easley’s senior policy advisor for fiscal affairs, reported to the joint Appropriations Committees on action taken by the Governor’s Commission to Promote Government Efficiency and Savings on State Spending. Gerlach did not go through the individual recommendations, but spoke more broadly about the overall focus to streamline systems and help the state focus more on its core mission. The recommendations fall into four broad categories: process recommendations; structure recommendations; capital recommendations; and systemic change recommendations. NCCBI Chair Jim Hyler served as chair of the Governor’s Commission. Gerlach told members of the committee that NCCBI was strongly committed to moving the Commission’s recommendations forward and that the Governor’s office would be working closely with NCCBI and members of the General Assembly to put many of these recommendations in place.

A copy of the complete report and recommendations can be found online at www.osbm.state.nc.us/files/pdf/files/final_rpt_efficiency.pdf. 

If you want to know more about the recommendations of these two commissions, plan to attend NCCBI’s seminar on “State Budget Issues: Opportunities and Challenges.” The seminar will be held in conjunction with the annual meeting on Wednesday, March 19, from 2:15 - 3:30 p.m. in meeting room C at the Raleigh Convention and Conference Center. You do not have to register to attend. Jim Hyler, Dan Gerlach and Tom Ross will all be on the agenda at the seminar.

Legislative Actions

Senate passes bill creating Highway Trust Fund study
The Senate on Tuesday gave third-reading approval to S. 34 (Gulley) Highway Trust Fund Study Committee by a vote of 44 to 4. The legislation creates a 20-member study committee composed of the Chairs of the Joint Legislative Transportation Oversight Committee, five House members and four public members appointed by the Speaker of the House, and five Senators and four public members appointed by the President Pro Tem of the Senate. The bill says the committee will study all aspects of the Highway Trust Fund. The study shall include the examination of all the following: (1) The current status, cost estimates, and feasibility of Highway Trust Fund projects currently listed in Article 14 of Chapter 136 of the General Statutes. (2) Unanticipated problems with the structure of the Highway Trust Fund. (3) The gap between transportation funding structures and the actual transportation needs of the State. (4) Allocation issues raised by the structure of the transportation funding equity distribution formula in G.S. 136-17.2A. (5) The feasibility of altering the project eligibility requirements of the Highway Trust Fund, including permitting the Department of Transportation to add projects as long as adding those projects does not delay projects already to be funded by the Highway Trust Fund, projects scheduled under the 2002-2008 Transportation Improvement Program, and does not impair the cash-flow provisions of G.S. 136-176(a1). (6) The feasibility of altering the funding allocation structure of the Highway Trust Fund, including the possible use of the Highway Trust Fund to provide the State match for available federal aid highway funds as long as using the funds in this manner does not delay projects already funded by the Highway Trust Fund, projects scheduled under the 2002-2008 Transportation Improvement Program, and does not impair the cash-flow provisions of G.S. 136-176(a1). (7) Any other issue related to the Highway Trust Fund or transportation funding.

Medical Malpractice: Senate President Pro Tem Marc Basnight on Tuesday appointed a Special Committee on Insurance and Civil Justice Reform that will explore limits on medical malpractice awards. The committee is expected to consider recommending limiting monetary awards for pain and suffering. Sen. Robert Pittenger, R-Mecklenburg, who has sponsored a bill capping malpractice awards, is one of the committee's 19 members. Pittenger has been pushing the Senate to debate his bill and is encouraging doctors to rally behind it.

Unconstitutional Laws: A bill that would remove six laws from the books that appellate courts have declared unconstitutional won final approval in the House on Tuesday. The vote on H. 11 (Stam) Repeal Unconstitutional Statutes was unanimous, and the bill now goes to the Senate for consideration. The bill would eliminate three laws involving local alcohol sales that courts threw out and a campaign finance law declared unconstitutional by the federal courts. It would also eliminate a law adopted in 2000 that would have allowed three judges added to the Court of Appeals to serve four years before coming up for re-election. The state constitution requires that the judges appointed to the appellate courts come up for re-election at the next scheduled election for legislators.

