McCrory: Legislature must pass jobs incentives 'in a matter of weeks'

by Colin Campbell, News and Observer, January 5, 2015.

Gov. Pat McCrory said Monday that the state legislature must fund incentives “in a matter of weeks” or North Carolina could lose companies looking to bring jobs here.

McCrory told an N.C. Chamber of Commerce luncheon that he and new Commerce Secretary John Skvarla are traveling the state meeting with employers this month. But the governor says he has little to offer them.

“I do not have the tools that I need,” he said. “I need you to help me work with the General Assembly. That has to be the No. 1 priority in the first two weeks of this legislature.”

The state’s funding for job-creation grants is running on empty, and McCrory had even considered bringing the legislature back to Raleigh in December to act on the issue.

“I cannot be at the negotiating table without knowing what we have in North Carolina to negotiate with,” he said. “I am talking with major job creators right now, and I need these tools.”

McCrory declined to offer specifics about companies he’s working with, other than to say they’re employers of “all sizes.”

According to multiple news reports, Mercedes-Benz USA is considering relocating its corporate headquarters from New Jersey to either the Triangle or Atlanta. The headquarters employs about 1,000 people and would need 150,000 square feet of space.

McCrory said Skvarla will announce details of the jobs legislation “in the very near future,” and a bill replenishing grant funding would be the “minimum” action needed. Skvarla, who replaced Commerce Secretary Sharon Decker on Jan. 1, said he’ll also be pushing for a state-sponsored crowdfunding program for small startup companies as well as efforts to expand broadband Internet service in rural areas.

“It makes every farm in this state competitive,” Skvarla said.

A similar bill passed the House last year but was held up in the Senate.

McCrory will have to work quickly to get his incentives bill before the month is out. Legislators return to Raleigh to be sworn in on Jan. 14, but then adjourn until Jan. 28. In the meantime, McCrory and other governors will meet Tuesday with President Barack Obama in Washington, and he expects they’ll talk about healthcare.

McCrory says he’ll ask Obama “to be allowed to devise a North Carolina healthcare solution ... instead of a Washington program.”

The governor didn’t provide specifics of what the plan might look like, but he cited Indiana as an example. The Republican governor there wants to expand Medicaid but would require low-income participants to chip in for their premiums. Federal officials haven’t yet approved that proposal.

McCrory stressed that he “will not close the door” on expanding Medicaid in North Carolina, but the idea is opposed by state House and Senate leaders.

Speaking after the governor Monday, Blue Cross Blue Shield CEO Brad Wilson said Medicaid expansion “is the right thing to do.” He called McCrory’s proposal for a state-based plan encouraging.

“North Carolina lost out on $1.1 billion in Medicaid funding,” Wilson said, calling on business leaders to lobby for expansion. “That spells pain for many of our hospitals and many of our doctors.”