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NC Legislature passes ban on Internet sweepstakes (Associated Press)

Monday, July 12th, 2010

NC Legislature passes ban on Internet sweepstakes (Associated Press)

RALEIGH, N.C. — The North Carolina Legislature voted Wednesday to attempt to make clear again that a 2006 ban on video poker also applies to computer-based sweepstakes games found at businesses inside strip malls and old storefronts statewide.

In an 86-27 vote that gave final passage to the bill, the House agreed to the Senate’s plan to eliminate by Dec. 1 the games that gambling opponents say seduce players and take their money.

The measure now goes to Gov. Beverly Perdue. Press Secretary Chris Mackey said late Wednesday the governor is expected to sign the bill into law.

The vote followed more than two hours of impassioned debate that crossed party lines.

Sweepstakes centers have proliferated since at least two trial judges blocked state agents and police from seizing the machines. The judges ruled that the video poker ban and an ensuing 2008 law designed to close a loophole don’t necessarily apply to the games. Those cases are pending.

Sweepstakes opponents said the Legislature meant to get rid of these kinds of machines, too. Wednesday’s bill, they said, should leave little doubt of its intention.

“I’m tired of playing whack-a-mole with this industry,” said Rep. Ray Rapp, D-Madison, one of the House’s chief supporters of the ban. “We’re trying to come back to you with a clear directive saying, number one, it’s gambling … and number two, it’s banned.”

The industry has said getting rid of the games could do away with up to 10,000 jobs during the ongoing economic slump. Supporters of the games say they’re not gambling but a form of entertainment and marketing for Internet or phone time or office services. Machine opponents say the games, found at more than 900 places statewide, are designed to get around the 2006 ban.

Neil Hoover of High Point, says the games enable his company’s 10 business service centers in the state to keep their doors open as they compete with places like The UPS Store. His outlets face an uncertain future.

“Without our sweepstakes, we probably won’t be able to compete with those businesses. They’re so much bigger than us,” Hoover said. “There are other states that actually welcome our industry.”

Still, a large majority of lawmakers joined local law enforcement officers and religious leaders in arguing the sweepstakes centers are essentially casinos with dozens of computer screens where customers lose money in only a few clicks of the mouse.

“This is an industry for people who do not have a choice, who are addicted on gambling,” said Rep. Grier Martin, D-Wake.

Lawmakers on both sides of the political aisle questioned whether lawmakers should outlaw something that appeared to be a harmless form of entertainment to some but gambling to others. Rep. Becky Carney, D-Mecklenburg, tried unsuccessfully to get a motion heard that essentially would have delayed the bill until next year and avoided a tough vote.

“I’m tired of being judged on whether I’m moral or not depending on whether I support this bill,” said Rep. Carolyn Justice, R-Pender.

Sixteen of the 18 black Democrats present voted against the ban. Many were among the most vocal opponents and complained the Democratic leadership didn’t give them the option to consider the letting the state regulate the machines and collect revenues that will be sorely needed next year.

Sweepstakes machine operators argue lawmakers should have left the games in place while the General Assembly studies the issue and return next year to pass a law that would generate state revenues by licensing machines and owners. Amusement machine owners also argue it would be better to replace the video poker machine ban that took effect in July 2007 with legislation that would revive the industry and give the state 20 percent of the revenues.

“We’ve not had an opportunity to look at some legislation that some would consider relevant,” said Rep. Alma Adams, D-Guilford. “I’m just really disturbed at what I’ve seen in some ways.”

House Speaker Joe Hackney, D-Orange, voted for the ban and expressed his position to fellow House Democrats this week. Hackney told reporters the ban was the only option that had the support of a majority of members. Waiting until next year would have allowed the industry to expand even more, he said.

“I didn’t intimidate anybody. I jut announced my position, and the majority ruled,” Hackney told reporters after the vote.

The measure now would make it a misdemeanor for anyone to operate a game. Repeat offenders could be found guilty of a low-grade felony punishable by eight months to 2 1/2 years in prison.

The bill’s language would not outlaw arcade games and marketing games by soft-drink companies and other retailers that require the consumer to type in a code at a company’s website.
By GARY D. ROBERTSON (AP) – 4 days ago

Lawmakers wrap up marathon (Charlotte Observer)

Monday, July 12th, 2010

Lawmakers wrap up marathon (Charlotte Observer)
After N.C. House and Senate finish crammed session at 5:30 a.m. Saturday, both parties claim victories.

RALEIGH — After all the bills, motions and votes of this legislative session, it’s time for N.C. legislators to go home and explain themselves.

