 |
JULY
16, 2004 |
ISSUE
No. 11
|
2004
SHORT SESSION
|
Published
every Friday during legislative sessions exclusively
for NCCBI members
|
Agreement
on borrowing for healthcare
facilities indicates budget deal is at hand
The
General Assembly continued inching toward adjournment and
possibly could wrap up work on a budget compromise this
weekend. But a final version of the budget was not in place by
our deadline this morning. Once an official spending plan for
the fiscal year that began July 1 is in place, NCCBI will send
you a wrap-up issue of the Bulletin concentrating on the final
budget numbers.
One of the final pieces of the budget puzzle fell into place
Wednesday when House and Senate leaders reached agreement on
borrowing $463 million, mainly to pay for new healthcare
facilities on UNC System campuses. However, Gov. Mike Easley
wasn’t on board with the plan over concerns about such a
large increase in the state debt and the use of certificates
of deposit – which don’t require voter approval – to pay
for the projects.
The five healthcare bond projects are $180 million for a
cancer research hospital at UNC-Chapel Hill, $60 million for a
cardiovascular disease center at East Carolina University, $35
million each for a UNC-Asheville health center; 4) $35 million
for a bioinformatics center at UNC-Charlotte, and $28 million
for a pharmacy school at Elizabeth City State University. The
plan includes another $50 million for various construction
projects to be split among other UNC system schools, $45
million for state parks and to acquire land around existing
military bases, and $30 million for new juvenile prisons.
To fund those projects, the state would borrow $310 million
fiscal year and $153 million next year. The deal also allows
the use of other non-traditional borrowing schemes, including
House Speaker Jim Black’s idea of using real estate
certificates of participation. That method of borr0wing would
allow the state to avoid payment on the principal for up to 20
years.
Another budget compromise was reached when House and Senate
leaders said the final spending plan would include a pay raise
for state employees of 2.5 percent or $1,000, whichever is
greater. As previously reported, the final budget also will
include $59 million for full funding of Easley's initiatives
to reduce class size for third grade and to expand his More at
Four prekindergarten program.
Senate
panel amends, approves school calendar bill
The Senate Education Committee on Thursday
favorably reported H 1464 School Calendar Changes after
amending the bill to reduce the number of annual teacher
workdays from 20 to 15. The version of the bill passed by the
House cuts teacher workdays to 10. However, the amended bill
continues to specify that schools will not open earlier than
Aug. 25 and end no later than June 10. The bill was scheduled
for a floor vote in the Senate today.
The
House voted 67-40 on Wednesday to pass the bill, which would
take effect for the 2005-06 school year. While the number of
instructional days would remain at 180, the school year would
be shortened from 220 to 210 days by cutting teacher workdays
without changing teacher pay. Teachers now get up to 20
workdays, which is higher than the national average, according
to supporters. How the change in schedule would possibly
affect the cost of teacher pensions was one of the many points
debated by the House. See how they
voted.
The measure is supported by a diverse coalition of parents and
the state’s tourism industry. Most education leaders oppose
it. NCCBI took a more cautious approach that would mandate a
study of the long-term impact of changing the school calendar
led by the State Board of Education and the state Travel
Council.
The measure would not apply to year-round schools and those
that have lost at least eight days because of winter weather
in four of the last 10 years. Those include school systems in
Avery County, Alleghany County, Ashe County, Mitchell County,
Yancey County, Watauga County, Madison County, Haywood County,
Buncombe County, Davidson County, Lexington City, Thomasville
City, Forsyth County, Granville County, Chapel
Hill-Carrboro, Person County, Rockingham County,
Rowan-Salisbury, Stokes County, Surry County, Mount Airy City,
and Vance County.
House
votes to override veto of billboard bill
The
House voted 79-34 Monday night to override Gov. Mike
Easley’s veto of the billboard bill. It was only the fourth
time a governor had vetoed a bill passed by the General
Assembly – all four by Easley – and the first time that a
chamber of the legislature had overridden a veto. The 79 votes
to override the veto were 11 more than the three-fifths needed
under the state Constitution. See how they
voted.
It remained unclear Friday whether the Senate also would vote
on overriding the veto. Sen. David Hoyle (D-Gaston), the
bill’s original sponsor, said a showdown vote was possible.
