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June 30, 2000 n Issue No. 7 n The 2000 Short Session
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Breaking News

Budget Compromise Sends Legislators Rushing Toward Adjournment
With just two days before the end of the fiscal year, House and Senate leaders compromised on the remaining items in dispute between their spending plans for the budget year starting July 1 and made plans to adjourn soon after the July 4th holiday. It's the second year in a row lawmakers completed a budget on time after a string of missed deadlines.

The breakthrough came Thursday just a day after the Senate's lead budget conferee, Appropriations Co-chair Fountain Odom (D-Mecklenburg) said the chambers were “at loggerheads” over pay raises for state employees, how much money to set aside for environmental protection and how to protect against an imminent surge in state employees health plan costs.

They split the baby on raising state workers' pay. The House wanted 5 percent, the Senate proposed 3 percent and they settled on 4.2 percent -- a 2.2 percent COLA and a 2 percent “career growth” increase. Plus they will get a one-time $500 bonus that will cost about $90 million, but next budget year that amount is earmarked as a hedge against rising costs in the state health plan.

Other compromises: As the Senate proposed, the deal forgives the loan the state gave to the N.C. Railroad last year to buy out private shareholders, plus it allows the NCRR to keep the $11 million it earns in annual lease payments from CSX but it must use the money for track improvements. The House was willing to forgive $11 million of the loan. The House dropped its plan to cut $2.7 million from UNC Hospitals and the Senate agreed to restore $3.3 million cut it made in funding for a program to help school systems hire central office staff.

The compromise deal was officially presented to the conference committee late Friday morning and was on track to reach the full House and Senate later in the afternoon, with 12 hours to spare before the end of the fiscal year. Tidying up the session will take a few more days. House Speaker Jim Black (D-Mecklenburg) thought they would wrap up the week of July 10. He and Senate President Pro Tem Marc Basnight (D-Dare) set a schedule that calls for legislators to take Monday off and come back for a brief session on Tuesday, the 4th.

The big push toward adjournment will start Wednesday, the 5th, when committee chairmen will start indefinitely postponing, and thereby killing, hundreds of pieces of pending legislation. By next week's issue of the Legislative Bulletin, we should have a clearer picture of exactly what bills passed and which didn't. Watch for that wrap-up edition.

Still the 'Good Roads State'?
With more than $5 billion in construction
under contract, the N.C. DOT is building
new roads as fast as it can. But is it enough?

Editor's note: This is an abbreviated version of the cover story in the July issue of North Carolina Magazine.
We include it here as our Fourth of July present to NCCBI members who will be driving on family vacations next week.

Like soldiers standing at attention along a motorcade route, orange barrels line many of North Carolina's highways. From the mountains to the coast, the state is experiencing phenomenal growth. And the North Carolina Department of Transportation is trying to stay ahead of the curve by systematically widening existing highways and adding new ones where necessary. It all comes at a price, of course, and the price in this case is $3.95 billion. That's the amount tied up in the NCDOT's 10 major projects currently under construction across the state. Additional contracts were signed in 1999 totaling $1.2 billion. They call for the resurfacing of nearly 1,700 miles of primary and secondary highways, the replacement of 68 substandard bridges, and the installation of median guardrails on more than 405 miles of interstate and major primary highways.The purpose? To maintain the state's 78,000 miles of highways -- only Texas has more -- and to enhance the state's reputation as "The Good Roads State." At the core are the new construction projects, which are designed to help the state cope with its surge in population. Here is an overview of those 10 projects:

The Charlotte Outer Loop
With a price tag of more than $1.2 billion, I-485, as the loop is known, is being built in sections, explains Calvin Leggett, director of planning and programming for the NCDOT. The first 26-mile section, which makes up the southern arc of the loop, has already been constructed. But the entire loop, totaling about 65 miles, is not scheduled for completion until some time between 2006 and 2013 -- even though the first contract for the project was let in May 1988, Leggett says. And while this project is high on the DOT's list of priorities, there are still some sections of roadway that have yet to be budgeted for, Leggett admits. Rapid and continued growth in the Charlotte area has made an outer loop a necessity, Leggett notes. So when it's completed, it will "provide a bypass for I-77 and allow traffic to go around Charlotte," he says. Additionally, it will serve as a bypass for U.S. 74 and also will help connect those communities that have developed on the outskirts of the city, Leggett adds. Yet the prospect of having to wait another six years or more for the outer loop to be completed is disconcerting for many Charlotte officials and business leaders. "We need it sooner than later," says Bob Morgan, group vice president for public policy at the Charlotte Chamber of Commerce. "Charlotte is the largest metropolitan area in the U.S. without an outer loop." While Morgan agrees that I-485 will provide "additional highway capacity to get around Charlotte," he also says it will provide surrounding areas with additional access "into" Charlotte. And since 100 percent of the outer loop will be in Mecklenburg County and 80 percent within the Queen City, the loop is destined to have an even greater economic impact on Charlotte and surrounding areas since it will serve as a magnet for business development. "Every time you finish a segment, it opens up a new submarket," Morgan says.However, Morgan dismisses critics who say the outer loop will detract from the inner city and lead to suburban development. "Our central business district is not in decline," he says. "And if you have an outer loop, that becomes the defining line for suburban development."He also cites a recent Federal Highway Authority study: "Cities without loops have more suburban sprawl than those with loops," Morgan says.

