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House | May 29, 2013 | Committee Room | Commerce

Full MP3 Audio File

Good Morning, Welcome to the Wednesday May 29th meeting of the House of Commerce and Job Development Committee, My name is Sam Mery, I'm the Chairman of the Committee. Let me introduce our pages for the day. We have, in page as when I'm saying your name you will stand up by Integre Stalinsit Pitt County sponsored by speaker stils, Els Steven from Moore Redolph County, our representative Samson, Joshuva Wiggins from Layes County, Sponsored by Johnbel and Taylere Watson from Rodson county sponsored by ?? We also have some sergen arms helping us today Fried heins, Reddy Sines, Jon Brandin and Mike Clampton. It's my pleasure to invite the Secretary of Commerce to presentation today on the Governor's proposal to develop an economic development of Partnership, public-private partnership for economic development of state in North Carolina, and Secretary Shina Dekkard is here and so Secretary Dekkard, I would welcome you here and I wanted to extend our condolences to your family and Secretary Dekkard's Father-in-Law passed away recently and she has broken away from the family to spend some time with us, so I appreciate your being with us and honor some what lighter note, if you've got the business North Carolina Magazine in your Mail Box yesterday she is officially issue you a cover girl and so we, we are appreciative of the cover girl sharing your time with us today we also have some members of the Governor's staff with us so, tell me our meter is here. He is a senior adviser to Government of McCaury on jobs in the economy and we also have Senator Henry Brown with us who has made a special invitation to Members of the Senate Commerce Committee to make sure that you can hear the presentation as well. So, thank you Senator Brown for being with us today as well. When we without further due Madam Section 4.0. [SPEAKER CHANGES] Thank you, Representative Maury thank you for the opportunity to present today. I am excited about the opportunity to share more of the framework, for the partnership we have been talking about now for several weeks, a lot of work has been done by an often lot of good folks around this issue and again what I will share is a framework. There is a great deal more work to be done. House Bill 630 will be the enabling legislation to create the Partnership and what I wanna share is where we think this is head and what we think it will begin to look like. Our focus is on economic growth in all 100 counties and some of you have heard me speak and I say almost without exception that a lot has been made by my time and surely preparation for this role as Secretary of Commerce but I think what I needed to know most about this job, I've learned living in Roor county, the last 12 years of my life. And Roor county as many of your counties that has separate double digit unemployment, now going on 9 years. So, I come to this role without perspective, that what we do in urban centres, is critically important to the success and health of North Carolina. We are fortunate to have the first and fifth fastest growing urban centers in the country, in our state and that's to our advantage. But we can't broke those communities and forget the rest of North Carolina. We have the Nigelist at 82 counties that have continued in deep unemployment for the last 9 years in the Negalist moving although we spend a lot of money and we've done a lot of good work , the Negalsim is moving, so, it says to me that we've got to do things differently. I think it was Einstein who said doing things in the same way and expecting a different result is the definition of insanity. So we have to think about it differently and we have to approach it in a new and fresh way and that's what I want to propose you today. I wanna remind you that Tony Armida, Governor's Advisor on Jobs in the Economy and I will be leading the Development of a state-wide economic development plan and it's been a number of years since we have had such a plan in place and that plan will drive the activity and the work of this partnership. So the framework you will see must be married to that strategic plan and that work will begin with the help of our economic development of the Board over the next 90 days. We are focussed on a comprehensive approach to economic development, can I have this framework will explain how I propose that should be done. I'm gonna share some boxes and charts and we are quick to go and count heads and that's not the intention of this but rather to again give you a frame

Organization structure. The slides you see in front of you is best describes as a public side of the partnership. When we talk about a public private partnership. It means that a portion of this is publicly positions a portion is privately positioned. This public portion of it includes an operation and innovation support team. Just ?? tired Brian Gossage to lead this team but I'm bring together what has been labor and economic development. Economic analysis, community assistance where you know is now where our community development block grants a house, information technology. North Carolina broadband, the energy office and science and technology to focus on the customer. These departments have operated pretty independently. And what I'm asking Brian to do is focus this entire team on the customer. Which in our case is the community, or communities across the state. Businesses across the state. How did these technologies support their growth and development. Employment services as you know, now headed by Dell Fullwell will report to me within this public division. Workforce solutions, we are moving aggressively on a plan to reorganize and consolidate streamline and make more efficient our workforce solutions initiatives. That process is in play you will be seeing a whole lot more about that in the months to come. We are proposing a creation of a consolidated area for grants. One of the things I have learned from you as customers of commerce from consultants from developers at a local area is that we have been slow to make decisions and slow to move and we've gotta change that. So we are talking about consolidating all of our grant making into one team, one stop. So whether is CDBG, whether it is a grant for infrastructure. Whether it is a jdigg or one with North Carolina. Theres one place to go for that and a place that will move very quickly. We're also talking about the development of a non profit collaboration fund. In both the senate budget in conversations with those of you in the house. Theres a lot of conversations about the non profit pass throughs that exist today. In the governors budget each of these was cut and in the senate budget these were ended. And in your budget I think you're talking about how to manage through this. And a proposal that we would like to make is a non profit fund. That would be a competitive fund if there is work the state is not doing. But that the state feels they should support. Non profits could come and seek a competitive grant on an annual basis. We do think there is work to be done in the state by non profits that are important to this economy. And work that is costly for the state to do that is already in place for these non profits. So it gives a resource and a way for these funds to be distributed. There also would be an administrative team legal human resources public affairs. Fiscal management as you know it today. But this would be the public side of commerce. Then there would be a new non profit forum, the North Carolina Development partnership. And the legislation that is before you or will soon be before you, bill 630 would describe this and let me just walk through how it would be form. It would be an over signt committee. Which would provide the public over sight for the new partnership. This committee would be chaired by the secretary of commerce, and would include the secretary of revenue, the state budget director, the secretary of DOT the secretary of Deener. And there also would be an appointee of the house and senate. And this committee would oversee this partnership and be responsible for the creation of a contract with this partnership for the performance of job creation and economic development for the state. There will be a board appointed by the governor. 8 members appointed by the governor plus a chair. Would also include two appointees of the house and two of the senate asking each of the chambers to appoint one from a rural city and one from an urban center. We would also have an appointee that we would seek from the state chamber and also one from the north Carolina federation of independent businesses. And this board would replace what we now know as the economic development board. Smaller, more engaged in the operation and over sight of the partnership itself. That board would hire a CEO for the new partnership. There also would be a fund raising arm of this partnership. That would raise private funds to leverage public dollars and grow the total the total sum of economic development statewide. We're already in conversations with a number of private potential investors with a lot of excitement on their part ..