House speakers invite Hyler to address Economic Recovery seminar
Jim Hyler, the First Citizens Bank executive and chair of NCCBI, will be among the speakers at the next meeting of the Speakers Economic Recovery seminars on Tuesday, March 18, at 1 p.m. in the General Assembly auditorium. Hyler will discuss findings from the Governor’s Efficiency Study Commission, which he chaired, and will address ways to help improve the state’s economic climate. Other speakers include Erica Upton-Peterson from the N.C. Agribusiness Council; Joan Myers from NCEITA; and Dale Carroll, president of the N.C. Economic Developers Association. House Speakers Jim Black and Richard Morgan are particularly interested in having business leaders attend the event to give their input on economic development policies.

Bills of Interest Introduced This Week

 H. 410 (Hunter) Reduce Medicaid County Share/Tier Counties - An act to reduce the county share of nonfederal payments for the medical assistance program for certain counties.
 H. 411 (Hunter) Medicaid County Share/Phase Out Tier Counties - An act to phase out the county share of the nonfederal costs of the medical assistance program. |
 H. 427 (Rayfield) Statewide Elections/Funding - An act to require reimbursement to counties for the cost of conducting statewide primaries, elections and referenda, and to appropriate funds for that purpose.
 H. 429 (Culpepper) Just Compensation/Local Government Taking - An act to require local governments to pay just compensation for removal of lawfully erected buildings, structures, outdoor advertising, or personal property and to authorize local governments to enter into relocation and reconstruction agreements with owners of nonconforming properties.
 H. 430 (Miller) Elect Board Of Transportation - An act to elect statewide one resident of each highway division to serve on the Board of Transportation.
 S. 353 (Bingham) Charitable Solicitations/Require Disclosure - An act to require solicitors of charitable solicitations that request contributions by telephone to, when requested by the person being solicited on the telephone, clearly disclose to that person at the time of the request the fixed percentage of the gross revenues that the charitable organization or sponsor will receive as a benefit from the solicitation campaign and send that person a copy of the solicitor's most recent financial report, to require this percentage to be included in the solicitor's financial report, and to prohibit a person from misrepresenting this requested information.
 S. 365 (Lucas) Confirmation/State Board Of Education - A joint resolution providing for confirmation of three appointments by the governor of new members to the state Board of Education.
 S. 370 (Gulley) CDL/DWI Changes - An act to bring state law into compliance with recently adopted federal regulations concerning the effect of violation of impaired driving, railroad crossing safety, and other state law on commercial drivers licenses, and requiring a new "S" endorsement for person operating school buses, as recommended by the Joint Legislative Transportation Oversight Commission.
 S. 371 (Reeves) Retirement Contribution Rates - An act to provide for biennial appropriations to cover the rate of normal contributions and any rate of accrued liability contribution, as determined by the Board of Trustees and State Employees' Retirement System.
 S. 378 (Dannelly) 311 Service - An act to establish a 311 system for non-emergency calls and to allow money in the Emergency Telephone System Fund to also be used to develop and maintain the 311 system.
 S. 388 (Foxx) Update Cervical Cancer Screening Coverage - An act to update North Carolina general statutes in response to recent medical advances in screening for early detection of cervical cancer.
 S. 394 (Rand) Equitable Distribution Claim Survive Death Spouse/Limit - An act allowing a claim for equitable distribution to survive the death of a spouse when the parties are living separate and apart at the time of death and the claim is filed within six months of the date of death.

State Government

Governor announces new workforce training program
Gov. Mike Easley announced a new workforce development program that will allow North Carolina employers to apply for grants for employee training programs. The program is designed to upgrade employees’ skills and increase companies’ competitiveness in the global marketplace. The Incumbent Workforce Development Program, effective March 7, allows employers across the state to apply for grants of up to $50,000 for employee training. Any private or non-profit business may apply.

The scope of available training options includes occupational-skills training to meet emerging trade-skill needs and educational training to meet workplace literacy, readiness and English-as-a-second-language needs. Businesses must complete and submit applications to their local Workforce Development Board. The local board will then review each application and make recommendations to a review committee in the N. C. Department of Commerce that will render the final decision on funding.

Federal money from the Workforce Investment Act will fund this program. More than $1 million is available through June 30, 2003 and an additional $2 million has been designated for the 2003-2004 program year.

Program guidelines and the actual application may be accessed at the Department of Commerce’s website, www.nccommerce.com/workforce, by contacting a local Workforce Development Board, or calling the North Carolina Commission on Workforce Development at (919) 715-3300.


