JUNE 22, 2001

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.

Overall, seasonally-adjusted unemployment in the state rose three-tenths of a point in May to 5.2 percent, the highest it’s been since May 1993, the ESC said. The state unemployment rate was 3.6 percent rate one year ago. North Carolina’s labor force was estimated at 4,017,200 in May. The national unemployment rate decreased slightly to 4.4 in May, down from 4.5 percent in April. For the past four months, North Carolina’s unemployment rate has been higher than the national rate.

There were 785,900 people employed in manufacturing last May, a number that had dropped to 750,200 by last month. In the month of April alone, 8,700 manufacturing jobs disappeared.

Most other industry segments added jobs over the past year. The service industry added 31,400 jobs, paced by the 12,400 jobs added by the Health Services segment. Federal, state and local governments added 23,600 jobs over the 12 months ended in May. Government now accounts for 648,200 jobs in the state.

Overall, total nonagricultural employment in North Carolina rose by 42,500 in the 12 months ended in May to 3,985,100.

ESC continues to return North Carolina workers to jobs faster than almost any other state. Currently, the average time a North Carolina worker draws unemployment insurance before returning to work is 9.2 weeks, compared to a national average of 13.7 weeks. At the same time, the rate of unemployment tax paid by N.C. employers is among the lowest in the nation, while workers receive the highest benefits in the Southeast.

Long rejects insurance industry’s bid to raise rates 10.6%
Insurance Commissioner Jim Long last week said he rejected the auto insurance industry’s request for a 10.6 percent rate increase. The commissioner called a public hearing to begin Sept. 17 on proceeding toward a resolution of rate increases.

Long was acting on a request filed May 1 by the North Carolina Rate Bureau, which requested a statewide increase of 10.6 percent in rates for private passenger auto and 2.4 percent decrease for motorcycle insurance. Long said he rejected the request because "a noticeable pattern of bias in the selection and use of data and methodologies is apparent throughout the filing and appears to produce rates that are excessive and unfairly discriminatory."

Under state law, the Commissioner of Insurance can either approve a rate change as requested by NCRB or call a public hearing. If, following the hearing, the Commissioner finds for a lesser increase or a reduction in rates, NCRB can appeal the decision to the state Court of Appeals and raise rates over the commissioner’s objections while cases are pending before the court. However, any difference between the commissioner’s order and  insurers' implemented rates must be kept in escrow pending the court’s decision. If insurers win, they keep these funds; if the court agrees with the state, then the escrowed funds plus interest are refunded to consumers.

In March 2000, Long reached a settlement with the NCRB that refunded more than $250 million from premiums paid in 1994, plus interest at 11.5 percent, totaling $125 million. Long also ordered an average statewide rate reduction of 9.25 percent, representing additional savings of $240 million in premiums. The total value of these settlements is $600 million. North Carolina drivers have the 11th-lowest auto insurance premiums in the country, based on 1999 data compiled by the National Association of Insurance Commissioners.


State gasoline tax declines slightly
The North Carolina motor fuels tax for gasoline, diesel and alternative fuels will decrease from 24.3 cents to 24.1 cents per gallon for the period from July 1, to Dec. 30, 2001, Department of Revenue Secretary E. Norris Tolson said last week. The 24.1-cent rate includes a flat rate of 17.5 cents per gallon and a wholesale component of 6.6 cents per gallon. The Secretary sets the amount of the wholesale component twice a year, as delegated by the General Assembly. The wholesale component is either 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month base period, whichever is greater. The average wholesale price is a weighted average of the wholesale prices of gasoline and No. 2 diesel fuel. The average price for the last base period was 94.45 cents per gallon. The new tax rate should be used beginning with gasoline, diesel and alternative fuel reports filed for July 2001 that are to be filed with the Department of Revenue in August. The state motor fuels tax is included in the retail price paid by consumers at the pump.

I-40 closed for repairs in Buncombe and Haywood counties
The N.C. Department of Transportation will temporarily close Interstate 40 from Exit 31(Canton Road) in Haywood County to Exit 37 (East Canton Road) in Buncombe County each day from 9 a.m. to 12 noon Monday through Thursday for the next several months. At noon each day all lanes will reopen. Motorists can expect delays during the closings. The closings are necessary as part of a project to continue widening I-40.