Democrats, who were the majority, will talk about saving teacher jobs in the face of a disastrous economic situation. They’ve already started telling voters about tax credits and other programs meant to lure business and spur job growth. They’ll claim the mantle of reform because of an ethics and good-government package that was one of the last items approved.

“We have a good platform to leave on,” said Senate Leader Marc Basnight, a Manteo Democrat.

Republicans have a lot to say about the things that didn’t get done. They say the Democrats had low ambitions and put off important decisions – such as how to deal with an expected $3 billion shortfall next year. As it is, the current $18.9 billion budget delays until January cuts that will be necessary because Congress is unlikely to send to the state $500 million in Medicaid money.

“They were trying to do the least harm they could,” said Rep. Thom Tillis, a Cornelius Republican. “You saw bills that were carefully crafted to do the best they could to help themselves in November.”

Like schoolchildren with a project due, legislators crammed throughout the final week. In the last 24 hours, sessions were stop-and-start affairs that carried on until 5:30 a.m. Saturday. After a marathon week of pushing final bills, committee meetings and debates, the House and Senate wrapped up with a traditional ceremony – hugs and well wishes that looked an awful lot like the end of summer camp.

Republicans cleared out of the chamber. They may have good reason to look toward the fall. Because of a national mood that appears to be tilting against incumbents, especially Democrats, Republicans believe they have the advantage heading into this fall’s elections, when every seat in the legislature will be before voters. Democrats now control both chambers, but it’s not certain who will be in charge after November.

It is unlikely that voters will pick their senators and representatives based on how they voted on a particular amendment or whether they made the best floor speech. Instead, campaigns will focus on, and voters will respond to, big themes or hot-button issues.

“The Democrats, it seems to me, didn’t give Republicans any real ammunition like a tax increase,” said Gary Pearce, a longtime Democratic consultant and strategist.

Given how bad the fiscal situation was, the Democrats did a pretty good job handling the political situation, Pearce said. “It seemed to be a political version of the Hippocratic oath. Do no harm. And they didn’t.”

But Democrats did raise taxes last year to cope with a budget shortfall that was as large as $4.6 billion.

“They’re going to have to defend that,” said Dallas Woodhouse, state director of Americans for Prosperity, a libertarian advocacy group. “It makes it harder to pass things like taxpayer-funded elections.”

Woodhouse was referring to a proposal that was originally attached to the Senate’s ethics reforms. The provision would have included a broad expansion of publicly funded campaigns for statewide elected officials. The provision died almost immediately after Woodhouse’s group had former Charlotte mayor and Republican candidate for governor Pat McCrory record a robocall against it.

Woodhouse can also claim credit for swiftly watering down a bill that dealt with nutrition standards in day cares.

Republicans said the bill was a step toward “a nanny state” because it would have prohibited serving chocolate milk and juice boxes to children. Democrats argued the state already regulates nutrition and the bill followed the guidelines of a legislative task force that had studied the issue. Calls from Americans for Prosperity targeted conservative-leaning Democratic districts, and soon the bill was altered to only a set of suggestions.

Democrats in the Senate can crow about a ban on video sweepstakes parlors. The games rose out of the state’s ban on video poker, and Senate Democrats, led by Basnight, pushed a bill that sought to put the 900 parlors out of business.

“It would have been awful if North Carolina had allowed the growth of that sort of operation,” Basnight said.

The Senate forced the House to act. Democrats in the House, who were divided on video sweepstakes parlors, had previously agreed to not take action this session. When the vote came, several Democrats argued over whether killing the industry’s 10,000 jobs would hurt the state’s already struggling economy.

Speaker of the House Joe Hackney said Democrats can take credit for measures on jobs and ethics. They funded programs and provisions to stop waste, fraud and abuse in Medicaid. The budget includes provisions to save teacher jobs with the use of lottery money.

Democrats have already started campaigning on moves they said will save jobs and spur small business. Hackney noted that once the session ends, he intends to start campaigning in his own district, where he faces a Republican challenger.

On Friday, during a break in sessions, he deflected Republican criticisms of how Democrats had handled the session.

“I’ve found that political rhetoric has little or nothing to do with what goes on down here,” said Hackney, an Orange County Democrat.

