Gov. Mike Easley yesterday announced that North Carolina, for the second year in a row, garnered the No. 1 ranking in the nation in Site Selection magazine’s annual assessment of each state’s business climate.

Easley used the good news to promote the value of the recently-passed North Carolina Economic Stimulus and Jobs Creation Act. However, passage of the bill had no bearing on the criteria used to rank the states. Further, the governor’s press office selectively quoted Site Selection editor Mark Arend to give the impression that the two were linked.

The magazine’s rankings used data showing new and expanded corporate facilities in recent years, which accounted for 50 percent of the rankings. The other 50 percent came from states’ performance in the magazine’s survey of corporate real estate executives. Arend said the survey was done in August and September, prior to the passage of the Stimulus Act.

Arend’s article about the rankings credits the bill for “boost(ing) the state’s allure…” He then mistakenly writes that “The [Stimulus Act] earmarks $540 million in cash grants paid for with income tax revenue from the employees of the businesses that get the grants. If signed into law, the Act will put North Carolina in the running to land significant new projects.”

Most estimates, including the one from the governor’s office, puts the value of the incentives program at $240 million. Easley signed the bill into law yesterday.

Easley’s press release touted the ranking. “This ranking shows that we are doing the right things to ensure long-term economic growth in North Carolina,” Easley said. “Our challenge is to ensure good jobs for all of our families, and strong investments in all of our communities.”

Then the press release amends the Stimulus Act segment from Arend’s article, attributing it to him as a quote. It left out the errant information that the total grants totaled $540 million, leaving the impression that passage of the act was a critical factor leading to the state’s top ranking.

Arend acknowledged in a phone interview with Carolina Journal that passage of the Stimulus Act had no bearing on the magazine’s rankings.

See for yourself:
Site Selection magazine article

Gov. Easley’s press release

Chesser is assistant editor of Carolina Journal.