Key Issues and Updates
As the largest business organization in Western North Carolina, the Chamber serves as a lead advocate for business issues, representing the interests of business to local, state and federal governmental leaders. The Chamber works closely with the Asheville City Council, Buncombe County Board of Commissioners, North Carolina General Assembly and congressional leaders in Washington, D.C., to ensure that the interests of the business community are well represented in public policy decisions.The Chamber regularly identifies and works for positive action on issues of particular importance to Western North Carolina’s business community. Please call (828) 258-6122 for further information.
Key Issues for North Carolina General Assembly’s 2005 Regular Session: 1. Flood relief: Support for remapping of western floodplains and buyout of flood-affected businesses and properties.
Status: One of the most monumental achievements for Western North Carolina in 2005 was the passage of the Hurricane Relief Act. The legislation provides up to $247 million to help individuals, businesses and communities rebuild after 2004 Hurricanes Frances and Ivan.
The flood relief bill was passed unanimously by both the House and the Senate. The N.C. Rural Center was allocated $740,000 for flood studies/economic development studies. The bill has a $3 million dollar line item to assess the causes of the flooding in Biltmore Village, Canton and Hominy Creek and provides for a possible additional $30 million dollars to address the problems identified by the assessment. $15 million is provided for stream restoration throughout WNC. $10 million was allocated for the buy-out of hazardous sites in WNC It also provides $15.5 million in crisis business assistance grant programs for businesses impacted by the 2004 Hurricanes.
2. Affordable healthcare coverage: Support comprehensive reform of state tort laws relating to medical malpractice and medical liability suits.
Status: No progress.
3. No cuts to North Carolina’s public education programs.
Status: The 2005 state budget fully funds enrollment growth at K-12 schools, community colleges and universities (approximately 35,000 new students), increases financial aid to offset federal Pell Grant losses, and expands scholarship and loan programs. Overall, the budget provided an additional $250 million for education over last year's figures, which will help to enhance education from early childhood through adulthood ($9.48 billion vs. $9.23 billion).
4. Design and construct the I-26 Connector with sufficient lanes and include appropriate aesthetics components.
Status: NCDOT plans to conduct workshops on the choice of alternates in Spring 2006 and plans to select an alternate in the same year. It is in the process of developing the crucial Draft Environmental Impact Statement. Right of way purchases will be made in 2008, and construction is slated to begin in 2012.
NCDOT continues work on an eight-lane design for the Connector. The Federal Highway Administration has indicated it will provide critical funding only for an eight-lane design. The I-26 Aesthetics Advisory Committee continues to meet, and is discussing with NCDOT national “best practices” related to aesthetics for implementation in the design and building process.
5. Support the development of a new tax structure addressing the competitiveness of North Carolina’s corporate and personal income tax rates and reducing those rates to below 6 percent.
Status: The 2005 Economic Growth and Tax Relief Act (S344) remains in the Senate Finance Committee and could be considered in 2006. The act repeals the estate and gift Tax, reduces the top marginal income tax bracket, reduces corporate income tax rate, alters and enhances personal standard deductions, increases tobacco taxes $.05, establishes permanent the temporary sales tax increase, and increases the minimum wage $.85.
6. Increase North Carolina’s cigarette tax.
Status: The state budget increases the cigarette tax from 5 cents to 30 cents per pack effective September 1, 2005 and to 35 cents per pack effective July 1, 2006. North Carolina’s cigarette tax had been the lowest in the nation before the increase.
7. Support the development of Asheville’s River District.
Status: Roadway upgrades recommended in the Wilma Dykeman Riverway Plan were included in the state Transportation Improvement Plan. NCDOT has scheduled a feasibility study for the greenway section included in the plan.
8. Support The Health Adventure’s proposed world-class science museum and discovery park, “A New Adventure for Asheville.”
Status: The Health Adventure received another $25,000 planning grant from the state, bringing the total state support thus far to $75,000.
Key Local Issues
1. Resolve the Regional Water Authority agreement issue.
Status: The Water Agreement expired July 1, 2005, with the City of Asheville taking responsibility for the regional water system. The North Carolina General Assembly passed Sullivan Acts II, III (H. 1064,1065), which among other things require city and county residents to pay the same water rates, as they do now. The City is appealing the implementation of the law with the state supreme court.
2. Implement the recommendations of the City of Asheville’s Development Review Process Task Force.
Status: Most of the recommendations made by the task force have been implemented or are in the process of being implemented. Recommendations involving project approval process at the levels of the Planning and Zoning Commission and City Council are still under review. City Council and City staff are to be commended for their efforts addressing the permitting and inspections issue.
