On one hand, $68.75 million removed from the Golden LEAF program this fiscal year and the next.
On the other hand, $27 million appropriated to pay off the North Carolina Global TransPark’s debt.
For a state budget that nearly tops 400 pages and was released to the public Sunday night, it’s likely to be a mixed bag for most people.
Golden LEAF and the state Rural Economic Development Center
Golden LEAF, the nonprofit delegated to spend 50 percent of the state’s tobacco settlement dollars, has been a part of many programs in Kinston. The Kinston Enterprise Center, run by Pride of Kinston, received $200,000 from the 2001 annual grant cycle to be a business incubator.
“The Golden LEAF Foundation, as long as I’ve been acquainted with them — and that’s been about 10-12 years — it’s done a lot of good in Eastern North Carolina and done a lot of good here in Kinston,” said Adrian King, Pride of Kinston executive director.
The 2013 budget takes $68.75 million that would have otherwise gone to the organization for each of the next two years and sends the money to the state general fund.
“The Golden LEAF Foundation has a pretty huge reserve fund, and we feel like they can finance whatever projects they have, for a year or so, based on the reserves they already have set aside, without building up any more,” said Sen. Louis Pate, R-Wayne.
As well, the state Rural Economic Development Center, which has come under scrutiny for allegedly disbursing funds out of political pressure, is being reorganized into the state Rural Development Division, part of the state Commerce Department.
“We used it for a gas line for Sanderson Farms, we used it for water and sewer projects with West and with Smithfield,” Lenoir County Economic Development Director Mark Pope said. “So, we’ve been fortunate enough to receive those grants and we couldn’t have gotten the projects without them. I’m sad to see it change, but again we’ll see what Commerce will do to step up and put those grants in process.”
Rep. George Graham, D-Lenoir, said he thought the REDC as it currently stands was doing a good job and led by qualified people, but that the new organization will have room to succeed, as well.
“I think it has a future, because rural counties still have to compete with urban centers for projects and programs, and we need the training and development in rural North Carolina to make us competitive and keep us competitive,” Graham said.
Dr. Michael Bitzer, a political science professor at Catawba College in Salisbury, said these two moves by the GOP majority, and other similar decisions, will affect its standing among the Republican base going forward.
“Politically, that’s where their base is — in the rural parts of the state,” Bitzer said. “It’ll be interesting to see how the rural parts of the state do react to this — whether there is concern about potential neglect from the Republicans, in terms of addressing some of the major issues, or whether this new emphasis will basically alleviate that concern.”
Global TransPark
For the GTP, seen as one of the main economic motivators in the region, news coming from the budget was generally received as positive. The main appropriation is $27 million dollars to pay off the GTP’s debt to the state’s Escheat Fund.
“The whole idea with the long-term plan of the GTP was it was to create jobs for Eastern North Carolina and I think it’s progressing that way,” Pope said. “With Spirit being an anchor now, we’re starting to see some of that, so I’m glad to see us continue in support of the GTP, because I think it still has a lot of room for growth, and I think that growth potential is there.”
Lenoir County Commissioner J. Mac Daughety, a local proponent of the GTP and transportation issues, said he felt paying off the debt was a good idea, and shouldn’t have been an issue at the start.
“Fantastic,” Daughety said. “Should have been done a long time ago.”
He added, “Generally, when a project is started like this, the state or the federal government is backing the project. It doesn’t usually go along like this. They give a grant or allot money, and that’s what should have been done in the first place. All they’re doing here is going back and fixing a mistake they should have corrected a long time ago.”
Pope mentioned that the full economic benefit wouldn’t happen overnight. One of those steps, he acknowledged, is a study authorized in the budget to analyze infrastructure improvements at the GTP and better transportation access for goods moving in and out of the area.
Moving forward
Votes on the budget in both chambers of the General Assembly are expected today and Wednesday, barring any unforeseen developments.
Wes Wolfe can be reached at 252-59-1075 and Wes.Wolfe@Kinston.com. Follow him on Twitter @WolfeReports.
Breakout Box
For more information on the state budget, visit:
n The Joint Conference Committee Report on the Budget
http://www.ncga.state.nc.us/sessions/2013/budget/2013/SB402_Committee_Report_2013-07-21.pdf
n Senate Bill 402, Base Budget Appropriations for Current Operations, Table of Contents
http://www.ncga.state.nc.us/sessions/2013/budget/2013/S402-CCSLEx-4-TOC.pdf
n Senate Bill 402, Base Budget Appropriations for Current Operations
http://www.ncga.state.nc.us/Sessions/2013/Bills/Senate/PDF/S402v5.pdf