May 18, 2001

Smart Start board acts to tighten grant criteria
Reacting to criticism that some Smart Start grants are going to well-heeled day care centers, the N.C. Partnership for Children Board of Directors adopted a resolution that strengthens guidelines for approving and monitoring Smart Start quality enhancement grants. The board also approved a comprehensive performance-based evaluation system to ensure the results of all Smart Start programs.

“Today’s action proves that this board is committed to ensuring full accountability of every Smart Start program in North Carolina,” said Ashley Thrift (left), chairman of the board. The resolution charges the partnership with developing and implementing quality enhancement grant guidelines by July 1, 2001. Guidelines will ensure that: the amount of Smart Start funds going to individual child care facilities is limited; purchases through quality enhancement programs are limited; quality enhancement activities be monitored by the local partnership for compliance with the guidelines; Smart Start quality grants must be linked to achieving higher-star license; and child care facilities that serve children of low income and children with special needs will be given priority.

The new performance-based evaluation system will evaluate local partnership performance based on individual county results. This system addresses the three main areas of Smart Start—early care and education, health and family support. Within each area, two levels of statewide criteria—minimum and high performing—have been developed to measure progress.  This accountability system is set to go into effect July 1, 2001.

The board action comes as a subcommittee of the General Assembly is debating Smart Start’s future. One subcommittee recommendation removes all child-care subsidy, health and family support programs from Smart Start’s umbrella.

Easley proposes using tobacco settlement money
to fund prescription drug program for senior citizens
The state Health and Wellness Trust Fund Commission held its first meeting on Wednesday and heard Gov. Mike Easley strongly suggest that the commission use part of the money it’s receiving from the national tobacco settlement to implement a plan to help senior citizens pay for prescription drugs. “Prescription drug costs are skyrocketing,” said Easley. “And according to a recent federal report, prescription drugs now account for about one-sixth of all out-of-pocket health spending for the elderly. Many seniors are being forced to choose between the medicines they require and other basic necessities.”

The governor said it would be best is the state draws up a plan that meshes with federal programs being drafted to help seniors pay for prescription drugs. “However, if Washington does not act this year, North Carolina will move forward with a plan to help our seniors get the medicine they deserve,” Easley said.

Easley asked the members to think broadly and to look for ways to help as many seniors as possible. “If we have to go it alone to help our seniors, we need to think beyond small ‘incremental’ expansion,” said Easley. “We need to develop a plan that can help as many seniors as possible across North Carolina.”

The Health and Wellness Trust Fund was established by the General Assembly to take in and allocate 25 percent of North Carolina's share of the multi-billion dollar national tobacco settlement agreement reached in 1999. As attorney general, Easley was instrumental in brokering the multi-state deal. The current balance in the fund is more than $60 million.

By law, funds from the Health and Wellness Trust Fund may be used to address the health needs of vulnerable and underserved populations in North Carolina; to fund programs and initiatives that include research, education, prevention and treatment of health problems in North Carolina and to increase the capacity of communities to respond to the public's health needs; and to develop a comprehensive community-based plan with goals and objectives to improve the health and wellness of the people of North Carolina with a priority on preventing, reducing and remedying the health effects of tobacco use and with an emphasis on reducing youth tobacco use.


State’s movie industry holds steady,
with 19 feature films shot here last year
Movie and television producers spent an estimated $250.1 million in North Carolina in 2000, more than enough to maintain the state's position as the third-ranking filmmaking state in the nation. According to Department of Commerce figures, the state hosted 81 major productions, including 19 feature films, 56 television-series episodes, and six made-for-television films in 2000, compared to 65 the previous year. Substantial commercial-advertising production also took place, and production-related jobs for North Carolinians increased to 31,000, up from 26,000 in 1999.

While the report showed a drop of about $50 million from 1999 figures in direct spending on filmmaking in North Carolina, Commerce Secretary Jim Fain said the outlook for 2001 is very positive. Near-record levels of film activity have taken place this year in consideration of accelerated production schedules brought on by the threat of labor disputes involving both the Writers Guild and the Screen Actors Guild.

Among the productions carried out in North Carolina during 2000 were "Hannibal," with Sir Anthony Hopkins in Asheville; "The Black Knight" with Martin Lawrence, "Domestic Disturbance" with John Travolta and the TV series 'Dawson's Creek' in Wilmington; and Spike Lee's "The Original Kings of Comedy" in Charlotte.

North Carolina has stood as the third-ranking filmmaking state in the nation throughout most of the past 15 years, behind California and New York, according to the U.S. Department of Commerce.

Locker maker brings 300 manufacturing jobs to Martin County
Penco Products, among the world's largest manufacturers of lockers such as those found in educational institutions, health facilities and fitness centers, said last week that it will locate a new manufacturing facility in Martin County, one of the state's most economically depressed, investing $11.2 million and creating 300 new jobs.

