Veto foreseen, but it’s a ‘fight worth having’ (News and Observer)
All indications remain that Gov. Bev Perdue will pull out the “veto” stamp this week and thunk it down on a bill, now on her desk, aimed at sweeping money from a range of accounts while also giving Perdue authority to make $400 million in cuts at state agencies.
There seems to be little doubt that Perdue, a Democrat, will send the money bill back to the General Assembly. Republicans are in charge there, but did not get a veto-proof majority in the House on the legislation, Senate Bill 13.
Perdue said continued debate on the bill, sparked by her veto, is a “fight worth having.”
“I think I have until Wednesday,” Perdue said of reaching a final decision. “Everybody knows how I feel.”
Perdue has been concerned by a part of the bill that takes about $67.5 million headed to the Golden LEAF Foundation, which is funded by national tobacco settlement money, and about $8.2 million left in accounts that the state uses for business incentives.
Perdue said the tobacco foundation was created so that its grants shouldn’t be touched. She wants to honor that. And she says the incentives help create jobs.
Republican House Speaker Thom Tillis said he stands ready to help the governor with a jobs package, if one is needed. But the state should be looking to save everywhere.
Tillis, who is from suburban Charlotte, met last week with the Charlotte Chamber of Commerce, which had sided with Perdue, and emphasized to its leaders that he will actively help bring in jobs. “As a result,” the chamber said in a statement, “we are comfortable that the provisions of SB 13 that were originally of concern have been put in a broader context and our concerns have been alleviated.”
The chamber withdrew its opposition to the bill.
“It’s about $10 million or $20 million that seems to be at issue,” Tillis said of a bill that he said would save tens of millions.
It has to be done
Perdue’s budget proposal includes $10 million in the One North Carolina incentive fund, which is controlled by the governor, and $7 million in job development investment grant money, another incentive pot. Her plan says the One North Carolina money is “seal the deal” funds that are critical.
While seeking the money, Perdue said she wishes itweren’t so. Competition among states is the overriding factor, she said.
“I don’t think anybody in America would be anything but ecstatic if North Carolina was unilaterally disarmed from this race,” Perdue said. “Forty-nine other governors have incentive capacity. … I personally hate
Republicans have said they are focused on creating a better tax and business climate that will attract jobs without government deciding on amounts and recipients of grants and other giveaways.
Cutting and creating
Much of the focus of Perdue’s budget has been on the proposed cuts to state employees – as many as 3,000 people and 10,000 positions. But her office says also that jobs and economic development funds she has included in the plan would create 10,000 jobs over the next three years.
State employee association leaders say it’s outrageous for Perdue to get rid of existing jobs while allocating incentives money in the hope of creating future ones.
Perdue points to five big efforts that she says would lead to job creation:
1. A cut in the corporate income tax rate. It costs the state $418 million. Her office says it will lead to 5,573 jobs.
2. An unemployment insurance tax credit for small businesses. Cost to the state: $65 million. New jobs: 1,300.
3. A traffic “mobility” fund to “address critical congestion bottle necks.” Cost: $76.8 million. New jobs: 1,459.
4. Her plan to spend $75 million repairing and renovating state and university buildings would create 1,500 jobs.
5. The $10 million sought for the One North Carolina fund. That would create 200 jobs, according to her plan.
Compiled by staff writer J. Andrew Curliss
Published Mon, Feb 21, 2011 02:00 AM
Modified Mon, Feb 21, 2011 05:06 AM
