Senate Democrats push their priorities in adopting
a budget spending $100 million more than the House

The Senate on Wednesday wrapped up work on its version of the state budget for the coming two fiscal years with a party-line, 28-22 vote in favor of a measure that would spend about $107 million more than the House plan, largely on Medicaid and other social services. It’s also about $40 million higher than Gov. Mike Easley’s initial budget recommendations. The Senate budget would raise state spending about $750 million from current levels, mostly on education due to rising school enrollments. See the charts on pages 13-14 for a line-item look at the Senate budget.

To fund that additional spending, the Senate agreed with Gov. Mike Easley on continuing all four taxes and tax breaks set to expire or begin at the end of the fiscal year – the half-cent sales tax, the higher income tax rate on high-wage individuals, the higher child care tax credit and the end to the income tax marriage penalty. The four are worth about $437.5 million in revenue in the fiscal year beginning July 1. The House was willing to continue only the sales tax and the higher income tax. The Senate budget also assumes the state will collect an additional $48.5 million next year through tougher tax collection and compliance efforts, and levy up to $30 million by uniformly imposing sales taxes on soft drinks, candy and other items. The conforming provision was added to move North Carolina toward the streamlined national sales tax program. The Senate puts $100 million into the Clean Water Management Trust Fund compared by $25 million in the House budget.

The House voted 107-0 on Thursday to reject the Senate’s changes to H. 397 2003 Budget Act and appointed conferees to meet with Senate counterparts to work out the differences. The House conferees are listed on page 14. The Senate is expected to name their conferees next week. But not much negotiating is expected to occur, however, until after the Controller’s Office tells lawmakers whether April state income tax collections met projections. Many analysts believe the April numbers will be $100 million weaker than expected, which likely would require the House and Senate to trim spending.

A difference of $107 million between the House and Senate budgets sounds like a lot but it’s really small change in a $15.1 billion spending plan. The Senate restored $26 million the House made in vocational education and $25 million to reduce second-grade class sizes. Senate Democrats also found funds that the House couldn’t for Medicaid health insurance for pregnant women and other “safety net” services for the poor.

The Republican alternative to the Senate budget, as proposed by Minority Leader Patrick Ballantine of Wilmington, would have allowed all the taxes to expire and the two impending tax credits to begin. To offset that reduced revenue, Ballantine proposed eliminating 4,682 vacant state jobs, saving $200 million; consolidating 39 worker-training programs, saving $42 million in overhead costs; dissolving the Golden LEAF Foundation and diverting $269 million of the state’s tobacco settlement money into the General Fund; and not funding Gov. Easley’s proposals for reducing second-grade class sizes and expanding More at Four.

Democrats shot down those ideas and justified the higher levels of state spending by saying studies show that North Carolina ranks 35^th in the nation in taxes. But that statistic probably is out of date, as research by NCBEST, NCCBI’s educational and information arm is discovering. See the story below.

Another study ranks North Carolina as a high-tax state
Fluor also gives N.C.’s economic development incentives a mixed review

North Carolina’s business tax burden is one of the highest in the Southeast and its industrial recruitment incentive package will be one of the worst until the state’s new Job Development Investment Grant program is finally implemented.

Those conclusions are based on information gleaned from a recently published report by Fluor Corp.’s Global Location Strategies Group. The Fluor ranking echoes a report by Dr. Michael Walden of N.C. State University published in last week’s edition of the Legislative Bulletin. Fluor said that North Carolina business taxes for a typical manufacturing plant are third highest out of 13 states in a region that included Texas, Oklahoma and Missouri as well as the Southeastern states. Those states are North Carolina’s most regular competition for recruiting new industry.  

“The study makes clear how close the competition is,” said Phil Kirk, president of NCCBI. “When it comes time for a company to pick between two or three states, one slight difference – like higher taxes -- can give another state the edge.”

Fluor’s approach for measuring tax burden eliminated some tax categories that the company felt aren’t important to plant site considerations. Also, when measuring incentives Fluor took into account that many Southeastern states offer new industry property tax exemptions negating the on-paper advantage North Carolina has with a lower property tax rate.