The Raleigh Outer Loop
The City of Raleigh has been wrestling with the pros and cons of an outer loop since 1992, when the DOT awarded its first contract. With cost estimates now reaching $1.2 billion, Raleigh's outer loop, or I-540, is in a virtual dead heat with Charlotte's loop as the most expensive road project under construction. But when it's finally completed sometime in 2025, Raleigh's loop will be a six-lane, 71-mile highway that will encircle the Capital City well outside of the existing I-440 beltline. Raleigh's outer loop is being constructed in segments that will eventually come together to complete the circle.With construction moving in an easterly direction, part of the roadway, designated the Northern Wake Expressway, already has been built from I-40 to Leesville Road. Three other segments of this northern arc -- one running from Leesville Road to Creedmoor Road; one running from Creedmoor to Six Forks Road; and one linking Six Forks with Falls of Neuse Road -- should be open by the end of this year, Leggett says. According to Leggett, I-540 will eventually serve as a true loop, rather than doubling as a bypass the way Charlotte's I-485 will. But he admits it also will help relieve congestion on radial roads leading to I-440 and along some stretches of I-40 -- which has become notorious for rush-hour traffic jams in the vicinity of Research Triangle Park. In addition, it will provide North Raleigh residents with a more direct route to RTP and the Raleigh-Durham International Airport, he says. Harvey Schmitt, president and CEO of the Greater Raleigh Chamber of Commerce agrees. "It increases the whole mobility of northern Wake County." It's also serving as a magnet for residential and commercial growth, he says. "Any time you have a major transportation corridor, you open up opportunities for business development," he explains. "People and businesses tend to cluster around major transportation routes." But even those northern sections of Raleigh's outer loop that are not yet open are driving development. Wakefield Plantation, for example, is a 2,200-acre development located between North Raleigh and the town of Wake Forest that will be served by a section of I-540 scheduled to open in 2002. The upscale community features a Tournament Players Club golf course, homes with price tags hitting $2 million and 500 acres of commercial space that already has become one of the hottest addresses in the Triangle. Along the I-540 corridor, commercial development is thriving. But this doesn't surprise Schmitt. "Increased mobility increases the opportunity for increased business," he says. "Transportation and mobility are essential building blocks for economic growth."

Interstate 26 Connector
While outer loops can serve dual functions, the DOT is working on a number of widening and road-building projects that will ultimately increase traffic flow and bring greater economic development to nearby cities and towns. But in the case of Interstate 26, the state's economy also will get a boost. A new 30-mile connector road is being constructed from the town of Mars Hill to the Tennessee line. Located northeast of Asheville, the new thoroughfare will be an extension of I-26 and will create a more direct and safer route between Johnson City, Tenn., and Asheville. "The existing I-26 is a winding, two-lane highway," Leggett says. "The new one will be a four-lane highway." Leggett says that many manufacturing plants in the Midwest truck their products through the mountains and across North Carolina to the Port of Wilmington. Opening a new route will improve access through the mountains and reduce the truck traffic on I-40, he says. Although the cost of this project is $330 million, 80 percent of the bill will be picked up by the federal government, Leggett says.

Greensboro Bypass, I-40 Widening
The area around Greensboro also gets its share of truck traffic. But two projects should help ease congestion. The Greensboro I-85 Bypass will be a 14.7-mile road tying together I-40 and I-85 in eastern Guilford County with I-85 just southwest of Greensboro.The first contract for this project was let in September 1997, and the bypass should be completed in 2003 at a total cost of about $275 million, Leggett says. When completed, it will allow regional traffic to flow around Greensboro while still affording local traffic the opportunity to drive downtown. Another project that will impact the Greensboro area is the widening of I-40 from Greensboro to Winston-Salem. Although this project actually began in May 1993 when the first contract was awarded, it isn't scheduled to be completed until September 2002. Its cost: about $235 million. Motorists who regularly travel this stretch of I-40 have gotten used to the traffic snarls and barricades but it won't be long before this 10.9-mile length of interstate is transformed from four lanes to eight. Penny Whiteheart, interim president for economic development at the Greensboro Area Chamber of Commerce, says both road projects will benefit Greensboro. She says the I-40 widening project will bolster the economies of both Greensboro and Winston-Salem by increasing the capacity along I-40, but Whiteheart sees the I-85 Bypass as having a more direct impact on Greensboro. "The I-85 Bypass will open up the southern part of Guilford County," she says. Whiteheart says Greensboro will extend water and sewer lines to the county's southeastern part as a way to facilitate residential development. She adds that the availability of water and sewer, combined with the I-85 Bypass, also will facilitate commercial growth in that area. Plus, the I-85 Bypass that is now under construction will eventually become part of a loop around Greensboro. As to when this loop will be completed, however, Whiteheart can only guess. One-half of the loop's western segment should be completed in 2005, she says. But the second half is not even on the DOT's five-year plan. Still, Whiteheart believes the I-85 Bypass is a step in the right direction, although she emphasizes that like other growing cities, Greensboro needs a loop. "Getting the through traffic away from downtown Greensboro is a high priority," she says.