By Benjamin Niolet
ben.niolet@newsobserver.com
Posted: Sunday, Jul. 11, 2010

Read more: http://www.charlotteobserver.com/2010/07/11/1555770/lawmakers-wrap-up-marathon.html#ixzz0tTsS8cvI

Session Start (NC Insider)

Wednesday, May 12th, 2010

Session Start (NC Insider)

Legislators will begin what they hope will be a short legislative short session on Wednesday, saying they are still on track to produce a state budget before the start of the new fiscal year. The legislature was set to convene amid budget talks, news conferences and a protest of federal health care legislation. Senate budget writers continued meeting behind closed doors Tuesday to try to quickly hammer out the chamber’s budget plan. Senate leader Marc Basnight, D-Dare, and the chamber’s chief budget writer, Linda Garrou, D-Forsyth, laid out a key difference with Gov. Beverly Perdue, saying their spending plan won’t contain pay increases for teachers or repay state employees for last year’s furlough. Basnight said it was difficult to justify raises for any state employees while private sector workers still face layoffs and furloughs. “You cannot give raises in that climate,” he said. Garrou said by eliminating pay raises and a furlough payback that legislators could largely restore an additional flexibility cut for local schools included in Perdue’s budget plan. Basnight did say that he believed the Senate plan would include $50 million to $100 million for Perdue initiatives, including tax credits, aimed at jump-starting small business hiring. Legislators were expected to be greeted by protesters who planned to “surround the Legislative Building” while calling for state lawmakers to support legislation aimed at blocking national health care reform. The “Take Back Our State Rally” was being organized by NCFreedom and various tea party groups. Basnight said he is not in favor of taking up any legislation to try to undo the federal health care law.

Session By the Numbers

A few numbers to consider as the General Assembly begins this year’s legislative short session:

• 1.5 billion: The amount, in dollars, of federal stimulus money that legislators expect to use to help balance the 2010-11 fiscal year budget.
• 499 million: The amount of that total, in dollars, that Congress has yet to approve.
• 2,767: The number of House and Senate bills filed since the two-year session began in January 2009.
• 13: Days remaining before all bills containing appropriations must be filed.
• 7.22, the cost, in dollars, of a sandwich, chips and drink from the legislative cafeteria.
• 6: Incumbent legislators, including a House member who lost a bid for a Senate seat, who return to Raleigh having lost their primary races.
• 5: Number of groups whose name includes the word “tea” listed as sponsors of a protest planned at the Legislative Building on Wednesday.
• 1: Number of times that the Revenue Laws Study Committee has recommended that cities get voter approval before incurring debt to build their own high-speed Internet systems.
• 0: Number of times that the General Assembly, since 2002, has asked for voter approval before incurring state debt.

NC lawmakers return; closing budget hole is focus (AP)

Tuesday, May 11th, 2010

NC lawmakers return; closing budget hole is focus (AP)

North Carolina legislative leaders are trying to prevent the economic recession from prolonging the General Assembly’s so-called “short” session.

Lawmakers return formally to work Wednesday for another round of tough spending choices as state tax revenues have failed to keep up with costs for the new fiscal year starting July 1.

While the budget gap — Democrats calculate it between $800 million and $1 billion — is nowhere close to last year’s fiscal chasm, spending reductions in education and health programs and at dozens of state offices will occur. Since additional broad tax increases appear off the table, requests by Gov. Beverly Perdue and others to expand programs or restore previous cuts will get close scrutiny, too.

“This is the beginning of some very difficult choices we’re going to have to make over the next several weeks,” said Sen. Tony Foriest, D-Alamance, an education budget subcommittee co-chairman. “This is not going to be easy.”

Lawmakers have been meeting for the past month to try to minimize House and Senate differences to adjust the second year of the spending plan they approved last summer. Perdue also helped out by rolling out her $19.2 billion budget adjustment proposal three weeks early.

It’s all part of a familiar refrain by chamber leaders during even-numbered years — finish the budget by July 1 and go home.

But the Legislature hasn’t completed a spending plan on time since 2003. Changes to the state’s ethics and campaign finance laws also have to be worked through before adjournment, along with some way to deal with an influx of sweepstakes games that local judges have ruled escape the state’s video poker ban. Reforms to the state’s Alcoholic Beverage Control system also are on tap.

Democrats want to keep the election-year session focused on issues that play well with voters, like encouraging job growth and lessening the financial pain on public schools, the University of North Carolina and community college systems.

“Jobs will be our first priority in ways that we can retain them, expand them, attract them,” said House Speaker Joe Hackney, D-Orange. “Saving education in the budget in the extent we can at all three levels will be certainly a top priority as well.”

Republicans, who remain in the minority in both chambers but have the wind at their backs entering the campaign season, will argue again that Perdue and her fellow Democrats have raised taxes needlessly because the budget gap isn’t that large and they ignored less painful ways to cut spending.