Labor Department reaches out to construction industry
State Department of Labor officials for the first time in recent memory are holding regional meetings with construction industry leaders to attempt to stem fatalities in what is some of the most dangerous work in the private sector. The meetings in Goldsboro and Dallas, near Charlotte, are unprecedented in the effort to fight a stubborn problem that has dogged the construction industry for years and in 2001 claimed 51 lives.

“Almost across the board, fatality figures show dramatic improvement, dropping to 203 from 234,” Labor Commissioner Cherie K. Berry said.  “Construction stood out because fatalities rose from 45 to 51. We can do better than that.”

State and industry experts at the forums will identify trends in the construction accidents that are most likely to represent lethal dangers. Berry, who pushed for the regional meetings, said construction workers would benefit from a joint effort by their companies and labor officials to target fatal trends at work sites. The forums are being held in eastern and western North Carolina to make it easier for employees to attend at a time of year when construction work begins to pick up steam. The Goldsboro meeting was held at Wayne Community College on March 6.  The Dallas meeting will be at Gaston Community College, beginning at 9 a.m. on March 19.

Berry has intensified department efforts to provide free consultative services and free training to employers and employees to help fight workplace fatalities. The forums are free.

The latest labor department figures show that the drop to 203 in fatalities in 2001 from a high of 234 in 2000 was the single biggest drop since 1995. "We can see we’re making progress,” Berry said.  “We just need to make sure we extend this awareness to every construction site in the state.  These forums are a part of that effort.”

Novozymes honored as friend of the environment
Novozymes North America Inc., an NCCBI member which has a large plant in Franklinton, was recognized by the state Department of Environment and Natural Resources as the state’s first Environmental Steward in recognition of the company’s commitment to superior environmental performance and continuous improvement DENR’s Environmental Stewardship Initiative, a new voluntary program designed to promote and encourage superior environmental performance, establishes incentives to stimulate business, industry, government agencies and nonprofits to develop and implement programs that use pollution prevention and other innovative approaches to meet and exceed their regulatory requirements. This program seeks to reduce the impact on the environment beyond measures required by any permit or rule, producing a better environment and a stronger economy and conserving natural resources.

As an Environmental Steward, Novozymes is recognized as an organization that displays a commitment to exemplary environmental performance beyond what is required by law. Stewards are required to set aggressive environmental performance goals that include pollution prevention, a commitment to exceed compliance, and annual improvements to performance. Stewards must also report annually on progress towards the organization’s environmental performance goals, net reductions of releases, emissions and disposal, net reductions in the use of energy and water, and any reportable non-compliance events.

Names in the News

Galyon re-elected chairman of DOT board
Marvin Blount III of Greenville and Thomas A. Betts Jr. of Rocky Mount were sworn in last week as new members of the N.C. Board of Transportation, and the board then re-elected Doug Galyon of Greensboro as chairman and G.R. Kindley as vice chairman. Blount and Betts, who were appointed by Gov. Mike Easley, will serve four-year terms on the board. Blount will represent Beaufort, Carteret, Craven, Greene, Jones, Lenoir, Pamlico and Pitt counties. He is an attorney with The Blount Law Firm, P.L.L.C. and is a former special assistant to the chief of staff for the U.S. Department of Justice Antitrust Division. He replaces Collice Moore of Greenville.

Betts will represent Edgecombe, Halifax, Johnston, Nash, Wayne and Wilson counties. He is a Senior Development Officer with R.B.C. Centura. Betts also is a former president of the Rocky Mount Area Chamber of Commerce, N.C. Wesleyan College Foundation and Nash Community College Foundation. He replaces Clark Jenkins of Tarboro, who was elected to the state Senate.

 Lyons Gray of Winston-Salem, a Republican who served seven terms in the state House before retiring last year, said Tuesday that he will not run for the 5th Congressional District seat that U.S. Rep. Richard Burr will leave next year. Gray recently became the president of the Downtown Winston-Salem Partnership, a group dedicated to downtown redevelopment.

 Dan Barrett, a lawyer and Davie County commissioner elected two years ago, said he plans to seek the GOP nomination for governor next year.

 Cong. Bob Etheridge (D-2^nd) was appointed to three subcommittees of the House Agriculture Committee.

 Dr. James F. Causby, the Johnston County School Superintendent and member of the NCCBI Board of Directors, moved up his retirement from the school system by six months, to July 1, and reached an agreement with his school board to serve as interim superintendent through Dec. 31. After that date, he said he would begin campaigning full-time for state superintendent of public instruction.

