Vote
on session limits expected next week!
Speaker of the House Jim Black has made a verbal
commitment to NCCBI and has indicated to newspaper reporters across the state
that we can expect a vote next week on legislation to limit the length of
legislative sessions. There are two bills
on session limits currently pending in the House Committee on Rules. We expect one of the bills to be reported out early next week.
Following approval by the Rules Committee, the legislation should move
quickly to the House floor and my be up for a vote
by the full House Wednesday, Sept.
4.
This legislation is the No. 1 priority set my NCCBI’s Executive Committee.
With NCCBI’s leadership on this issue, our members and other
organizations across the state have turned up the heat on members of the House
to pass this legislation in time to be on the ballot in November.
The proposed legislation is a constitutional amendment and will require 72 votes
in the House to be placed on the November ballot for the public to approve.
Informal polls in recent weeks have indicated that 85 percent of the
public supports session limits. The
Senate has passed legislation on this issue five times.
The House has never taken a vote on the issue.
The pending bill would allow the legislature to come into session for two days
in December following the November elections for an organizational session to
elect leadership. They would then have to
adjourn for a minimum of 30 days. When
they return to Raleigh, they would have 135 days to complete their business
during the long session and 60 days during the short session.
There is a provision to extend both the long and short sessions by 10
days if necessary.
It is imperative that all House members be contacted one more time before
next week’s vote. Please call your
House members over the weekend or at their legislative offices on Tuesday and
urge them to vote FOR session limits.
As the session drags on, we are finding that House members who have opposed this
legislation are reconsidering their positions and those who are undecided or
leaning yes, may just need a little encouragement from you to vote for the bill.
The direct telephone number to the legislative building is 919-733-4111.
They can connect you with your representative’s office. You can also
find direct telephone numbers and e-mail addresses at the General Assembly's web
site by clicking on http://www.ncga.state.nc.us/gascripts/members/house/house_member_list.pl
Incentives legislation
moves to the Senate
The
Senate has begun debate on the first major overhaul of the state's economic
development policies in years, a program that hopes to attract targeted new
industries by offering rebates of up to 75 percent of the state income taxes
paid by workers in new jobs. The NCCBI-backed legislation, H. 1734 Economic
Stimulus and Job Creation Act, received final House approval Wednesday night
by a vote of 81-34. The bill sent over to the Senate by the House retains the
essential features of the Job Development Investment Grant Program we reported
last week (see the Aug. 23 Bulletin), but some last-minute concessions
were made to achieve final House approval.
Over the weekend, supporters of the legislation agreed to a
cap specifying that the state will approve no more than 25 such tax rebate
grants each year. Further, supporters agreed to a ceiling of $15 million in total tax
rebates in any one year. Not every new or expanding business will be eligible
for the grants. The incentive program is aimed at projects that would not come to North
Carolina but for the tax rebate. And while the legislation envisions tax rebate
grants lasting up to 12 years, the bill carries a sunset of Jan. 1, 2006.
Among the amendments that passed on the floor Monday night was one offered by
Rep. Martin Nesbitt (D-Buncombe) to expand from five to seven the number of
officials sitting on the Economic Investment Committee that will review and
approve applications by industries for the cash grants. The amendment gives the House Speaker and the Senate
President Pro Tem one appointee each. The Speaker's appointee may not be a
member of the General Assembly, a state or local government employee, a person
engaged in economic development, business recruitment, or related consulting
work. The President Pro Tem's appointee must be a local government official.
Those two will join five other members previously specified in the bill:
the secretary of Revenue (Norris Tolson); the secretary of Commerce (Jim Fain);
the Labor commissioner (Cherie Berry); the president of the Community College
System (Martin Lancaster); and the co-chair, of the N.C. Partnership for Economic Development (David Cline of the
Charlotte Regional Partnership). Rep. Nesbitt's amendment also specifies that
any action by the committee must receive the support of five out of the seven
members.
While the bill is vague about what types of
"but for" business will qualify for the tax rebates, it's explicit
about those that will be ineligible, including retail facilities and
professional or semiprofessional sports teams. There are a couple of major
strings attached to the grants. Eligible companies must provide workers with
health insurance and pay at least half the premiums. They must pay wages that
are 110 percent of the applicable average weekly wage for the county in which
the jobs will be located.
H. 1734 also amends the Bill Lee Act to make the machinery
and equipment tax credit worth far more in poor, rural areas than in
affluent counties. A business investing in a Tier One county would get to write
off 7 percent of its entire machinery and equipment costs. For a similar
investment in a Tier Five county, one of the state's most affluent, the business
could write off only 4 percent of any investment over $2 million.
Other changes in the bill would: Require a
taxpayer and its related entities to satisfy any outstanding state tax
assessments before receiving a Bill Lee Act credit; modify the wage standard for
the credit for worker training; to modify the wage standard for Tier One
and Tier Two counties; modify the wage standard for taxpayers with a tax year
other than a calendar year; treat parcels of land partially located in a
development zone as if the entire parcel were located within the development
zone; modify the Industrial Development Fund to allow for expenditures related
to telecommunications and broadband lines and equipment and to allow for
expenditures from the Utility Account in Tier Three areas.
NCCBI and other groups are pushing to update the state's economic development
incentive policies in the wake of much evidence that North Carolina is losing
new industries to other states that offer more lucrative inducements. A recent
study by the Office of State Policy found, for example, that in 1994-95 North
Carolina landed 35.3 percent of all new manufacturing companies locating in the
South Atlantic states. In 200-01 that percentage had fallen to 29 percent.
Legislative Actions
Continuing resolution bill
gets hung up over per diem money
After
two days of political posturing over when legislators would stop accepting their
$104 per day expense allowance, the House and Senate on Thursday agreed to terms
for a continuing spending resolution that will keep state government running
until Sept. 10. The General Assembly was supposed to have adopted a revised
budget by July 1, the start of the fiscal year. Each chamber has passed a
budget, and conferees are working on resolving differences between the bills,
but no resolution seems eminent. The Senate on Tuesday passed the
continuing budget resolution, S. 1113
Modify Appropriations Act of 2001-2, but Republicans managed to attach an
amendment cutting off legislators per diem as of Sept. 1.