Work on Elon Bypass closes road in college town
The N.C. Department of Transportation temporarily has closed Manning Avenue in Elon to thru traffic. The road will be closed until about July 18, weather permitting. The closing is necessary to continue construction on the proposed Elon Bypass.

Public hearing planned on Fayetteville road project
The N.C. Department of Transportation will hold a public hearing for the proposed extension of Lake Valley Drive from Yadkin Road (S.R. 1415) to Skibo Road (U.S. 401 Bypass) in Cumberland County. Additional right of way will be required for construction. The hearing will be held on Thursday, June 28, at 7 p.m. in the Cafeteria of the Alger B. Wilkins Elementary School in Fayetteville.


Easley launches ‘Education First’ task force
Rather than the “sound basic education” the Leandro courts have said is the state’s minimum responsibility, Gov. Mike Easley told his 38-member "Education First" task force Monday that he thinks the state deserves “superior and competitive” schools.  "I want this commission to construct a roadmap for what constitutes a superior education in today's society," Easley said, "and how North Carolina can take steps to ensure that every child has the opportunity not just to pass, but to excel." North Carolina has made great strides in improving test scores and is a national leader in school accountability, Easley said, but more needs to be done.

The panel is led by Mike Ward, state superintendent; Krista Tillman, president of BellSouth, and Willie Gilchrist, superintendent of Halifax County schools, one of the rural districts that are plaintiffs in the Leandro school funding lawsuit.  Easley asked the task force to report its recommendations early next year for consideration in the 2002 short session. Easley outlined three broad topics for study: Lessons to be learned from high-performing schools, an examination of financial resources and how they can best be used, and improved preparation for high school graduates.

In his March ruling in the Leandro case, Superior Court Judge Howard Manning directed the state and the plaintiff school systems to study the success stories of schools that demonstrated strong performance in spite of high percentages of at-risk students. Easley directed his panel to conduct the same kind of research.
           

Survey predicts more tourists coming this summer
A new survey by the Travel Industry Association of America (TIA) predicts a slight increase in the number of vacationers we can expect in North Carolina this summer, but it says they will be taking shorter trips -- 8.3 nights this summer compared to 10 nights last summer, However, travelers should spend more money than they did last year, $1,172 vs. $965.

"This is good news for the North Carolina travel industry," said Lynn Minges, executive director of the N.C. Division of Tourism, Film and Sports Development. "Many of our summer vacationers come from within North Carolina and surrounding states, so we'll probably be less affected by rising gas prices than other destinations."

The TIA survey projects Americans will take more than 230 million trips of 50 miles or more during June, July and August, up almost one percent from last year. According to the annual survey, 68 percent of North Carolina’s visitors coming from five Southeast states and 81 percent come from 10 states.

North Carolina chambers and convention centers are offering great incentives and rates for special weekend packages and vacation discounts. According to Kelly Miller, director of the Asheville CVB, "We spent half a million TV advertising dollars in key markets since July 2000 and expect to see a substantial increase in visitors with this heightened exposure. Hotel expenditures from July 2000 to March 2001 increased 4.6 percent in Asheville, so we feel we are stronger right now than many of Ashville’s competitors."

Travel projections from around the state:

Flat Rock Playhouse in Flat Rock reports strong pre-season sales, with box office ticket sales up 15 percent over last year. Over half are returning customers. Contact: Dale Bartlet - (828) 693 0403 ext. 

At Brevard Music Center, sales are up 7 percent over last year, and about one third are new customers. Contact: Stephanie Eller - (828) 884-2011

At the Appalachian Summer Festival, numbers and public response seems to be on a par with last year: Not a huge growth surge, but right on track with projections. They expect that " the Outdoor Fireworks Concert with Jo Dee Messina and Ricky Skaggs on July 28 will be bigger than ever, with crowds in excess of 7,000. Contact: Carolyn Howser - (828) 262-3516

At Roanoke Island Festival Park, there was a 44 percent increase in attendance last year with the performances by the N.C. School of the Arts, and they expect this to continue. Last year’s gas prices did not affect attendance, and attendance this spring is up over last year. Contact: Laura Catoe - (252) 475-1500

The Battleship North Carolina in Wilmington reports visitations are up over 6 percent, and all signs point to another great summer season on the Cape Fear Coast. Contact: Connie Nelson - (910) 341-4030

The venues that are part of the Summer Performing Arts consortium anticipate attendance by nearly 700,000 arts fans this summer. Contact: Maryanne Friend - (919) 733-2118.