NCDOT Removes EV Charging Stations From Rest Stops | WUNC

NC fails to support public interest in rechargeable cars and stops effort to use renewable energy on NC roads.

Poor planning and lack of foresight causes NC DOT and lawmakers to fail in an effort to support use of rechargeable cars on NC highways. According to DOT spokeswoman Julia Casadonte "the stations were meant to be a temporary pilot project" and that the department removed the charging stations to resolve a conflict in laws. Rather than solve a problem of how to accommodate payment for recharging, the DOT removed the stations because a poorly planned directive required the DOT to find a way to charge drivers for using the stations. This conflicted with a Federal law saying charges may be only made for vending machine services along highways. 

The charging stations were in fact being used by the public. Over 14 months 146 vehicles were recharged at a total cost of $44.00 for the energy consumed. Since the state did not find a way to allow customers to pay for the service they decided to just "pull the plug" and remove the chargers. 

Read the article... NCDOT Removes EV Charging Stations From Rest Stops | WUNC

Easley and legislators reach compromise on latest job incentives

Governor Easley and Legislators reach a compromise on an incentive plan to save jobs in NC. The plan replaces one the Governor vetoed recently that legislators had crafted to keep a factory in Cumberland county from closing down.

The goal of the new legislation is to encourage Goodyear Tire & Rubber to upgrade a plant in Fayetteville and Bridgestone Firestone to modernize one in Wilson and save jobs in those communities. Lawmakers worried that without state assistance for factory upgrades, the companies could shut down and move operations overseas as many have done in recent years.

House Speaker Joe Hackney said "What triggered this is the absolute devastation that would occur in Cumberland County if Goodyear was to leave," he said, adding that the same would happen in Wilson if Bridgestone Firestone were to pull out. "We're focused on the community."

News & Observer
September 11, 2007
Ryan Teague Beckwith, Jonathan B. Cox and Lynn Bonner, Staff Writers

Easley signs compromise incentives bill

RALEIGH — Gov. Mike Easley this afternoon signed into law a compromise bill that gives two tire companies incentives to improve their North Carolina plants.

The bill was drafted Monday as an alternative to one vetoed by Gov. Mike Easley. It would give Goodyear Tire & Rubber Co. and Bridgestone Firestone cash incentives to stay in North Carolina.

The bill passed the House 61-44 about 2:30 p.m. and the Senate 25-16 an hour later. Easley signed it soon after.

"This tool is a fantastic statement by the General Assembly that North Carolina is focused on the future and determined that our citizens will compete and win in the new world economy," Easley said in a statement. "This legislation will create cutting edge economic competitiveness in North Carolina, unlike any state in America." Read more...

Incentive for jobs in western NC

Another taxpayer funded incentive deal has been made to draw jobs to North Carolina. BAE Systems Tensylon will receive $127,000 to expand it's manufacturing operation near Monroe. North Carolina will contribute $40,000 taxpayer dollars and the county will chip in nearly $87,000 to try to boost the local economy.

Charlotte Observer
September 9, 2007
Mike Torralba

Manufacturer gets incentive package
BAE Systems Tensylon to receive $127,000

A manufacturer of antiballistic vehicle and body armor will expand its plant outside Monroe in exchange for $127,000 in state and local economic-development incentives.

The company, BAE Systems Tensylon High Performance Materials, is expected to create 42 new jobs and invest $8.7 million over three years, including an 18,000-square-foot expansion of its Piedmont Drive building, according to the Partnership for Progress, Union County's economic development arm.

The average weekly pay for the new jobs will be $714, not including benefits -- higher than the county average of $643, according to Gov. Mike Easley's office.

The state will contribute $40,000 from the One North Carolina Fund to the incentive package. The fund is intended to encourage out-of-state businesses to come to North Carolina and existing companies to expand, creating new jobs.

The county will contribute a grant of nearly $87,000. Original article...

Goodyear to get millions for not leaving

UPDATE --- Subsequent to passing of the bill to provide incentives to Goodyear in Fayetteville, Governor Easley decided to veto the bill. Click here to read about the veto and why he did it...

The original blog entry follows...

North Carolina gives away big money to entice companies to set up shop in the state and create jobs. Much has been reported in recent news about the relatively new trend and debates continue to rage about whether the huge incentives are worth the cost. The state offered Dell $242 million in cash and tax breaks to bring 2,000 jobs to the Triad and the jobs pay an average of $28,000 per year.

A big ruckus is still being made over the giveaway to entice Google to the western part of the state. In exchange for incentives, the company would build a $600 million data center near Lenoir and create as many as 210 jobs with average salaries of $48,000. Breaks given by the state would save Google up to $90 million over three decades. Local business recruiters also earmarked up to $4.8 million to the company if it meets job-creation goals. Including incentives offered by local leaders, Google could receive more than $260 million over 30 years.