That raised some
hackles in the House when the bill was taken up there Wednesday. House Democrats
amended the bill to specify that the per diem money would continue to Oct. 1 --
in effect putting an extra $3,140 in the pocketbook of each of the 170
legislators. On Thursday the Senate threw in the towel and accepted the House
version of the continuing resolution, along with the expense money.
While the House and Senate were occupied with the continuing resolution, the
governor issued an executive order Thursday directing the State Budget Office to
release $29.9 million to hire new teachers to account for the extra 26,000
students in the public schools this year. The House and Senate budgets both
contain the extra money, but it wasn't included in the continuing resolution.
House and Senate budget negotiators
reportedly are deadlocked over how to finalize a swap of $333 million in
reimbursements to local governments and revenues that will be generated by an
extra half-cent sales tax. Some legislators say they believe a budget agreement
won't be reached before October, which is why they extended the per diem money
until then.
The
House Finance Committee on Wednesday favorably reported H. 1665 Interstate
Air Couriers/Bill Lee (Lyons Gray), a bill that extends until 2010 the
deadline for Bill Lee Act tax credits for the proposed FedEx cargo hub in
Greensboro. FedEx originally planned to open the air cargo hub at Piedmont Triad
International Airport in 200, but the recession pushed back the opening date to
at least 2007.
The
House on Wednesday gave final approval to S. 1037 No Air Permit Required
Until Facility Operational (David Hoyle) and returned the NCCBI-backed bill
to the Senate for concurrence in amendments. It's expected that the Senate will
reject the House amendments, which significantly weaken the measure, and that a
conference committee will be appointed to resolve differences.
The Senate gave third-reading approval Thursday to H. 1540 Disapprove CAMA Rule (Bill Culpepper),
a House-passed measure that would overturn a
Coastal Area Management Act rule prohibiting new swimming pools on the
ocean-side of most ocean-front homes. The vote was 26-2. The action returns the
bill to the House for concurrence in amendments. CAMA adopted the rule in July 2001 over
the opposition of the N.C. Home Builders Association and the N.C. Realtors
Association.
The House
Finance Committee on Tuesday favorably reported S. 104 Regulate Deferred
Deposit (David Hoyle), legislation that would impose new restrictions on
payday lenders. The bill, which now goes to the full House, would renew the
state's regulatory authority over the industry after previous rules expired last
August.
The House Judiciary I Committee on Tuesday
favorably reported S. 712 District Judge Eight Year Terms (Tony Rand),
the Senate-passed measure that would double the terms of District Court judges.
The bill previously made it to the House floor but was sent back to Judiciary I
after Republicans complained it will just keep Democrats on the bench longer.
The
Senate voted 37-1 on third-reading Wednesday to pass H. 1508 Public
Health Bioterror Prepared (Zeno Edwards), a House-passed bill that gives the
state health director more authority to respond to chemical and biological
terror attacks, including expanding quarantine powers. The measure now goes back
to the House for concurrence in amendments. The bill is one of
several measures the legislature has considered in light of the the Sept. 11
attacks. Sen. Hugh Webster (R-Caswell) cast the only dissenting vote.
The House on Tuesday concurred with Senate
amendments to H. 1649 Charlotte/Douglas Airport Contracts (Drew Saunders)
and the measure was enrolled. The measure extends until 2007 a law allowing
Charlotte to contract with private developers for work at the airport.
The House on Tuesday gave second- and
third-reading approval to H. 1040 Temporary Extended Unemployment Benefits
(Ruth Easterling) and sent the measure to the Senate. The ESC-backed bill
would tap a federal program and allow the state to extend an additional 13 weeks
of unemployment benefits to workers who lost jobs early in the recession.
The Senate on
Wednesday rejected House amendments to S. 1037 No Air Permit Required Until Facility Operational
(David Hoyle), and appointed conferees to work with the House on resolving
differences over the legislation. Sen. Hoyle (D-Gaston) was appointed chair of
the Senate conferees. Members are Sens. Aaron W. Plyler, John Garwood and Cal
Cunningham.
The Senate on Tuesday concurred with House
amendments to S. 1195 Seven Devils Occupancy Tax (Virginia Foxx) and the
measure was enrolled. The measure authorizes occupancy taxes in the mountain
resort town, with the proceeds to be applied to tourism development. On
Wednesday the Senate gave final approval to H. 1620 Jonesville Occupancy Tax
(George Holmes) and the measure was enrolled. It would allow Jonesville to
charge a three percent hotel occupancy tax and use the proceeds for tourism
development.
The Senate on Tuesday gave second- and
third-reading approval to H 1783 Amber Alert Authorization (Michael
Decker) and the House-passed measure was enrolled. It would create a program
allowing police to broadcast news of missing children over radio stations, as
several other states now do.
The House Environment and Natural Resources
Committee on Tuesday favorably reported H. 1564 Inactive Hazardous Sites
Amendments (Joe Hackney) and H. 1572 Environmental Report Amendments
(Pryor Gibson).
Education
SAT scores move up 6 points, state now surpasses Southeast average
Average
SAT scores moved up six points last school year to 998, moving North Carolina
above the Southeast average for the first time. The increase in SAT scores came
entirely on the math portion of the college entrance exam taken by 46,180
graduating seniors, rising from 499 to 505; the verbal score remained unchanged
at 493. The national average SAT score was unchanged at 1020.
North Carolina's verbal score is now 11 points away from the nation's verbal
score and 11 points away from the nation's math score. At one point (1991),
North Carolina's math score was 26 points and verbal score was 21 points away
from the national averages. With the gain, North Carolina moves up from 47th in
the nation to tie with Pennsylvania for 45th. North Carolina has passed Georgia,
Texas, Florida, South Carolina and the District of Columbia.
