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State Government News Briefs

VIAGRA USE RAISES EYEBROWS: The state employees health plan paid for nearly $500,000 on Viagra prescriptions in the first three months of this year, putting the state on track to spend $2 million this year, nearly triple 1999's total, said Jack Walker, the plan's executive director. State officials say that rising costs for Viagra and other drugs are partly to blame for a projected $50 million shortfall the plan faces next year. According to a story in the Raleigh paper, some plan participants are buying hundreds of the pills a year, leading officials to wonder about a potential black market. Officials asked Blue Cross and Blue Shield of N.C. and Pfizer, the manufacturer, to investigate. Under the health plan, state workers pay $15 for as much as a month's supply of Viagra. State rules define a month's supply as 34 pills. That means for $15, a state worker could get $340 worth of Viagra, based on a cost of $10 per pill. Selling those pills at $5 each would provide a profit of $155.

DEBATE CANCELED: The first scheduled gubernatorial debate between Democrat Mike Easley and Republican Richard Vinroot has been called off. The N.C. chapter of the National Federation of Independent Business canceled the event after Easley said he has a scheduling conflict on May 31, when the debate was planned.

LINNEY GETS A NEW TRIAL: The state Court of Appeals overturned the embezzlement and perjury convictions of former state Rep. Larry Linney of Asheville, ruling that two Buncombe court clerks gave improper testimony. Linney, a disbarred lawyer, was sentenced to three years in prison in September 1997 after being convicted of embezzling $11,281 from the estate of a client. He spent less than 24 hours in prison before being released on bond pending appeal.

ELECTRIC DEREG PANEL ISSUES REPORT: As expected, the Commission on the Future of Electric Service in N.C. formally approved sending a report to the General Assembly calling for full retail competition in electric service to begin in 2006. But the report does not propose any new laws detailing how deregulation would work. Nor does it address the issue of $5.5 billion in debt owed by the 51 Electricities. Knowing it has more work to do to find solutions, the commission is only seeking legislation allowing it to continue working and to fund its operations.

ESC HELPING TEENAGERS FIND SUMMER JOBS: The Employment Security Commission of North Carolina (ESC) will be helping young people fill thousands of job openings as the 2000 Summer Youth Employment program kicks off in ESC local offices statewide. Last summer, ESC helped 9,857 youths between the ages of 14 and 21. Of this number 2,793 resulted in job placements. "With unemployment staying low for so long, the labor markets have tightened, making it difficult for some employers to fill positions," said Parker Chesson, ESC Chairman. "We encourage those employers to consider hiring some of these young workers for appropriate positions." ESC’s Summer Youth Employment Program seeks to place youth, without regard to income, into private or public sector jobs. The agency also administers the Workforce Investment Act (WIA) Summer Youth Program, which seeks to place youth who are eligible for WIA services in private or public sector jobs. In addition to these programs, ESC can provide employers with information on the Work Opportunity/Welfare-to-Work Tax Credit program, which allows a federal income tax credit for private-for-profit employers who hire youth 16 and 17 years of age who live within an Empowerment Zone or Enterprise Community. ESC also offers information for youths interested in working in agriculture-related jobs or positions with the federal government. Students or other youth seeking work, and employers who have job openings these workers qualify for are encouraged to contact their nearest Employment Security Commission office for more details about the Summer Youth Employment program. Additional information can be accessed on the ESC
website at www.esc.state.nc.us , or by calling ESC’s toll free employer hotline at 1-877-ESC-6565.

EMC SCHEDULES WATER HEARINGS: The Environmental Management Commission has scheduled public hearings this summer on a plan to restrict industrial and municipal water use in North Carolina's central coastal plain to protect groundwater supplies. The plan is intended to reverse declines of 1 to 8 feet a year in the Black Creek and Upper Cape Fear aquifers, which supply water to more than 250,000 people. Under the proposal, anyone using more than 100,000 gallons of groundwater daily in a 15-county area from Onslow and Duplin counties north to Edgecombe and Washington counties would have to obtain a state permit. Users of more than 10,000 gallons, whether from groundwater or surface waters, would have to register with the state and provide a yearly summary of water consumption, but would not be required to get a permit.

DOT ISSUES TRAFFIC WARNING: The state Department of Transportation warned racing fans traveling to Charlotte this weekend of construction work and lane closings on I-77 in Surry County; I-40 in Burke County; I-85 in Rowan County; and I-95 in Harnett County. Maps and information on other construction projects can be found at http://www.doh.dot.state.nc.us/impact/Safedrive/ .

CONSTRUCTION ACTIVITY INCREASES: Construction across North Carolina jumped 3 percent during the first three quarters of 1999 compared to the same time period of 1998, according to statistics issued by the NC Department of Labor. The state recorded an estimated total of $10.6 billion in residential and non-residential construction during three quarters of 1999 compared to $10.31 billion in activity for January through September of 1998. During the first nine months of 1999, Wake County recorded $1.7 billion in estimated construction activity, with about 13,948 units, while Mecklenburg County posted $1.4 billion in activity for approximately 14,562 units. Total NC commercial construction reached $3.6 billion -- with some 25,476 units -- during the first three quarters while residential building activity climbed to $7 billion involving 80,005 units.

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