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for marketing and tourism, it will come under this umbrella of branding for the state, so that there is one voice, one message, one north carolina. Rather we're recruiting businesses here, rather we're seeking tourism here, it will be a constancy of message targeted to each of those markets. The objective; speed of movement, reduced cost. We anticipate that we can do this initially in year one at about 5 percent less than the previous commerce budget, we will reduce that to 10 percent and continue to grow the reduction in resources while improving our effectiveness, as we work together to find the ways to do that. There is not an easy answer to this, its not do it one way and then one day you start a new way. There's got to be a plan for migration and transition, to a new vision for state commerce, and we recognize that we have to do that in partnership with all of those entities involved in economic development. I think this really came home for me recently when I got a call from a consultant that recruits business to north Carolina. He was upset that we had not aggreed to get the Jdig to a business that he was recruiting to the state. It simply was not a good project for JDig, it did not meet the criteria, it did not pass the economic model and so we had said that Jdig would not be avialably. He called me and he said "I don't know why the state of north Carolina won't help me, I'm getting money from golden leaf, I'm getting money from the rural center, I'm getting money from the Biotech Center and Im not getting anything from the state of North Carolina, and I hope you understand the Irony of that, but it illustrated for me the challenge that we face. So many good people doing good work, but we are seen as independant entities not as the state of north Carolina, and folks if rural North Carolina and Biotechnology and advanced manufactoring and trism, all of these thijngs are important to the state of north carolina, we need to be doing it as the state of North Carolina, and we need focused together all under one umbrella. I have absolute confidence that with my partners in each of these groups rather it be the regional partnerships, rather it be the biotech center, rather it be the rural center, we can figure out the ways to do this collectively and to do it more effectively, and I trust that and have confidence in our ability to figure that out. This is the framework we'd like tok move forward in, to make that happen and it aligns with the governers budget, and it allows for a progressive move to a new organization. It won't happen over nightm, this will be a process over about the next 12 to 18 months. I'm going to close with those comments and just open it up for conversation if I may and answer any questions that come. [speaker changes] excellent, members I wanted to point out at your desk you have a bullet point letter, talking points on the high points of what the secretary just presented, for some additional light reading. During the transition there is a white paper put together by blenny ching and tony alemeda, on the governers staff, about public private partnership concept for commerce and how other states have done it and look at the models that are in other states and so thats what constitutes this white paper. This is from december 2012 and these bullet points were just distributed for you guys yesterday and the power point presentation will be made available to you after the presentation and with that representative fisher your recognized [speaker changes] thank you mr chairman, and thank you secretary for being with us today. I'm intrigued by your new approach and I'm wondering if you would talk a little bit more about the zones. I am particular concerned being from bungnum county. We have an entity called advantage west, I'm sure your familiar with, and my concern is that we have a lot fo really good things going that we could probably ship to other parts of the state, but if we're doing a good job, why should we have to reinvent them? As zones are concerned I would like to know more. [speaker changes] Very familiar with advantage west, I use to serve on their board and scott and I have been in a lot of conversations about the work they are doing in the western part of North Carolina. A lot of good thing happening. We continue to have in Western North Carolina, a lot of counties my county as an example still in double digit unemployment, I think the issue is what do we do? What do we change that begins to move that needle? Lets don't stop doing those things that are effective and are working well, but where do there need to be new initiatives. One of the concepts is the leadership of those zones, each of them would have a specialty in an area of expertise

Someone might be a specialist in SA someone might VMI Springer said someone might dns manufacturing and other person IBM have a business so really, especially said they would use the profits sank seven we're using brain ID at ms figure industries for example what has been done with adventures in Western North Carolina has now been my home in Orange County S a potential to be my only other place across the state 70 MLB all of us on the 17th and KS miles and working well in the Bradley could not start doing the things that are effective against important thing that would technology series signing 9¢ in SMS 120 A stockman, said NFL NNESM and that territory with(SPEAKER CHANGES) S. Downey said the table SA Y is that we needed a difference here has word about the services that are being provided by students and staff, session this morning with IE numbers to talk about how they felt forgotten by the department of commerce one letter C and we all your friendly on who you are impressed when all I can get back down from the county accounts and money and N ML is an offline the poorest in 117, taking the largest marketing director, said prison official Alan JS, can imagine a lead line now is now the hard work, sitting around a table with the stocks in your region are now the NE Sais nothing to smaller geography SNL we're the similarities are in the differences are my postings tell me that even with ms town that one B some smaller circles drawing that will put their arms around one or two campaigns are we have an especially difficult seven nations where we sang out for the next 36 months we need to do X in this particular teriyaki in partnership with the Burleson with a biotech center and cost is a specific set of issues you need to be addressed differently we've not had the ability to deal with Belknap micro level and I think we have to adapt to change without said file electronically to SMIK MSN there also are claiming singing FSMU D's SL insistence that setbacks as an MSA north S and MMI hearing Fab we're talking at cross purposes hearing N. Lapierre (SPEAKER CHANGES) has an ID at the SC said Pakistani trucking SNA can see that the company STNS budget their last there was a reduction in funding politician to T stunning migration courts a public partnership act between EMI by some E transition to get to lead you into two separate client had pull apart but we're buried by pertaining to NC 3 independent L without bringing plan together the prince is on the same table NT think it's a process also like to recognize something sooner projection for being here thank you for participating in the house commerce committee Philip Ricci person rather more recognize a few about sex area just some of the quick question that the battle for the rhythm fisher is something that's very true parcel of concern to the value of medicine of about six center in the lives of two saw that she knows this summer than fisher wrote the book, too bad that some someone and then sat out a lot about a day but economic development projects in the senate budget of the oak lawn on top of the day, development of preparation and arm and a lady's and-go down and some of the parts tell he's a row when you drove down to the unemployment rate loan after American unemployment is this is as much higher than the numbers say I've sold as a challenge for all-American offered awards luncheon to get access to funding training the consultant to intimidate you still have you, talk about as you move into this a new direction hallowed halls and Container Supply of minority women all businesses of all four absolutely I intend to raise the question because that's my own target that I think you can react to camp as we said Martin E2 BC signs with a local leadership S databases, surfaced in SA two S L70 percent are unemployed people are minorities and we got specific issues here that we need support what I've heard back from them in our history, specifically MMI County NMS and our Western Kansas brown seven will Martin S to simply say what we need to do in SNA nine, it can help this year said Compaq's U.S. and North Carolina and we get are concerned about serious of development and handsome the following at ms IE CSI private collaboration that gets us the flexibility to seven blocks away if there is a nonprofit ??.............