The Senate’s original 34-11 vote for the bill is more than
enough to override. Hoyle also said it was possible a
compromise could be worked out and possible inserted into the
overall budget bill.
The billboard industry has worked for 20 years to end North
Carolina's system of allowing local governments to order
billboards taken down without paying for them. Current state
law allows local governments to order the removal of legally
erected signs after allowing owners to keep them up a few
years, a system known as amortization. North Carolina is one
of only five states that allow amortization; the rest require
monetary compensation, and federal law requires cash payments
when billboards are removed from interstates, including those
in North Carolina.
“This bill would require excessive payment of taxpayer
dollars by our cities and counties that may prohibit
communities from acting to relocate or remove these signs,”
Easley said in announcing his veto. “I support fair
compensation for the owners of billboards, but this formula is
unfair to the cities, the counties and the taxpayers. It also
effectively prohibits local governments from enacting their
own rules regarding billboards and creates a windfall for the
billboard industry. I believe a reasonable compromise can be
reached that is fair to all parties.”
Easley’s three previous vetoes were sustained. In
November 2002 he vetoed S 1283 over what he called unqualified
appointments to various boards and commissions. In June 2003
he vetoed S 931 which stripped the State Board of Education of
its authority to set teacher standards. In August 2003 he
vetoed H 917 which raised fees charged by finance companies.
Conferees
working on compromise on IT efficiency legislation
The
Senate on July 9 failed to concur with House amendments to S
991 Improve State IT Efficiency / Project Management
(Reeves) and conferees were appointed. The House conferees are
Reps. Joe Tolson, John Sauls, Wilma Sherrill and Drew
Saunders. The Senate conferees are Sens. Eric Miller, John
Carrington and Tony Rand. The legislation will make
significant changes in the way the state administers
information technology, transferring much of the control from
the Information Resource Management Commission to the
state’s Chief Information Officer.
Opposition to the change is coming from several members of the
Council of State, who don’t want to lose control of their
departments’ IT functions and personnel.In a letter to
Senate President Pro Tem Marc Basnight, Secretary of State
Elaine Marshall and five other Council of State members
protested putting their computer-system management under the
control of a gubernatorial appointee. Marshall also said the
change could lead to the state beginning to charge for online
information now available for free.
Legislators
give employers new tool to combat workplace violence
The
House on Wednesday gave second- and third-reading approval to S
916 Prevent Workplace Violence (Clodfelter) and returned
the measure to the Senate for concurrence in amendments. The
legislation give employers new power to protect their
employees from on-the-job violence by going to District Court
to obtain a “no-contact order” on behalf of an employee
when there's the possibility that violence could occur at
work. It also would cover threats from disgruntled employees.
Individuals already can seek a restraining order that applies
to the home or workplace, but they are sometimes fearful to do
so, lawmakers said. No prior injury to the person or damage to
business property would be required before the order could be
issued.
Chambers
accept compromise dropping IRB wage standard
The
House and Senate on Tuesday voted to accept a conference
committee report resolving differences in bills they passed to
eliminate the wage standard as a restriction on the use of
industrial revenue bonds. S 1063 Eliminate Industrial
Revenue Bonds Wage Standard (Hartsell) scraps a provision
in existing law that says companies must agree to wages that
are at least 110 percent of the county average before they are
eligible for the bonds. The measure now goes to Gov. Mike
Easley for his signature. Supporters of the change argued that
the 110 percent wage standard penalizes some rural counties,
particularly those hard hit by textile and furniture plant
closings. As recommended by the conferees, the final version
of the bill deleted a provision requiring companies using
industrial revenue bonds to provide employer-paid healthcare
benefits.
Correction: We were wrong last week in reporting that
the House had concurred with Senate amendments to H 1463
Health Insurance Innovations Commission (C. Wilson,
LaRoque and Church) and that the measure was enrolled.
Actually, the House rejected the Senate amendments and
conferees were appointed. The Senate amendment basically
enlarged the size of the commission from 24 to 26 people. The
House conferees are Reps. Earl Jones, Connie Wilson, Walter
Church, William Daughtridge, Stephen LaRoque and Bill Owens
Jr. The Senate conferees are Sens. David Hoyle, John Garwood,
A.B. Swindell and Scott Thomas
Legislative
Actions
The House on July 9 gave second- and third-reading approval to
S 1210 Phase II Stormwater Management-1 (Clodfelter)
and the measure was enrolled. The legislation creates
temporary rules requiring 120 small towns and 30 rural
counties to adopt regulations limiting stormwater runoff from
construction sites as small as one acre. The action will keep
the state in compliance with new EPA regulations that have
been followed by larger cities and urban counties for several
years.