Perdue’s $86 million proposal of tax breaks and incentives for business to create jobs is “pitiful” and won’t help employment, said House Minority Leader Paul Stam, R-Wake. “They’ve done this billion-dollar tax increase and now they’re going to give back 5 percent and say that they’re creating jobs.”

Education advocates also plan to fight additional spending cuts for local school districts proposed by Perdue above the $305 million already in place for the fall, arguing thousands of additional education jobs could be eliminated above the 5,000 teacher and staff positions removed this year.

The district spending cuts may shrink if Perdue is willing to give up spending on experience-based pay raises for teachers and her effort to pay back state employees and teachers the 0.5 percent salary reductions she required of them last year to close a budget shortfall.

She also wants her college- and career-ready initiative funded that would spend $39 million on hand-held computers in elementary school classrooms so teachers can better monitor student achievement. Health care advocates are pleased that lawmakers agree for now with Perdue to restore $40 million in funds to local mental health agencies after steep cuts last year reduced services.

“We need to stabilize,” said Dave Richard, executive director of the Arc of North Carolina, which advocates for the mentally disabled. “Keep the funding as level as we can and let us get through these cuts and manage that before we do a lot of other massive changes.”

Momentum has increased for three campaign finance and ethics bills approved by the House last year and awaiting Senate action as headlines focused upon federal and state investigations of activities surrounding former Gov. Mike Easley and his associates and illegal campaign contributions by a Wilmington businessman.

The legislation would delay more state officials from lobbying government until well after they leave state employment; ban state contractors from giving to elected officials who approve contracts that benefit the vendor; and require board appointees to report campaign donations and fundraising for elected officials who appointed them. Perdue unveiled her own ideas last month.

“For both political parties to retain their credibility, they need to end the perception that they’re not honest,” said Jane Pinsky with the bipartisan North Carolina Coalition for Lobbying and Government Reform.

Legislative leaders also must decide what to do about:

– legislation approved by the House that would make it more difficult for cities and towns to annex neighboring lands against the wishes of property owners.

– a Senate bill requiring commercial dog breeders to register with the state and meet operational standards.

– a Senate ban on building wind turbines on mountain ridges and requiring wind farms to get a state permit.

– a House bill that would change negligence cases so that a plaintiff would get an award proportionate to the defendant’s percentage of fault.

By GARY D. ROBERTSON

Budget, jobs top state’s agenda (News and Record)

Monday, May 10th, 2010

Budget, jobs top state’s agenda (News and Record)

RALEIGH — In addition to budget tables and tax reports, lawmakers this summer may be reaching for a thesaurus to find new ways to say “bleak.”

The General Assembly returns to Raleigh on Wednesday with two majors goals: rebalancing the state budget and sparking job creation.

Although lawmakers mention other pending bits of legislation, those two goals are top of mind for legislative leadership in both chambers.

“I think we’re going to be spending a lot of time trying to look at the budget and making sure that the fallout of it all won’t devastate these different entities,” said Rep. Alma Adams, a Greensboro Democrat and one of the lead budget writers in the House.

Leaders in the House and Senate say there is little chance the General Assembly would vote to raise sales or income taxes this year. With the exception of a few fee increases, that leaves budget cutting as the only way to compensate for still-sluggish tax revenues.

Gov. Bev Perdue’s budget, which serves as a starting point for lawmakers, contains cuts to virtually every state agency, including public schools, community colleges and universities.

“The university folks are talking about these cuts having an impact on academic programs and the classroom,” Adams said. “There is not fat in these budgets anymore.”

That’s especially stark, considering education programs are among those legislative leaders and the governor say they are most likely to protect.

Lawmakers are also troubled by three other lurking issues:
• Stimulus money and a temporary tax increase that will help keep the state in the black next year both expire July 1. Any budget adjustment needs to anticipate what could be further spending cuts in 2011.
• Although Perdue’s budget proposal cuts about $1 billion, it is higher than the amount of money the state spent during the past 12 months. Even with what amounts to a slight boost in spending, department leaders across state government say they’ll have to slash services to comply with the cuts.
• Demands on government services such as Medicaid and subsidized child care are growing as a result of the same recession that has decimated tax revenue.

Aside from the budget, House and Senate leaders name few other measures as “must-do” items.

“We are really hoping to have a session this time that looks to small businesses,” Rep. Hugh Holliman told 20 constituents at Davidson Community College earlier this week.

Holliman backs a package of small business tax credits and other help for native North Carolina businesses proposed by Perdue.