Mister T. Kelly affect the Ariadne denied all the support we would have a mechanism to help find out in support of the state's IBM, plant, here and there isn't as soon as pervasive in this economy gets 40 SMER 2 D a priority in the state to deal with the MSD a point advising the same relative to the ITN S's SILM-IG Magnuson the sank about SMS and IBM to four, we imagined four from selected cons and Ins you have a priority to stand not tested when one party techniques of its MSN valuation 5 AM5698 nine on the back and development strategic plan to serve my questions in art, you prioritize testers and flat do it all at the corner challenge us that we and doing a lot of good word from my good people and won many that we not going soft and nine set priorities about weird feeling really good and evil and community stafford and communities because the firm will go to recognize that is 10 times security and cooperation to be here and get his attention from scoring from representing what pushed and sometimes have to say about as well as Representative Richard AM 2 PM Eastern North Carolina am represents some of those rule counties including some from ?? (SPEAKER CHANGES) HI can tell you that the men are taken, development, corporation have their own FX Network hasn't replicated beyond a close until folks say to you that the plan to development association for the outstanding work and make a difference in how communities LC two sisters programs down 292 PD like you have a strong community development corporation NL Stanislaw, and is willing to concede deficit to 55 shopping center is offering solutions is a fundamentally different means those companies such as women should be applied to set the table and importance of capital without luck and success said (SPEAKER CHANGES) thank you for that cell lastly, 107 yards I can work with local leadership as the complex and table or recite that there is an IE of work here to stay is not the end that is important for the health of the community and reliable and the commission to help support that despite being released from Canada only T a contractual relationship SAI to the planned for this find a distance actual relationship with the expectation how the funds will be using rock concert I’m said we all agree women in the same direction the same purpose back to some very important work at around the state is taken that without an outfit that an awful lot of work so we need to find ways to protect personal and if you recognize use of tear exited after updating taken on this challenging your leadership came in the press is the most exciting thing the first, down here on a wall to wall of you for your efforts and that this will be a very important mission of the next five years Moscow City question relates to your bullet talks about marketing and branding to say both got back I think is an absolute critical piece do you have any comments like a modest amount when you think that will start and finish that we would like to write an IP this summer to get support from at professional team to help us in this process and we're going to get the core research 7:00 AM doing the job, she and we would love to NBC brand at the U.S. open next summer , and you consider the world's tank for the first ms and women's open and at the same course and history at the two opens a new batch about seven millions of people around the world had this ability to North Carolina and set her free time we think the NSF grant a blanket will be C worldwide and Michael slipping very effectively sound that would be your turn that would be next summer I think we'll introduce at me and the soft launch in the spring would be of help that four more come summer Regina mills to recognize the biggest share of the secondary Decker for being here and now when you say the top of that we applaud the effort you too will do these reforms to make it more efficient and some of its use and overlapping limited very brief comment and roll it into a question for you in regard to the structure of the public product of partnership are saying and is that when we supply talk about economic development is truly a brawl turn being as you and your presentation areas covered some aspects of infrastructure as well as you cover some aspects of grants ??..........

Two Dr. Daly city's sewer or credits are, although the solich and because of broad term, we may have some things that we can argue that work are in the role of government in regard to economic development and we also have those things they could be questionable cases were actually having this discussion the one thing of the smaller the pulling out a role the sins of questions that really we have an exchange 49 existing businesses from the core businesses so what comes the state who wore employers and employees there individuals and their pay the tax burden or define the role governments see at this product dollars to become public to taxation and then threw the ball term economic development this summer's dollars to come by than once again by a grand tour of subsidy back to a private business so fundamentally weak and not a bad business is working this really fun than the NIH the cosmos through because my competitor could give grants from some of our programs via seven him about those comments about the last place the brawl term economic development in the public and private partnership looks like we're continuing months, it's a big score into saying secure the questionable it was your thoughts about firewall in regard to we have worked out in a letter to leveraging public dollars by a private investment in these boxes and we have a clear the native of individuals to also have to be experience in business over the big business owners Sally, from the old 70 individual is this iceberg and let's leave the delivers more private dollars and some of the public dollars goes to benefit summer, business and you have this kind of a postwar low for both public and probably the deathly concerns the eyes of the presented both individuals and business owners employers simply use taxpayers' bill should match thanks to question your ion at ms in Dallas, Glenn EC sort ideological and tried to get a free site at the capitol and the firewall how we got a line that says that for me to stand out one K's S separated into two banks SS the public side API installer for grants all attacking CD type programs are on the public side has gone 79 SEFX A's S ISI Daniel CS and L itself back the other site committee is a public into T sat their melee could be a Y across the Twain back oversight committee and economic development partnership board and that the firewall and we've been real clear in that enable a registration tonight that will clear C on that SDS secretary of commerce is not a member of the board nine role in this role is an oversight on the public side health and said the daily operating relationship with SCL is with me direct accountability to the part of commerce's psyche of commerce but that decision making a round of grants to get into public money stay on the public finance N sell we try to derail clear out now back in organizational construct ??....(SPEAKER CHANGES) and what legislation I never said he bring lasting about is that the current session got a smile and hunted down use that word again, that the private financial C also won here in a 10 Z, model batting shelling nine back NDS linebacker for C separate nonprofit for investors in fundraising said the stock in a separate, when C6 and one purpose and counted 49 YLMADMI 5 sound card into capital ranks there might be some lines that would set up on the private side of the house that would not become me like a sponge nights at the Mexico, Chile AUT that the pockets of Israel that MSN seminar designed I just am any CDs in there as a mall for incentives in the process of economic developments think that Carey strongly about , we've got some SS Malcolm, the accountable for managing this well we'll send me a better balance our focus on existing business CL I believe every week of companies that are trying to be recruited by other states said they are there any business frankincense S a policy ICS and well in North Carolina and we got some tools to help them would be better focused in the organization on support existing business as one of the priorities of setting a serious about that's when we look at how we distribute resources and more bits of Graham said that they can work better with existing business and looking at the tall setting up supported by some things that they attack supports the biggest thing, you very focused on that that is a lot of their salary cap, their ballots NT think there is a while for these incentives full suite B17 years for over a leading gay Campbell families ??.....

