Gov. Easley Vetoes Bill That Gives Businesses Unfair Breaks

Offers Responsible Alternative To Aid Growing Firms And Protect Taxpayer Dollars

Raleigh- Gov. Mike Easley today vetoed House Bill 1761: “An act to create the job maintenance and capital development fund.”  Easley said the bill would present a dangerous precedent for North Carolina’s economic development policy by providing up to $40 million in state funds to a single company without regard to how much the company pays in state and local taxes, wages it pays now or in the future and whether it lays off nearly 25 percent of its workforce.

In its place, Easley has recommended the General Assembly adopt his “American Productivity And Competitiveness Act of North Carolina” so large existing employers can modernize their North Carolina operations, stay competitive in the global economy and create and maintain their jobs through partnerships with state and local governments.  The legislation will be presented to the legislature when it convenes for the short legislative session in May 2008.

This veto is Easley’s eighth.  Bills vetoed previously include: November 2002, Senate Bill 1283 related to unqualified appointments to various boards and commissions; June 2003, Senate Bill 931 which stripped the State Board of Education of its authroity to set teacher standards; August 2003, House Bill 917 which raised fees charged by finance companies; June 2004, House Bill 429 which would have required local governments to make cash payments to billboard owners of up to five times the annual revenue generated by the billboard upon its removal; March 2005, Senate Bill 130 which would have illegally conveyed state property; Septemeber 2004, House Bill 704, which would have lowered state teacher standards; and August 2006, Senate Bill 542 which would have excluded some organizations access to state buildings.

Here is the text of the governor’s veto message:

House Bill 1761, “An Act to Create the Job Maintenance and Capital Development Fund:”

House Bill 1761 would set a dangerous precedent for North Carolina’s economic development policy and is not fair to her taxpayers.  It calls for the state to give up to $40 million in cash to an existing company in one county with little or no regard for how much the company actually pays in state and local taxes, what wages it pays now or in the future, or whether it lays of nearly 25% of its workforce.  Never in the history of the state has anyone given a company up to $40 million and allowed them to lay off hundreds of workers.

We are proud of the employer and its hard working employees that House Bill 1761 was designed to help.  But this bill does not protect those employees or the state of North Carolina.

Therefore, I veto the bill.