To date, debate over the proposed Clean Smokestacks bill has focused primarily on the purported air-quality benefits, which would be negligible. Little attention has been paid to the cost, which could be substantial given North Carolina's already high electricity and tax rates compared to its neighbors'. This study estimates the impact on such institutions as school districts and manufacturers. The higher prices and lost jobs must be weighed against any potential benefits.
Flawed studies and ignorance about North Carolina air quality have given lawmakers and the general public an inaccurate picture of trends in ground-level ozone, or "smog," in some cases exaggerating public exposure by a factor of 10. This study reexamines air-quality data from monitors across the state, concluding that exposure to dangerous ozone levels is surprisingly rare - and is dropping even without passage of the proposed "Clean Smokestacks" legislation.
North Carolina's approach to economic development policy has failed, with the state’s high tax burden, lack of industrial diversity, and hostility to entrepreneurial effort contributing to a painful decline in employment and competitiveness. Public policymakers should rethink their reliance on central-planning models and schemes to subsidize specific businesses or regions. Instead, the state should lower taxes and avoid costly regulatory mistakes like the "Clean Smokestacks" bill.
The Southern Appalachian Mountain Initiative (SAMI) is a consortium of eight Southeastern states, including North Carolina, and several federal agencies. It is now beginning to publish its research, more than a decade in the making, and will likely help to shape the debate on air quality for years. State policymakers should be cautious in interpreting SAMI data and analyses, however, due to troubling signs that it may not be looking at both sides of the regulatory equation.
Summary: The University of North Carolina Board of Governors has proposed a capital spending plan calling for nearly $5 billion over the next decade to modernize and expand the system. To pay for it, UNC wants the authority to raise funds by the issuance of two kinds of bonds that would not be subject to voter approval. While there is undeniable need to renovate academic buildings, taking care of the worst needs over the next four years would cost about $1.1 billion and could be handled through the existing budget process if repair and renovation were made the top university priority. The need for a large-scale construction program is dubious and does not require the use of non-voter-approved bonds.
The ghastly terrorist attacks in New York City and Washington will have overwhelmingly negative consequences for the nation’s economy, despite the foolish suggestions of some that it will result in a net stimulus. North Carolina’s economy promises to be particularly hard-hit by troop deployments and faltering investor and consumer confidence. Now is the time for state leaders to dedicate themselves to strengthening the economy, not weakening it through massive tax hikes.
Gov. Mike Easley and other proponents are reportedly preparing to resurrect the idea of a state lottery for North Carolina. The case for this regressive and unpredictable source of revenue has, if anything, weakened in recent months, as other states with lotteries have experienced significant revenue shortfalls. The fact remains that Easley is overestimating the lottery’s potential revenue, thus creating the risk of additional tax increases in the future to make up the difference.
Embedded within "clean smokestacks" legislation now moving through the General Assembly is the creation of a new commission to develop state policies to combat global warming. But the scientific issues involved are complex and unsettled. If North Carolina were to try to reduce greenhouse-gas emissions on its own, it would have a trivial impact on global climate but destroy tens of thousands of jobs, particularly in the state's faltering manufacturing sector.
The American Lung Association's recent report on ozone fueled a media frenzy in North Carolina, with repeated suggestions that the air in the Triangle and Charlotte was "more polluted than New York City's." The truth is far different. Due to a misleading grading system and a faulty and selective reading of data, the ALA report provides little useful information to North Carolinians about the quality of the air they breathe, and falsely suggests that pollution is increasing.
posted May 6, 2001 by John Hood, Dr. Roy Cordato, Don Carrington
North Carolina faces significant fiscal and economic challenges over the next two years. But it need not resort to higher taxes, a state-run lottery, higher debt, or gimmickry to balance its budget. Nor does North Carolina need to skimp on crucial needs such as education and highways. By setting firm priorities within state government, eliminating unnecessary or duplicative programs, and charging users of some services a reasonable price, state leaders can generate sufficient savings to invest in the future needs of the state.