3. Support continuation of the Local Housing Trust Fund with appropriate funding.
Status: The City of Asheville allocated $600,000 to the local housing trust fund this year, bringing the total monies available to about $750,000. The City is encouraging developers to take advantage of the incentives.
The Buncombe County Commissioners allocated $250,000 to affordable housing programs in 2005. These funds, in addition to state and federal grants and leveraged funds, allow the County to provide programs relating to new construction and down payment assistance.
4. Support the development of Asheville’s River District.
Status: The City of Asheville is nearing completion of a planning study of the River District and proposed development in the district. This planning includes not only the areas included in the Wilma Dykeman plan, but also planned growth in the broader river district.
5. Support The Health Adventure’s proposed world-class science museum and discovery park, “A New Adventure for Asheville.”
Status: Health Adventure staff are in initial discussions with Buncombe County and the City of Asheville.
Key Federal Issues
1. Support comprehensive reform of tort laws relating to medical malpractice and medical liability suits.
Status: Medical liability reform passed the U.S. House of Representatives in the form of H.R. 5 – Help Efficient, Accessible, Low-cost, Timely Healthcare (HEALTH) Act of 2005. The bill now goes to the U.S. Senate. It would limit fraudulent lawsuits by abolishing the financial incentives for filing them. Patients would still be able to recover the full cost of economic damages, such as medical bills and lost income if they have been medically injured. The Act limits the amount of non-economic damages, or “pain and suffering” awards, to $250,000. It will not permit punitive damages unless an actual economic judgment is rendered and then limits the amount to no greater than twice the economic damages. The legislation also maximizes patients’ awards by allowing courts to ensure an unjust portion of the patient’s award is not misdirected to a personal injury lawyer. 2. Education: Full funding of “No Child Left Behind” and reauthorization of the Perkins Act.
Status: Several bills are now in Congress with various approaches to improving “No Child Left Behind,” many of which focus on flexibility, as well as enhanced teacher support and the full funding of successful elementary and secondary education programs such as Title I.
H.R. 366 –Vocational and Technical Education for the Future Act –passed the House with strong bipartisan support and has been placed on the Senate Legislative Calendar. The stated purpose of the bill is to amend the Carl D. Perkins Vocational and Technical Education Act of 1998 to strengthen and improve programs under that Act. A similar bill, S. 250, the Carl D. Perkins Career and Technical Education Improvement Act of 2005, passed the Senate nearly unanimously and now goes to the House.
3. Utilize N.C. Clean Smokestacks Act as a model for national air quality legislation.
Status: No progress. However, N.C. Attorney General Roy Cooper has filed a lawsuit against the EPA in order to force agency to require reduced emissions in thirteen surrounding states.
4. Pass the reauthorization of TEA-21 with the highest funding level possible ($318 billion).
Status: Congress passed the TEA-21 highway and mass transit bill at a $286.5 billion level. This was considered a victory for transportation and business interests. Significant funding for North Carolina highway and transit projects were included in the in the bill, nearly $5.1 billion ($5,094,225,000) in highway funding for North Carolina, and $369 million for public transportation purposes in the state. This represents a 31 percent increase in highway funding for North Carolina over the last transportation bill, and a 179 percent increase in transit funding for the state. The bill also increases North Carolina’s return for each dollar the state puts into the highway trust fund – increasing from 90.5 cents for every dollar to 92 cents for every dollar paid into the Highway Trust Fund.
The bill also includes specific earmarks of $4,540,000 for Pack Square Pedestrian and Roadway Improvements; $4,800,000 for US 64 passing lane additions and safety improvements in Transylvania County; and $11,360,000 for repair and improvement of safety features of US 19 from Maggie Valley to Cherokee.
5. Support the development of Asheville’s River District.
Status: The Federal Highway Administration provided $600,000 for RiverWay EIS studies.
6. Enact tax credits for small businesses that provide health coverage.
Status: H.R. 2001 – titled “An Act To amend the Internal Revenue Code of 1986 to provide tax incentives to encourage small business health plans, and for other purposes” – rests in the House Small Business Committee.
7. Support The Health Adventure’s proposed world-class science museum and discovery park, “A New Adventure for Asheville.”
Status: The Health Adventure is working with our federal delegation for an earmark supporting the development of the project. The Health Adventure is also seeking $250,000 in grant funds from the Appalachian Regional Commission.
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