June 30, 2000 n Issue No. 7 n The
2000 Short Session
This is the print-out and
fax version of the Bulletin, with no pictures or
graphics
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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