I-85 in Rowan County
Another DOT project involving I-85 is in Rowan County, just northeast of Charlotte. Approximately 13.2 miles of this road are being widened from four lanes to eight at a cost of $200 million. With the first contract having been awarded in June 1997, this project should be completed in 2005. The most important reason for widening this stretch of I-85 is simply to relieve traffic congestion. "That whole corridor is overburdened," Leggett says. The problem actually begins just south of Lexington where the merging of U.S. 52, I-85 and Business I-85 means that 10 lanes of traffic are merging at a single point, Leggett says. The widening of I-85 in Rowan County also means the Yadkin River Bridge will have to be replaced, according to Leggett, who also notes that similar congestion occurs around China Grove in the southern part of the county. And Salisbury isn't much better. According to John Casey, chairman of the local affairs committee at the Rowan County Chamber of Commerce, the widening of I-85 is necessary to keep up with the growth his county is experiencing. "This area is growing very fast because of its proximity to Charlotte," he says. But Casey also says the widening of I-85 needs to continue into neighboring Cabarrus County to avoid a bottleneck there. "You'll be going from three lanes to eight lanes, then down to two lanes in Cabarrus County," he says. Still, Casey predicts that the current widening project will have a positive effect on his county's economy. "I-85 is the main feeder road into downtown Salisbury, and that will draw more people into town," he says. And since I-85 is a major interstate, Casey believes it will help bring more industry to this predominately rural county. "We're ready for the growth that the eight lanes will bring," he says.

Bypasses Around Three Eastern Cities
Traffic congestion and converging highways also has led the DOT to begin building the Jacksonville Bypass. Served by U.S. 17 and N.C. 24, the city of Jacksonville borders the northern part of Camp Lejeune Marine Corps Base. The 7.4-mile bypass, which will link with U.S. 17, is scheduled for completion in 2005 at an estimated cost of $140 million. Work began in March 1998 with the awarding of the first construction contract. Another bypass now under construction in the eastern part of the state will help relieve congestion in and around Wilson. The 13.4-mile Wilson Bypass will allow east- and west-bound traffic on U.S. 264 to avoid town. "The existing U.S. 264 was built in the 1950s and now is a commercial strip," Leggett says. "It's literally a city street there." Since U.S. 264 also serves as a major connector between Raleigh and Greenville, the new bypass will allow for the free flow of through traffic, he adds. The first contract was let in November 1995, and this $125 million project is scheduled for completion in 2003. The growing popularity of coastal towns and beaches has taken its toll on both residents and tourists. That's why the DOT decided to build a bypass around the Dare County town of Manteo, which is located on the Croatan Sound side of Roanoke Island. U.S. 264 and U.S. 64 merge near Manns Harbor, where they form a single roadway that serves both Manteo and Nags Head. But the new 10-mile, $125 million bypass that will be located just south of Manteo will link U.S. 264 with U.S. 64 at N.C. 345. And while traffic congestion in this area is the main reason for building this bypass, Leggett says it will also serve as an additional hurricane evacuation route. This project, which had a start date of March 1998, is scheduled for completion in 2002.

U.S. 74 Bypass at Rockingham
Bisecting Rockingham and Hamlet, U.S. 74 is a major route to Wilmington. But traffic congestion around these two towns is compounded because U.S. 1 and U.S. 220 also converge in Rockingham. Yet the real problem is U.S. 74, which, according to Leggett, constitutes the only two-lane segment left in this major highway system. In order to allow high-speed regional traffic on U.S. 74 to circumvent both towns, the DOT is constructing a 13.1-mile bypass just south of each town, Leggett says. The first contract was awarded in December 1996 and the project should be completed by January 2001. And even though this bypass carries a $120 million price tag, it will become part of the I-74, I-73 corridor -- an interstate system that eventually will link Detroit to Charleston, S.C., by cutting diagonally across North Carolina, Leggett says. Under the National Highway System Designation Act of 1995, the U.S. Department of Transportation labeled this corridor a high-priority project. But it's up to each state involved to either build new roads or bring existing roads up to federal highway standards. In the majority of cases, North Carolina has been able to use existing highways like U.S. 220, U.S. 74, U.S. 73, U.S. 311 and U.S. 52 as links to highways in adjoining states. Beginning in Detroit, the I-74 and I-73 corridor runs through Cincinnati and Portsmouth, Ohio, then heads south through the Triad and into Rockingham. At Rockingham, I-73 will turn southwest into South Carolina, then head east toward Florence and Charleston. I-74, however, will continue to head southeast toward Charleston. According to DOT projections, most of the North Carolina portion of this interstate system should be open between 2005 and 2010.

Five Recently Completed Road Projects
Here are the largest five highway projects finished recently by the state:

Project: Neuse River Bridge.
Distance: 1.5 miles.
Year Let: 1995.
Completion Date: September 1999.
Cost: $119.5 million.

Project: U.S. 64 (Edgecombe County to Martin County).
Distance: 20.1 miles.
Year Let: 1995.
Completion Date: November 1999.
Cost: $94.2 million.

Project: Interstate 74 (I-77, U.S. 52 connector).
Distance: 12.8 miles.
Year Let: 1991.
Completion Date: December 1999.
Cost: $83.6 million.

Project: I-485 (Charlotte Outer Loop).
Distance: 1.74 miles.
Year Let: 1996.
Completion Date: April 2000.
Cost: $23.3 million.

Project: US 264 Bypass.
Distance: 3.32 miles.
Year Let: 1998.
Completion Date: May 1999.
Cost: $22.5 million.

Legislative Actions

Wicker Says Goodbye to the Senate
Family comes first, Lt. Gov. Dennis Wicker said Wednesday when he announced that he wouldn't be around to preside over the final days of the short session because of his family's vacation plans. Wicker, who has presided over the Senate for the past eight years, was soundly defeated by Attorney General Mike Easley in the Democratic gubernatorial primary. He said his son, who attends a year-round school in Lee County, will be starting school July 12, and the next several days was the only time the whole family could get away for vacation. Here are some of the comments he made in his official goodbye to the Senate: "Thanks to you and others before you, we are moving ahead and are known as a state that is reaching out and leading the country in progress. What I want you to know is that today, I am as optimistic and excited about our state as I have ever been." He received a standing ovation from senators and the gallery.

