Why we support the statewide bond referendum
Published March 7, 2016
Editorial by Wilmington Star-News, March 6, 2016.
Several years ago, the StarNews editorial board stopped endorsing candidates for public office.
Some folks cheered; others have told us they miss the endorsements, even when they disagreed with them.
Our newsroom has produced an excellent voter’s guide that gives you insightful information on the candidates and even lets you make a custom sample ballot you can fill out in advance and take to the polls. It can be found at StarNewsOnline.com/elections.
While we no longer endorse candidates, we have continued to offer our opinion on some ballot questions. On March 15, voters will be asked to decide if the state should borrow $2 billion
for new buildings and infrastructure and renovation of existing facilities for the 17-campus UNC System, the state’s 58 community colleges, failing municipal water and sewer systems, the N.C. National Guard, and state parks, among other projects.
The StarNews editorial board stands in full support of the bond proposal.
While we do not purport to tell people how to vote, we want to share our reasons for supporting the bond proposal and address some concerns we have heard from readers.
Two of the primary concerns we have heard are: 1. The bond offers no funding for K-12 education; 2. it offers no funding for roads and transportation.
The bond proposal provides no funding for K-12 facilities because, by N.C. General Statute 115C?521, local school boards are responsible for building schools and providing for their maintenance, not the state. The state pays teacher salaries and benefits and does supplement facilities needs with proceeds from the state lottery. By law, a certain percentage of lottery revenue must go to local school systems for facilities.
The transportation piece is similar. Instead of using part of this bond issue to fund road needs, as originally proposed by Gov. McCrory, the General Assembly decided it was more cost-efficient to pay for roads from the steady stream of money that goes into the state Highway Fund, especially now that no money can be diverted from the fund for other uses.
There is no such steady stream of revenue for facilities at the community college and UNC systems; they have traditionally received building funding from state bond referendums. Counties also help fund community colleges that serve their area.
So K-12 and roads are not being overlooked, they simply are being funded by different revenue streams.
While there is no such thing as “free money,” North Carolina has an excellent bond rating and interest rates are currently low. The need is there and the time is right. In its year-to-year budget planning, the state anticipates spending about 4 percent of revenues on debt service.
With older debts now coming off, budget forecasters believe the state can service the Connect NC debt without raising taxes. Interestingly, polling has found that a majority of voters support the bond issue even it were to mean a tax increase.
While critics of the bond proposal say we are saddling future generations with debt, we believe just the opposite. We think the bond money is an investment in the future of our state as we try to meet the demand for a highly skilled workforce.
The university and community college facilities we use today to educate thousands and thousands of North Carolinians are here because people made a similar investment in the past.
We should make this investment today so that it will pay off for our children and grandchildren. And we expect they will do the same for their children and grandchildren.
Some people call it “paying it forward.”
We call it doing the right thing.
Area projects
UNCW Allied Health and Human Services/Nursing Building, $66 million.
Brunswick Comm College New Construction, Repairs, Renovations, $2.9 million
Cape Fear Comm College New Construction, Repairs, Renovations, $5.9 million
East Carolina University Life Sciences and Biotech Building, $90 million
Fort Fisher State Recreation Area, $1.1 million
Carolina Beach State Park, $855,000
Water/sewer system loans and grants statewide, $309.5 million
The numbers
-- 40 percent of N.C. workforce has attended a community college in past 10 years.
-- N.C. community colleges have trained nearly 37,000 employees of 861 state companies.
-- Connect NC provides $350 million in funds to improve all 58 community colleges in NC
-- Grants and loans totaling $310 million will be awarded to municipal water and sewer systems on basis of need. Many rural and impoverished areas in Eastern North Carolina have critical water and sewer needs.
Learn more
northcarolina.edu/node/3618 (Details on UNCW allied health/nursing building proposal)