North Carolina has improved its score each year
since 1990, except in 1994 when there was no change. From 1990 to 2002, North
Carolina gained more points (50) than any other state with more than 12 percent
SAT takers. A dozen years ago, North Carolina's average SAT scores were 25
points below the Southeast average and 53 points below the national average.
Thirty years ago, North Carolina's SAT scores were 83 points below the national
average. The 50-point gain in average SAT scores in North Carolina between 1990 and 2002
is better than all but six other states.
Phil Kirk, president of NCCBI and chairman of the
State Board of Education Chairman, said "these scores show that the focus
in our state is paying off in better performance. We need to convince more
students that they need to take tougher courses if they are considering going to
college and we'll see even better results."
State Superintendent Mike Ward said that he is
particularly pleased to see North Carolina's SAT results move above the
Southeast average. "The SAT is one of the national indicators that we track
to see how our students are performing. Universities tell us that the students
we're sending to them are better prepared for college-level work. That's backed
up by these results."
In 2002, the average score of North Carolina's
African-American students increased four points to 839. The average scores of
African-American students nationally fell two points to 857. The gap between
scores of black (839) and white (1046) students in North Carolina increased by
one point from the previous year. Nationally, the gap increased by two points.
North Carolina's Hispanic students scored 961 in 2002, a 14-point decrease over
the previous year, but that's still 50 points higher than their
counterparts in the nation.
Students from more affluent backgrounds scored significantly better on the test.
The average SAT score was 1031 for students whose parents have a college
education. The average score was 1108 for students from households with a family
income of more than $100,000.
Distribution
of North Carolina's public school systems by mean total SAT scores |
1200 |
Woods Charter** |
1180 |
Chapel Hill-Carrboro City |
1070 |
Buncombe, Wake, Watauga |
1060 |
Asheville City |
1050 |
Henderson, Moore, Newton
Conover City |
1040 |
Clay, Elkin City, Hickory
City, Polk |
1030 |
Currituck, Dare, New Hanover,
Shelby City, Swain, Transylvania |
1020 |
Asheboro City, Cabarrus,
Caldwell, Haywood, Iredell-Statesville, Madison, Union |
1010 |
Burke, Carteret, Edenton/Chowan,
Johnston, Mount Airy City, Orange, Pamlico, Surry, Wilkes, Winston-Salem/Forsyth |
1000 |
Alexander, Alleghany, Catawba,
Charlotte/Mecklenburg, Cherokee, Davidson, Davie, Durham, Guilford,
Jackson, Macon, McDowell, Mitchell,
Mooresville City, Yancey |
990 |
Craven, Harnett, Kannapolis
City, Pitt, Stanly |
980 |
Graham, Granville, Kings
Mountain City, Lincoln, Onslow, Randolph, Rowan-Salisbury, Yadkin |
970 |
Avery, Beaufort, Gaston, Lee,
Nash-Rocky Mount, Roanoke Rapids City |
960 |
Alamance-Burlington, Ashe,
Brunswick, Chatham, Cleveland, Cumberland, Montgomery, Rockingham, Wayne, Whiteville City, Wilson |
950 |
Franklin, Lenoir, Pender,
Scotland, Stokes |
940 |
Duplin, New Century School**,
River Mill Academy**, Rutherford |
930 |
Lexington City, Martin, Person |
920 |
Caswell, Elizabeth City/Pasquotank,
Perquimans, Sampson |
910 |
Camden, Edgecombe, Richmond |
900 |
Clinton City, Greene, Hyde |
890 |
Columbus, Gates, Thomasville
City, Tyrrell |
880 |
Jones, Robeson, Vance |
860 |
Bladen, Hoke, Warren,
Washington |
850 |
Anson |
810 |
Hertford |
800 |
Halifax, Northampton |
790 |
Bertie |
700 |
Weldon City |
**Denotes a charter school.
Source: DPI |
States
ranked by total SAT scores... |
State
|
%
Tested
|
Verbal |
Math |
Total |
North Dakota |
4 |
597 |
610 |
1207 |
Iowa |
5 |
591 |
602 |
1193 |
Wisconsin |
7 |
583 |
599 |
1182 |
Illinois |
11 |
578 |
596 |
1174 |
Minnesota |
10 |
581 |
591 |
1172 |
South Dakota |
5 |
576 |
586 |
1162 |
Kansas |
9 |
578 |
580 |
1158 |
Missouri |
8 |
574 |
580 |
1154 |
Nebraska |
8 |
561 |
570 |
1131 |
Michigan |
11 |
558 |
572 |
1130 |
Oklahoma |
8 |
565 |
562 |
1127 |
Utah |
6 |
563 |
559 |
1122 |
Louisiana |
8 |
561 |
559 |
1120 |
Alabama |
9 |
560 |
559 |
1119 |
Tennessee |
14 |
562 |
555 |
1117 |
Arkansas |
5 |
560 |
556 |
1116 |
Mississippi |
4 |
559 |
547 |
1106 |
Kentucky |
12 |
550 |
552 |
1102 |
New Mexico |
14 |
551 |
543 |
1094 |
Colorado |
28 |
543 |
548 |
1091 |
Montana |
23 |
541 |
547 |
1088 |
Idaho |
18 |
539 |
541 |
1080 |
Ohio |
27 |
533 |
540 |
1073 |
Wyoming |
11 |
531 |
537 |
1068 |
Washington |
54 |
525 |
529 |
1054 |
Oregon |
56 |
524 |
528 |
1052 |
Arizona |
36 |
520 |
523 |
1043 |
West Virginia |
18 |
525 |
515 |
1040 |
N. Hampshire |
73 |
519 |
519 |
1038 |
Alaska |
52 |
516 |
519 |
1035 |
Massachusetts |
81 |
512 |
516 |
1028 |
Nevada |
34 |
509 |
518 |
1027 |
Vermont |
69 |
512 |
510 |
1022 |
Maryland |
67 |
507 |
513 |
1020 |
United States |
46 |
504 |
516 |
1020 |
Connecticut |
83 |
509 |
509 |
1018 |
Virginia |
68 |
510 |
506 |
1016 |
California |
52 |
496 |
517 |
1013 |
New Jersey |
82 |
498 |
513 |
1011 |
Hawaii |
53 |
488 |
520 |
1008 |
Rhode Island |
73 |
504 |
503 |
1007 |
Maine |
69 |
503 |
502 |
1005 |
Delaware |
69 |
502 |
500 |
1002 |
Indiana |
62 |
498 |
503 |
1001 |
New York |
79 |
494 |
506 |
1000 |
N. Carolina |
67 |
493 |
505 |
998 |
Pennsylvania |
72 |
498 |
500 |
998 |
Florida |
57 |
496 |
499 |
995 |
Texas |
55 |
491 |
500 |
991 |
South Carolina |
59 |
488 |
493 |
981 |
Georgia |
65 |
489 |
491 |
980 |
D.C. |
76 |
480 |
473 |
953 |
Source: DPI |
|
...