House Panel Approves New Tax Credits for Brownfields
The House Finance Committee on Tuesday amended and favorably reported a bill creating a tax credit for owners of brownfields. The measure, H 1639 Brownfields Tax Incentive, sponsored by Sen. Fountain Odom (D-Mecklenburg), says a brownfield will be have 90 percent of its value excluded from local property taxes during the first year of the project, declining to a 10 percent exclusion during the fifth year. This measure creates a partial tax exemption for the first five taxable years for property in any brownfields agreement reached with the state Department of Environment and Natural Resources after July 1, 2000. The qualified property under this agreement includes abandoned, idled, or underused property, at which expansion or redevelopment is hindered by potential state or locally mandated remediation of environmental contamination. Under a brownfields agreement, the state provides the prospective developer with a covenant not to sue, contingent upon the developer conducting actions outlined in the agreement, including the cleanup of environmental contamination, prevention of future contamination, and modifications that would maximize benefit for the public. There are currently three completed brownfields agreements and six agreements signed and pending. Seventeen other brownfields applications have been filed.DENR staff believe that the tax incentive will serve as an effective means of attracting additional brownfields site developers, as well as providing an incentive for pending agreements to proceed at a more rapid pace. The tax exemption only extends to the tax appraised value of qualifying improvements upon the site, not the value of the entire site. DENR staff and county tax assessors have said the additional property tax revenue provided by improvements to brownfield sites will be far greater than the combined tax loss over the five-year partial exemption period. The Senate Finance Committee on Tuesday also approved these bills:

* S 1544 Tourist Directional Sign Program, sponsored by Sen. Linda Garrou (D-Forsyth), a Senate-passed bill intended to help the state's travel and tourism industry by erecting more highway signs directing tourists to various attractions. It directs the state DOT to erect the signs but limits placement of them to highways other than fully controlled access highways and to rural areas in and around municipalities with population less than 25,000. The measure received second-reading approval by the full Senate on Wednesday.

* S. 1318 Amend Bill Lee Act Tier Designations, sponsored by Sen. Walter Dalton (D-Rutherford), a Senate-passed bill that amends existing law to provide that a Tier 2 county may not be redesignated as a higher-numbered enterprise tier area until it has been an in its enterprise tier one area for at least two consecutive years. The measure received second-reading approval by the full Senate on Wednesday.

* S. 1381 Reallocate Water Bond Funds, sponsored by Sen. John Kerr (D-Wayne), a Senate-passed bill which transfers some of the $800 million in water and sewer bonds approved by voters in 1998 from loans into grants for some small towns.

House Panel Approves Rural Internet Access Authority
The House Ways & Means Committee on Tuesday favorably reported a Senate-passed bill, S. 1343 Rural Internet Access Authority sponsored by Sen. Eric Reeves (D-Wake), creating a new state agency by that name to help bring high-speed Internet access service to rural areas of the state. The Microelectronics Center of North Carolina, a private concern originally started with state grants, has offered to give $30 million to the Rural Internet Access Authority, money it gained from the sale of a spin-off.Names in the News

Cherokees Go on War Path Over Ban on Video Poker Machines
The Senate on Tuesday voted 44-4 to pass a bill outlawing video poker machines and other video games of chance in the state. But the Senate quickly backtracked and recalled the bill from the House when leaders of the Eastern Band of Cherokee Indians, which has the machines in the casino on its reservation, showed up in town to protest. Senate President Pro Tem Marc Basnight said he never intended to harm the Cherokees. The bill is now being rewritten to allow the Cherokees to continue operating video power machines. The measure, S. 1542 Video Poker Machines Illegal, originally would have limited to three the number of video poker machines that any one establishment could have, but was rewritten in committee to specify a complete ban. Officials estimate there are more than 20,000 machines already in use in the state. Interest in video poker machines arose because South Carolina has banned the machines, and legislators worried that the machines would be moved across the state line. As amended, the measure sponsored by Sen. Allen Wellons (D-Johnston), gives businesses until Dec. 1 to remove the machines. Cherokee leaders told Basnight that the ban would cost the tribe $50 million a year in lost revenue/

Bill Lee Act Changes Expected To Be Signed Into Law
The Senate on Tuesday gave final approval to a House-passed bill revising the state's major economic development law to extend tax credits to a Gaston County manufacturing plant and a Midway Airlines maintenance facility at Raleigh-Durham International Airport. Gov. Jim Hunt is expected to sign the measure into law shortly. The measure, H. 1560 Modify Bill Lee Act, sponsored by Rep. Gordon Allen (D-Person), gives Buckeye Technologies 17 years instead of 12 to carry forward investment credits for a $100 million plant that will produce diapers and feminine hygiene products. The measure also subjects companies seeking grants from the Industrial Recruitment Competitiveness Fund to a wage test and extend the maximum state low-income housing tax credit for four years in 26 counties that were impacted by Hurricane Floyd.