NCCBI News
 
IBM’s Barry Eveland replaces Bill Coley as First Vice Chair
Barry W. Eveland, general manager of manufacturing operations for IBM in Research Triangle Park, who is the company’s top executive in North Carolina, has agreed to serve as first vice chair of NCCBI, replacing William A. Coley, the Duke Power Co. group president who retired recently. Eveland was selected by the NCCBI Nominating Committee, chaired by Gordon Myers of Asheville.

“NCCBI greatly benefited from Bill Coley’s contributions and his retirement deprives the association of his unique talents,” said NCCBI President Phil Kirk. “However, we are quite pleased that someone of Barry Eveland’s stature is stepping forward,” Kirk added.

Coley, a long-time member of the NCCBI Board of Directors, served as second vice chair of the association in 2001-02 and led the annual membership campaign. He announced his retirement in February. Under NCCBI bylaws, officers must be employed by their member company.

Eveland, who served on the NCCBI Executive Committee for the past year, will work closely with new Chair Sue Cole of Greensboro, the U.S. Trust Co. of North Carolina president. He will be in line to chair NCCBI in 2004-05.

Coley “is one of those people you feel like you've known forever - even if you've just met him,” Cole said. “He's engaging, fun, and very goal oriented. He's a man of integrity and a sharp focus on what needs to be done. It's NCCBI loss that we will not have him at the helm though we are most fortunate to have Barry step up to the plate.”

“I have a very high regard for Bill Coley,” said Jim Hyler, whose term as NCCBI chair ended at last month’s annual meeting. “He has great leadership skills and has no hesitation about asking the tough questions that should be asked. During this NCCBI year, Bill has been a huge supporter and partner with me as we've addressed business issues within NCCBI and also on the Efficiency Commission.”

Eveland has solidified IBM’s reputation in North Carolina for using technology to improve education. In 2001, for example, he championed IBM’s move to donate $6.3 million in hardware, software and research grant money to seven North Carolina universities. Despite the cooling economy, he said at the time, IBM wants to maintain strong relationships with universities. "Talent is still something that is extremely important to technology companies," Eveland said.

IBM, which has about 15,000 employees in the Triangle, also established a Center for Advanced Studies at its RTP campus to encourage collaborative development between universities and Big Blue's e-commerce and network administration software labs.

Eveland, a native of Pennsylvania, attended Lehigh University. After graduating in 1966, he went to work for IBM and helped develop the System 360 language, which was the first large-scale solid logic technology that IBM developed. He relocated to North Carolina in 1970 and held several escalating positions. He presided over resource planning — both people and facilities — during a period of explosive growth for the RTP site. He also was instrumental in the planning for IBM’s Charlotte campus at University Research Park in 1978.

In 1982 Eveland took what he thought would be a two-year assignment back in New York working for John Akers (who would later become IBM's chairman and CEO). Within a year of the move he'd been promoted to an executive position in the logistics organization. In 1993 Eveland transferred back to RTP as vice president of logistics for IBM's Personal Systems Group.

Hyler addresses economic developers
NCCBI Chair Jim Hyler urged 200 people attending the 2003 Midwinter Conference of the North Carolina Economic Developers Association to become advocates for efficiency in government. Speaking at the Pinehurst Resort, Hyler discussed the work of the Governor's Efficiency Commission with the economic developers from across the state. He was introduced by NCCBI President Phil Kirk.

"There is a lot of energy surrounding this report," Hyler said. "The key for implementation is for you to become advocates for the follow-up. This report is only the beginning and I urge you to get involved in talking to your legislators." Hyler chaired the commission. "We must help our elected officials to have the political will to make major changes. They can be painful and we must support them," he said.

NCCBI Chair Emeritus Gordon Myers discussed the Economic Development Strategic Plan with the participants. Myers chaired the North Carolina Economic Development Board until just recently and led the development of the plan. After discussing some of the highlights of the plan, Myers exhorted his audience to become leaders in the effort to implement it. "Ask yourselves how you can make a difference in where this state is going. Think about how you can implement this plan in your own communities."

Myers and Kirk were given awards by the group. Myers was recognized for his leadership in the development of the strategic plan and Kirk was saluted for NCCBI’s support of the North Carolina Economic Stimulus and Job Creation Act. The awards were presented by Dale Carroll, the president of the association and executive director of AdvantageWest.

