A plan moving its way through the N.C. General Assembly could mean significant cuts to several economic development funding sources that primarily target rural counties.
Senate Bill 13, which the Senate approves Thursday afternoon by a 30-18 margin, would divert $142 million from various funds. That includes $67.6 million from the Golden Leaf Foundation, which was funded by a settlement with tobacco companies. Under the plan, half of the money the Golden Leaf Foundation is slated to receive next fiscal year would be diverted to the state’s General Fund.
The N.C. House is expected to take up the measure soon.
The bill, Balanced Budget Act of 2011, also provides for the General Fund to receive $11.7 million from the state’s Health and Wellness Trust Fund, which was created in 2001 to address statewide health issues, and $2.8 million from Tobacco Trust Fund, which helps farmers and others involved in the tobacco industry transition into other segments of the economy.
It also sweeps $5.2 million from the One North Carolina Fund, a cash fund used to attract companies to the state.
Also facing the ax: $13.5 million from information-technology reserve funds; $14 million from a motor-fleet reserve, $1.8 million from farmland preservation; and $4.7 million from money headed to the UNC Cancer Center; among others.
Gov. Bev Perdue criticized Senate leadership for proposing the cuts to economic-development programs.
“The proposed cuts to North Carolina’s jobs and economic development funds will damage our ability to recruit new jobs and to expand existing businesses in the state,” Perdue says in a statement. “I am truly surprised that Senate leadership is considering taking North Carolina’s jobs money as a way to balance the budget. It won’t work, and what’s more, our people won’t work if we can’t bring new companies and new industries to our state.”
Senate Bill 13 is one of several efforts to address a budget deficit estimated at $3.7 billion. Senate leaders hope to cut $800 million from the budget.
“Our job is to make tough choices to balance the budget,” said Senate President Pro Tem Phil Berger, an Eden Republican.
Charlotte Business Journal – by Triad Business Journal
Date: Thursday, February 3, 2011, 5:37pm EST