Charlotte Quick-Take Condemnation Bill Advances
The House on Wednesday gave final approval to a bill giving Charlotte quick-take condemnation authority to speed develop of an industrial park on Wilkinson Boulevard, a major road from Charlotte-Douglas Airport into downtown. The measure, H. 1647 Charlotte Economic Development Quick Take sponsored by Rep. Ed McMahan (R-Mecklenburg), attracted opposition but was passed on a 65-46 vote. The measure is supported by the Charlotte Mecklenburg Development Corp., a non-profit venture formed by the Charlotte Chamber of Commerce, the city and the county. They initially asked for condemnation authority over 450 to 500 acres, but that was reduced to 200 acres because of opposition from property owners.The House on Wednesday also approved a Senate-passed bill, S. 1263 Charlotte Wheel Locks Allowed, sponsored by Sen. Charles Dannelly (D-Mecklenburg), which authorizes police in the Queen City to use the Denver boot.

New Laws on the Books

* H 133 Exempt Bill Disabled Veteran Vehicles. Exempts from property tax modified motor vehicles owned by disabled veterans who are eligible for federal special equipment allowances. Effective for taxes imposed for taxable years beginning on or after July 1, 2000.

* H 1326 Dry-Cleaning Solvent Cleanup Amendments. Designates the state sales tax revenue from dry-cleaning and laundry services to the dry-cleaning solvent cleanup fund; increases the state sales tax on dry-cleaning solvents; amends the dry-cleaning solvent cleanup act of 1997 to repeal the requirement of financial responsibility for dry-cleaning facilities and wholesale dry-cleaning solvent distribution facilities; allows the Environmental Management Commission to enter into contracts with private contractors for assessment and remediation activities at dry-cleaning facilities and wholesale dry-cleaning solvent distribution facilities; directs the secretary of Environment and Natural Resources to study the use of dry-cleaning solvents in North Carolina. Different sections of the act become law at various times. The remainder of the act is effective June 26, 2000.

* H 1573 Health Care Facility/Continuing Care Retirement Center Tax Exempt. Clarifies the property tax treatment of a health care facility undertaken by the Medical Care Commission pursuant to the Health Care Facilities Finance Act and extends the sunset on the property tax exemption for continuing care retirement centers. Section 1 of the act becomes effective Oct. 1, 2000 and applies to bonds or notes issued on or after that date. Section 2 becomes effective July 1, 2000. The remainder of the act is effective June 26, 2000.

* H 1545 Excise Tax On Timber Contracts. Clarifies that the excise tax on conveyances applies to timber deeds and contracts for the sale of standing timber. Effective July 1, 2000.

* H 1577 Bullhead Mountain State Natural Area. Authorizes the addition of Bullhead Mountain State Natural Area to the state parks system, as recommended by the environmental review commission. Effective June 22, 2000.

State Government News

Gov. Hunt, Mac Everett Lead Business Summit for Education
What will it take to increase business and community support for North Carolina's public schools? For one, better communications -- businesses need to know more about what schools need; schools need to know more about what businesses expect and have to offer; and parents need to know more about opportunities for involvement in – and out of – the classroom. That's just one of the conclusions drawn by 200 business, community and education leaders at the North Carolina Business Summit for Education 2000 held June 27 in Research Triangle Park. The day-long working session at IBM, led by Gov. Jim Hunt and Mac Everett, President of First Union Mid-Atlantic and chairman of NCCBI, brought together company CEOs, chamber of commerce presidents, classroom teachers, community college presidents, principals and university leaders. Sponsored by IBM and Glaxo Wellcome, the Summit followed a similar event in 1997 that paved the way for North Carolina's focus on higher standards and accountability. North Carolina was the first state to launch a Business Summit for Education following the 1996 National Education Summit, which brought together governors and business leaders. In his remarks, Hunt reiterated his challenge to make North Carolina's schools "First in America" by 2010 by continuing to boost early childhood education, excellent teachers, high academic standards, safe schools, and business and community support. "Our businesses are doing more than almost any other state, but we've got to have every business, every community and every family working to support their schools," Hunt said. Barriers identified by the Summit attendees included the business-school-parent communications gap; the state's economic and geographic divide; the need for more parental involvement; finding the time to volunteer in schools; the change in North Carolina's demographics; and sustaining commitment to public schools. Attendees also spent time brainstorming on ways to overcome those problems. To close the communications gap, the group suggested businesses should conduct regular meetings with local educators to find out what local schools really need. And teachers could use some teacher work days to visit local businesses to find out what resources – beyond the obvious – may be available to schools, attendees said. Technology could help create a website connecting schools' needs with business' resources. And schools should look for specific ways to help parents understand what they can offer the classroom if they can't volunteer during the school day. The entire list of strategies – and the detailed discussion behind them – will be part of a report on the Summit that will go to the Governor's Education Cabinet, which will carry out the strategies. The Education Cabinet includes the leaders of the UNC system, community colleges, public school system, private colleges and universities and the State Board of Education. "These are great ideas," Hunt said after sitting in on the working session all day. "This workshop has laid out dozens of specific strategies that I hope businesses, families and communities can implement across the state."

