NCCBI News

Executive Committee Draws Economic Growth Plan

Clearly determined to help improve the state’s economic climate, the NCCBI Executive Committee has directed the association to focus on three public policy issues that will grow jobs and incomes. During a day-long planning session held at Womble Carlyle in Winston-Salem, the Executive Committee concluded that the surest way to grow the state’s economy is to improve government efficiency, reduce corporate and personal income tax rates and to inject new thinking into economic development.

“While we clearly do not yet have the answers to the difficult questions facing our state, we have begun to focus on some of the issues that we believe can curtail some of the erosion to our state’s economy,” said Chair Sue W. Cole of Greensboro, who convened the first-ever planning retreat by the Executive Committee. “We plan to continue to work in a nonpartisan way to effect positive change in the legislature. We plan to keep you, our members, informed of critical issues and we hope to help get you more involved with your legislators from a grassroots perspective.”

Using noted management consultant Dave DeVries as a facilitator, the Executive Committee focused on ways NCCBI can play a strategic role in improving economic conditions in the state. After several hours of discussion as a group and in breakout sessions, the committee members decided NCCBI should concentrate on the three critical issues over the coming three years.

Below are the specific recommendations the committee made in each of the three issues:

Government Efficiency: The governor has taken several positive steps to improve government efficiency, including creating the Fiscal Reform Council. Jim Hyler, chair emeritus of NCCBI, and Bill Coley are co-chairs. They and other NCCBI members make up the majority of the council. The Fiscal Reform Council should focus initially on identifying ways to reduce the actual cost of delivering services. The initial focus should not be which services are delivered but rather the cost and efficiency of delivering existing services. Resulting cost reductions can then mean decreases in taxes or more services, or a combination of the two.

The Fiscal Reform Council should place the highest priority on resolving problems associated with the state’s Information Technology programs. State government spends nearly $1 billion a year on IT related programs. There have been tens of millions of dollars of cost overruns. Most changes can be made by the administration and will not require the approval of the legislature.

The governor needs to give the Fiscal Reform Council permanency and staffing support, perhaps an executive director, in order to make it effective. The council does not currently have the staff to support its important work.

Tax Policy: North Carolina’s corporate income tax of 6.9 percent is third highest in the South and much higher than most of our neighboring states. The marginal personal income tax rate is 8.25 percent, the 8th highest in the country and highest in the Southeast. According to Fluor, North Carolina’s business tax burden is 3rd highest among 14 Southern states. To make the tax system fairer, the Executive Committee recommended:

The 2005 General Assembly should reduce the corporate income tax from 6.9 percent to 5.9 percent. That would take North Carolina from highest among neighboring states to second lowest and fourth lowest in the South.

Reduce the highest personal income tax rate from 8.25 percent to at least 7.75 percent. The reduction in tax revenues would be compensated by greater government efficiency, further study of tax fairness, and successful economic development.

Economic Development: The Executive Committee felt NCCBI needs to be more of a catalyst for change in the operation of the state’s economic development program, including the advocacy of:

More personal involvement of the governor in the business recruitment process.

More targeted recruitment of “new economy” companies, such as biotech.

Performance incentives for business recruiters, including possible use of private funding.

Continued refinement of the incentive program to maximize dollars while ensuring fairness to companies and counties.

Bringing together the House and Senate leadership and Governor toward developing a strategic jobs plan for North Carolina.

“We clearly do not yet have the answers to the difficult questions facing our state,” Cole said. “But we have begun to focus on some of the issues that we believe can curtail some of the erosion to our state’s economy. We plan to continue to work in a nonpartisan way to effect positive change in the legislature. We plan to keep you, our members, informed of critical issues and we hope to help get you more involved with your legislators from a grassroots perspective.”



Membership News: New members of NCCBI include: ALCOA Inc., Gary Biviano, Knoxville; American Roller Bearing Co. of N. C., Ben Succop, Morganton; Benefit Service Co. , Thomas Deloet, Winston-Salem; Brevard/Transylvania Chamber of Commerce, Elizabeth B. Carden, Brevard; BSCI Inc., Hon. Karen Ray, Mooresville; Carolina Biological Supply Co., Larry Gross, Burlington; Carolina First Bank, Larry Robertson, Wilmington; Danmark Group, Inc., Daniel M. Rakovan, Raleigh; Educational Foundation Inc., Blue Ridge Community College, Ann F. Green, Flat Rock; First Trust Bank, Bonny Templeton, Charlotte; Garner Chamber Of Commerce, Kevin Nelson, Garner; Global Warming Initiatives, Jim Haven, Raleigh; Key Risk Management Services, Joe W. Sykes, Greensboro; Lea, Rhine & Associates, PLLC, Jim Lea, Wilmington; Lumbee Nation Tribal Programs, Darlene Jacobs, Pembroke; Mitchell County Chamber of Commerce, Shirley Hise, Spruce Pine; N.C. Department of Transportation-Ferry Division, Charlie Utz, Morehead City; N.C. School of the Arts, Susan N. Booth, Winston-Salem; New Breed Corps., Louis DeJoy, Greensboro; Office of Frank Mitchell, Hon. Frank Mitchell, Olin; Olver Inc., Stephen Alexander, Charlotte; Patrick, Harper & Dixon LLP, Stephen M. Thomas, Hickory; Puryear Tank Lines, Inc., Donald Puryear, Wilmington; State Farm Insurance Co., David Stoller, Raleigh; The Old Clemmons School Bargain Mall & Liquidation Ctr., James Edgar Broyhill, Clemmons; Thomas R. Shepherd & Son Inc., Thomas R. Shepherd, Hendersonville; Williams Cos. Inc., Williams Medical Textiles Inc, Richard W. Williams Sr., Advance.


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