The Senate on Wednesday concurred with House amendments to S
1218 Child Restraint Systems Modified (Purcell),
legislation raising the minimum age and weight for children
wearing safety seats. It requires children younger than 8 and
weighing less than 80 pounds to use safety seats while riding
in a vehicle. Violation of the law would result in a $75 fine
plus court costs and two points in your driver’s license.
State law currently requires motorists to place kids younger
than 5 and less than 40 pounds in child restraint seats.
The House and Senate last Friday adopted a conference
committee report on S 676 Revise The Banking Laws of North
Carolina (Hoyle) and the measure was enrolled. The bill
increases the annual license fee paid by a bank or trust
company to the N.C. Banking Commission from $200 to an amount
not to exceed $500.
The House on Monday concurred with Senate amendments to H
1083 Environmental Technical Corrections (Gibson) and the
measure was enrolled.
The Senate on Thursday concurred with House amendments to S
0020 Regulate Professional Employer Organization (Bingham)
and the measure was enrolled. It now goes to the governor for
his signature. The measure requires professional employer
organizations to be licensed by the state Department of
Insurance.
The
House on Thursday concurred with Senate amendments to H
1046 Aggressive Driving, and the measure was enrolled. It
now goes to Gov. Easley for his signature. The legislation
creates the new offense of aggressive driving. Conviction
would result in five points against a person’s driver’s
license, the same as passing a stopped school bus.
The House on Thursday gave third-reading approval to S 0074
N.C. Vineyard Amendments (Rand) and returned the bill to
the Senate for concurrence in amendments. The measure would
allow North Carolina wineries use brandy in their winemaking
and let the Biltmore Estate Winery to sell wine produced at
other wineries. Supporters said winemakers need to add brandy
to wine produced from grapes grown during rainy years in order
to ensure that a consistent alcohol content.
State
Government
DOT
board approves road improvement projects
he
N.C. Board of Transportation awarded several highway
improvement contracts during its July meeting that are part of
the state’s N.C. Moving Ahead program. Included were:
$2.6 million to widen and repave U.S. 129 in Graham County
from Airport Road to the Cherokee County line. The contract
was awarded to the Harrison Construction Co. Inc. of Alcoa,
Tenn.Work is scheduled to start at the beginning of August and
is expected to be complete by the end of June 2005.
$5.2 million to repave eight miles of I-26 in Henderson and
Polk counties from milepost 53.79 to milepost 61.75 and the
ramps at Holbert Cove Road and N.C. 225. The contract was
awarded to the Asheville Division of APAC-Atlantic Inc. Work
is scheduled to begin at the beginning of August and is
expected to be complete by August 2005.
$5.2 million for highway improvements on U.S. 401 from U.S.
401 Business in Hoke County to the U.S. 401 Bypass in Scotland
County. The project includes drainage improvements, shoulder
reconstruction, resurfacing and installation of traffic
signals. Work is scheduled to begin in August with completion
expected by June 2005.The contract was awarded to the Coastal
Carolina division of APAC-Atlantic Inc. of Kinston.
$1.5 million to improve 0.475 miles of Pittsboro-Moncure Road
in Chatham County from U.S. 15/501 to Old U.S.1.The project
and includes milling and drainage improvements, shoulder
reconstruction and resurfacing. Work is scheduled to begin in
August with completion expected by June 2005. The contract was
awarded to S.T. Wooten Corp. of Winston-Salem.
$790,000 for four projects in Pitt County. The first project
calls for constructing a right turn lane on eastbound
Greenville Boulevard at 10th Street adjacent to Burger King.
The second project is to construct a right turn lane on
southbound Greenville Boulevard at 10th Street adjacent to
Hastings Ford and to extend the existing right turn lane on
Greenville Boulevard north at Mobley Drive. The third project
is to widen North Highland Avenue from 28 feet to 40 feet and
construct curbs, gutters and a sidewalk from Patrick Street to
River Street. The fourth project is to repair, widen and
install curb and gutter on Main Street from Old Tar Road to
Graham Street.
