OCTOBER 31, 2001

Other stories below:
Dominion announces plans for $600 million generating station
Gas-fired power plant announced for Cumberland County
Easley releases $129 million for local governments
For eighth straight month, N.C.’s jobless rate higher than national average
10-digit dialing delayed two years in 919 area code


State Government News

Appeals Court overturns medical malpractice reform
One of the reforms adopted by the General Assembly in 1995 to reduce frivolous medical malpractice suits has been overturned by a divided N.C. Court of Appeals. In Anderson v. Assimos (COA-00-587), the court held that it’s unconstitutional to require that a plaintiff alleging malpractice must first have a medical expert review the case and agree to testify that the plaintiff received substandard care.

In a majority opinion written by Judge Edward Greene, concurred in by Judge Linda McGee, the court said the requirement denies some people equal access to the courts. Judge Hugh Campbell concurred in part and dissented in part.

The N.C. Medical Society said the requirement, known as Rule 9(j), is a simple procedure to determine whether a case has any merits before it enters the court system. NCCBI, which strongly supported the legislature’s 1995 medical malpractice reforms, which included imposing a dollar cap on punitive damage awards, said it was “extremely disappointed” by the ruling. NCCBI said the Appeals Court “took an unprecedented action in overruling an act of the General Assembly that simply required a minimal level of investigation before a plaintiff’s lawyer could sue a doctor, nurse, hospital or other health care provider.”

NCCBI President Phil Kirk said he hoped the decision will be reversed by the state Supreme Court. “Frivolous lawsuits create an unnecessary cost in our health care system and the court should respect the laws enacted by the General Assembly to prevent them,” he said.

Dominion announces plans for $600 million generating station
Dominion, the Richmond, Va.-based electricity utility that serves northeastern North Carolina, announced plans to construct a $600 million natural gas-fired electric generating station in Person County, one of the largest industrial investments in recent state history. The 1,100-megawatt facility, to be located in the Person County Industrial Park in Roxboro, is expected to sell its generation on the wholesale electricity market. 

Approximately 400 people will initially be employed in the construction of the facility and as many as 40 permanent employees will be hired when the facility becomes fully operational. Dominion serves four million retail customers in five states, including 110,000 in northeastern North Carolina through its Dominion/North Carolina Power subsidiary. 

"Person County provides an excellent location for this facility, with access to needed supplies of gas, water and transmission capacity," said Thomas F. Farrell II, CEO of Dominion Energy, Dominion's electric generation subsidiary. "By constructing the proposed facility here, we can help meet the growing need for energy and make a significant contribution to the regional economy."

"Dominion is an excellent company, and we are extremely pleased at the prospect of having them join our corporate community," said Glen Newsome, executive director of the Person County Economic Development Commission. "The capital investment and new job creation associated with this project are substantial and will accord significant benefit to the city, county and state of North Carolina. We look forward to continuing our relationship with Dominion and are committed to bringing this project to fruition."


Gas-fired power plant announced for Cumberland County
Newport Generation Inc. announced plans to construct a $250 million natural gas-fired electric generating station in Cumberland County, a project that will help meet the growing energy needs of the region. The 500-to-650 megawatt facility, which the company estimated is capable of producing enough electricity to meet the needs of a city the size of Charlotte, will be located on a 105-acre site adjacent to the Public Works Commission Butler-Warner plant. Newport Generation officials estimate that 500 jobs will be generated during construction phase of the project. The plant is expected to go on-line in 2004. Newport Generation Inc. was established in February 2000. The company is an independent power producer specializing in the development and acquisition of power-generating assets in the United States and abroad. The company has offices in Newport Beach, Calif., and Charlottesville, Va. and is developing additional projects in the northwest and south central regions of the nation.


Easley releases $129 million for local governments
Gov. Mike Easley released $129 million in intangibles tax reimbursements to local governments, money he had held in escrow since August pending passage of the state budget by the General Assembly. Easley said he plans to continue local government reimbursements through 2003, when cities and counties will have the option enacting a half-cent local sales tax. "Now that the local half-cent option has passed and will go into effect in July 2003, local governments will have the choice of a more immediate income source to utilize in their budgeting and management," Easley wrote. "I hope that the local option will give counties and cities the flexibility that they need to ensure that the property tax does not overburden senior citizens and those on fixed incomes."

