NC General Assembly votes to give money to big corporations, takes it from taxpayers

Cross-posted at the Brock Log.

HB 1761, Job Maintenance and Capital Development Fund was originally only supposed to give $40 million to Goodyear Tire and Rubber in an effort to keep them in their Fayetteville, NC home. In that form, it passed the NC House and Senate (Onslow Reps Cleveland*, Grady, and Tucker and Onslow Senator Brown all voted for the bill), but was felled by the Governor's veto stamp.

An extra session was convened yesterday and today to reconsider the bill. During the sessions, a new and improved version was drafted. This new bill takes an investment of $200 million and gives grants to Goodyear ($24.5 million), Bridgestone Firestone ($22.5 million), and allows for up to $60 million to be given to 5 companies over 10 years. These companies would also be able to lay-off up to 20% of their workforce and still be eligible for the grants.

The House approved that new and improved measure 61-44 (Onslow Reps Cleveland* and Grady voted No, Tucker was excused) today.

*Via email today, Representative Cleveland told me that he did not support either measure.

I do not support either bill at this point.

Why then did he vote to pass the original measure? Is it because it wasn't a big deal at the time and no one thought the Governor would follow through with a veto? Did he think that this episode of taking from the citizens of Onslow County would go unnoticed?

Also today, the so-called compromise bill passed the Senate 25-16. Onslow's Harry Brown also changed his vote to "No" after supporting the previous bill.

In an email, Brown said this:

A compromise bill passed the legislature this afternoon which was essentially the same bill the Governor vetoed. I voted against the bill.

This compromise bill is larger and more expensive than the original, spreads the money around to 5 companies, and gives those companies license to fire one-fifth of their workforce. It's not the same, it's not close to the same as HB 1761. But, even if it were "essentially the same bill", why did Brown switch sides?

Governor Easley, please veto this bill. It's bad legislation. It sets a bad precedent and it's bad for North Carolina. Please. Veto. This. Bill.

Update: I guess it's official: Governor Easley doesn't read this blog. He signed the bill into law just more than an hour after receiving it from the General Assembly. WUNC's Laura Leslie has the statement.