$1.4 million to improve 2.59 miles of U.S.1 from U.S. 421 to
the southern city limits of Sanford in Lee County. The project
includes shoulder reconstruction, resurfacing and improvement
of pavement markings. Work is scheduled to begin in August
with completion expected by May 2005. The contract was awarded
to S.T. Wooten Corp. of Winston-Salem for $1.5 million.
$4.9 million for two projects in Mecklenburg County, including
resurfacing and painting pavement markings on 7.6 miles of
N.C. 16 from the Gaston County line to Lawton Road. The
contract was awarded to Crowder Construction Co. of Charlotte.
Work on the project will begin in August and is expected to be
completed in December. The second project involves
resurfacing, adding curbs and gutters and painting pavement
markings on 4.9 miles of N.C. 16 from Queens Road to Old
Providence Road. The contract was awarded to Blythe
Construction Inc. of Charlotte. Work on the project will begin
in August and is expected to be completed in November.
Status
of the General Fund
dollars in millions
|
|
Month
of May
|
11
Months Year to Date
|
|
Budget
|
Actual
|
Variance
|
Budget
|
Actual
|
Variance
|
Tax
Revenue
|
|
|
|
|
|
|
Individual
Income
|
$416.7
|
$419.8
|
$3.1
|
$6,731.9
|
$6,804.7
|
$72.8
|
Corporate
Income
|
1.0
|
-16.6
|
-17.6
|
594.5
|
610.4
|
15.9
|
Sales
and Use
|
326.3
|
341.1
|
14.8
|
3,736.2
|
3,885.8
|
149.6
|
Franchise
|
24.5
|
23.3
|
-1.2
|
453.5
|
445.5
|
-8.0
|
Insurance
|
-4.9
|
2.9
|
7.8
|
295.4
|
287.7
|
-7.7
|
Piped
Natural Gas
|
5.6
|
4.8
|
-0.8
|
48.1
|
48.7
|
0.6
|
Beverage
|
17.7
|
18.1
|
0.4
|
158.2
|
163.8
|
5.6
|
Inheritance
|
8.9
|
13.8
|
4.9
|
98.1
|
118.2
|
20.1
|
Privilege
License
|
2.9
|
2.7
|
-0.2
|
40.6
|
36.2
|
-4.4
|
Tobacco
Products
|
3.4
|
3.6
|
0.2
|
35.8
|
39.9
|
4.1
|
Real
Estate Conveyance Excise
|
-0.5
|
-0.5
|
—
|
3.7
|
3.7
|
—
|
Gift
|
0.6
|
0.3
|
-0.3
|
19.9
|
16.5
|
-3.4
|
White
Goods Disposal
|
0.4
|
0.4
|
—
|
0.8
|
0.8
|
—
|
Scrap
Tire Disposal
|
0.9
|
0.9
|
—
|
2.1
|
2.1
|
—
|
Freight
Car Lines
|
0.2
|
0.2
|
—
|
0.5
|
0.5
|
—
|
Other
|
0.2
|
0.1
|
-0.1
|
0.5
|
—
|
-0.5
|
Total
Tax Revenue
|
$803.9
|
$814.9
|
$11.0
|
$12,219.8
|
$12,464.5
|
$244.7
|
Non-Tax
Revenue
|
|
|
|
|
|
|
Treasurer's
Investments
|
10.2
|
6.8
|
-3.4
|
103.5
|
72.4
|
-31.1
|
Judicial
Fees
|
11.6
|
11.5
|
-0.1
|
126.7
|
126.3
|
-0.4
|
Insurance
|
7.0
|
1.9
|
-5.1
|
47.4
|
43.6
|
-3.8
|
Disproportionate
share
|
—
|
—
|
—
|
100.0
|
97.1
|
-2.9
|
Highway
Fund Transfer In
|
—
|
—
|
—
|
15.0
|
15.0
|
—
|
Highway
Trust Fund Transfer In
|
63.1
|
63.1
|
—
|
252.4
|
252.4
|
—
|
Other
|
-258.4
|
10.9
|
269.3
|
337.0
|
323.8
|
-13.2
|
Total
Non-Tax Revenue
|
-166.5
|
94.2
|
260.7
|
982.0
|
930.6
|
-51.4
|
Total
Revenue
|
$637.4
|
$909.1
|
$271.7
|
$13,201.8
|
$13,395.1
|
$193.3
|
General Fund actual
expenditures year to date through May |
Dollars
in Millions
|
2003-04
|
2002-03
|
$Change
|
|
|
|
|
General
Government
|
$257.3
|
$243.5
|
$13.8
|
Education
|
7,822.4
|
7,463.6
|
358.8
|
Health
and Human Services
|
3,114.5
|
3,179.9
|
-65.4
|
Economic
Development
|
81.1
|
23.4
|
57.7
|
Environment
and Natural Resources
|
193.6
|
182.2