Commerce Secretary Jim Fain also led a tribute to Kirk, who has resigned as Chairman of the State Board of Education, effective May l. He asked the audience to give Kirk a standing ovation in tribute to the progress public schools have made during the five and one-half years he has served as the State Board chair.

Berry Jenkins, director of the North Carolina Highway-Heavy Division, Carolinas Associated General Contractors, represented NCCBI and NC GO on the agenda to discuss transportation issues affecting North Carolina. Others on the program, in addition to Myers, Hyler, Carroll, and Fain, included Don Hobart, legal Counsel and Legislative Liaison, Department of Commerce; Norris Tolson, Secretary of the Department of Revenue; Lawrence Davenport, Chair, Golden Leaf Foundation; and State Representative Joe Tolson. The Co-Speaker of the House, Richard Morgan, also spoke to the group and pledged bipartisan co-operation in the legislature this year. Rosemary Wyche, NCCBI's vice president of development and liaison with the Department of Commerce, also participated in the conference.

Conference sponsors for the event, "Tools of the Trade: What Economic Developers Need to Know Now," included Bovis Lend Lease, Energy United, e-Site Analysis, Froehling and Robertson, MACTEC Engineering and Consulting (formerly Law Engineering and Environmental Services, Matthews Construction, ms consultants, NCCBI, Department of Commerce, North Carolina Railroad, Titan Atlantic/Terracon, John R. McAdams Company, McKim and Creed, Prudential Carolinas Realty, The Keith Corporation, and Bridgeview Capital Solutions.

2002-2003 NCEDA Patron Sponsors were BellSouth, CSX Transportation, Duke Power, ECS Ltd., ElectriCities of NC, N.C. Electric Membership Corp., Department of Commerce, Norfolk Southern, Piedmont Triad Regional Partnership, Progress Energy, PSNC Energy, S&ME Inc., and Sprint.

Kirk touts NCCBI’s support for agriculture, ports
NCCBI President Phil Kirk told legislators and members attending the breakfast meeting of the N.C. Agribusiness Council that "we must stick together in good times and tough times. The business community must speak with one voice as often as possible." For the first time, NCCBI has a position paper expressing strong support for agriculture and agribusiness friendly initiatives. Kirk told the group, "NCCBI supports the agriculture and agribusiness industry in North Carolina and supports legislation that will assist this industry in its continued growth. NCCBI is opposed to any legislation or regulation that would be a deterrent to the agribusiness industry locating, expanding, or remaining in North Carolina."

Information released at the breakfast meeting indicates that agriculture and agribusiness now account for 22 percent of the state’s $282 billion gross state product. The industry has annual revenues of $62.6 billion and employs 771,000 people in the state, or about 20 percent of North Carolina’s 3.9 million workforce.

Kirk praised the group for its support for limiting the length of legislative sessions and praised the legislators for their bi-partisan co-operation thus far in this year's legislative session. Other speakers included Commissioner of Agriculture Meg Scott Phipps, Senate President Pro Tem  Marc Basnight, Senate Minority Leader Patrick Ballantine and House Speakers Jim Black and Richard Morgan. Erica Peterson, executive director of the Agribusiness Council, presided.

Later in the day Kirk had lunch with representatives of the N.C. State Ports Authority to discuss the economic impact of the ports and ways NCCBI can continue its strong support of the ports in Wilmington and Morehead City. He praised Gov. Mike Easley's commitment to the further development of the ports as evidenced by his financial commitment to more dredging and deepening of the channel in Wilmington. Ports Authority Board Vice Chair Louise McColl, who is also on the NCCBI executive committee and board, and Erik Stromberg, executive director, organized the luncheon, along with Susan Markham, governmental relations manager for the ports.

NCCBI launches campaign to push government efficiency
NCCBI has launched NCBEST, an information and education program designed to focus on government efficiency, the state’s business climate and tax burden. Members of NCCBI and the public are encouraged to indicate their interest in those issues by visiting www.nccbi.org/ncbest. “NCBEST is a way for our organization to be more proactive in balancing the public, legislative and government leaders’ understanding about some of these issues,” said NCCBI President Phil Kirk. “Our most immediate priority will be encouraging progress on government efficiency.”