and by % of students taking SAT |
State |
%
Tested |
Verbal |
Math |
Total |
Connecticut |
83 |
509 |
509 |
1018 |
New Jersey |
82 |
498 |
513 |
1011 |
Massachusetts |
81 |
512 |
516 |
1028 |
New York |
79 |
494 |
506 |
1000 |
D.C. |
76 |
480 |
473 |
953 |
N. Hampshire |
73 |
519 |
519 |
1038 |
Rhode Island |
73 |
504 |
503 |
1007 |
Pennsylvania |
72 |
498 |
500 |
998 |
Vermont |
69 |
512 |
510 |
1022 |
Maine |
69 |
503 |
502 |
1005 |
Delaware |
69 |
502 |
500 |
1002 |
Virginia |
68 |
510 |
506 |
1016 |
Maryland |
67 |
507 |
513 |
1020 |
N. Carolina |
67 |
493 |
505 |
998 |
Georgia |
65 |
489 |
491 |
980 |
Indiana |
62 |
498 |
503 |
1001 |
South Carolina |
59 |
488 |
493 |
981 |
Florida |
57 |
496 |
499 |
995 |
Oregon |
56 |
524 |
528 |
1052 |
Texas |
55 |
491 |
500 |
991 |
Washington |
54 |
525 |
529 |
1054 |
Hawaii |
53 |
488 |
520 |
1008 |
Alaska |
52 |
516 |
519 |
1035 |
California |
52 |
496 |
517 |
1013 |
United States |
46 |
504 |
516 |
1020 |
Arizona |
36 |
520 |
523 |
1043 |
Nevada |
34 |
509 |
518 |
1027 |
Colorado |
28 |
543 |
548 |
1091 |
Ohio |
27 |
533 |
540 |
1073 |
Montana |
23 |
541 |
547 |
1088 |
Idaho |
18 |
539 |
541 |
1080 |
West Virginia |
18 |
525 |
515 |
1040 |
Tennessee |
14 |
562 |
555 |
1117 |
New Mexico |
14 |
551 |
543 |
1094 |
Kentucky |
12 |
550 |
552 |
1102 |
Illinois |
11 |
578 |
596 |
1174 |
Michigan |
11 |
558 |
572 |
1130 |
Wyoming |
11 |
531 |
537 |
1068 |
Minnesota |
10 |
581 |
591 |
1172 |
Kansas |
9 |
578 |
580 |
1158 |
Alabama |
9 |
560 |
559 |
1119 |
Missouri |
8 |
574 |
580 |
1154 |
Nebraska |
8 |
561 |
570 |
1131 |
Oklahoma |
8 |
565 |
562 |
1127 |
Louisiana |
8 |
561 |
559 |
1120 |
Wisconsin |
7 |
583 |
599 |
1182 |
Utah |
6 |
563 |
559 |
1122 |
Iowa |
5 |
591 |
602 |
1193 |
South Dakota |
5 |
576 |
586 |
1162 |
Arkansas |
5 |
560 |
556 |
1116 |
North Dakota |
4 |
597 |
610 |
1207 |
Mississippi |
4 |
559 |
547 |
1106 |
Source: DPI |
|
State Government Watch
Interagency team offers
help to businesses in dealing with drought
Responding to Gov. Mike Easley’s call
for state government agencies to reduce their water consumption by 20 percent by eliminating all non-essential
uses, an interagency Water System Protection Team
has adopted guidelines to achieve the goal and has created a network of
resources to help local communities protect water
supplies. The guidelines and other water-saving tips can be found at www.sustainablenc.org/water.htm.
Easley also renewed his call for industries to reduce water use where possible. The
governor encouraged any
business needing help with reducing water use to contact Gene Byrd at the state Department of Commerce.
Byrd's division provides services to existing businesses and
can be reached at (919) 715-6134.
Commerce has set up a
drought response team that will meet weekly to assess the current state of the
response and to modify it as needed.
Byrd's
office has put together a plan to address major water users and major employers
by county. In addition, the Industrial Assistance Section of DENR will
coordinate technical visits with Commerce specialists to ensure that timely
visits are made to businesses around the state.
The Small Business and Technological Development Center within Commerce will
work specifically with smaller businesses and commercial/retail water users.
Tammy Lester, senior economist in the Commerce Research division, will
chair an Economic Impact Task Force to identify a model to help assess the
overall cost of the disaster to North Carolina.
State water supply experts are working with water systems to address drought
conditions unique to each community. Staff members have developed a tiered list
of water systems to help them identify problem communities. To help speed the
approval of emergency measures, they are allowing systems to design expansions
as they are built instead of requiring plans up front.
