June 22, 2001
Issue Number 22





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Names in the News
Easley names Robert Powell as state controller.





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Top Story
House turning over rocks
looking for more tax revenue
The House is looking in every corner for any bit of extra revenue for next year’s cash-strapped budget. It approved two bills to increase tax collections – one requiring more small business owners to pay state taxes monthly instead of quarterly and another beefing up the state Department of Revenue’s power to collect past-due taxes and empowers it to go after tax deadbeats. How much good that will do should be known Monday when the House unveils its version of the state budget for the year beginning July 1. The chamber doesn’t like the Senate’s package of tax loophole closings and the deep cuts in health and human services, so it must come up with a balanced-budget alternative. Read that story.

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Legislative News
Senate OKs plan to reorganize, streamline DOT finances

The Senate passes legislation requiring the DOT to reorganize its cash management procedures along lines recommended by the Joint Legislative Transportation Oversight Committee Cash Management Study. Among other things, the measure authorizes DOT to dip into the Highway Trust Fund, which is supposed to go toward new roads and urban loops, and direct $150 million each year for the next three years to maintain existing highways. Read that story and other legislative actions.

The State Privacy Act is enacted, and a bill advances allowing wineries to offer free tastings to tour groups. Committee Actions and Floor Votes.


State Government News
35,700 manufacturing jobs lost in past year, ESC says

The slow but steady decline in North Carolina's manufacturing sector over the past year has translated into 35,700 lost jobs between May 2000 and May 2001, or about 4.5 percent of the industry’s workforce, according to a report by the state Employment Security Commission. Textile mills accounted for 14,600 of the job losses, or about 10 percent of all textile jobs, while 4,700 of the lost jobs were in transportation equipment, the ESC said. 
Elsewhere in state government, a survey predicts a stronger tourist season this summer. Read those stories

Health Care News
Public hearings planned on hospital expansions
North Carolina's growing population means hospitals have to keep expanding. Several public hearings are planned around the state in coming weeks on those expansion proposals. Conducting the hearings is the N.C. Division of Facility Services, an agency within the Department of Health and Human Services, which regulates hospitals under the state’s Certificate of Need law. See the list of hospital expansions and what they're planning.

Environmental News
Neuse River nitrogen-reduction target raised to 40%
In an effort to continue water quality improvements in the Neuse River estuary, state officials are recommending a 40 percent, rather than a 30 percent, reduction in nitrogen in the troubled river. A plan to achieve that goal has been developed by the Division of Water Quality in the state Department of Natural Resources and will be recommended for adoption by the U.S. Environmental Protection Agency. Read that and other environmental stories.

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