Just before adjourning the 2007 session, the NC General Assembly approved a new incentive to give Goodyear Tire & Rubber Company up to $40 million over 10 years just to stay in Cumberland County. In return the company has to invest at least $200 million in its factory but it would not have to create any jobs and or have to keep all of the 2,750 existing workers.

Wouldn't it be nice if the Legislators would grant tidy sums to all the state residents that have lost their jobs in recent years due to a declining economic climate and businesses leaving the state and region?

What do you think? Leave your comments below after reading the report on the latest incentive...

News and Observer
August 4, 2007
Jonathan B. Cox, Staff Writer

Goodyear could get $40 million
State offers incentives package if the tiremaker stays in Cumberland County

Goodyear Tire & Rubber Co. could get as much as $40 million from the state over 10 years if it keeps producing in Fayetteville -- even if it lays off workers.

Before adjourning, the General Assembly approved a new incentive program written to sway one of Cumberland County's largest private employers as it considers factory closings and expansions.

Goodyear would have to invest at least $200 million in its factory to get the assistance. But it would not have to create any jobs or keep all 2,750 existing positions.

"Goodyear has been a wonderful corporate citizen in our part of the state," said Sen. Tony Rand, a Fayetteville Democrat and one of the legislature's most powerful members. "It makes a great deal of sense to keep one of our most important industrial citizens."

The incentive comes as Goodyear trims domestic production of low-end tires in favor of more profitable models.

Last year, the company said that it would stop making about 10 brands of tires -- some made in Fayetteville -- sold under the names of wholesale customers. Since that time, the company has also announced plans to end tire production at a factory in Canada and close a Texas plant.

Goodyear's decisions angered unionized workers, who went on strike last year. Its actions have also sparked fears in several U.S. communities, where leaders worry that they could lose a major employer.

Officials in Alabama and Tennessee have cobbled together incentives packages to entice Goodyear to upgrade plants instead of shutting them down.

"Everybody spends a lot of money to bring these kinds of plants in," said Jim Cooper, executive director of the Obion County Joint Economic Development Council in Tennessee. Goodyear employs about 2,500 at a plant there in Union City.

"Not a whole lot of emphasis is put on keeping them," he said. Read more...

Golden Leaf out, N.C. Rural Economic Development Center in

The Golden LEAF Foundation was created in 1999 as a non-profit foundation to receive one-half of the funds coming to North Carolina from the master settlement agreement with cigarette manufacturers and distribute the funds to help areas that were heavily tobacco income dependent. The Foundation is supposed to help North Carolinians make the transition from a tobacco-dependent economy through grants and investments that would positively affect the long-term economic advancement of the state.

Recent complaints that Golden LEAF was not doing enough to help counties hurt by the loss of tobacco production has prompted introduction of legislation to abolish the Foundation and direct money now disbursed by Golden LEAF into a trust fund to benefit "tobacco-dependent communities." That money would be distributed by the N.C. Rural Economic Development Center. Sen. Clark Jenkins, D-Edgecombe, said many projects were approved in areas, including western counties, that did not rely on tobacco.

News and Observer
March 30, 2007
Jerry Allegood, Staff Writer

Control of tobacco millions may shift
Bill would kill LEAF Foundation

More than half the state Senate has endorsed legislation that would abolish the Golden LEAF Foundation, which distributes millions of dollars from the state's settlement with tobacco companies.

The legislation, introduced Monday by Sen. Clark Jenkins, D-Edgecombe, would direct money now disbursed by Golden LEAF into a trust fund to benefit "tobacco-dependent communities." That money -- now about $600 million -- would be distributed by the N.C. Rural Economic Development Center, a private not-for-profit organization that works with rural areas.

Jenkins said the legislation was prompted by complaints that Golden LEAF was not doing enough to help counties hurt by the loss of tobacco production. He said many projects were approved in areas, including western counties, that did not rely on tobacco. Read more...

NC using flawed formulas to calculate benefits from give-aways?

According to a study by the N.C. Budget & Tax Center in a March 21, 2007, article by Jonathan Cox at the N&O, the method NC uses to estimate benefits to be gained from large give-aways to lure business to NC is flawed. This means lawmakers making key decisions to give away future income and tax benefits to companies in exchange for building in NC are based on misleading information that does not accurately predict the benefits of the deals.

"Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor."

Read the complete article...

News and Observer
March 2q1, 2007
Jonathan B. Cox, Staff Writer

Report challenges N.C.'s incentives formula

State officials overestimate the benefits gained from companies that get rich incentives to expand in North Carolina, a report says.

Instead of pumping millions of dollars into state coffers, some economic development deals might actually be costing revenue and hurting taxpayers, according to the study by the N.C. Budget & Tax Center, a non-profit group that advocates for the poor.

At issue is a computer spreadsheet that Department of Commerce officials use to assess economic development deals. They plug in variables -- from the number of jobs expected to the amount of sales an operation will generate -- to determine whether future benefits will outweigh the costs.

The report says that the model is flawed and that officials too often use inflated assumptions that make projects look better than they are... Read more...