Good answer, follow quick. [SPEAKER CHANGES]I disagree followed. Thank you so much for that response. It definitively makes me feel better about the reorganization. But just one thing that I just ask in regard to the rule here is, that I have as a representative is that one thing that concerns me is the aspect of the role of incentives. And what we're doing is that I have to make a vote, either yes or no. If I'm voting for incentives, I'm voting to take money for the purpose of the role of Government, that is ?? on the backs of individuals through taxation, and I'm directly giving that to private business by way of an incentive. And to me, it concerns me greatly that we would make a decision of that, regardless of aspect of infrastructure that may, we can argue, that helps all, but that a direct transfer of private, or public dollars to a private individual is something that definitely, it makes me very nervous, as the individual has to vote red or green. [SPEAKER CHANGES]Yeah. I hear ya. And I think one of the things that I hope you'll feel good, in North Carolina, as we keep some tools available to us for recruitment and business growth, is that in North Carolina, we do not give grants to private business to cash grants. All grants are given based on job creation. It's very different than a lot of our competitors do. And I don't suggest we get into the business in that way. But we have a very high accountability for those dollars and how they perform. The jobs are not created, the money isn't paid out. And I feel very good about the process, the follow up around that. I do think that in today's competitive environment, that we are taken off the list if we don't have the tools in our quiver. We don't always have to use incentives. And that's a new thing for us to learn. That North Carolina is a very attractive place. As one individual said to me last week, Sharon, it used to be that North Carolina had to put the best deal on the table to get a business to come to your state. And you see, you've earned the right not to have to do that. But you still have to be able to play in the game. And so I think we've got to be wise investors and very careful. I hear what you're saying. I'm respectful of, though we have a difference of opinion on that. But what I think you can be assured of is a high level of accountability on our part to use well the tools that we have. [SPEAKER CHANGES]Transparency is key when it comes to this. And I think that's one of the points that Secretary Decker was making is, when you keep some of the things on the public side of the House, is the key point of transparency. And you'll see that as a theme in the white paper. And another illustrative example of some of the problems that we've got. This is the March 23, 2013 report from the Fiscal Research Division on the economic development inventory that we have in the state of North Carolina. This is an 80 page document, and it contains all the funds and lists of all the various things that the state of North Carolina's involved with. And it's available for you to peruse in the Legislative Library if you would like to look and see all the varied and overlapping, nontransparent, in some cases, funds that we have with no contractual relationship with the state of North Carolina, and no deliverables. And it's all right here prepared by our Fiscal Research Division. With that, Representative Larry Bell, you're recognized. [SPEAKER CHANGES]Thank you, Mr. Chairman,?? This past week, I've met with some members of the Chamber of Commerce in my town and county. And we had a member there from the South Eastern region of the Economic Development Board. And my understanding is that they were negotiating with a couple of industries who plan to locate in that area. And I've asked and I'm sure of the top associates there about trying to, to ?? find out if what you're doing, the reorganization may negatively impact what they're doing right now. Or would you help them with that as far as getting the negotiation done withing the next 12 months? [SPEAKER CHANGES]Absolutely. It shouldn't interfere. It would be our intention not for it to. That's the reason for a transition. There are relationships with companies that we need to maintain, and if we're not to maintain them, to pass them off to someone else that would be in that territory moving forward. But we need to be careful about that. And again, that's why I think this planning has to be done at a community and zone level so that we are dealing with it project by project and relationship by relationship. So that underscores the reason, Representative Bell, for a transition process. [SPEAKER CHANGES]Representative Tine, you're recognized. [SPEAKER CHANGES]Thank you, Mr. Chairman. Nice to see you again, Madam Secretary. [SPEAKER CHANGES]Thank you. [SPEAKER CHANGES]Thank you for being here and giving your presentation. As you and I have spoken before, we both agree that there need to be some changes here. And I like some of your ideas of your plan, and I also like that you recognize that there's additional planning at the local level that's necessary. But timing sometimes can be as critical an element as any

…and the Senate budget and some of the bills that are out there right now creates the undoing of some of these partner organizations July 1st. My question to you is, “Is the Department ready to absorb all the missions of these different organizations that have projects in the pipeline or do you perhaps need some more time to complete your planning process?” [SPEAKER CHANGES] We need some runway. I think the Governor’s Budget provided for that. There was a transition kind of process, reduction in funding, but it allowed us some runway space to do the planning. So I would just underscore what I said earlier that that I think is necessary so that we can get in at a zone level and kind of make the plan for how we move forward in that geography. That will take us a few months to do that. I think a large portion of this can be transitioned January 1. I think the bulk of it by next year, end of the fiscal year, I really do. [SPEAKER CHANGES] Representative Whitmire, you’re recognized. [SPEAKER CHANGES] Secretary Decker, I appreciate your words. I have three counties, two of which are very small rural counties, Transylvania and Polk. Henderson County while it’s much larger in and of itself compared to many others around the state is not that much bigger. So, with several key entities that others have already mentioned, Representative Fisher mentioned Vantage West, Golden LEAF sort of falls in there but maybe not in this context, the Rural Center, and Biotech and what have you, my question is this. You have touched on it quite a bit, but could you speak, please elaborate a little bit more on as you sort of roll these under one hat the responsiveness and also how the smaller counties which in that far west block that I saw on the map there are a lot of them… [SPEAKER CHANGES] Yep. [SPEAKER CHANGES] …how we don’t get lost in the shuffle? Because we don’t have a lot of voices. [SPEAKER CHANGES] I think the key there, responsiveness is that we have to move at the speed of business. We’ve got to be quick and responsive. That has more to do with process more than anything and right now we don’t have firm processes. Today in state government, and in any of these economic relationships it’s about who you know that can get it done faster not a process that consistently makes it happen quickly. So, we’ve got to redefine all that like you’ve done in your businesses and would do in your businesses. I think that’s very doable. Secondly I think the key to being more supportive of the small communities statewide is that we do our planning in a smaller geography and real-clear focus. You’re talking about home, so let me use home as an example. If you look at Polk, Rutherford, McDowell, even Burke County, we look very different than Buncombe, even Henderson. There’s a difference there. I say, “In Rutherford County, we’ll never attach to Asheville because there’s a big mountain between us,” just the sheer geography makes attachment there to that urban center very difficult. We can’t attach to Charlotte because Shelby needs a bypass, right? So, until there is some focus on Rutherford and Polk counties that develops a large enough economic engine there for them to change we’re not going to see a lot of change. I see within that zone a microcosm, looking at those counties that are sitting in the foothills and saying, “You know the foothills look a little different than the other counties in this zone, so what do we have to do uniquely here? Is it a four-lane to Spartanburg and a corridor further east in Rutherford County? Is it about developing the 74 Corridor so that you really are equipped to cross Rutherford and Polk counties to attract business there and if so what kind of business do we want and how do we go proactively out there to get them?” Not wait for them to come find us but go get them. What is it that we can attract…Get the idea? It means planning at a microcosmic level and doing that in great detail with state support to do that. Today each county kind of operates on its own. Some of you get great support from your regions and you do that planning from a regional basis as well. But I think it’s got to be done in a different way, in a different approach knowing that one size doesn’t fit all. Your geography is a perfect example of that. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Does that help? [SPEAKER CHANGES] Representative Tolson. [SPEAKER CHANGES] Secretary Decker, how are you this morning? [SPEAKER CHANGES] Good, thanks. [SPEAKER CHANGES] Let me just lay out a scenario and you use your vision of this new process to tell me. I have a company in another state and I want to expand. I am looking at several states, North Carolina being one of them. I call your office and tell you of my interest. Through your vision of this new process, walk me through how you would try to recruit me to North Carolina. [SPEAKER CHANGES] We’d answer the call quickly, with a live person. That is…