Daughtry Tosses Hat Back Into the Ring
Leo Daughtry, the former House majority and minority leader who didn't seek re-election and lost to Richard Vinroot in the GOP gubernatorial primary, said he will accept an offer by the Republican candidate hoping to capture his 95th District seat to step aside and let Daughtry take her place on the ballot. Daughtry, a Smithfield lawyer and business leader who is a member of NCCBI, apparently will replace Johnston County Commissioner Cookie Pope as the Republican nominee for the seat. Pope, who was unopposed for the nomination, offered to step aside after Daughtry lost the May 2 primary for governor. The Johnston County Republican Party executive committee will meet July 11 to consider County Commissioner Cookie Pope's offer, though there seemed little dought that it will choose Daughtry. Daughtry, who was first elected to the General Assembly in 1988, told reporters he made up his mind to run again during a vacation to Acapulco with his wife. He returned last week and said "I'm going to run." He will face Democrat Jim Johnson, a Benson lawyer, in November. Pope said one reason she decided to step aside was the possibility that Daughtry could become House Speaker if Republicans regain control of the House in the fall elections. Pope, who is in the middle of her second term as county commissioner, said she might consider a state Senate or congressional seat in a few years.

Highway Patrol Out in Force Over the Fourth
The Highway Patrol said it will put special emphasis on traffic enforcement along 25 highway corridors during the four-day July 4th weekend that begins at 6 p.m. Friday and ends at midnight, July 4. The 25 roads are ones that have been identified as having the most wrecks during July 4th holidays over the last five years. Those roads, ranked in order of the most wrecks, are: N.C. 58 in Carteret County, I-85 in Mecklenburg County, I-40 in Guilford County, I-95 in Robeson County, U.S. 70 in Carteret County, U.S. 17 in Onslow County, N.C. 12 in Dare County, I-77 in Mecklenburg County, U.S. 158 in Dare County, U.S. 421 in New Hanover County, I-440 in Wake County, I-95 in Halifax County, U.S. 321 in Watauga County, U.S. 19 in Haywood County, U.S. 74 in Union County, I-95 in Cumberland County, I-95 in Nash County, I-40 in Orange County, I-240 in Buncombe County, N.C. 24 in Carteret County, I-40 in Haywood County, N.C. 24 in Onslow County, U.S. 74 in Mecklenburg County, U.S. 258 in Onslow County, I-85 in Durham County, U.S. 70 in Johnston County, and I-40 in Wake County.

Miller Appeals to State Board of Elections for New Primary
Rep. George Miller, the veteran legislator from Durham who lose in the botched District 23 Democratic primary, was joined by eight residents in appealing to the State Board of Elections the decision by the county elections board not to hold a new Democratic primary in the district. The state board will hear the appeal in a couple of weeks. Miller also asked for an independent investigation by the state. The Durham Board of Elections two weeks ago voted to dismiss complaints filed by Rep. Miller and others on grounds that irregularities in the May 2 primary were not enough to justify a new primary. According to newspaper reports, 4,600 voters were moved into or out of the district without their knowledge. George Miller lost the primary to Paul Miller, a former Durham City Council member.

ALF Refuses to Halt Cleveland County School Merger
A state administrative law judge ruled Monday that there was no reason to halt the merger of Cleveland County's three school systems. The Kings Mountain School Board, which opposed the merger, failed to prove the State Board of Education exceeded its authority in approving the merger, Administrative Law Judge Fred Morrison ruled. The decision means that, barring further legal action, the merger will take effect on Saturday.
Appeals Court Upholds EPA Plan for N.C, Other States to Cut Air Pollution

Federal News Briefs

Appeals Court Upholds EPA on Reduced Emissions Plan
The U.S. Court of Appeals for the D.C. Circuit has upheld an EPA order that will force North Carolina and 18 other states to reduce emissions from power plants and other sources by significant levels. The EPA in 1998, as part of the revisions to the Clean Air Act, directed North Carolina and the other mostly southeastern and midwestern states to cut their emissions of nitrogen oxide because government officials said the emissions are being blown by winds to states in the Northeast and causing air pollution there. In North Carolina's case, the EPA order required a 29 percent reduction in emissions by 2003. The only practical way to achieve that level of reduction was to order a 70 percent reduction in emissions from coal-fired power plants in North Carolina, a move state officials opposed. Duke Power has said it would cost from $100 million to $600 million to meet the EPA requirements, depending on the final requirements that are implemented. The company voluntarily offered to cut emissions by 40 percent at a cost of about $100 million. The states involved are Alabama, Connecticut, Delaware, Illinois, Indiana, Kentucky, Massachusetts, Michigan, North Carolina, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Virginia and West Virginia. The court is reviewing whether three other states--Georgia, Missouri and Wisconsin--should be included under the regulations, too.

Delegation Splits on Tougher Air Quality Regulations
It's a close call whether the U.S. Senate will follow the lead of the House to block the EPA's enforcement of tougher air quality standards. Watching closely are a host of cities and counties around the nation, including many in North Carolina, that stand to lose federal funds because they would be deemed to be in non-attainment of the new standards. The House voted 226-199 last Wednesday to block the EPA's new standards on allowable levels of ozone, a key component of smog. The revised air standards limit ozone to 0.08 parts per million, instead of the 0.12 parts per million under the current requirement. The EPA regulation also requires states, for the first time, to regulate microscopic particulates, or soot, from power plants, cars and other sources down to 2.5 microns, or 28 times smaller than the width of a human hair. In the vote, North Carolina's seven Republican members of Congress voted for the amendment blocking the new air quality regulations as well as Democrat Mike McIntyre. Voting against the amendment were Democrats Eva Clayton, David Price, Bobby Etheridge and Mel Watt.