The Fluor study applied the various states’ taxes to a typical industrial project. The study case was a $20 million, 100,000-square-foot plant employing 210 people on a 15-acre site. The 20-year corporate income, property and franchise tax burden for such a facility would be $18 million

in North Carolina, or 3^rd highest of the 13 states. By comparison, those taxes for the same plant in Georgia and South Carolina would be about $3 million lower and in Texas nearly $7 million lower.
 
The Fluor study concluded that for a typical industry, the state’s incentive package ranked number one in the Southeast. But most of that advantage was based on the state’s new Job Development Grant Program, which the state has yet to implement after it was passed by last year’s General Assembly.

The program offers qualifying companies rebates of up to 75 percent of the state income taxes paid by workers in new jobs such companies create. No more than 15 companies can qualify for the program in any one year and the state can refund no more than $10 million in any one year.  

Thus far the state has not declared one industry eligible for the grants. Without the grants North Carolina’s incentive package drops from first to third worst in the 13-state region.  “We should realize that we have many of our eggs in this one basket and make sure the program gets implemented as quickly as possible,” said Kirk.

The 200-page study looked in detail at the 13 state’s taxes and incentives. Other findings included:

 North Carolina’s incentive program for R&D companies puts it about in the middle of the pack in the Southeast. Several bills have been introduced in this year’s General Assembly to expand tax credit incentives for information technology and biotechnology companies. In his State of the State address, Governor Easley supported a new R&D tax credit.

 There’s relatively little difference among states in the Southeast in business start-up costs. For example, the capital investment for a model R&D project was highest in Missouri at $31.8 million. Yet, North Carolina was ranked second lowest with a projected $31.53 million, a difference of only $300,000 or less than 1 percent.

 Most states rank within about 10 percent of each other when it comes to long-term recurring costs.

 The Fluor study gave North Carolina’s incentive program a mixed review. “The program has no unique strengths or (differentiators.) On the other hand, the study did not identify any major weaknesses or flaws.”

For more information about the Fluor study, contact Bill Schaperkotter at 864-281-4228. Fluor Corp. is one of the world’s largest engineering, procurement, construction and maintenance services organization. Fluor’s Global Location Strategies Group, based in Greenville, S.C., has conducted over 1,000 site location studies worldwide over the past 30 years.

Senate supports two-year moratorium on capital punishment
After a long and serious debate, the Senate on Wednesday passed a bill that would place a two-year moratorium on capital punishments in North Carolina. Under S. 972 (Kinnaird) Moratorium on Executions for Two Years, convicted murderers could not be executed for two years while the state reviews whether death sentences are fairly awarded. The vote on second- and third-reading was 29-21, with 24 Democrats and five Republicans supporting the moratorium and 20 Republicans and four Democrats opposed. The measure now goes to the House.

House gives its nod to Easley’s transportation plan
The House gave final approval Thursday to H. 48 Moving Ahead Transportation Initiative, the bill embodying Gov. Mike Easley's plan to spend $700 million in the next two years on highway improvements and public transportation. The 111-6 vote on third reading sent the measure to the Senate. The legislation authorizes the transfer of $700 million in bonds approved by voters in 1996 for urban loops and other specific uses that were never sold. H. 48 would earmark $630 million for highway improvements and $70 million for public transportation projects. The House Finance Committee on Tuesday approved an amendment that would create a blue-ribbon commission to study the state’s urban transportation needs, approved an amendment to delete a provision in the bill that gave the Department of Environment and Natural Resources deadlines for the completion of environmental permits on transportation projects and rejected an amendment to reduce the amount for public transit from $70 million to $35 million. Before passing the bill on the House floor, the House restored language requested by NCCBI to improve the permitting process on transportation projects. The bill now goes to the Senate for consideration.