knowledgeable and able to respond to them with general information. Then we would go through that process we do today, which is gaining information about what they’re looking for, what are their priorities, then getting them in touch with these folks that are in zone positions across the state, probably the specialist that’s out there in their particular area of expertise, be that biotechnology, be that advanced manufacturing, whatever the technology specialization is, and then identifying the sites across North Carolina that are probable sites for that plant to relocate. We would then take them to see all of those sites across North Carolina so that we’re not competing site-to-site but looking at what’s available across the state. I would quickly add, Representative Tolson, that I see that scenario as less what would be happening in North Carolina, and more of what we want to be happening is that in your community we have identified the businesses that could be most successful there, and the folks that are located in that zone and the folks with support from the state office are proactively going to recruit those businesses into North Carolina. That’s the way to get what we need in this state. Reaction is important and it needs to be fast and on the money, but we also need to be doing a lot more of that proactively. [SPEAKER CHANGES] One follow-up. [SPEAKER CHANGES] You’re recognized. [SPEAKER CHANGES] How would what now exists as my regional partnership fit into that process? [SPEAKER CHANGES] I don’t see a state-supported regional partnership. You might choose locally; private investors might choose to stay engaged in the process and fund the local partnership. I understand that. I understand that may happen. We would work with them as partners with a memorandum of understanding what role do they want to play in economic development. Some will want to do marketing, some will want to do recruiting, some want to focus on existing business; each has a little different view and we would work with each to develop a plan for how we’d work together. I see that happening. Today there are committees of 100, there are partnerships of a variety of type that are privately funded, and many of those would continue to exist. My hope would be that over the course of the next several years we would find there’s less and less need for independent parties, but there’s an opportunity to get together in one plan. [SPEAKER CHANGES] One follow-up. [SPEAKER CHANGES] You’re recognized. [SPEAKER CHANGES] I indicate to you when I make that initial call that I like the rural area, I want to go to the eastern part of the state… [SPEAKER CHANGES] We’d come east. [SPEAKER CHANGES] Tell me how you would initiate… [SPEAKER CHANGES] We’d bring them to the east. You got to listen to the customer, and the customer knows what they’re looking for and what’s best for them, so we’re going to listen to what their needs are and we’re going to take them where they want to go. I just had an amazing customer service experience buying a new car, and I’ve never had anybody listen to me like that guy listened to me. The process was easy, painless and quick because he knew exactly what I was looking for before I knew it, and it was a matter of listening. We’ve got to be really good at that, so if the client wants to be in a rural area in eastern North Carolina, we’re going to help them get there. [SPEAKER CHANGES] Representative Cunningham, you’re recognized. [SPEAKER CHANGES] Thank you, Madam Secretary ??. Thank you for being here. [SPEAKER CHANGES] She’s over to the left here. [SPEAKER CHANGES] You can’t hear the direction in this room. It’s crazy. [SPEAKER CHANGES] I’m sorry. In the packet there are six models presented. Have you all determined which model you will be implementing, or closest to? [SPEAKER CHANGES] The state of Indiana is probably the closest to our model. It is a wholesale model where we’re moving all of tourism, small business development, much as they did, all of that into the partnership. We’ve thought through that very, very carefully and the decision was really based on the need for speed and nimbleness, also based on taking a comprehensive approach and trying to get all out sales and marketing for the state in one team, so we’ve chosen the wholesale approach and Indiana is the best model of that. They’ve learned a lot that we can learn from, so part of the reason to take these next few months so we can iron out the details with your help and the help of local folks is trying to avoid some of the pitfalls that they’ve experienced. [SPEAKER CHANGES] Follow-up. [SPEAKER CHANGES] You’re recognized for a second question. [SPEAKER CHANGES] Thank you. With education declining in the state and you want to attract the top talent and the top companies, and most people that come with these companies are well-educated and they want their children to be in well-educated environments, how are we supposed to tackle that? [SPEAKER CHANGES] I wish I had that answer but it’s a critical one. If you look by county at unemployment, it’s higher where education rates are lower and so we know it’s a major indicator of economic health. I say as I am sharing with folks our platform for economic growth in North Carolina that it’s about health for all North Carolinians, that everyone needs access to healthcare and the ability and option to live a healthy life. That means quality of air and water, it means farm-to-table initiatives, it means living communities

We can live and walk and stay active means access to health care. Then I say it’s about education. And it starts from cradle to grave. And it continues. Most of us thought would be retired by age by this time but we are not for a lot of different reasons. But education has to continue. Job retraining has to continue. So our focus on Prek through High school our community colleges and universities that partnership is critical. Met recently with the economic development specialist in our University They were meeting together with Lesley Bonney And talked to them on How do we bring together a closer relationship. With what effect going on leveraging the resources in our university. Next is economic development. So far from infrastructure to recruiting businesses to growing existing business, development of small businesses, arts, tourism and culture critical to the success of North Carolina,Quality of life and environment . So Education is one of those top 5. We got to be focussed on that. It has been a competitive advantage for North Carolina. We got be sure we don’t lose that. Very Very Important. Our relation with the community colleges particularly is critical. As I talk with companies about what has been the most important determinant of your coming to North Carolina, Community colleges come up over and over again. Our customized training with Spired Aviation last week. We had a wonderful opportunity to be in their composites lab and their composites training spoke to a group of their students to see what they have been able to do from a education standpoint to equip folks for jobs their its pretty amazing. And that story is being told all over North Carolina. Very Very Important. [Speaker Changes] Rep Staines, you are recognized [Speaker Changes] gold and Lafer rule senate [Speaker Changes] Will they continue to receive applications and award grants in an autonomous manner or will their grants be co-ordinated through the economic development partnership. [Speaker Changes] My intention would be that ultimately they are co-ordinated through this partnership. I think we have to got to have a plan to work together to get to that place because they move a lot faster than we do today. I want to learn how to move that fast. And the processes we need to have need to be that quick and nimble. But not just based on it used to be a process.Whatever the grant requests us. CDBG be it JDig be it infrastructure grants all of those need to be faster and consistent. That’s very important with great accountability with where they go and How they go . So I think initially there would be a Memorandum of Understanding . There would be some continued grass making by each of these entities. But I am going to very clear with you. My objective would be that ultimately all that comes together under one Umbrella. But I think we need a plan to get to that place. [Speaker Changes] And the letter that you gave it to us , it says, you are looking for an organization it can leverage profit funds with public dollars. So primarily the public dollars would be those that are allocated through the Gold and Leaf sending so-forth or you are looking for an additional corporation. [Speaker Changes] I would think based on the Governors Budget, I would think we, our intention would be that sooem of thos edolars that are rediuced from orther entities could help to fund this. Already the department of commerce is funded. So some of those dollars would be set in reserve for the funding of partbership as opposed to the exisiting department of commerce. So I think it’s bringing together exisiting funds and these are not net new dollars. The objective is to begin to reduce the total expense of economic development in the state and that’s one of the objectives of doing this. So there are net new dollars in this proposal. Irs reallocation of those dollars and repositioning of thoise dollars. What we have been new to this is the raising of private funds in a signigcant way to match those dollars in support of the new organization. So it would not be a request for net new public funds. Just re-allocation [Speaker Changes] Alright here is the Cue. I am Gardener Moore Ray Alexander Floyd Corney Graham [Speaker Changes] Rep Bun Gardener you are recognized [Speaker Changes] Thank you Mr Chairman. Thank you Secretary for being here [Speaker Changes] You are sorry, I apologize [Speaker Changes] I am trying. I should be a better Air Traffic Controller Rep Bun Gardener [Speaker Changes] Create a brand and roll it out for the U.S Open . That’s a great idea. Wish you success for that . Looking forward to seeing that what it is. I have a problem with taxing existing businesses that are higher now to help fund incentives to get other businesses here. I have a problem with that. Yesterday, a company is Gaston county announced they are closing. 108 jobs. They are textile related business. Don’t you think tax reforms would be key here that if you could get to zero rate corporate tax rate

