Misplaced priorities

Published on July 1, 2004

Lawmakers prefer to aid corporations, not displaced workers.

By Rob Schofield

[07.01.04] -- Working North Carolinians are in the midst of a prolonged economic slump that has been felt throughout the state.

Despite significant population growth, and some recent positive signs, total payroll employment is well below pre-recession levels.

Wages, for those fortunate enough to find work, also have fallen dramatically as lower-paying service jobs have replaced higher-paying manufacturing jobs.

Together, these disturbing trends have conspired to lower the state median household income by 4.4 percent in three years.

Unfortunately, a review of the 2004 legislative session to date reveals that lawmakers have repeatedly made one clear choice in response to the economic downturn: When in doubt, provide direct assistance to corporate interests rather than public institutions or individuals in need. 

Examples of expanded largess to corporate interests include proposals for:

* A $20 million “emergency” appropriation to the so-called “One North Carolina Fund” business grant program,

* A series of tax cuts and expanded exemptions for corporations that would cost $25.7 million in 2004-05 and $57.2 million in 2005-06,

* A multi-million dollar appropriation to build a NASCAR test track,

* Continuation and possible expansion of the Job Development Investment Grant Program at a cost of several million dollars per year,

* Continuation of the widely criticized William S. Lee business incentive act.

* Repeal of one of the few remaining wage standards attached to an economic development program, in this case for so-called “industrial revenue bonds.”

This list stands in stark contrast to the treatment afforded programs for workers and their families.

And many of those programs, including children’s health insurance, services for the unemployed, childcare, mental health, and even K-12 education, have been slated for new and painful funding cuts at a time when services are needed more than ever.

With just a few weeks left in the 2004 legislative session, lawmakers still have time to restore some degree of balance to the final political tally sheet.

Budget-makers in the Senate have sent some encouraging signs in recent days.

The question that remains is whether or not legislative leaders have gone so far down the path of aiding corporate interests that they no longer can find their way back to the middle of the road.

Rob Schofield is policy director of the North Carolina Justice Center in Raleigh, N.C.

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