|
11.4
|
Public
Safety, Correction, and Regulation
|
1,333.0
|
1,217.1
|
115.9
|
Agriculture
|
40.6
|
40.1
|
0.5
|
Operating
Reserves/Rounding
|
24.7
|
8.8
|
15.9
|
Total
Current Operations
|
$12,867.2
|
$12,358.6
|
$508.6
|
Capital
Improvements:
|
|
|
|
Funded
by General Fund
|
27.6
|
31.2
|
-3.6
|
Debt
Service
|
318.5
|
207.0
|
111.5
|
Total
Expenditures
|
$13,213.3
|
$12,596.8
|
$616.5
|
|
|
|
|
Economic
Development
Nonwoven
manufacturer picks Asheville for first U.S. facility
Jacob
Holm Industries, a Danish nonwoven manufacturer, said it would
build a $40 million facility in Asheville and create 70 new
jobs. It will be the company’s first American location. The
company will receive a $200,000 grant from the One North
Carolina Fund and additional incentives from Buncombe County,
the Asheville Area Chamber of Commerce and A-B Tech. The N.C.
DOT also will assist with improving access to the new
facility. Construction on the company’s 150,000-square-foot
building on a 22-acre in the Asheville Commerce Park will
begin in the next two months.
North
Carolina absent from annual list of biggest deals
With
the help of the Jobs Development Investment Grant
program, North Carolina had a good year in attracting
new and expanding industries during 2003 but we failed
to land any of the Top 10 deals of the year, according
to Site Selection Magazine. We came close when Boeing
considered the Global TransPark for its $900 million jet
assembly plant, which turned out to be the biggest deal
of the year. Most southeastern states made the
magazine’s annual list of biggest deals and honorable
mentions – Virginia, Florida and Texas had two, while
South Carolina and Georgia each had one, as shown in the
chart below:
Top
10 Deals of 2003 |
|
|
Boeing
Co. |
Everett,
Washington |
$900
million; 1,200 jobs |
Ford
Motor Co. |
Hermosillo,
Mexico |
$1
billion; 2,000 jobs |
Ford
Motor Co. |
Wayne,
Michigan |
$583
million; 7,029 jobs |
Pfizer |
New
York, New York |
$1
billion; 2,000 jobs |
Philip
Morris USA |
Richmond,
Virginia |
$300
million; 450 jobs |
Scripps
Research Institute |
Palm
Beach County, Florida |
$147
million; 2,800 jobs |
Texas
Instruments |
Richardson,
Texas |
$3
billion; 1,000 jobs |
Toyota |
San
Antonio, Texas |
$800
million; 2,000 jobs |
Volkswagen |
Puebla,
Mexico |
$2
billion; 1,500 jobs |
Wells
Fargo |
Des
Moines, Iowa |
$250
million; 2,000 jobs |
Top
10 Honorable Mentions |
|
|
Boehringer
Ingelheim |
Petersburg,
Va. |
$260
million |
Magna
Cosma |
Bowling
Green, Ky. |
$213
million |
JetBlue |
Orlando,
Fla. |
$160
million |
Mack
Trucks |
Hagerstown,
Md. |
$150
million |
New
York Life |
Forsyth
County, Ga. |
$140
million |
Haverhill |
Haverhill,
Ohio |
$135
million |
Intel |
Costa
Rica |
$110
million |
Fuji
Photo |
Greenwood,
S.C. |
$100
million |
Federal
Express |
Boone,
Ky./Hutchins, Texas |
3,700
jobs |
GEICO |
Amherst,
N.Y. |
2,500
jobs |
|
Names in
the News
E. Rhone Sasser, the former president and CEO of United
Carolina Bank who now serves as chairman of the board of
trustees of Blue Cross and Blue Shield of North Carolina, was
reappointed as a trustee of Southeastern Community College.