"I am proud that Penco Products has chosen to locate this facility in Martin County," said Gov. Mike Easley. "We work hard in North Carolina to provide good jobs for our working families and to create a climate in which top companies can grow and thrive. This announcement today is testament that our hard work is paying off."

Penco, which manufactures industrial shelving, ship furniture, storage cabinets and other sheet metal products, is expected to begin operations next month in the former Alamac Knits building in Hamilton and be fully operations by December.

"In North Carolina we are driven every day to create good jobs and improve the economic well-being for everyone in our state," said Commerce Secretary Jim Fain. "That's why we are so pleased that Penco Products has chosen to locate this facility in Martin County, creating 300 jobs in an area of our state that needs them most. I look forward to working with Penco Products as they grow and thrive in North Carolina."

In addition to the Department of Commerce, Penco Products worked with the Martin County Economic Development Corporation and the North Carolina's Northeast Partnership in their site selection process.

"We are looking forward to being a part of Martin County's industrial community," said Bob Heffernan, vice president of manufacturing for Vesper Corp, Penco's parent company. "We have been impressed with Martin County's team concept toward economic development and the willingness of the entire community to ensure our company's success here."

Martin County is classified by the Department of Commerce as a Tier One county, meaning it is among the state's most economically depressed. Under the William S. Lee Quality Jobs and Business Expansion Act, companies locating in Tier One counties such as Martin are qualified to receive additional tax credits based on job creation and investment. Penco will be eligible to receive investment, job creation and worker training tax credits under the Lee Act.

Magnetic components maker bringing 100 jobs to Canton
Magnetics, a Pennsylvania-based manufacturer of magnetic components, said it will locate a new manufacturing facility in Canton, creating an expected 100 jobs and $20 million in investment. The company, a division of Spang and Company of Butler, Pa., manufactures magnetic components for the electronics industry. The company began operations in 1894 manufacturing drilling tools for the oil, gas, and water industries. Today the company is no longer in the drilling tool business, but has expanded to include four manufacturing operations, of which Magnetics is one.

"In the search for a plant location for the Magnetics division, we looked at numerous states and communities and the Canton area ranked very high in every category," said James D. Miller, president of the Magnetics Division of Spang and Company. "We are extremely pleased with our choice and look forward to becoming members of the Canton community."

Magnetics will occupy a 239,000 sq. ft. facility in the Beaverdam Industrial Park in Canton and expects to be fully operational in early 2002. In choosing this facility, Magnetics worked with the N.C. Department of Commerce, including the department's Western Regional Office, as well as the Haywood County Economic Development Commission and the N.C. Community College System.  As a manufacturing facility, the company will be eligible to receive investment, job-creation and worker-training tax credits under the William S. Lee Quality Jobs and Expansion Act.


New EMC rules limit activities along banks of the Catawba River
The Environmental Management Commission has adopted temporary rules to protect forested and vegetated areas along the Catawba River and lakes along the river from Lake James to Lake Wylie. The rules protect existing 50-foot wide buffers along the main channel of the river below Lake James and along the shorelines from Lake James to Lake Wylie. They do not apply to the main channel above Lake James nor any other streams in the Catawba Basin. The approved temporary rules are scheduled to take effect on June 30. Rules to establish buffer protection in additional areas of the basin are in the process of being developed.

The temporary rules differ in some respect from those proposed and discussed in public hearings last March. As a result of comments received at the hearings, buffer zones in applicable subdivision lots are allowed greater in the 20 feet closest to the land in the 50-foot buffer strip. Other changes include an increase in exempt and allowable activities associated with access trails and tree cutting, and clarification of where lake shoreline buffer zones begin, at the landward edge of full pond level.

Under the temporary rules, new buffers would not be created unless the land use is changed. Existing uses, such as agriculture, industrial and commercial facilities, maintained lawns, utility lines and on-site wastewater systems, are exempt.

The temporary buffer protection rules also allow local governments to enforce a local buffer protection ordinance instead of the proposed rules if the Division of Water Quality determines it provides greater or equal water quality protection. Copies of the adopted temporary rules will be available on the DWQ web site at http://h2o.enr.state.nc.us/admin/pubinfo/pubinfo.html  or by contacting Jamie Smith at (919) 733-5083 extension 558.

DOT reduces lanes on Business 40 near Winston-Salem
Traffic on I-40 Business/U.S. 421 in Forsyth County will be reduced to one lane in each direction for the next two months while the state DOT continues improvements on the thoroughfare. The lane reduction extends from west of the Old Vineyard Road (S.R. 1212) overpass to east of Stratford Road (U.S. 158).  Access to all ramps will remain open during this time.

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