House approves bill regulating payday lenders
The House on Thursday gave third-reading approval to H. 1213 (Culpepper) Regulate Deferred Deposit, a measure that imposes limits on loan amounts and interest rates charged by payday lenders. Under the bill, which passed on a 79-32 vote, payday lenders couldn't loan more than $300 at a time to a borrower and not charge more than $40 for the loan. North Carolina’s 1997 law regulating payday lending expired in 2001. Attorney General Roy Cooper, who has attacked payday lenders that don't operate with federal charters, opposed the bill because he said it doesn’t sufficiently protect consumers.

Amended ‘do not call’ bills receives resounding approval in Senate
The Senate voted unanimously Wednesday in favor of S. 872 (Thomas) Unwanted Telephone Solicitations, a measure that would establish a “do not call” list that residents could join to block calls from in-state telemarketers. The measure was amended to exempt small businesses, nonprofit organizations and companies that have an existing relationship with a person on the registry “do not call” list. The measure mirrors a national “do not call” plan that begins in July under which people can block telemarketing calls from other states and is a watered-down version of last year’s bill that died in the Senate after NCCBI and other groups opposed it. The bill now goes to the House.

House backs Sanford company in toner cartridge battle
The House on Wednesday lent its moral support to a Sanford company in its legal battle with a major national computer printer manufacturer. By a vote of 89-30, the chamber gave second- and third-reading approval to H. 999 (Hackney and Sauls) Toner/Inkjet Cartridges, an act making void and unenforceable as a matter of public policy any provision in any agreement or contract that prohibits the reusing, remanufacturing, or refilling of a toner or inkjet cartridge. The legislation was prompted by a lawsuit filed by Lexmark International against Static Control Components of Sanford. Lexmark alleges that a process used by Static Control violates the law by allowing Lexmark printer owners to purchase recharged toner cartridges from sources other than Lexmark. Static Control has countersued, alleging that Lexmark is monopolizing the toner cartridge market.

Sponsor pulls bill mandating post-Labor Day opening of schools
A day after the Senate Education/Higher Education Committee favorably reported his bill requiring schools to open after Labor Day, Sen. Charles Dannelly (D-Mecklenburg) withdrew the measure on Thursday. During committee debate on S. 779 Schools Begin After Labor Day, 24 school systems were exempted from the requirement and more lined up for exemptions on Thursday, prompting Dannelly’s action. Supporters said a post-Labor Day opening of schools would boost tax revenues from the state’s tourism industry by $200 million from increased August vacations. NCCBI, which is a strong supporter of travel and tourism, reluctantly opposed the measure because it strongly supports local control over schools. The 24 school systems exempted in the bill were Anson, Asheboro, Asheville, Bertie, Buncombe, Cleveland, Edgecombe, Guilford, Martin, Montgomery, Pitt, Randolph, Richmond, Rutherford, Scotland, Stanly, Surry, Tyrrell, Union, Wake, Washington, Wilkes, Wilson and Winston-Salem/Forsyth.