Water supply staff members are also investigating well sites, providing
assistance on what types of monitoring are required of new wells, testing
streams for emergency intakes to ensure they are treatable for drinking water,
negotiating emergency interconnections between towns, coordinating with the
Division of Emergency Management to get pumps for new intakes and wells,
evaluating farm ponds for potential use, and following up with the many
newly-created public water systems that are resulting from the epidemic of wells
being drilled as replacement supplies.
The N.C. Utilities Commission issued a letter strongly encouraging its
regulated water systems to comply with the governor's request for 20 percent
reductions immediately, and stating it would issue mandatory restrictions if
voluntary conservation measures are not effective.
Jobless rates
rise in four metro areas
Unemployment
rates rose in four metro areas in July and declined in four others, according to
Employment Security Commission data. The biggest increase was in the Goldsboro
MSA, where the jobless rate jumped nine-tenths of a point to 7.3 percent. In
most cases, the rise in unemployment in the metro areas of the state were
largely attributed to the temporary shutdown of many manufacturing plants as the
end of the fiscal year approached, resulting
in a higher than average number of attached claims. After one to two weeks, the
plants re-open and employees return to their
jobs. The metro jobless rates in July were:
Asheville, 4.5 percent,
down from 4.6 percent
Charlotte/Gastonia/Rock Hill,
6.5 percent, unchanged
Fayetteville, 6.9
percent, up from 6.8 percent
Goldsboro, 7.3 percent,
up from 6.4 percent
Greensboro/Winston-Salem/High
Point, 7.1 percent, up from 6.5 percent
Hickory/Morganton/Lenoir,
9.0 percent, up from 8.4 percent
Jacksonville, 5.9
percent, down from 6.3 percent
Raleigh/Durham/Chapel Hill,
5.4 percent, unchanged
Rocky Mount, 10.3
percent, down from 10.4 percent
Wilmington, 6.5 percent,
down from 6.6 percent
A Labor Day Report on the Economy
Top forecaster predicts
2.6% growth this year, 3.8% next year
While not faring so well as it has in recent
years, the U.S. economy remains in decent shape and will perform better this
year than the economies of Japan, Germany, the United Kingdom, France, Italy and
Canada, according to UNC-Chapel Hill professor James F. Smith, who predicted the
U.S. economy "may grow by 2.6 percent this year and 3.8 percent in 2003."
For as long as the next decade, the United States could average 3.5 percent
growth in real gross domestic product annually with very low inflation, Smith
said.
"Many analysts and pundits seem to like nothing better than to regularly
suggest that the current expansion of the U.S. economy is 'fragile,'
'sputtering,' 'headed for a double dip' or some equally inaccurate and
unflattering phrase," said Smith, rated by The Wall Street Journal as the nation's most accurate economic
forecaster in three of the past five years. "The truth is that nearly every new economic indicator each week gives
testimony to the strength and robust nature of the current expansion in
the United States."
Among signs that the U.S. economy is not nearly so shaky as many people seem to
think is that business investments in equipment and software have turned up,
Smith said. Other signs are that consumer confidence remains high, as measured
by the University of Michigan's Index of Consumer Sentiment, and that more
people are relying successfully on state and federal programs that enable them
to buy their first homes. Still others are that both new and existing
single-family home sales are robust and both long-term fixed and adjustable-rate
mortgages are near all-time lows.
All the gloom and doom about drops in the stock market will pass, and the Dow
Jones Industrial Average, at least, should set new records within a year if not
by 2002's end, Smith said.
"The big profitable companies in the Dow are continuing to increase
revenues and profits, even using the most stringent accounting rules
possible," he wrote. "Indeed, the fallout from the shenanigans of
(such companies as Enron and WorldCom) with very bad actors in very high places
is that the quality of corporate earnings in the U.S. today is higher than it
ever has been before. This should reassure investors, both domestic and
foreign."
NAM survey also predicts
2.6% growth in GDP but no uptick in capital spending
More than three-fourths of manufacturers do not foresee a
double-dip recession and expect growth to continue through the second half of
the year, according to the annual Labor Day Report on the State of the American
Worker issued by the National Association of Manufacturers.
”While our survey shows a lull in economic activity in July and August,
manufacturing orders for September and October are picking up, which is a
promising sign that the recovery remains on track,” said NAM President Jerry
Jasinowski. “(Monday’s) report on durable goods orders reinforces that
positive message. We expect to see moderate GDP growth of 2.6 percent for the
remainder of this year.
“The good news is that the negative factors driving the economy into recession
have worked their way through the system,” Jasinowski added. “Interest rates
are at historic lows, energy costs have come down from previous highs, excess
inventories have been worked off and the dollar appears to be moving toward
market equilibrium with other currencies. Also, the fundamentals of strong
consumer economic activity are in place with both productivity and incomes are
rising. Thus, we believe a gradual upturn in manufacturing employment will
emerge next year."
The NAM survey shows that 80 percent of manufacturers expect their capital
spending to remain flat or actually decline through the remainder of this year.
Manufacturers also expect industrial production will continue to grow this fall.
After expecting orders to decline by -0.8 percent in August, the survey shows
orders will grow by 1 percent in September and 1.2 percent in October.
Manufacturing output should follow the same growth path as during the first half
of the year – in the range of 3.5 to 4 percent growth.
The NAM survey suggests that uncertainty, credit constraints and depressed
export opportunities are the major causes for the lack of a rebound in capital
investment this year.
As a result of sluggish capital and export growth, manufacturers expect
employment to decline by 0.6 percent during the next six months and then rise by
0.8 percent the following six months.