Thomas W. Waldrep Jr., a director and attorney with the
Bell, Davis & Pitt law firm in Winston-Salem, was sworn in
as the new federal bankruptcy judge for the Fourth Circuit and
assigned to the Middle District of North Carolina.
How They
Voted
H
1464
School Calendar Changes
Sponsor: WILSON, C.
Third Reading
|
Outcome:
PASSED
Time: Jul 14 2004 4:17PM
|
67
Ayes: Reps: Adams, Allen, B., Allen, G., Allred,
Baker, Barbee, Black, Blackwood, Blust, Bowie, Capps,
Church, Cole, Crawford, Creech, Culpepper, Daughtridge,
Decker, Earle, Eddins, Ellis, Farmer-Butterfield, Frye,
Gillespie, Goodwin, Gorman, Grady, Gulley, Hill, Hilton,
Hunter, Jeffus, Johnson, L., Jones, Justice, Justus,
Kiser, LaRoque, Lewis, McAllister, McComas, McHenry,
McLawhorn, Michaux, Miner, Mitchell, Morgan, Munford,
Nye, Owens, Parmon, Pate, Preston, Rayfield, Rhodes,
Saunders, Sexton, Stam, Starnes, Stiller, Walend,
Warren, Williams, A., Williams, K., Wilson, C., Wood,
Wright
|
44
Noes: Reps. Alexander, Allen, L., Bell, Bonner,
Bordsen, Brubaker, Carney, Coates, Culp, Daughtry,
Dickson, Dockham, England, Fisher, Fox, Gibson, Glazier,
Goforth, Hackney, Hall, Harrell, Holliman, Holmes, Insko,
Johnson, C., Lucas, Luebke, McGee, Moore, Rapp, Ross,
Sauls, Setzer, Sherrill, Steen, Sutton, Tolson,
Wainwright, Walker, Warner, West, Wilson, G., Womble,
Yongue
|
2
Not Voting: Reps. Clary, Cunningham
|
7
Excused Absences: Reps. Barnhart, Haire, Howard,
McMahan, Miller, Ray, Weiss
|
H
429 Monetary
Compensation/Outdoor Advertising
Sponsor: Culpepper
Veto Override
|
Outcome:
PASSED
Time: Jul 12 2004 7:21PM
|
79
Ayes: Reps. Allen, B., Allen, G., Allred,
Baker, Barbee, Barnhart, Bell, Black, Blackwood, Blust,
Bonner, Bowie, Brubaker, Capps, Church, Clary, Coates,
Cole, Crawford, Creech, Culpepper, Cunningham,
Daughtridge, Daughtry, Decker, Dockham, Earle, Eddins,
Ellis, Farmer-Butterfield, Fox, Frye, Gibson, Gillespie,
Gorman, Grady, Gulley, Harrell, Hilton, Holliman,
Holmes, Howard, Johnson, L., Jones, Justus, Kiser,
LaRoque, McHenry, McMahan, Mitchell, Moore, Munford,
Nye, Owens, Parmon, Pate, Preston, Ray, Rayfield,
Rhodes, Sauls, Setzer, Sexton, Sherrill, Stam, Starnes,
Steen, Tolson, Wainwright, Walend, Walker, Warner, West,
Williams, K., Wilson, C., Wilson, G., Wood, Wright,
Yongue
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34
Noes: Rep. Adams, Alexander, Allen, L., Bordsen,
Carney, Culp, Dickson, England, Fisher, Glazier, Goforth,
Goodwin, Hackney, Haire, Insko, Jeffus, Johnson, C.,
Lewis, Lucas, Luebke, McAllister, McComas, McGee,
McLawhorn, Michaux, Rapp, Ross, Saunders, Stiller,
Sutton, Warren, Weiss, Williams, A., Womble
|
3
Not Voting: Reps. Hall, Hunter, Miner
|
3
Excused Absence: Rep. Hill, Justice, Miller
|
1
Excused Vote: Rep. Morgan
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