Briefly Noted: By a vote of 39-11, the Senate on Tuesday gave second- and third-reading approval to S. 583 (Purcell) Tobacco-Free Schools, a bill that prohibits smoking cigarettes, chewing tobacco and dipping snuff in school buildings. The bill now moves to the House… The House voted 71-45 on Tuesday to allow Charlotte to initiate a three-year pilot program to use cameras to catch speeders on 14 major thoroughfares. H. 562 (Alexander) Charlotte Photo Speed Measuring Systems would allow the Queen City to use the cameras to snap pictures of speeders and issue them $50 tickets…. The House voted 62-56 on Monday for legislation requiring schools to give students in kindergarten through eighth grade 2 1/2 hours of physical activity each week starting next fall. H. 303 (Bell) Healthy, Active Children In Grades K-8 originally specified 30 minutes a day of physical activity but was amended on the floor. The bill now goes to the Senate…. By a vote of 70-46, the House on Thursday gave third-reading approval to H. 1047 (Hackney) Abolish Alienation of Affection/Criminal, the measure that disallows civil prosecutions against those who break up marriages…. The Senate on Thursday gave second- and third-reading approval to S. 931 (Shubert) No Portfolio, a measure disallowing the practice of requiring beginning school teachers to compile a video record of their experiences before becoming fully certified…. The House on Thursday gave second- and third-reading approval to H. 969 (Warner) Constitutional Amendment/Magistrates' Terms, a measure that would ask voters to amend the state constitution to double the terms of magistrates to four years…. The House on Thursday gave third-reading approval to H. 147 (Gulley) Left Turn on Red, a measure allowing drivers stopped at a stop light to turn left on red from a one-way street onto another one-way street…. The House on Thursday gave second- and third-reading approval to H. 1151 (Nesbitt, C. Wilson and Culpepper) Improve Rule-Making Process, H. 1203 (Gibson And Brubaker) Amend Motor Fuel Marketing Act, H. 1207 (Gibson) Rules Subject To Legislative Review/Summaries, H. 1213 (Culpepper And Grady) Regulate Deferred Deposit and H. 1088 (Barnhart) Consumers' Right-To-Know Act…. The Senate on Thursday gave second- and third-reading approval to: S. 679 (Hoyle) Modify State Financing Laws, S. 805 (Rand) Consolidate Administrative Functions, and S. 1008 (Gulley) VA-NC High-Speed Rail Commission.


State Government

Lee succeeds Kirk as state board of education leader
Former state senator Howard Lee of Chapel Hill was appointed by Gov. Mike Easley to the State Board of Education and then was elected by the board as its new chairman. Lee, 68, will succeed NCCBI President Phil Kirk, who recently resigned from the state board after five and a half years as chairman. Lee becomes the board’s first African-American chairman. Kirk presided over his last State Board of Education meeting on Wednesday and Thursday of this week.

Lee was closely associated with education issues during his 10 years in the Senate, where he served as vice chair of the Education Committee and co-chair of the Appropriations Committee. He was a major backer of the state’s ABCs accountability program and the Excellent Schools Act. He lost his Senate seat in last year’s Democratic primary after redistricting placed him and Sen. Ellie Kinnaird in the same one-seat district. He has served Easley’s education and budget adviser since February.

Economic Development

New index tracks trends in Western North Carolina
Western North Carolina’s economy declined slightly in January, according to a new Western North Carolina Economic Index and Report compiled by Appalachian State University professors. But while the region’s overall economy dropped 0.3 percent from December 2002 data, 21 of the region’s 25 counties experienced job growth, with the most notable gains in Hickory and the surrounding area. The new index, which will be published monthly, is supported by the AdvantageWest regional economic development organization and ASU’s Walker College of Business. According to January data, the area’s economy declined 0.3 percent, even though unemployment in the region shrank 1.7 percent to 5.7 percent in January. The unemployment rate is slightly below the state’s 6.1 percent unemployment numbers and equal to the national rate. The report also illustrates the differences in economic conditions found within the region’s 25 counties. For instance, Watauga County had the lowest January unemployment rate at 2.3 percent, while Transylvania and Rutherford counties had the highest at approximately 9 percent. Retail sales grew more then 15 percent in Polk and Watauga counties while the foothill counties saw declines in retail activities. The WNC Economic Index and accompanying report is released at the beginning of each month and is available on the web at www.business.appstate.edu/wncindex.asp.

Metalworking business plans to locate in McDowell County
AdvantageWest announced that a precision metalworking business has plans to build a 105,000-square-foot facility on an AdvantageWest certified industrial site in McDowell County. The company, EM Partners LLC, of Hampton, Va., will make machinery and equipment investments in excess of $5 million and will initially hire at least 73 employees over a three-year period at a wages higher than McDowell's average for manufacturing, local officials said. The plant will produce precision titanium tubing, with applications ranging from aerospace and defense applications to high-end recreational components.