As a first step, NCCBI recently distributed an op-ed column by Jim Hyler, chair of NCCBI and the Governor's Efficiency Study Commission, to newspapers across the state. In the future NCBEST will develop, with the help of expert consultants, reports on issues such as the business climate and tax burden. NCBEST will be monitoring the response by the governor and the legislature to the commission’s nearly 100 recommendations to improve productivity of state government.

Please welcome these new members
Companies that joined or rejoined NCCBI in January and February, along with the name of the key executive at each company include: Abbott Laboratories, Kaye Shipley, Raleigh; American Electric Lighting, Mark Spizzo, Waxhaw; Andrew & Kuske Consulting Engineers Inc., John Andrew, Wilmington; Architektur PA, Thomas Crowder, Raleigh; Arrow Equipment Co., Larry Still, Greensboro; ATCOM Business Telephone Systems, David Finch, RTP; Atlantech Distribution Inc., Ray Stewart, Charlotte; Banks Wood Waste Recycling, Raymond Banks, Marion; BIP Marketing Inc., Sandra Parrish-Woodlief, Raleigh; BSA LifeStructures, Davis Liles, Charlotte; Caldwell County Chamber of Commerce, Deborah Ashley, Lenoir; Cape Fear Bonded Warehouse, Will Stanfield III, Wilmington; Carolina Electrical Associates Inc., Charles Bledsoe, Winston-Salem; Carolina Skin Care & The Spa at Carolina Skin Care, Dr. David I. Klumpar, Pinehurst; Chicago Title Insurance Co., Denise Jenkins, Raleigh; Cleveland County Schools, Dr. Gene Moore, Shelby; Coastal Benefits Group, Phil Hux, Roanoke Rapids; Coldwell-Banker Willis-Smith Co., Stewart Smith, New Bern; College Foundation Inc., Mary Lane Smith, Raleigh; Confidential Records Management Inc., Gail Bisbee, New Bern; Davidson County Economic Development Commission, Steve Googe, Lexington; L.A. Downey & Son Inc., William A. Downey Jr., Durham; Duke University Administration, William Fulkerson, Durham; Duke University Health System Government Relations, Ann Lore, Fuquay-Varina; EMB Inc., Bill Fenimore, High Point; Emergys Corp., Jai Shankar, Chapel Hill; GEM Management Inc., R. Craig Gentry, Charlotte; Grubb Properties, Sal Cammarata, Cary; Grubb Ventures, Gordon Grubbs, Raleigh; Hale Building Co. LLC, Mark Tinsley, Wilmington; Hamilton Merritt Inc., Gregg Sandreuter, Cary; Holt Hosiery Mills Inc., Ralph M. Holt Jr., Burlington; Insignia MetaPartners, Guy Harvey, Cary; JCT LLC, Craig Richardson, Clinton; Kerr Drug Inc., Phyllis A. Patterson, Durham; The Kornegay Co. LLC, George Kornegay, Mount Olive; Laboratory Corp. of America, Brad Smith, Burlington; Lekson Associates Inc., Michael Jones, Raleigh; Mack Truck Sales of Charlotte, Mike McMahon, Charlotte; Market Force, Nancy Johnson, Raleigh; McColl Garella, Julie Garella, Charlotte; MR&D LLC, Dane Vertefay, Raleigh; National Finance Co. Inc., Bobby Ray Hall, Sanford; Office of Austin Allran, Austin Allran, Hickory; Office of Annabelle L. Fetterman, Annabelle Fetterman, Clinton; Office of Ralph Ketner, Ralph Ketner, Salisbury; Penry Riemann PLLC, Anthony Penry, Raleigh; Peter N. Glass & Associates, Peter Glass, Concord; Pfizer Inc., Myron Terry, Raleigh; Remote Light Inc., Dr. Isaac B. Horton III, Raleigh; Restoration Systems LLC, George Howard, Raleigh; Riddle Commercial Properties, Joseph P. Riddle III, Fayetteville; Sear-Brown Group, Joe Johnson, Hillsborough; Southeast Strategies Inc., Neal Rhoades, Kernersville; Storr Office Environments Inc., Tom VandeGuchte, Raleigh; Titan Atlantic Group, Grant Autry, Raleigh; Topsail Area Chamber of Commerce, Jeanette Masters, Surf City; Toter Inc., Larry Boppe, Statesville; Town of Granite Falls, Linda Story, Granite Falls; Transylvania Community Hospital, Robert Bednarek, Brevard; Tri-State Turf Inc., Clark Wooten, Newton Grove; Uwharrie Capital Corp., Roger Dick, Albemarle; Vannoy, Colvard, Triplett & Vannoy PLLC, H.C. Colvard Jr., North Wilkesboro; Washington-Beaufort County Chamber of Commerce, Lee Hemink, Washington; J.L. Watson & Associates, Lee Watson, Durham; and P.S. West Construction, Roy West, Statesville.