Some have some way to tax reform that that would make our state incredibly attractive to never by the anyone help people that are already year and the wood, the attract people to come here from other participants representing I'd like to take back that that correct that stops supporting we need a user tax rates. But not PM that's exactly what we need to be going back to that which for the state of Texas would have no incentives NMAFGH multimillion dollar fine and C.s at this and a stationary bike for DSS every bank S0% zero corporate tax rate now to talk about cutting taxes off the charts sell stamps like to get a good example satellite technology that has the chance that NT bangs environment even as tanks with CF tax rates are still using incentives to close deals NEC nine N.A. freewheeling flashlight in mind, led by the year, one accountability job creation, said the sentence that success at the table cell and one that goes beyond, (SPEAKER CHANGES) 4:00 AM not every opportunity to acquire some racing back too bad we sell the state of North Carolina we get our tax rates for compact and I had to think they got some language and E4 selects out performance incentives and later scored a performance incentives SFSA 1 thing that's where we are police are different and I don't think it's counting its mean when you wear a nine L for 45 firms and state taxes and when the governor has the discretion to find TV sets NESSE mails out without further legislative action history tour of ions telling me about some of the north Carolina’s better place to do business,(SPEAKER CHANGES) but I think I had been the standard of living and dying that takes some tool are generally more to recognize received a database should move quickly and I'll say are you back about to be sure that no structure the department and a good message, the convention this new structure was especially tough about some private note that if Poland and east of this as someone we talk about 85 from U.S. open-ended it would play a big part in this isn't implemented, Johnson had put the matter with solo government and the project slicing the transportation and ended earlier if the goal of government, which you Gotta-guess that would get about the only with which to move some of the economic development initiatives that will at this as a structural home, plus some of the list a great question an unemployed young goddess of the another strike and many its name out by the second reading EC budget director second B.A.T section DR protest at least MM one B other side decision-making spot on the public side L's got the secretary's income recession on a regular basis about the products are impacting North Carolina has online commerce says this happening that wang NNDRND a T and commerce to dangle by conversation project specific Dawson planning specific that there's a better place nearly a subtle, like a and C prices declined as signs with a partner Cynthia TMNDRI Congress is not a lot of office space , Wiegand IE our partners to chambers of commerce and other staff meeting space is making me back and honest people stasis, taking share office space at 5¢ for the summit partners standard apart projects with this setup between the lines are generally recognized by key on your right to left like Mr. Like the sector in all its first, the occurrence of slowing down for a press book your presentation of certain state economic development for 20 years so honestly and economic development takes on represent how flexible campaign in these in year one of our challenges or are people are children graduate and go to college and it'll come back home run in and they do not peel roller Monday in work in the deal works is off a lost 3015, luxurious to you is we won all for one year we have been made, 85 rule communities 15 urban Libyan people's money and one North Carolina and so do I like you're approaching we'll crucial slam on the governor's budget amendments a user budget would come out with our budget eventually won a like a slowdown purge the causes so much going for slain probably change is good in some circumstances home I ??......

Northeast partnership in my region. All economic developers are not successful. Some of the rural counties have problems keeping economic developers in their county. They come and go. The life expectancy in, of economic developers is ten years, give or take in a community. So take that in consideration. Each partnership has a board and they have people that are distance leaders, people that are involved in the communities, that go and take time to go to meetings and be involved. Most counties have economic development boards. And there are counties that have a county commissioner involved. When you go to the zones, please make sure that you involve the municipalities, and I'm sure you involve the county commissioner of course, educational people. But again, my request to you is slow down. I know we can't slow down two or three years, but I know we can't implement plans in thirty, sixty days, but I believe in thinking out of the box. I look forward to working with you, because again, working together works, and having all the partners at the table. But when you send people in these regions, send the right people. Don't send people there to, for lip service, and then do separately. No respect to DOT, we're fighting the I-95 toll lane. And they have outside consultants to come in to our local community colleges and we have our DOT people standing over to the side, and then we have the people outside doing the presentations. So please, don't rush in and rush out. I know you can't go stay two or three days, but give the people adequate time and adequate conversation. [SPEAKER CHANGES] Thanks for that, and I think a basic tenant of how I like to work is that the plan will be, the local folks are the ones who've got to own and develop that plan. We can provide great support and guidance in that process, but we've got to own it and, and be engaged in it locally. So it's important. [SPEAKER CHANGES] Follow up. Mister Chair. Follow up. [SPEAKER CHANGES] You are recognized. [SPEAKER CHANGES] One of our issues like in our rural communities are our local counties which are our local taxpayers. Normally, when economic development projects are engaged, we purchased a property. Our county does. So we have a stake hold, and the people have a stake hold in the community so, again, you know, take that. [SPEAKER CHANGES] Makes a difference. [SPEAKER CHANGES] It does, because we are, we are the ones, our county manager, our local public works in the rural communities, across to urban also, they have to apply for the infrastructure, all the process so. Again, working together works. [SPEAKER CHANGES] Thank you. [SPEAKER CHANGES] Representative Kelly Alexander, you are recognized. He's to your right. [SPEAKER CHANGES] Thank you mister Chairman, madam Secretary. I just wanted to, well first I want to compliment you on the presentation of the plan, but there are a couple of things that I want to make sure that as this is developed are taken into consideration. First, the zone map that you presented, if you take that map and you overlap the fifteen most populous counties, which collectively presents something like fifty five to sixty percent of the state's population, there's kind of a disconnect between those zones and the location of those counties. First thing I seriously want you to think about. Secondly, over in some other departments, they're discussing projects that would have an impact on the desirability of some of the zones. In my area for instance, the development of the Monroe Bypass and the Garden State Parkway would open up territory and open up that territory to a different kind of economic development, and, which would play successfully with the greater development of the zones and actually would help to link some of our existing population and economic centers. As we look at some of the other infrastructure things that are there, for instance, the Charlotte-Douglass International Airport and the Intermodal facility that's being developed there, which sits right in the middle of a couple of your zones, and if you think about the, the parkway and the, some of the other development, it all works in a holistic