Economic Development Notes:
 Dr. Jesse L. White Jr., co-chair of the Appalachian Regional Commission for the past nine years, was named an adjunct professor at the UNC Chapel Hill School of Government and charged with structuring a new program to provide economic development assistance to rural and small towns across North Carolina. The program will focus on training and research for community economic development professionals, elected and appointed public officials, and other local leaders involved in community development.

 Wyeth, a global research and pharmaceutical firm with already has a strong presence in Sanford and Lee County, has signed a lease to occupy 82,000 square feet in Durham’s Keystone Office Park, creating 100 jobs and $7 million in capital investment.

 Charter Medical Ltd., a medical manufacturing company, will expand its Winston-Salem plant, creating 50 jobs and a $600,000 investment.

Federal Issues

U.S. Chamber urges Congress
to expedite transportation funding
The United States Chamber of Commerce on Tuesday urged lawmakers to expedite the reauthorization of several investment measures critical to the future of the nation’s surface and air transportation systems and the U.S. economy.  “Investment in transportation is not a special interest issue - it’s a national interest issue,” said Thomas J. Donohue, chamber president and CEO, at a rally on Capitol Hill.  “Full transportation funding supports economic growth, increased competitiveness, a cleaner environment and a better quality of life.” 

The rally, sponsored by the Chamber’s Americans for Transportation Mobility coalition, brought together hundreds of labor officials, business association leaders and transportation industry executives to call on Congress to prioritize such spending measures and pledge their commitment to building a transportation system worthy of the 21st century global economy.  The timely reauthorization of funding measures such as TEA-21, AIR-21 and the Water Resources Development Act is in the best interest of all Americans, according to the Chamber.

Nearly $7 trillion in goods and materials are transported in this country each year. Moving those goods and people quickly and safely is critical to our economic growth and competitiveness.  Building the infrastructure we need to boost our economy will create jobs here at home as well - more than 2.5 million jobs were generated in the design, construction, and maintenance of transportation infrastructure projects in 2001 alone.  In addition, improving the nation’s transportation system and reducing traffic bottlenecks will dramatically improve air quality.  “A growing economy relies on an efficient transportation network,” said Donohue.  “Without improvements, that network will be unable to sustain increased growth and activity in the future.”


N.C. joins ranks of states limiting size of appellate bonds
North Carolina has joined a growing number of states that are enacting limits on the size of bonds companies can be required to post in order to appeal a judgment in a civil case. Governor Mike Easley recently signed into law S. 784 (Hartsell) Judgment Bonding Requirement, a measure that would limit to $25 million the amount of a bond a company would have to post regardless of the size of the judgment.

The National Association of Manufacturers has been watching with alarm the trend toward requiring companies to post huge bonds just to appeal a judgment. Philip Morris USA recently was subjected to a $10 billion judgment against the company in a class action case filed in Madison County, Ill. As part of the appeal process, Philip Morris USA was required to post an appeal bond in the excessive amount of $6 billion, which in itself was actually a reduction of the original amount of $12 billion, which if enforced, could have bankrupted the company. Two rather disturbing trends surfaced in this case.

Until Congress passes appropriate class action reform, attorneys will continue to shop their cases to the most sympathetic judges, and manufacturers of perfectly legal products will face crippling litigation costs while struggling to recover from recession and job losses. Also, as the size of damage awards in litigation has dramatically escalated in the past few years, large bond requirements have become unworkable for the largest of judgments. The sheer magnitude of a multi-million or multi-billion dollar verdict can prevent a company from posting a bond, thereby forcing the company to either settle the case or risk having its assets seized during the pendency of what may be a meritorious appeal.


Feds kill plan to construct rock jetties at Oregon Inlet
The White House Council on Environmental Quality, the U.S. Army Corps of Engineers, and the Interior and Commerce Departments announced Thursday that they have reached agreed not to proceed with construction of rock jetties at Oregon Inlet on North Carolina's Outer Banks. The agreement ends 30 years of study into dredging a 20-foot by 400-foot navigation channel flanked by rock jetties. The project would have ensured that large fishing vessels had a safe passageway from the Albermarle-Pamlico Sound through the only break in the barrier islands in the northern part of the Outer Banks. The project would have had an initial cost of $108 million in addition to annual dredging costs of $6.1 million. Instead of that project, the Corps will improve the current 14-foot navigation channel while working with the Department of Commerce's National Oceanic and Atmospheric Administration to enhance boating safety by providing the public with more accurate and up-to-date navigational data on changing sand conditions in the channel. The decision to cease work on the Oregon Inlet jetty project came after a public hearing in Manteo at which residents expressed differing views on the project.