Federal Issues
Edwards secures grants for water projects
Five communities in North Carolina will split
$9.2 million in grants and $3 million in low-interest loans for water projects,
U.S. Sen. John Edwards announced Monday. The funds from the U.S. Agriculture Department's
Rural Development program will be used for: $3.9 million for a water district in Edgecombe County to provide water service to 870 homes and
businesses; a $2 million grant and a $2.7 million loan for the new Buffalo Water District to provide water service to 757 homes and businesses in
Johnston County; a $732,800 grant and $400,000 loan to help the town of Faith pay for a
sanitary sewer system; a $1.5 million grant to Washington, N.C., to upgrade its regional wastewater treatment plant;
and a $1 million grant to Fayetteville to extend sewer service to DuPont
Teijin Films, DAK Americas and Cedar Creek Fibers. The project is expected to
spur an estimated $8 million in private investment and help preserve 240 jobs in
the area.
Edwards announces crime-fighting
funds for seven communities
Seven communities will split $808,245 from the
Justice Department's Community Oriented Policing Services (COPS) program, U.S.
Sen. John Edwards (D-N.C.) said recently. The
grants will pay 75 percent of the cost of high-tech crime-fighting tools such as
car-mounted computers, computer-aided dispatch systems, crime analysis hardware
and software, video arraignment systems and automated fingerprint identification
systems. The communities that won funding include:
- High Point Police Department, $180,000
- Monroe Department of Public Safety, $112,500
- City of New Bern, $251,884
- Orange County Sheriff's Department, $38,547
- Surry County Sheriff's Department, $81,000
- Town of Troy, $26,478
- Yancey County Sheriff's Department, $117,809
Names in the News
Four to be inducted into Business
Hall of Fame
Grandfather
Mountain president Hugh M. Morton, Pine Needles Resort owner Peggy
Kirk Bell, Ruddick Corp. chairman Alan Dickson and the late James
J. Harris will be inducted into the North Carolina Business Hall of Fame
during ceremonies in Charlotte on Nov. 14. The event is sponsored by Junior
Achievement and NCCBI. The event will be at the Charlotte Hilton & Towers.
For information on table reservations for the reception and dinner, call JA at
704-536-9668 or e-mail Shannon Martin at smartin@jacarolinas.org.
The North Carolina Business Hall of Fame was established in 1988 to recognize
business leaders who significantly contributed to building the state's economy
and who provided outstanding community and statewide service. Inductees into the
Hall of Fame must be retired from their organization or be at least 70 years
old. To date, 60 men and women have been inducted.
George Richard Murphy was appointed to the District Court bench in Johnston County
by Gov. Mike Easley to fill the
unexpired term of retired Judge Yates Dobson. Before going into private
practice, Murphy worked as an assistant district attorney and police attorney.
NCCBI News
Are you registered for
the NCCBI membership meeting in your area?
Hundreds
of NCCBI members have sent in their registration forms to attend one of the 19
area meetings coming up in September and October. We hope you plan to attend one, because this year we've updated the format to make the meetings
more informative for you -- including a question and answer session at the end of
each meeting. If you haven't already registered, please consult the calendar
below to select the event you'd like to attend. Then, send in the registration
brochure we previously mailed to all members. It's not a problem if you can't
locate the brochure; just send an e-mail to Marsha Lewandowski of
the NCCBI staff at mlewandowski@nccbi.org
stating your name, company name and the site of the meeting you'd like to
attend. See you there!
September |
4
|
Wednesday
|
11:45 a.m.
|
Triangle Area Meeting, Angus Barn
|
26
|
Thursday
|
5:30 p.m.
|
Rocky Mount Area Meeting Reception,
Benvenue Country Club
|
30
|
Monday
|
7:30 a.m.
|
Asheville Area Meeting Breakfast,
Grove Park Inn, Asheville
|
30
|
Monday
|
11:45 a.m.
|
Boone Area Meeting Luncheon,
Broyhill Inn
|
October |
1
|
Tuesday
|
11:45 a.m.
|
Charlotte Area Meeting Luncheon,
Charlotte Marriott City Center
|
1
|
Tuesday
|
5:30 p.m.
|
Salisbury Area Meeting Reception,
Salisbury Country Club
|
7
|
Monday
|
5:30 p.m.
|
Greensboro Area Meeting Reception,
Grandover Resort
|
8
|
Tuesday
|
7:30 a.m.
|
High Point Area Meeting Breakfast,
String & Splinter
|
8
|
Tuesday
|
11:45 a.m.
|
Winston-Salem Area Meeting
Luncheon, Salem College
|
8
|
Tuesday
|
5:30 p.m.
|
Statesville Area Meeting Reception,
Statesville Civic Center
|
15
|
Tuesday
|
11:45
a.m.
|
Elon
Area Meeting Luncheon, Elon University, Mosley Center
|
21
|
Monday
|
5:30
p.m.
|
Greenville Area Meeting Reception,
Hilton Greenville
|
22
|
Tuesday
|
11:45 a.m.
|
New Bern Area Meeting Luncheon,
Riverfront Convention Center
|
22
|
Tuesday
|
5:30 p.m.
|
Kinston Area Meeting Reception,
Kinston Country Club
|
23
|
Wednesday
|
11:45 a.m.
|
Fayetteville Area Meeting Luncheon,
Holiday Inn Bordeaux
|
23
|
Wednesday
|
5:30
p.m.
|
Wilmington Area Meeting Reception,
City Club at deRosset House
|
24
|
Thursday
|
11:45
a.m.
|
Southern Pines Area Meeting
Luncheon, Mid Pines
|
29
|
Tuesday
|
11:45
a.m.
|
Hickory Area Meeting Luncheon,
Holiday Inn Select
|
30
|
Wednesday
|
11:45
a.m.
|
Elizabeth
City Area Meeting Luncheon, Pine Lakes Country Club
|
Kirk tells Rotarians state needs new economic development policies
For North
Carolina to remain competitive both nationally and internationally, we must
change the way we do business as it relates to economic development, NCCBI
President Phil Kirk told more than 200 members of the Downtown Rotary Club in
Charlotte on Tuesday. "The Economic Development Board has been working for
the past year on a new economic development plan for the state, and it will be
finalized within the next couple of months," he said. Kirk is a member of
the board, which is chaired by Gordon Myers, immediate past chair of NCCBI.