approach to broaden economic development. I think that’s the way we’ve got to think, but the other thing is we also have to consider certain limitations. One of the limitations is the availability of water as a resource. The Catawba River basin, the Yadkin basin have some limitations. They have… ultimately you’ve got competition between industrial uses for water and people uses for water. I think that has to be taken into consideration, especially as you move from west to east because the availability of the resource changes, the how it can be accessed and used changes, and that has an implication too on the type of development that makes sense in particular regions. So these are things that I don’t believe we can do in isolation. All of this needs to be taken into consideration, and especially in those 15 most populous counties, some of which are considered to be having a very good economic development at the moment, but you can find pockets inside of them that are not, so we also have to be able to find ways to stimulate growth in those pockets as well as to stimulate growth in the broader regions. [SPEAKER CHANGES] Agreed. You’re right on it, and that’s the challenge of this is that we are one North Carolina, so although we’ll have new zones, we’ve got to be able to… I think of those as planning zones. I think of those as a way to kind of get our arms around a manageable geography with priority, but those lines, just like state lines to me, are irrelevant when it comes to economic development because when you cross the state line, you might see the sign but the world doesn’t change, right? So those economies work together, so it’s a guidance but it shouldn’t be a constrict, and so we’ve got to think through that, and particularly as it comes to natural resource planning, those lines will be helpful in getting our arms around manageable geographies, but we can’t let those lines be barriers to our planning across them. You give two great examples with access to the south of Mecklenburg County and Gaston County. You give a great example with the bypass around Monroe. Those are corridors that would change the economic planning around those roads, and so we’ve got to be open-minded, we’ve got to think out of the box and think as one North Carolina because we’re all connected. It’s a big state but we’re all connected, and so lines for me are guidance for planning purposes. I think marketing looks very different when we do it today, and that’s a whole different conversation. I don’t see us marketing necessarily by those zones. We’re going to market the state of North Carolina, but within a zone we will market geographies. Might by urban centers, might be rural areas where there are particular activities that are event-driven. I think we’re going to have to approach marketing very differently than we’ve been doing it, and it doesn’t have lines round it in my mind. [SPEAKER CHANGES] Representative Floyd, you’re recognized. He’s to your left by Representative Fisher. [SPEAKER CHANGES] Thank you, Madam Chairman. I just have some… This is a statement and then you can respond to it, and it’s also a question, and I understand at the beginning of the presentation you’re talking about speedup, you’re talking about reducing costs, and I’m glad that you left the map up. If you would look to your right on the map – I mean my right; I guess it would be your left – if you look at that part of North Carolina, that is indeed the poorest part of our state, and to me, each time that I see that I see the lost colony, meaning the lost counties that the state, maybe the Department of Commerce has just simply overlooked over a period of time, and whether or not that can be eradicated, whatever, but in the eastern part of North Carolina we have… we’re mostly a tourist, travel and service area. That’s what we are, and beyond that we have two military installations; we have Camp Lejeune and we have Fort Bragg. Those are our largest, and then too we are blessed by the coast, so what kind of branding can we do for that part of I-95? I heard you all talking about the Parkway, some part of the state over that way. You mentioned that, but as my colleague

…he had mentioned. We have I95, which is moving north and south there. Now, that to me could be a trucking industry paradise to move goods and services to the market. And then we have the transit park, which could be like UPS or Federal Express. Where they send everything in Chicago and overnight and it’s back to us. Park could be considered as that. The other thing we’re talking about when we start talking about infrastructure, and we’re talking about years, we’re talking about a $60 billion worth of infrastructure across this state. We’re talking about in 30 years. So we’re talking about 30 years planning because those ways and all of that, it may not get built during my lifetime, and I’m biting my teeth. So do we look at economic development within the 10 years? And then too, the last thing is that when we’re talking about public/private partnership and funding, one thing that these partnerships need is not to worry every year whether or not their public/private partnership that they enter into will be only contingent in funding basis in order to attract that kind of partnership that is needed. This is my last and you can respond. When we look at I95 corridor, we see Wal-Mart Distribution Center which is in Fayetteville, which has about 495 trucks, 437 trucks a day. We see Food Lion, they’re in Dunn. Which has numerous trucks that come in per day. There is a commitment there, but it had to be more of a commitment, as my colleague mentioned. What I see in public hearings is that we are being talked down to as it relates to economic development and economic growth. If there’s truly to be a partnership, to be all of us talking together. [SPEAKER CHANGES] Absolutely. Absolutely. It is all of us together. That’s the only way this can change and this can work. And it’s a process. If this were easy, it would have already been done, right? So I think it takes a lot better planning and it takes planning at a community level, and in a smaller geography level in great detail to deal with issues of infrastructure. To deal with issues of job recruitment. To deal with issue of existing business growth. It’s not one dimension. There are many dimensions to this. Eastern North Carolina is a huge part of this state. And it ought to be a priority for us, those rural counties. And you’ve had counties as you said, the poorest counties in the state. And that’s unacceptable. I don’t know all the answers, but I know I’m committed to help us find it. [SPEAKER CHANGES] We’ve got the secretary for 10 more minutes. Representative Floyd you’re recognized for a second question. [SPEAKER CHANGES] Thank you. But when we look at it and we talk about, one thing that needs to come out of commerce is customer service. [SPEAKER CHANGES] Absolutely. Absolutely. [SPEAKER CHANGES] That is the key. Even I at my age, when you tell me that I’ve got to call in and I’ve got to get through 4 or 5 prompts. You know, I’m aging. So we have to do better than what we have been doing. And when we look at the I95 corridor, that’s 10 percent of the state population that is totally forgotten when it comes to economic development. [SPEAKER CHANGES] Representative Carney, you’re recognized. [SPEAKER CHANGES] She’s right in front of you. [SPEAKER CHANGES] Thank you, Mr. Chairman and thank you Madame Secretary for your indulgence and your time today. But for your vision for economic growth and development in North Carolina, and a new plan as we move forward. Or maybe, not a new plan, but taking what we have in place and broadening that to a new level. I do applaud you in the efforts to include in broadening your scope of your view through adding the Sport’s Management film, traveling tourism, but don’t forget the arts. Because they’re an important part. I always have to get that in. [SPEAKER CHANGES] I hear you. [SPEAKER CHANGES] I wanted to just maybe ask a couple of questions briefly, and I’m very appreciative of your time today. There’s some assumptions that are out there about the partnerships, and when they will cease. It’s either to be June of this year, December 31st of this year, or June of 2014. And I know that in the Senate Bill it’s June of ’13. You are talking a vison, or a plan rather, of a year to 18 months. For the certainty as we move forward…