Asked whether he thought the funding would be available to pay for such a measure, Holliman said, “Yes. It’s about jobs, and jobs is the number-one issue.”

House and Senate lawmakers say a package of campaign finance ethics reforms is likely to pass this summer. Those changes would be aimed at addressing a spate of recent stories surrounding former Gov. Mike Easley as well as a fundraiser who illegally bundled contributions for Perdue and Basnight.

“There is some opportunity to have some consensus there,” said Sen. Phil Berger, an Eden Republican and his party’s leader in the Senate.

Also, lawmakers say they will address the resurgent video poker industry. Although the legislature has twice voted to outlaw the games, a new brand of gambling known as video sweepstakes has proliferated throughout the state.

Republicans are in the minority in the House and Senate, but plan to push some measures despite likely opposition from Democrats.

For example, Berger said Republicans would push a bill that would allow North Carolinians to exempt themselves from certain parts of the federal health care reform bill. Perdue and other Democrats have shown little enthusiasm for bucking the measure, which was a key priority of Democrats in Washington.

Berger added he would also like to draft changes to the rules governing how quickly tax refunds need to be issued. In the past two years, residents have found themselves waiting for state refunds well after the federal refund came.

His measure, which is still being written, would shorten the length of time the state has to issue a refund before interest and penalties would be due to taxpayers.

Basnight said lawmakers could look at such an idea, but that it would not be in the top tier of priorities.

“Our real interest is the creation of jobs and the economy,” Basnight said.

Other measures likely to get some notice this coming session include:
• Transportation funding: The city of Greensboro is asking lawmakers for the authority to buy rights of way for state road projects. This would let the city loan DOT money to help speed along portions of the western Urban Loop.
“We’ve been told in no uncertain terms … that projects will be viewed more favorably where the local municipality has assisted,” said Councilman Robbie Perkins.
• Susie’s Law: Sen. Don Vaughan of Greensboro plans to introduce a bill that would increase the seriousness of punishments available in animal cruelty cases. The measure comes in the wake of a widely publicized Greensboro case involving a dog that was set on fire.
• Alcohol: Lawmakers say they expect to pass a set of reforms aimed at ensuring some standard ethics and accounting procedures at ABC boards across the state.
• Sheriffs: Sen. Stan Bingham says he will continue pushing a measure that would disqualify felons from becoming sheriff. This bill is aimed at several cases across the state, including one in Davidson County, where candidates with serious convictions on their records ran for the office.

Contact Mark Binker at (919) 832-5549 or mark.binker@news-record.com
Sunday, May 9, 2010
(Updated 7:39 am)
By Mark Binker
Staff Writer

NC General Assembly Budget Calendar

Thursday, May 6th, 2010

Below is a link to a calendar released today at the Senate Appropriations JPS Subcommittee meeting which outlines the timetable and dates for the budget process. 

Click here

Charlotte drivers plead: Let N.C. road money follow the population (Charlotte Observer)

Tuesday, April 13th, 2010

Charlotte drivers plead: Let N.C. road money follow the population (Charlotte Observer)

As congestion mounts, lawmakers say it’s time to look at allocation system

By Mark Johnson and Bruce Siceloff

mjohnson@charlotteobserver.com

Posted: Sunday, Mar. 28, 2010

Many Charlotteans stuck in traffic snarls, such as the daily bottleneck on south Charlotte’s still-unwidened stretch of Interstate 485, say they’re getting shortchanged.

They insist that the city sends millions of dollars to the state capital and doesn’t get enough in return for roads.

Mecklenburg, the state’s most populous county, receives more money for road maintenance and construction than any other county.

But when spending is measured on a per-capita basis, according to N.C. Department of Transportation and census data analyzed by the Observer, Mecklenburg ranks 89th out of the state’s 100 counties.

DOT spent an average $3,756 for each North Carolinian during the past 10 years, but $2,967 per person in Mecklenburg. That statewide average would have boosted Mecklenburg’s share of DOT money since 2000 by 27 percent, or $721 million.

On April 6, a legislative transportation committee will hold a public hearing on whether the state should update its 21-year-old formula for apportioning most road construction money.

Mecklenburg and the state’s other major urban areas have sought changes to the system for years. Now, a consensus for an overhaul seems to be building among urban lawmakers from both parties.

Over the past decade, Mecklenburg received 7.7 percent of the road funding. But it was home to 9.7 percent of the population last year.

The shortest distance on a map from John McLean’s house, near Ardrey Kell High School in south Charlotte, to a business meeting in Greensboro is to take I-485 to Interstate 77 up to Interstate 85. McLean, a lawyer, instead goes all the way around the east side of Charlotte’s I-485 loop during rush hour.