For eighth straight month, N.C.’s
jobless rate higher than national average
North Carolina's seasonally adjusted unemployment rate rose to 5.2 percent in September from 5 percent in August, the Employment Security Commission said. For the eighth straight month, North Carolina’s unemployment rate was higher than the national average. The commission also reported that total non-agricultural jobs in the state dropped by 18,300, from 4,006,700 in August to 3,988,400, but the September total was a net increase of 13,100 jobs over September 2000. During the past 12 months, the state has lost 52,500 manufacturing jobs, but gained 28,900 services jobs, 10,700 trade jobs and 7,900 construction jobs.

North Carolina had the nation’s third-largest increase in new claims for unemployment benefits during the week that ended Oct. 13, according to the U.S. Labor Department. N.C. had 3,273 claims, mainly because of job losses in the textile and furniture industries. California reported the biggest increase, 5,157. Illinois was second with an increase of 3,523.

The rise in the state’s September unemployment came after jobless rates fell in 68 counties in August and in nine of the state’s metropolitan statistical areas. The unemployment rates for the metro areas for August, compared with July, were:

Asheville, 3.1 percent, down from 3.6 percent
Charlotte/Gastonia/Rock Hill, NC/SC, 4.7 percent, down from 5.1 percent
Fayetteville, 4.9 percent, down from 5.2 percent
Goldsboro, 4.7 percent, down from 6.6 percent
Greensboro/Winston-Salem/High Point, 4.8 percent, down from 5.4 percent
Greenville, 5.8 percent, down from 6.2 percent
Hickory/Morganton/Lenoir, 6.8 percent, down from 7.3 percent
Jacksonville, 3.8 percent, down from 3.9 percent
Raleigh/Durham/Chapel Hill, 3.3 percent, up from 3.1 percent
Rocky Mount, 6.8 percent, down from 7.2 percent
Wilmington, 4.4 percent, up from 4.1 percent

he number of schools where 90 percent or more students are performing at or above grade level has risen from 12 to 171 in the past five years, according to end-of-year test scores released last month by the State Board of Education and the Department of Public Instruction. Officials said the latest results of the ABCs of Education program show that nearly one-third of all schools had at least 80 percent of students at or above grade level at the end of last school year. Fewer than 10 percent of all schools met that criteria in the 1996-97 school year.

School officials also released data which showed a growing percentage of students overall who performed at or above grade level in both reading and math. In 2000-01, 71.7 percent of North Carolina’s third through eighth graders were proficient in both basic subjects. That’s up from 61.7 percent in 1996-97, the first year of the ABCs accountability program.

In the elementary and middle grades, 82 percent of white students scored at grade level or better on both the reading and mathematics end-of-grade tests. For black students, that total was 52 percent.

School performance under the ABCs will again mean incentive bonuses will be paid to many teachers and other certified personnel and teacher assistants. For schools classified as making Exemplary Growth, teachers and other certified personnel will receive gross pay bonuses of $1,500 and teacher assistants will receive $500 bonuses. Eligible personnel at schools that met Expected Growth will receive gross pay bonuses of $750 for teachers and other certified personnel and $375 for teacher assistants. A total of 56,313 certified personnel and 16,422 teacher assistants will receive awards totaling $75.5 million this year. See a chart of now much ABC bonus money is being paid out on a county-by-county basis.

Other notable facts on the ABCs:

  687 schools, or 354.6 percent of the total, achieved Expected Growth results on the end-of-year tests. That’s up from 24.6 percent in 1999-2000.

  Schools in the No Recognition category – those that have 50 percent or more of students at or above grade level -- increased from 28.1 percent to 38.8 percent in 2000-01.

  Low-Performing schools now make up only 1.4 percent of all schools, down from 2.1 percent last year and 7.1 percent in 1996-97 when the ABCs began. Thirty-one schools were identified as Low Performing. Low-Performing schools are those that fail to meet their expected growth standard and have significantly less than 50 percent of their students performing at or above Achievement Level III. Fourteen Low-Performing schools were assigned assistance teams for this school year.