Opinion
The Case Against Panic Is Strong
Politicians almost always make bad decisions when they or their loudest constituents feel panicky. It's time to separate the rational fears from the irrational ones.
Opinion
So What If It Is Unconstitutional?
The General Assembly is preparing to hold a special session next week to discuss incentive deals for specific corporations. This should be considered illegal, but it won't be.
Opinion
Choosing Your Poison on Incentives
Assume for the sake of argument that state government should use targeted incentives to improve North Carolina's economy. Should the tool of choice be tax credits or cash?
News
Businesses: Credits Not Decisive
RALEIGH — A second Commerce Department report on the William S. Lee Act released in as many weeks indicates that 95 percent of the time targeted tax credits are not a “deciding factor” for companies when they make investments or hire workers. The department’s newest report was based on a survey of North Carolina manufacturers. “This report indicates for the majority of firms the Lee Act is not effective. We are simply wasting taxpayer dollars. This points to the necessity of major reform sooner rather than later,” said Rep. Paul Luebke, D-Durham, a frequent critic of the Lee Act.
News
Incentives Lawsuit Is Dismissed
RALEIGH—A lawsuit filed by a legal association against the state that maintained that offering tax rebate incentives to film companies violates the “public purpose” requirement in the North Carolina Constitution was dismissed Monday in Wake County Superior Court. Judge Narley Cashwell sided with lawyers representing the state, who argued that the N.C. Institute for Justice’s case was moot and the plaintiffs lacked standing. “I don’t think this is a particularly significant setback,” said a lawyer for IJ.
News
Culinary School Gets State Dollars
RALEIGH — Approval of the state budget June 30 also marked the beginning of the fulfillment of a $10 million promise made by NC House Speaker Jim Black to a culinary arts school that planned to establish a campus in Charlotte. The budget appropriates $1 million in 2003-04 and an additional $1 million in 2004-05 from the One North Carolina Fund to Johnson & Wales University. Black wrote in a letter May 23, 2002 to University President Jack Yena: “You have my personal commitment of support for a $10 million investment over the next five years by the State of North Carolina for this project.”
News
Lawmaker: Lee Act ‘Colossal Failure’
RALEIGH — A new report on the William S. Lee Act shows that 96 percent of the jobs associated with the act would have been created anyway – without the incentives authorized by the legislation. The report, released Thursday by the North Carolina Department of Commerce, was prepared by Michael I. Luger, director of the Office of Economic Development for the Kenan Institute of Private Enterprise at UNC-Chapel Hill. The report was prepared for the N.C. Department of Commerce in response to legislation in 1996 requiring a biennial assessment of the program.
News
State Makes Second Incentives Grant
RALEIGH—The Economic Investment Committee has awarded a grant to the R.H. Donnelley Corporation to relocate its headquarters to the Triangle area of North Carolina. Under the agreement, the state will provide the company with a reimbursement of 65 percent of personal state withholding taxes for up to10 years. About 140 of its employees are expected to move to North Carolina in early 2004. The North Carolina grant could be as much as $4.3 million if the company creates all the promised new jobs over 10 years.
Opinion
Our Priorities Out of Whack
Rep. Martin Nesbit opposed Monday's passage in the NC House of a tourism-incentive bill. His was the right vote, for the right reason.