Supreme Court Again Will Review 12th District Boundaries
The U.S. Supreme Court said Monday that it will decide the constitutionality of North Carolina's 12th Congressional District, becoming the fourth time in seven years that the shape of the 12th District has been before the court. The decision will allow this fall's congressional elections to proceed as scheduled. The Supreme Court issued a stay earlier this year allowing the state's revised redistricting plan to be used for the May 2 primary elections. The stay came after a three-judge federal court ruled in March that race was the "predominant factor" in drawing the 12th District. Attorney General Mike Easley and legislative leaders said they hoped the high court's decision will provide some guidance to the General Assembly when it takes up the task next year of redrawing all 12 of the states's congressional districts as a result of the census.

FEMA Rejects Request for Aid After Triad Storms
The Federal Emergency Management Agency rejected a state request for help in cleaning up from a May 25 storm that hit Guilford and Alamance counties. The state asked for $2.77 million to help Triad cities pay for removing debris from the storm, which knocked out electrical power to 147,000 customers and leading to at least two deaths. In a letter to Gov. Jim Hunt, FEMA Director James Lee Witt said a review indicates the cost "is well within the combined capabilities of the state of North Carolina and the affected local governments."

High Court Orders Government to Repay Oil Companies for N.C. Offshore Drilling Rights
In an 8-1 decision, the U.S. Supreme Court said Monday that the federal government must repay Mobil and Marathon for reneging on a $158 million agreement allowing the companies to explore for oil and natural gas off the North Carolina coast. The court said Mobil and Marathon were entitled to full reimbursement because the exploratory leases they purchased in 1981 were essentially voided by the Outer Banks Protection Act passed by Congress in 1990.

Chamber Sues Labor Department Over Paid Leave for Births, Adoptions
The U.S. Chamber of Commerce sued the Labor Department on Monday, seeking the repeal of new regulations allowing states to offer paid leave to new parents using unemployment benefit dollars. As we reported last week, new federal regulations, ordered by President Clinton and written by the Labor Department earlier this month, would allow states to offer unemployment benefits to parents of newborn or newly adopted children who choose to take up to 12 weeks of leave guaranteed under the 1993 Family and Medical Leave Act. States that want to provide the paid leave would have to pass their own laws to do so. None has yet, but legislators in a number of states are considering the idea. The national chamber asked the U.S. District Court for the District of Columbia to grant an injunction blocking any state program enacted during judicial proceedings. The chamber is challenging the new regulations on grounds that they violate federal laws, including one reserving unemployment benefits for those who are actively looking for, but cannot find work.

Names in the News

Junior Achievement and NCCBI Announce Laureates
for Induction into North Carolina Business Hall of Fame

Four outstanding business and government leaders from Charlotte, High Point and Raleigh will be inducted into the North Carolina Business Hall of Fame this fall. Sponsored by Junior Achievement and North Carolina Citizens for Business and Industry, the 2000 laureates are:

* James H. Millis Sr., chairman of the Millis Foundation in High Point;
* R. Stuart Dickson, chairman of the executive committee of Ruddick Corp. in Charlotte;
* John M. Belk, chairman of the board and CEO of Belk Inc.in Charlotte; and
* The Hon. Harlan E. Boyles, State Treasurer in Raleigh.

This year's dinner inducting these laureates into the Business Hall of Fame will be held Tuesday evening, Nov. 14, at the Adam's Mark Hotel in Charlotte. For information and table reservations for the reception and dinner, contact the Junior Achievement office in Charlotte at (704) 536-9668 or by e-mail to pvolponi@jacarolinas.org. Or you may write Junior Achievement at NCBHOF, 4632 Holbrook Drive, Charlotte, NC 28212-5392. The North Carolina Business Hall of Fame was established in 1988 to recognize business leaders who significantly contributed to building North Carolina's s economy and who provided outstanding community and statewide service. Following are brief profiles of the 2000 Business Hall of Fame laureates:

John M. Belk, one of the Charlotte's longest-serving mayors and the chairman of the country's largest, privately held department store chain, remains active at 80 years old with business and community work. Head of the Belk stores operations, which generate more than $2 billion in annual sales, John and his brother, Tom, led the phenomenal growth of Belk's in the last half of the 20th Century. As the mayor of Charlotte from 1969 to 1977, Belk was responsible for developing the Charlotte-Douglas International Airport. He also served as president of the Charlotte Chamber of Commerce. He has received scores of awards for his business and charitable efforts, including the 1997 World Citizen Award by the Charlotte World Affairs Council; the 1998 Freedom Award from the Charlotte Citizens' Veterans Committee; Man of the Year by the Charlotte News. In business, the National Retail Merchants Association and the American Management Association have singled him out for the highest recognition. Among the boards on which he serves are: TXI, Coca-Cola Bottling Consolidated and PMC Inc. In sports, he was a basketball star at Davidson College and today is part of the ownership of the NFL Carolina Panthers. He is a veteran of World War II and was recalled to duty during the Korean Conflict to serve as an officer of the United Nations Civil Assistance Commission.

Harlan E. Boyles, now serving his sixth term as State Treasurer, won his first election to the post during the 1976 U.S. Bicentennial. He will retire at the completion of this term in early 2001. Born in 1929 in Lincoln County, Boyles graduated from the University of North Carolina. A certified public accountant, Boyles joined state government as an auditor in 1951. He became deputy treasurer in 1960, a post he held until then state treasurer retired and Boyles won the election for the job. Among his honors, Boyles has been named Public Official of the Year by Governing Magazine and North Carolinian of the Year by NC Taxpayers United. He also has been recipient of Distinguished Service Awards by many groups, such as the National Federation of Municipal Analysts, North Carolina Citizens for Business and Industry and the North Carolina Association of County Commissioners. He is the author of the book, Keeping of the Public Purse, published in 1994. Boyles has chaired numerous state commissions and boards of trustees. He is past president of the National Association of State Auditors, Comptrollers & Treasurers.