 
NAM News Briefing….

Tax-Relief Bills Begin To Take Shape: Both the Senate Finance and the House Ways and Means Committees will begin marking up economic-growth bills next week. Ways and Means Chair Bill Thomas (R-CA) and Speaker Hastert (R-IL) will soon unveil a bill calling for expedited rate cuts, a lower rate on dividends and capital gains, and new depreciation provisions but only a temporary expensing provision for small businesses. The FY 2004 budget resolution calls for both panels to report their bills by 5/8. NAM lobbying for a strong growth package continues.

Energy Bill Headed For Senate Floor: The Senate Energy Committee on Wednesday adopted Chairman Pete Domenici’s (R-NM) draft energy bill, 13-10. Sen. Mary Landrieu (D-LA) joined all Republicans in support. No amendments related to CO2 reporting and/or renewable portfolio standards (RPS) were offered. Those topics will be addressed during floor debate, which begins next week. NAM members support legislation that provides adequate supplies of reliable and affordable energy and avoids arbitrary CAFE, CO2 reporting or RPS mandates.

Class Action “Alternative” On The Horizon: Sen. Pat Leahy (D-VT), ranking Democrat on the Senate Judiciary Committee and a longtime ally of the trial bar, has drafted his own class-action bill. In a letter to senators this week, Leahy claims certain provisions in his bill are stronger to those contained in NAM-backed S. 274. That class-action bill cleared the Judiciary panel — despite the staunch opposition of Leahy. Has Leahy been reformed or is his bill merely aimed at giving cover to otherwise would-be supporters of S. 274?


NCCBI News

Kirk addresses Fayetteville, Wilmington groups
The power of partnerships and effective, honest communication were discussed in speeches by NCCBI President Phil Kirk last week. In the keynote speech at a corporate executives breakfast for Fayetteville State University, Kirk praised Fayetteville State University's contribution to economic development and workforce development. He encouraged the corporate leaders present at the breakfast at the Capital City Club in Raleigh to visit Fayetteville State to see the positive changes that are taking place.

Kirk told the audience that the faculty and staff at FSU work hard to produce "well qualified graduates who have a solid academic background, a strong work ethic, ability to work effectively in teams, and who are honest and loyal. In other words, just the kind of people you need to hire to make your business or industry even more successful."

Glenn Jernigan, former chairman of the FSU Board of Trustees and current member of the NCCBI Board of Directors, introduced him. Chancellor Willis McLeod, who is retiring next month to return to teaching, also spoke and called Kirk "an icon in the world of business and education." Kirk received a framed desk clock that read, in part, "In recognition of dedication to excellence in education and the endowment of academic advancement."

In Wilmington, Kirk addressed the Community Growth Planning Core Team, a project involving community leaders through the Greater Wilmington Chamber of Commerce. He discussed the partnerships NCCBI had developed with most of the people in the room, representing business and industry, education, economic development, and chamber of commerce.

He applauded the Chamber for its "leadership and vision in organizing this group six years ago. Before you can meet any challenges, you have to recognize and realize that there are the issues you need to resolve through honest collaboration." He stressed the need for honest and respectful communication and added that patience and a sense of humor are also helpful.

The Core group has worked on such issues as comprehensive planning, priority road projects, support for education and highway bonds, Mason Inlet dredging, Airlie Gardens, and open space bonds.