The outerbelt near McLean’s home has not been widened beyond its original four lanes, creating a daily knot of automobiles.

“It’s a longer distance, but a shorter time,” McLean said. “(I-485) is too much of a stress, too much of a hassle.”

N.C. Department of Transportation officials emphasize that transportation spending is not about matching dollars with head counts. It’s about building a network that can move people and goods across the state.

Businesses might not be as interested in moving to North Carolina if they can’t efficiently get their products from the Wilmington ports to Charlotte stores, regardless of how much traffic congestion has been reduced on I-485, said Greer Beaty, the department’s communications director.

“The benefits don’t stop at the county line,” Beaty said. “Our role at DOT is to maintain and enhance the system for the entire state…. What’s good for I-85 in Mecklenburg County is good for I-85 in Durham County. Those are major commercial routes.”

The state has spent $1 billion on I-485 since 1989, DOT officials said, and more than $100 million in state funds for the city’s light rail, emphasizing that transportation means more than paving roads.

The city also is counting on state dollars for roughly $75 million of the $300 million for a planned commuter rail line and, eventually, more than $250 million for light rail.

Charlotte Mayor Anthony Foxx said the city has received a disproportionate share of transit money, and applauded the administration of Gov. Bev Perdue for using a new funding mechanism, essentially installment payments to the contractor, to finish the I-485 loop.

“Things are moving in a much better direction,” Foxx said, though he added that the state’s urban areas historically have not gotten their due in road money.

The sense of inequity is ingrained in the public’s mind. Raleigh-based Public Policy Polling released a survey last week showing 55 percent of respondents statewide believe they don’t get their share of road funding, but in Charlotte the figure was 69 percent.

The gripes of unfairness echo in the state’s other large cities. Wake County, which includes Raleigh, ranked 90th in per capita spending over the past decade and got 7.5 percent of the road funding for 9.6 percent of the population.

“Road projects need to be built for roads that are used a lot,” said Raleigh Mayor Charles Meeker. “Building four-lane roads where there are no people doesn’t make sense.”

Mecklenburg and the state’s other major urban areas have argued for several years that the state’s system of paying for roads shortchanges them. The list of critics has expanded to include members of both political parties whose comments, at least on this issue, are hard to tell apart.

“The No. 1 complaint we hear from citizens is congestion,” said Rep. Becky Carney, a Charlotte Democrat and House Transportation Committee chair. “Why aren’t we addressing that?”

Now listen to Rep. Ric Killian, a Charlotte Republican: “We have to focus on the problem, and the problem is congestion.”

Carney and Killian are among those who want to rewrite the state’s road funding formula, called the “equity formula,” to give more weight to traffic volume and congestion.

The formula was created in 1989, under then-Gov. Jim Martin, a Charlotte-area Republican, with goals that included ensuring that nearly everyone in the state lives within 10 miles of a four-lane road, an intrastate system.

The formula cuts the state into seven districts and divides money among those districts. Half of the money is based on each district’s population. A quarter of the funding is determined by the miles of unfinished road in each district needed to complete the four-lane intrastate system. And the last quarter is divided equally among the districts. Mecklenburg’s district includes a dozen surrounding counties.

The equity formula does not affect urban loop funding. That is a competition among the state’s largest cities. The equity formula has generated a competition between urban and rural areas.

Over the past decade, the county with the fewest people, Tyrrell, got the most road money per capita. Tyrrell, in Eastern North Carolina, had a population of 4,078 in 2009 and is best known as the last county that Outer Banks-bound travelers pass through before they get to Dare County’s beaches.

Gaston County ranked 98th. It had 208,958 residents in 2009, including a healthy share of Charlotte commuters. Just ahead of Gaston was Union County, ranking 97th, with a population of 198,645.

Tyrrell County proportionally received so much money over the past decade in large part because of the expansion of U.S. 64, said Van Argabright, a top project manager at DOT. That project, though, mostly benefits other counties, he said.

“The primary reason you do that is to get people from Raleigh to the Outer Banks,” Argabright said. Tyrrell’s funding “is going to look distorted because of that. A lot of what they’re getting is a statewide project…We try not to focus on the boundaries.”

The department’s priorities are mobility, safety and keeping the state’s infrastructure healthy, Beaty said.

The legislature and past governors from both parties, though, also have used road building as a lure for economic development, hoping that better roads will make less populated areas of the state appealing to new businesses. The idea is to aid the economic health of parts of the state beyond the metro counties, said Argabright.