The following is NCCBI’s response to Governor Mike Easley’s proposed budget and other items not included in the budget, but related directly to budget reform. These points were discussed at length and approved by the association’s Executive Committee during a recent conference call.

NCCBI supports the proposed cap on state spending. Governor Easley has proposed linking growth in state spending to the growth in taxpayers’ personal income. Easley’s proposal would limit budget increases to the 10-year average growth in personal income. Any income above the spending limit would be put in the rainy day fund until that fund reaches $750 million. Once funding to the rainy day fund reaches that level, NCCBI would urge the Governor and the General Assembly to return any additional revenue to taxpayers in the form of rebates. 

NCCBI supports legislative session limits. NCCBI urges the General Assembly to pass a constitutional amendment and send it to the voters of North Carolina to limit legislative sessions to a specified number of calendar days for both the long session and the short session. Limiting the length of legislative sessions would improve taxpayer efficiency and save taxpayers’ dollars.

NCCBI supports the level of cuts proposed in Governor Easley’s budget. Governor Easley has proposed spending cuts of $836 Million for fiscal 03-04. Although some of these “cuts” may be more accurately described as “decreases in the increase” (as is the case in Medicaid reimbursements), in today’s economic climate, the proposed spending cuts seem reasonable. We appreciate what the Governor has done to protect the classroom and provide the needed enrollment growth funds for higher education. 

NCCBI supports the recommendations of the Governor’s Commission to Promote Government Efficiency and Savings on State Spending. NCCBI urges the Governor to move quickly to implement recommendations from the Commission which can be enacted without approval by the General Assembly and to move forward on legislation which will be required for other recommendations. Additionally, we urge the Governor to name a new commission whose responsibility will be to follow up on implementation of the Commission’s recommendations. We also urge the Governor to name a senior level official to assist with these efforts.

NCCBI supports a constitutional amendment to grant line item veto to the Governor. The Governor is the CEO of the state and is ultimately responsible for seeing that the state operates with a balanced budget. Therefore, it would be appropriate for the Governor to have a line item veto.

NCCBI will not oppose the Governor’s proposal to freeze the existing tax structure for a period of two years. Recognizing the downturn in the state’s economy and the administration’s short term and long term efforts to restore budget stability to our state budget, NCCBI will not oppose freezing the existing taxes (as outlined in the Governor’s budget) at their current rate for a period of two years. At the end of that two-year period, we expect the state sales tax rate to return to 6.5%, the top income tax bracket to be returned to 7.75% and the 2001 tax breaks to be implemented.  In supporting the other proposals (i.e. cap on state spending, cuts to current budget, Efficiency Commission recommendations, etc), we believe that stability will be returned to the state’s budget process and it will be possible to implement these tax reductions at that time.

Below is the text of the press release issued by the Governor’s Office

RALEIGH — North Carolina Citizens for Business and Industry (NCCBI), the state’s chamber of commerce, has announced its support for Gov. Mike Easley’s budget reform proposals and his 2003-04 budget framework.

The NCCBI Executive Committee announced its support for Easley’s proposals to cap state spending growth, to limit the length of legislative sessions, and to enact a line-item veto. NCCBI also supports the level of cuts recommended in the governor’s 2003-05 budget proposal and will not oppose the proposed delay in scheduled tax cuts.

Easley thanked NCCBI for its support. “Our business leaders know how to reduce costs and still serve their customers,” he said. “I am grateful for their time, their thoughtful suggestions and their energy to help their state government do its job better.”

Jim Hyler, chair of NCCBI and former chair of the Governor’s Commission to Promote Government Efficiency and Savings on State Spending, commended the governor’s proposals.  

“Gov. Easley has demonstrated necessary leadership in fashioning a plan for much-needed fiscal discipline,” Hyler said. “The General Assembly should enact a budget quickly, so that more long-term reforms, including those in the Governor’s Efficiency Commission report, can be put in place.   Gov. Easley’s budget provides the right outline for these tough budget times.”