Among the challenges facing the state, Kirk listed workforce preparedness; a
fair, competitive tax structure, economic development incentives; environmental
policies based on science rather than politics; uneven growth across the state;
transportation; and health care.
He urged the Rotarians to contact their state House members to urge them to vote
for a constitutional amendment limiting the length of legislative sessions.
"The problem with passing this amendment in the House is that too many
would rather be in Raleigh than at home," Kirk said, pointing out that
nearly half of the legislators in the House are retired or depend on their
legislative pay and per diem money for much of their income.
As chairman of the State Board of Education, Kirk lauded the recent announcement
of the improved SAT scores. While the nation's SAT scores did not go up this
year, North Carolina seniors saw their math scores increase by six points, one
of the largest gains in the nation. North Carolina for the first time is ahead
of the Southeast average and trails the national average by only 11 points in
the verbal section and 11 in math.
"We are no longer on the bottom," Kirk said. "We have passed
Texas, Florida, Georgia, South Carolina and the District of Columbia and are
tied with Pennsylvania. What is so remarkable about our continuous improvement
is that it has come at the same time the numbers of students taking the test has
increased. That percentage jumped
by five this year to 67 percent of eligible students taking the SAT compared to
single-digits in many states. But we cannot rest until we reach the top!"
Effective
leaders focus on creating partnerships, Kirk says
Successful
leaders do not have to be loud, do not have to be at the front of the parade,
and do not worry about who gets the credit for good deeds, NCCBI President Phil
Kirk told those attending the Power Breakfast sponsored by the Capital City Club
and Business Digest at its August breakfast at the Capital City Club in Raleigh.
"Effective leaders are able to put together people who can work together as
a team," Kirk said. "Precious little is accomplished by any one group
in Raleigh. We often have to form coalitions in order for goals to be turned
into legislative victories."
Kirk told the group that leaders need vision, patience, a sense of humor, and a
certain amount of humility. "While
leadership traits can be inherited and nurtured by families, leadership can also
be taught and learned." He discussed the variety of local, regional, and
state leadership programs in North Carolina.
"I am afraid that we have too many politicians today -- and to a certain
extent, people in other professions -- who are more interested in being popular
than in making the tough decisions. Too many candidates rely too
much on
political polling and what their consultants tell them they must do in order to
be re-elected," Kirk said. "However, it is not just the politicians
who are to blame. We deserve some of it, too. Do we want our leaders to be
candid? Do we want them to tell us
what we want to hear or what we should hear?” he asked.
In closing, Kirk addressed those who prefer to be followers, rather than
leaders. "That choice does not mean you are just along for the ride. That
does not mean you have no responsibility for what goes on about you. You need to
support our leaders, in good times and bad, and you need to give them advice
because leaders certainly do not have all the answers or all the wisdom."
Events
Defense attorneys plan forum with candidates for appellate courts
The
North Carolina Association of Defense Attorneys will hold a Judicial
Candidates’ Forum on Friday, Oct. 25, at the Grandover Resort & Conference
Center in Greensboro. The forum, which rill run from 11:00 a.m. to 12:30 p.m.,
will feature judicial candidates for seats on the North Carolina Supreme Court
and the Court of Appeals. The forum, which NCCBI is co-sponsoring, will be held in conjunction with the
Defense Attorneys’ annual Fall Seminar, is expected to attract more than 300
attendees.
Twenty-one candidates are
seeking election for open appellate level judicial seats - six candidates for
the state Supreme Court and 15 candidates for the Court of Appeals. Candidate
participation will be confirmed after the Sept. 10 primary elections.
Information about each candidate may be found on the NCADA’s website at www.ncada.org.
The forum gives members of
the public and the bar a rare opportunity to learn about the candidates who wish
to serve the state at the appellate court level. Each candidate will have the
opportunity to briefly discuss his or her qualifications for the position and
answer brief questions regarding areas of concern for civil defense attorneys
and their clients.
The North Carolina Association of Defense
Attorneys brings together civil trial attorneys to promote the exchange of
information, ideas, and litigation techniques, and to strengthen the practice,
improve the skills, and enhance the knowledge of lawyers defending individuals
and businesses in North Carolina. For more information about the N.C.
Association of Defense Attorneys or the Judicial Candidates’ Forum, please
contact the Association office at 1-800-233-2858.
Pinehurst to host
Executive Golf Championships
If
you’re an upper-level executive with a golf game to match, then the inaugural
United States Executive Golf Championships might just fit you to a tee.
Scheduled for Nov. 14-17 at Pinehurst Country Club, the 54-hole tournament is
for CEOs and other business executives nationwide who boast handicaps of 15 and
under. It is being staged by Executive Golf Management, headed by former Duke
University and NBA star Jack Marin, along with Pinehurst Championship
Management. Gov. Mike Easley has agreed to serve as the tournament’s honorary
chairman.
The event will be played as a gross tournament with flights for various handicap
brackets as well as an overall championship to determine the 2002 U. S.
Executive Golf Champion. There will also be a best-ball consolation. In all,
there will be six championships to vie for. With Pinehurst Championship
Management assisting in the operation of the event, it is an opportunity for
business executives to participate in a championship-caliber event on a U.S.
Open golf course. The tournament will be played at Pinehurst No. 2, No. 4 and
No. 8.
NCCBI believes that this event can become a showcase for North Carolina and an
annual attraction for some of America's finest business leaders to visit our
great state. To date, the tournament has commitments from approximately 35
business executives from across the country. In this inaugural year a field of
60 would be ideal, but 120 can be accommodated.
For more information, contact Jack Marin (919-981-4058 or jack@USexecutivegolf.com)
or Bert Hensley (919-672-2237 or bert@USexecutivegolf.com).