“I don’t think we want everyone living in Raleigh and Charlotte,” he said.

Killian said spreading economic development is not state government’s job. The state is supposed to provide citizens with security and a sound infrastructure, he said.

“Businesses want to come to an area where employees can buy a house, send their kids to a good school and enjoy the amenities of the community,” he said. “That usually means urban areas, and that won’t change. Putting a road in a rural community isn’t going to suddenly make that location equally attractive.”

David Hartgen, a retired UNC Charlotte transportation professor, faults both state and city leaders for failing to focus spending priorities on projects that will relieve congestion.

Hartgen, a critic of Charlotte’s light-rail efforts, said Raleigh and Charlotte planners have earmarked too much of their money for transit investments that will serve only 1 percent or 2 percent of their residents.

“Charlotte’s plan basically shuts off any capacity improvements on about 60 percent of the arterial road system, and proposes to spend about half the money on transit,” Hartgen said.

“The problem isn’t with the money we get from the equity formula. The problem is the misallocation of the money we have. Fixing that would solve maybe all the congestion issues we have in these two cities.”

State Sen. Clark Jenkins, an Edgecombe County Democrat, doesn’t want to see the equity formula changed to take money away from rural areas. But he agrees that DOT needs to find new money to reduce traffic congestion in the cities.

“The bottom line is we need more money, and it should go into the congested areas,” said Jenkins, vice chairman of the Senate Transportation Committee.

The other major proposal is to raise more money, most likely through taxes.

“It’s that simple. We don’t have enough money,” said Allen Tate, chairman of the board and founder of Allen Tate Co., who heads the Charlotte Chamber’s regional roads committee.

Several study groups have pushed proposals to raise revenue over the past decade, but lawmakers avoid pushing anything that remotely resembles a tax increase.

“If they want us to do more, provide a different level of service, we need to have a conversation about what it takes to make that happen,” said Stephanie King, the transportation department’s accounting director.

Like other urban leaders, Tate wants to see congestion factored into road funding, but he echoed state officials’ emphasis on blurring the boundaries. The major traffic arteries in and out of Mecklenburg extend into neighboring counties, he said.

“Whatever we do can’t stop at the county line,” Tate said. “We have to take a regional approach to this.”

Funding formula change might delay road work for Southeastern N.C. (Wilmington Star News)

Tuesday, April 13th, 2010

Funding formula change might delay road work for Southeastern N.C. (Wilmington Star News)

Local transportation planners oppose changes to state equity formula

By Patrick Gannon
Patrick.Gannon@StarNewsOnline.com

Published: Saturday, April 3, 2010 at 3:30 a.m.

Proposed changes to the state’s transportation-funding formula might jeopardize new road projects on the coast, while benefitting larger metropolitan areas such as Charlotte and Raleigh, Wilmington-area transportation officials say.

On Tuesday, the Joint Legislative Oversight Committee on Transportation will hold a public hearing in Raleigh on whether the state should change the “equity formula,” which determines how most road dollars are allocated across the state.

“I am absolutely and unconditionally and 100 percent absolutely opposed to any changes,” said state Rep. Danny McComas, R-New Hanover, who sits on the oversight committee.

The proposed changes are being driven by larger cities, which would benefit if the formula is changed to focus on population numbers alone. Currently, the formula, created in 1989, allocates money based on population and unfinished intrastate road miles in the state’s transportation divisions.

Smaller cities and rural areas are fighting back.

“We oppose any change to that formula,” said Mike Kozlosky, executive director of the Wilmington Metropolitan Planning Organization, who plans to address the committee on Tuesday during its meeting in Raleigh.

Officials said the amount of funding Division 3, which includes six Southeastern North Carolina counties, would lose depends on how the formula is modified.

But McComas said the northernmost section of the Brunswick leg of the U.S. 17 Wilmington Bypass, the extension of Military Cutoff Road and the extension of Independence Boulevard could all be pushed back.

“We’ve got numerous projects in our community that could very well be in jeopardy,” McComas said.

Allen Pope, division engineer for Division 3, said the current equity formula has served the state well since 1989.

“The big issue is there’s not enough dollars to meet the needs that we have (statewide),” Pope said.

Kozlosky said he plans to urge the committee to recommend new funding sources for transportation, rather than squabbling over the distribution method.

McComas said Southeastern North Carolina has been waiting for funding while major roads have been built in other parts of the state. Changing the formula now could divert money destined for the Wilmington area to more populated areas.