Kirk stressed the need for business involvement early in the process on important issues. "Too often in the past business people have felt they were too busy making sure their bottom line showed a profit so they could keep their doors open and this left little or no time for involvement in public policy issues. You have seen the need for early and effective involvement and I commend you for that." He was introduced by Bob Warwick, who has chaired the group since its inception and who is currently a member of the NCCBI Board of Directors.

At Hunter Elementary School in Greensboro on Friday, Kirk told more than l00 volunteers that the school would not have achieved the designation of School of Distinction without their help. "Educators cannot meet the needs of all students every day and they must have your continued involvement and personal attention." Alan Duncan, Chairman of the Guilford County Board of Education, introduced him.


Tax and Fiscal Policy Committee reviews state budget
NCCBI’s Tax and Fiscal Policy Committee chaired by Lucius Pullen met on April 28 to get an update on the state’s fiscal matters and pending legislative issues. State Controller Robert Powell gave the committee an overview of the state’s fiscal situation, spoke briefly on the proposed state budget and encouraged the business community to stay active and involved in the legislative process. “The voice of the business community is important to the legislative process and it’s important that you continue to be involved in the process,” said Powell.

Powell noted that in the last four fiscal years, the state has spent more revenue than it has taken in and the state’s resources have been depleted. He pointed out that the governor has taken steps to reduce spending and balance the budget and the governor and the General Assembly have taken steps to keep the state’s AAA bond rating with two of the three rating agencies, although Moody’s downgraded N.C. to AA-1 last year. He urged the committee to visit The Office of State Controller website at www.osc.state.nc.us to get a comprehensive summary of the state’s fiscal picture.

The committee also heard from Tom Covington, director of the N.C. Progress Board, about a new publication. The book will available in June entitled “Our State, Our Money: The Citizen’s Guide to the N.C. Budget.” Covington pointed out that the job of the Progress Board is “to look down the road 20 years or so and see what the state’s goals should be.” Copies of the guide will be distributed through state newspapers and other sources. Copies will be made available to any individual or group that requests them.  For more information about The Progress Board, go to www.theprogressboard.com.  

Names in the News

Governor appoints two to Turnpike Authority
Sang Jim Hamilton Sr. of Winton and Robert D. Teer of Research Triangle Park were appointed by Gov. Mike Easley to the North Carolina Turnpike Authority. Hamilton is a retired production engineer at Newport News Shipyard where he worked for 37 years. He has been the recipient of numerous awards, including the governor’s award for involvement in education and the Order of the Long Leaf Pine. Teer is president and principal owner of Teer Associates, a commercial real estate development firm. He is a member of Triangle J Council of Governments, Durham-Wake Counties Research and Production Service District, National Association of Industrial and Office Property, Building Owners and Managers Association, International Facility Management Association, Research Triangle Owners and Tenants Association, Southern Growth Policies Board and the American Association of University Parks. The Turnpike Authority was created to establish and maintain turnpike projects in North Carolina. The authority also acquires property and collects tolls and fees for the use of the turnpike projects. Nine members are on the authority, each serving a four-year term. The governor appoints four members.

 Jo Anne Sanford of Raleigh was reappointed by Gov. Mike Easley to the North Carolina Utilities Commission, a post she has held since 1995 and where she has served as chair since 1997. Confirmation now goes before the General Assembly. Prior to joining the commission, Sanford was employed with state Attorney General’s Office as special deputy attorney general. Sanford graduated with honors from N.C. State University in 1972 with a bachelor’s degree in political science and received her juris doctor from the School of Law at the University of North Carolina at Chapel Hill in 1975.

 Cong. Cass Ballenger (R-10^th) of Hickory was named to the Southern Economic Development Council’s 2003 Honor Roll of Legislative Achievement in Economic Development. SEDC is the oldest and largest regional economic development association in North America. Congressman Ballenger received the honor based on his voting record of business-related issues from three national organizations during the second session of the 107th Congress.