Easley announces memorial
ceremony to mark Sept. 11 attacks
Gov.
Mike Easley and First Lady Mary Easley invite the public to attend a special
ceremony on Wednesday, Sept. 11 on the State Capitol grounds (Hillsborough
Street side) at 11 a.m. to honor those who perished in the terrorists' attack.
Special guests scheduled to participate include: Gov. and Mrs. Easley, Secretary
of Crime Control & Public Safety Bryan Beatty, Adjutant General William E.
Ingram Jr., and Raleigh City Mayor Charles Meeker. Guests will hear patriotic
music from the Raleigh Concert Band, Carolina Harmony Chorus, Sweet Adelines
International, and others.
The NCCBI master calendar of meetings and events
SEPTEMBER |
4 |
Wednesday |
10:00 a.m. |
NCCBI Executive Committee, Angus
Barn, Raleigh |
4 |
Wednesday |
9:30 a.m. - noon |
Small Business Advisory Board
meeting, Angus Barn, Raleigh |
4 |
Wednesday |
11:45 a.m. |
Triangle Area Meeting, Angus
Barn |
5 |
Thursday |
11:00 a.m. |
Council
of Local Chambers, NCCBI (Meeting
Notice), (Response
Form) |
9 |
Monday |
2:00 - 4:00 p.m. |
Economic Development Committee,
NCCBI Boardroom |
11 |
Wednesday |
Rescheduled |
Tax & Fiscal Policy
Committee, NCCBI Boardroom |
16 |
Monday |
2:00 - 4:00 p.m. |
Transportation Committee, NCCBI
Boardroom |
19 |
Thursday |
2:00 - 4:00 p.m. |
Education Committee, NCCBI
Boardroom |
25 |
Wednesday |
2:00 - 4:00 p.m. |
Tax & Fiscal Policy
Committee, NCCBI Boardroom |
26 |
Thursday |
5:30 p.m. |
Rocky Mount Area Meeting
Reception, Benvenue Country Club |
27 |
Friday |
10:30 - 1:00 p.m. |
Environmental Concerns Committee
meeting, NCCBI Boardroom |
30 |
Monday |
7:30 a.m. |
Asheville Area Meeting
Breakfast, Grove Park Inn, Asheville |
30 |
Monday |
11:45 a.m. |
Boone Area Meeting Luncheon,
Broyhill Inn |
OCTOBER |
1 |
Tuesday |
11:45 a.m. |
Charlotte Area Meeting Luncheon,
Charlotte Marriott City Center |
1 |
Tuesday |
5:30 p.m. |
Salisbury Area Meeting
Reception, Salisbury Country Club |
3 |
Thursday |
2:00 - 4:00 p.m. |
Health Care Committee, NCCBI
Boardroom |
7 |
Monday |
5:30 p.m. |
Greensboro Area Meeting
Reception, Grandover Resort |
8 |
Tuesday |
7:30 a.m. |
High Point Area Meeting
Breakfast, String & Splinter |
8 |
Tuesday |
11:45 a.m. |
Winston-Salem Area Meeting
Luncheon, Salem Academy & College |
8 |
Tuesday |
2:00 - 4:00 p.m. |
Economic Development Committee,
NCCBI Boardroom |
8 |
Tuesday |
5:30 p.m. |
Statesville Area Meeting
Reception, Statesville Civic Center |
10 |
Thursday |
2:00 - 4:00 p.m. |
Education Committee, NCCBI
Boardroom |
15 |
Tuesday |
11:45 a.m. |
Moseley Area Meeting Luncheon,
Elon University, Mosley Center |
16 |
Wednesday |
2:00 - 4:00 p.m. |
Tax & Fiscal Policy
Committee, NCCBI Boardroom |
21 |
Monday |
5:30 p.m. |
Greenville Area Meeting
Reception, Hilton Greenville |
22 |
Tuesday |
11:45 a.m. |
New Bern Area Meeting Luncheon,
Riverfront Convention Center |
22 |
Tuesday |
5:30 p.m. |
Kinston Area Meeting Reception,
Kinston Country Club |
23 |
Wednesday |
11:45 a.m. |
Fayetteville Area Meeting
Luncheon, Holiday Inn Bordeaux |
23 |
Wednesday |
5:30 p.m. |
Wilmington Area Meeting
Reception, City Club at deRosset House |
24 |
Thursday |
11:45 a.m. |
Southern Pines Area Meeting
Luncheon, Mid Pines |
24 |
Thursday |
2:00 - 4:00 p.m. |
Transportation Committee, NCCBI |
25 |
Friday |
10:30 - 1 p.m. |
Environmental Concerns Committee
meeting, NCCBI Boardroom |
28 |
Monday |
2:00 - 4:00 p.m. |
Legal Issues & Workplace
Policies Committee, NCCBI Boardroom |
29 |
Tuesday |
11:45 a.m. |
Hickory Area Meeting Luncheon,
Holiday Inn Select |
30 |
Wednesday |
11:45 a.m. |
Elizabeth City Area Meeting
Luncheon, Pine Lakes Country Club |
NOVEMBER |
14 |
Thursday |
6:00 p.m. |
N.C. Business Hall of Fame
Dinner, The Charlotte Hilton, Charlotte |
DECEMBER |
3 |
Tuesday |
Time TBA |
Small Business Advisory Board
meeting, Wachovia, Charlotte |
3 |
Tuesday |
noon - 2 p.m. |
NCCBI Executive Committee
meeting, Grandover, Greensboro |
10 |
Tuesday |
2:30 p.m. |
NCCBI Board of Directors
meeting, Grandover, Greensboro |
13 |
Friday |
10:30 - 1 p.m. |
Environmental Concerns Committee
meeting, NCCBI Boardroom |
13 |
Friday |
10 - 2:30 p.m. |
Young Executives Forum meeting,
Charlotte Area |
End
|