“Now that it’s our turn, we cannot afford to be shortchanged,” McComas said.

The committee will make recommendations to the General Assembly about the equity formula and other transportation issues. Legislators could consider equity formula changes in this year’s legislative short session, which begins in mid-May, McComas said.

Division 3 does receive more road dollars per capita than the state average. But local transportation leaders say that calculation doesn’t include public transportation or airport funding, and that the larger cities receive much more of that.

Patrick Gannon: 343-2328

Editorial – State’s major metro areas should not be allowed to hog road funding (Wilmington Star News)

Tuesday, April 13th, 2010

Editorial – State’s major metro areas should not be allowed to hog road funding (Wilmington Star News)

Published: Tuesday, April 6, 2010 at 3:30 a.m.

Well, of course North Carolina’s largest cities want the funding formula for roads changed. By distributing construction dollars on population alone, they would get a bigger share of transportation dollars than other parts of the state. And that would be unfair.

The legislative committee looking at revamping how road projects are selected should resist attempts by Raleigh, Charlotte and the other large metro areas to make such a drastic change. While the current formula can be improved, population should never be the only factor in determining the priority for new roads. Any formula also should take into effect such factors as growth rate and potential for economic development.

If Raleigh and Charlotte get their way, the Wilmington area likely would lose out.

Over the past three decades the Cape Fear region’s population has soared. Prior to the housing bust, Brunswick was one of the fastest-growing counties, not only in North Carolina, but in the nation. Pender’s growth rate also was impressive. And New Hanover County has seen healthy growth as well.

Allen Pope, who heads the DOT’s Division 3 office in Wilmington, is exactly right when he says the issue is that there simply isn’t enough money to go around. Any way you slice it, someone loses out. The current system attempts to divide those limited resources fairly, but it may have bent too far in favor of slow-growth rural areas.

Raleigh and Charlotte certainly have had their growing pains, and anyone who’s driven their beltlines at rush hour knows what real gridlock is. But North Carolina is more than the sum of its metropolitan areas.

Roads in smaller but growing areas also have overtaxed roadways. In Brunswick County, for example, mostly two-lane roads serve a growing population. U.S. 17, which was conceived as an uninterrupted thoroughfare, now has stop lights and “Michigan left turns” to accommodate large new subdivisions and shopping centers around Leland and Belville. And more may be coming.

The Cape Fear Memorial Bridge and the Brunswick County causeway leading to it can resemble a parking lot at times, with traffic slowing to a crawl.

Transportation officials can, and should, improve the formula. Political patronage has given us bypasses around tiny communities and kept money from areas with less influence in Raleigh. That is changing, but better planning is in order, too.

Rather than dividing money regionally, the largest projects should be coordinated according to a statewide priority list, while funding for less-expensive local projects could continue to be divided among the regions. That’s just one suggestion.

But the committee shouldn’t let the large cities drive transportation policy for the entire state.

Improving State’s Equity Formula (FOX Charlotte)

Tuesday, April 13th, 2010

Improving State’s Equity Formula (FOX Charlotte)

Brien Blakely

Story Created: Apr 7, 2010 at 12:11 AM EDT
Story Updated: Apr 7, 2010 at 12:11 AM EDT

CHARLOTTE, N.C. – It’s called the Equity Formula, where state transportation money is distributed to equally among all 100 counties.

But, people in Charlotte have been complaining for years that it should be called the IN-equity formula because under the program there’s no consideration for densely populated cities like the Queen City to get it’s fair share. Rural counties get the same amount of money as Urban areas.

“We’re the ones getting gypped. It’s crazy, you send the money where the people are. People in Raleigh need to wake up and get their act together,” said Charlotte motorist Casey Shady.

According to published reports from the State Department of Transportation, The Charlotte Metro Area ranks near the bottom in per capita spending for road construction and maintenance. Of the State’s 100 Counties, Mecklenburg ranks 89th, Gaston 98th, Union 97th, Cabarrus 81st, Lincoln 72nd and Iredell 69th.

Mecklenburg County Representative Jim Gulley (Republican) says, “I think Charlotte is subsidizing the rural parts of the state at our expense.” Representative Tricia Cotham (Democrat) from Mecklenburg says, “we need and deserve our fair share. Our current system doesn’t work.”

Lawmakers in Raleigh heard public comments Tuesday about changing the Equity Formula. Rep. Bill Current Sr. from Gaston County (Republican) says the best comment of the day was “nobody seems to like the Equity Formula, so it must be pretty good.” But, he adds, even with all the talk about changing the system, in the end he doesn’t think anything will happen.

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