 Judge Hugh B. Campbell Jr., a longtime Charlotte lawyer and a former member of the state Court of Appeals, was appointed by Gov. Mike Easley as a District Court judge for Mecklenburg County. Campbell will fill the vacancy created by Easley's recent appointment of District Court judge Yvonne Mims Evans to the Superior Court. Campbell's two-year stint on the North Carolina Court of Appeals ended in December 2002. Before joining the court, he spent three decades in private practice with various Charlotte law firms. Campbell represented Mecklenburg in the N.C. House from 1969-72 and has been involved in numerous civic activities. He also served in the U.S. Army and was a Colonel with the U.S. Army Reserves.

 Edwin G. Wilson Jr., an Eden lawyer with substantial civil and criminal trial experience, was appointed by Gov. Mike Easley to Rockingham County's Superior Court bench. Wilson will fill the vacancy created by the retirement of Judge Peter McHugh. Wilson, a partner with the law firm of Maddrey, Wilson, Etringer & Smith, is a graduate of Wake Forest University's School of Law. In addition to his legal work, Wilson is a board member for the Clean Water Management Trust Fund and the N.C. Center for Voter Education. He also serves in the U.S. Army Reserve.

 Estherine Davis has been promoted to manager of North Carolina legislative affairs at ElectriCities. In her new responsibilities, she will replace Alice Garland as the chief ElectriCities’ lobbyist in the General Assembly, and will be responsible for managing state legislative issues of importance to ElectriCities.

Where the Money Comes from in Senate Budget	2003-04	2004-05
Unappropriated Balance from Current Year	$103,885	$0
Beginning Unreserved Credit Balance	375,000,000	0
Revenues Based on Existing Tax Structure	13,384,600,000	14,203,713,917
Nontax Revenues
Investment Income	113,900,000	132,056,801
Judicial Fees	137,520,000	144,430,000
Disproportionate Share	100,000,000	100,000,000
Insurance	51,900,000	53,900,000
Other Nontax Revenues	116,050,000	120,100,000
Highway Trust Fund/Sales Tax on Vehicles
Reimbursement Transfer	252,422,125	231,774,330
Highway Fund Transfer	16,379,000	16,166,400
Subtotal Nontax Revenues	$788,171,125	$798,427,531
Total General Fund Availability	$14,547,875,010	$15,002,141,448
How this compares to House budget:	$15,032,600,000	$15,642,700,000
Adjustments to Availability: 2003 Session
Maintain Sales Tax Rate at 4.5%	346,500,000	388,200,000
Maintain Top Income Tax Bracket at 8.25%	37,500,000	92,700,000
Delay Increase in the Child Tax Credit	20,300,000	54,100,000
Conform to Federal / Child Tax Credit	16,800,000	17,000,000
Delay Increase / Standard Deduct. (Marriage Penalty)	33,400,000	47,000,000
Equalize Insurance Tax Rate/ Article 65 Corps.	19,300,000	14,700,000
Conform to Streamline Sales Tax Provision
(Candy, Soft Drinks, Prepared Food, Modified Software)	30,200,000	30,600,000
Tax Soft Drinks / Vend. Machines / 50% of Gen. Rate	(4,700,000)	(4,700,000)
Restore Use Tax Line on Individual Returns	3,100,000	3,100,000
Revenue: Project Tax Collect	10,000,000	10,000,000
Revenue: Project Compliance	38,340,500	74,009,500
Divert MSA Settle. Proceeds / Tobacco Trust Fund	30,000,000	30,000,000
Fee Increases	4,959,418	4,959,418
Adjust Transfer from Insurance Regulatory Fund	2,942,777	(207,827)
Credit to Repairs & Renovations Reserve Account	(50,000,000)	0
Credit to Savings Reserve Account	(19,089,038)	0
Subtotal Adjustments to Availability: 2003 Session	$529,553,657	$771,461,091
Revised General Fund Availability	$15,077,428,667	$15,773,602,539
Less: Total General Fund Appropriations	(15,077,428,667)	(15,773,602,539)
Unappropriated Balance Remaining	0	0

Where the Money Goes in the Senate Budget

2003-2004

2004-2005

    How this compares to House budget:

 Department of Public Instruction

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