R. Stuart Dickson is chairman of the executive committee of Ruddick Corp., a holding company headquartered in Charlotte with annual revenues of more than $2.6 billion. The company operates two wholly-owned subsidiaries, Harris Teeter, Inc. (a regional supermarket chain) and American & Efird, Inc. (a leading manufacturer and distributor of sewing threads for worldwide industrial and consumer markets). He previously served as chairman of the Ruddick Corp. board from 1968 to 1994. Born in 1929 in Charlotte, Dickson graduated from Davidson College in 1951. He serves on the boards of numerous corporations, including First Union, Textron and Uniteed Dominion, as well as on the boards of leading non-profit groups such as the Carolinas HealthCare Foundation, Foundation for the Carolinas and the Robert Wood Johnson Foundation. In his on-going support and interest in educational institutions, Dickson has served as trustee or board member for Davidson College, Queens College, Johnson C. Smith University, University of North Carolina at Charlotte and Wake Forest University. He is actively involved in civic and charitable organizations including Carolinas Partnership, Cities in Schools, the Council for Children, United Way, YMCA and the North Carolina Blumenthal Center for the Performing Arts.

James H. Millis Sr. is former chairman & CEO of Adams-Millis Corp., one of the first North Carolina firms to be listed on the New York Stock Exchange Adams-Millis was a High Point hosiery company created in 1927 by merging previous operations of John Hampton Adams and James Edward Millis. A leading manufacturer of socks, Adams-Millis supplied numerous companies, including the Hanes brand socks. Born in 1923, Millis became president of Adams-Millis in 1953. He served as chairman and CEO up to 1989, when he engineered the acquisition of the firm by the Sara Lee Corp. Millis still serves as chairman of the James H. and Jesse E. Millis Foundation. Among his many charitable efforts was the creation of the High Point Community Foundation by an initial $5 million grant. He also serves as chairman of the executive committee for the Kate B. Reynolds Charitable Trust. He continues to serve his community and visible reminders exist in the Millis Regional Health Education Center and the Millis Athletic Center at High Point University. Millis was recognized by the Distinguished Citizen Award from the High Point Chamber of Commerce and as Man of the Year by the High Point Enterprise. He has served as a member or chairman of numerous boards, ranging from the UNC Educational Foundation to the National Association of Manufacturers.

Other Names in the News

* John Maxheim, chairman and retired CEO of Piedmont Natural Gas Co. in Charlotte, was named Marketing Executive of the Year by the American Gas Association during its annual convention in Denver. The award recognizes his work over the past four years as the vice chairman and chairman of the industry group that created an award-winning television ad campaign for the natural gas industry. Meanwhile, Piedmont Natural Gas announced the election of D. Hayes Clement of Greensboro to its board of directors. Clement is retired managing partner of the Greensboro office of Arthur Andersen LLP and a noted community leader.

* McKim & Creed, a multidisciplinary design firm headquartered in Wilmington, has been named the "Wastewater Consultant of the Year" Award by the Florida chapter of the American Public Works Association. The award honors companies for quality work and outstanding achievement. Awards are presented in three different categories: building and grounds, roads and highways, and solid waste, wastewater, and storm water. McKim & Creed won this year's award in the solid waste, wastewater, and stormwater category. McKim & Creed has offices in Wilmington, Raleigh, Charlotte, New Bern, Chapel Hill, Winston-Salem, Smithfield, and Elizabeth City, as well as throughout Florida and Virginia. McKim & Creed employs nearly 250 professionals company-wide.

* Norwood Bryan, a former state House member from Cumberland County, was elected president of the N.C. Automobile Dealers Association. David Farris of Rocky Mount was elected vice president during the association's 65th annual convention last week. Bryan, who operates Cadillac, Pontiac, Honda and Nissan dealerships, served in the House in the late 1960s and early 1970s. He has been chairman of the NCADA Legislative Committee for 31 years. Farris, a Chrysler dealer, has been chairman of the Political Action Committee for three years.

* Gov. Jim Hunt was named to the board of trustees of the Carnegie Corporation of New York, the philanthropic foundation created by Andrew Carnegie to promote "the advancement and diffusion of knowledge and understanding." Carnegia Corporation President Vartan Gregorian cited Hunt's leadership in education reform as one factor in his appointment to the board. As a foundation trustee, Hunt will help decide $60 million in grants awarded annually to support education; international peace and security; international development; and democracy.

* G.R. Kindley of Rockingham, vice chairman of the N.C. Board of Transportation, received the Partner in Progress award from the Randolph County Economic Development Corp., its highest honor. Kindley, who represents District 8, which includes Randolph County, on the DOT board, was cited for his assistance in obtaining improved transportation assess for several location and expansion projects, including Energizer Battery, Klaussner Furniture, Sealy and Metals USA.

* The N.C. Academy of Trial Lawyers recently presented its Outstanding Legislator Award to Sen. Hamilton Horton (R-Forsyth), House Majority Leader Phil Baddour (D-Wayne) and Rep. Martin Nesbitt (D-Buncombe). The academy also presented Secretary of State Elaine Marshall with the Special Achievement Award.

THIS IS THE END OF THE JUNE 30 LEGISLATIVE BULLETIN

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