Rep. Wray’s Raleigh Report

The Joint Legislative Commission on Governmental Operations met this week as part of its duty to oversee the work of the legislature between sessions.

The commission has several subcommittees, including one for Natural and Economic Resources. The Natural and Economic Resources Subcommittee is particularly important now, as much of its work is focused on job creation and retention. This week, I thought you may be interested to learn about the updates the group received.

Thank you as always for your interest in state government. If you have any questions about this information or anything else that I can help with, please contact me. I am always glad to be of service.

Commerce

State Commerce Secretary Keith Crisco updated subcommittee members of the progress of economic development grants in North Carolina.

JDIG — Job Development Investment Grant

Since its beginning in 2003, JDIG has committed $750 million in grants to 100 grantees, resulting in commitments of over $7 billion in investment and over 30,000 new jobs.

In 2009 alone, JDIG entered into 16 grant agreements, which will result in the creation of over 5,000 new jobs and the retention of 6,000 existing jobs.

One NC

Since 2003, through the One NC Fund the State has made 304 awards, totaling $71 million for the creation of 40,000 jobs and capital investment of $6.9 billion.

In 2009, $8.5 million was committed to 40 grantees for job creation and retention of over 14,000 jobs and $550 million in capital investment.

Industrial Development Fund

6 grants were awarded in 2009, totaling $4.6 million.

These grants leveraged $733 million in private capital investment and will result in the creation of 1,000 jobs.

Site Infrastructure Development

This program was designed in 2003 to attract large scale industrial projects.

In 2009, Merck received $24 million under the fund for the construction of a facility in Durham that will manufacture flu vaccine.

The grant agreement set performance targets of 200 jobs at average wage of $57,000 and investment of $166 million in construction and $90 million in machinery and equipment. Merck has far surpassed all of those requirements.

Job Maintenance and Capital Development Fund

This program was created in 2007 to help retain jobs with existing manufacturers who were making substantial capital investments.

Two grants have been awarded under this program — Goodyear and Bridgestone Firestone. In each case, the company has made an additional investment of at least $200 million and has agreed to retain at least 1,800 existing jobs at salaries at least 40% above the county average.

$5 million appropriated in 2009-2010

Golden LEAF

In 1999, the North Carolina legislature created Golden LEAF to administer one-half of North Carolina’s share of the Master Settlement Agreement with cigarette manufacturers in accordance with the court consent decree between North Carolina and the manufacturers. Golden LEAF is a nonprofit organization devoted to the economic well being of North Carolinians. The foundation makes grants throughout the state intended to help improve the state’s economy, particularly in communities that relied heavily on the tobacco economy.

Dan Gerlach, president of Golden LEAF, updated subcommittee members on the recent work of the foundation. A total of 111 grants were awarded in 2009 totally $35 million. Major initiatives of the Foundation include:

Community Assistance Initiative — the Community Assistance Initiative is a grant program that targets communities of need and provides direct support for projects that significantly enhance the quality of life for citizens within those communities by stimulating economic activity or providing assistance in overcoming barriers to economic transition or community progress. The Initiative reserves $2 million for efforts in each county and works closely with community leaders in developing programs appropriate for the individual community.

Economic catalyst grants — economic catalyst grants assist eligible state, regional and local economic development groups with grants that lead to job creation in tobacco-dependent or economically distressed areas. Golden LEAF works closely with the NC Department of Commerce and other economic developers in awarding these grants.

Recent examples of this program include:

Domtar — The Foundation worked with various economic development groups to retain the Domtar facility (paper manufacturing) in Martin County. The facility is an important local economic engine and accounts for 20% of the tax base in Martin County.

Townsends — The Foundation worked to retain a chicken processing plant in the State. The efforts will ensure the retention of jobs not only at this particular plant, but also at other facilities and for poultry farmers throughout the State.

4,300 jobs were created or retained in the 2009 calendar year with these grants.

Golden LEAF Opportunities for Work

The Golden LEAF Opportunities for Work (GLOW) program was created to address some of the urgent job training needs North Carolina faces during the current economic downturn. GLOW was a short-term, non-degree workforce development grant initiative that supported vocational and/or technical training programs targeting identified employment opportunities in tobacco-dependent, economically distressed and/or rural communities. The expected outcome of projects awarded under this initiative is the eligibility of trainees for placement in permanent, full-time jobs requiring their new skills.

A recent example of success is in the aerospace manufacturing industry. The Golden LEAF has played a pivotal role in the recruitment of Spirit Aerosystems to Kinston. This facility is expected to begin operation in mid-2010 and will bring 700 jobs to this area.

What’s next for Golden LEAF? In the foreseeable future, Golden LEAF will be involved in initiatives to:

Invest in broadband infrastructure

Green economy and health care

Increase accountability and transparency

Strengthen commitment to Community Assistance Initiative

Build STEM (science, technology, engineering, and math) education opportunities.

Notes

Turbotec Products Inc., an international supplier of heat exchangers and heat transfer products for the heating, refrigeration and geothermal markets, will greatly expand its presence in Catawba County. The company will move the bulk of its manufacturing operations from Connecticut to Hickory, adding 73 jobs and investing $6.5 million in the next three years. The project was made possible in part by a $76,500 grant from the One North Carolina Fund.

Meetings/Events

I plan to attend the following meetings/events:

Vance County Teacher Executive Institute Graduation Dinner, Middleburg-March 23

Roanoke Valley Chamber of Commerce’s Business Awards Luncheon, Roanoke Rapids-March 25

Warren County Armory Civic Center Fundraiser, Warrenton-March 25

Warren County Armory Civic Center Dedication and Ribbon Cutting Ceremony, Warrenton-March 27

1st Congressional Banquet, Winton-March 27

Please invite me to attend your county, city, community or civic, etc. meetings or events.

As I’ve said many times before, I hope you will continue to let me know how you feel about the issues that are being debated by the North Carolina Legislature and the challenges you and your family are facing each day.

By working together, we can make Northampton, Vance and Warren Counties and all regions of North Carolina a better place to live, work and raise a family.

Please remember that you can use the General Assembly’s website to look up bills, view lawmaker biographies and access other information. The site also contains detailed information about the state budget and legislative schedules.