The state government is here to help.
Or, that’s what the backers of S.B. 127 believe, which defunds regional economic development entities and directs the money to the state Department of Commerce. From there, economic development resources would be pooled and coordinated, administered over several regional districts.
“I think the feeling was that the district groups were really not bringing jobs to the areas, and that the money could be better spent through the Department of Commerce,” Sen. Louis Pate, R-Wayne, said.
North Carolina’s Eastern Region, headquartered in Kinston and begun in 1993 as the Global TransPark Development Commission, would lose about $450,000 of its estimated $1.5 million budget. NCER works with 13 counties to attract companies and encourage business growth in the area, in collaboration with a multitude of groups, agencies and universities.
John Chaffee, NCER president and CEO, said the legislation would affect the organization seriously, especially in the short term.
“We have outstanding grant agreements the people expect us to perform, and those extend way beyond July 1, 2013,” Chaffee said, referring to the date the legislation would take effect. “They extend into next year. Some of those involve (Department of Defense) grants or contracts, in terms of we’re dealing with part of the Office of Economic Adjustment, which is part of DOD and tied to our military-related activities.”
He said NCER isn’t unopposed to going private, or consolidating activities under state control. Chaffee said the real concernlies with NCER’s complex financial structure, and resolving issues with losing state funding by July 1.
AdvantageWest, based in Asheville and serving 23 counties, would lose $1 million of its $2.2 million budget. The Asheville Citizen-Times reported AdvantageWest Chairman Tom Alexander believes defunding local agencies would result in a disadvantage for rural areas versus cities.
The Senate passed the bill May 14, just ahead of the crossover deadline when legislation needs to pass either the House of Representatives or the Senate, or be considered dead for the remainder of the session. The vote was 33-15, with all Republicans voting aye and all but one Democrat voting no.
“I believe it’s in the wrong direction, when we should create jobs,” Sen. Don Davis, D-Greene, said. “What this bill does, it takes local people that’s on the ground — removes them from the process, or at least creates an added layer.”
Democrats have been vocal opposing GOP efforts to take what had been under local control and place it under the authority of the state government. Davis considers it “overreaching into local communities.”
Pate said economic development efforts would still be connected to localities through contact with county groups, like Lenoir Committee of 100.
S.B. 127’s chief sponsor is Sen. Harry Brown, R-Onslow, who also represents part of Jones County. A call left for Brown was not returned by press time.
The bill was referred to the House Committee on Commerce and Job Development. If it passes, it will then go to the House Transportation Committee for consideration.
Wes Wolfe can be reached at 252-559-1075 or wes.wolfe@kinston.com. Follow him on Twitter @WolfeReports.