M and we will hear this L-L suspend fall into the house and this 19 to seven, and 1 pounds M4 U concern DNA, but this story are layered EC Wednesday UC Finland, I am a NMS year or in the fiscal year and will work with the NYSE S and budget decision based on the dollars in how we need to be allocated dollars in eastern back am NBC are worthy in the fiscal year in a way we can work less than $10.00 to you and others, have questioned along those lines in message that we may be sending 52 businesses that are now currently looking at North Carolina and, through my these partnerships company's CNN acting as businesses that PM start PM meeting had fumbled the snap and I had assisted by S, he reads and that's the question MS very important that we had this one by silicon ridge and especially she's missing by her B.S. situation or so (SPEAKER CHANGES )we're allowed to be a situation where the collar organizational transition when every has developed a budgetary actually the people and resources and ms or to tears and customer relationship S and the first four months and we've got a customer focus on the customer cell I think the process watch these decisions are made about how we will notify where is the plan when the local partnerships with local Fouts having the following relationship yard Michelle partnerships are creating for marketing purposes is said there is some minimal M MSN clank and Langdon to adapt the primary purpose SM, marketing saliva clank and linguistic down to the state department of commerce and we're that is differently in worksheet at linebacker Ian McKellen 80 fall to crack or innocence are in the marketplace and consultants coming into the slalom and it was not in the tax reform was acting in senate's leader in getting the ball gown and we probably lost something else because of the insert DNC are so the sooner we can get this budget process the matter how much I don't think they'll be an issue around organizational questions about three east S concert in just a distressing thing about happens I think that bigger is CNS and screening insert DSE Sorensen and support for four more than organizational change as Chairman Michael R us free and open from Kathleen MLN turk, private partnership to stay and economic development which began doing some one nine V's partnerships and allowable levels and 20¢ from one G CG one likely, and that will be funded by phone from LDEC to competition from S9 dollars and that's what levels that is a kind of guy says, and now they're back talk to that without another this private funder sang to S will be granted money in one place to stay in a Carolina economic development purposes are a couple of them are on the summary said no missile that more than they do individually or in seven and a planned budget for India pleased about opportunity, while we give us the other priorities for the spines acting are some untapped resources for private funds for North Carolina back best outside SA , (SPEAKER CHANGES )for corporate parents tend not to discipline because they don't wanted to act on a regional basis that will delay on a statewide basis to invite around the park that I attended by having the grad, the resource FD that battled back and we will compete for some the sandbox nine question about, and we just have to work from that Oakley D Delaware term SBA contacts and traction and six S annual price of doing business that it will not be any called independent entities sat, that without we can see the singular L and a better results so it's a process are some children recognize we have less than 5 minutes notice the republican George women very hard on Friday ordered a representative for a non-Koreans are on this one and one state, Wilson some custom the final comments editor of national junior visit only slowly hope to come and learn a lot about people from eastern region-only on tobacco: solving flat from a vehicle identification training would determine the car stereo system always has a contract to bring a window simply as if you would a collection of old when we can't stop people from switch ??...........

...lead time as you possibly can before we have to close down. That's the North Carolina eastern region, because we have people with contracts, we have personnel, we have other building. There's several things that we need to walk through and it may take six to nine months to make all that happen. Thank you and thank you for coming to Sharon. [SPEAKER CHANGES] Thank you. This is not a painless process. It's easy for us to talk about it in this room. It's very hard to do. This is going to be very complex, very complicated, very challenging, but I think you're right, together we can make it happen as we all come to the table. After the same end, which is net job growth for North Carolina. We've been in declining job growth now for nine years. It's not acceptable. And that's exactly what we're trying to change. [SPEAKER CHANGES] Representative Jeff Collins, you're recognized. Right in front of you. [SPEAKER CHANGES] Secretary Decker, comments today. I look forward to working with you and implementing those in my area. I thought I understood everything you said today until Representative Bumgardner's question about incentives and again, I've only been here a couple years so I may be misinformed. I was always under the impression from what I had read that our incentives were primarily a tax exemption that could be recouped over a number of years if you met certain goals and so forth. So I was confused. If we could get away from having a corporate income tax, would our incentives change or our current incentives more than just an exemption from corporate income tax? [SPEAKER CHANGES] What our competitors do with income tax rates set zero, is they have cash incentives that are based on performance but not, on job creation, but not tied to any tax credit. It's cash in return for that job creation. I'm not suggesting we go there. But that is what they're doing. The theory that if you get to zero, you don't have to have any other incentives is not playing out in the market place today. That's what I was responding to in his question. You're exactly right, they are not tax incentives, but they are cash incentives that are used in their place, in addition to the zero based rates. I don't know, Tony, would you add anything to that? But that's the reality we're facing today, Representative Collins. I mean, that's the facts of what's happening in the market place today. So, that's just what we're dealing with. I feel better about a competitive tax rate and incentives that are performance based only. I think puts us in the best competitive position for the long haul. I think it's manageable and doable, but the thinking, and it's logical, that you can do away with them when you get to zero, all incentives when you get zero, just isn't what's happening today. It's just the facts. [SPEAKER CHANGES] Do a follow up? [SPEAKER CHANGES] You're recognized. [SPEAKER CHANGES] But we would be in a better situation than we are today if we had no corporate income tax when all we're doing with our current incentives is giving a partial exemption from income taxes. It has to be paid by to only some corporations. It would have to be better than what we've got now, right? [SPEAKER CHANGES] I hear you. I don't know that it's better. It's different. I think the question is what makes us more competitive? Our competitors, who have taken it to zero still still this need to do something in addition to that. That concerns me. So you take it down to zero and still throw in money at it. That's a zero sum game that we don't win. It's a complex set of issues and there is, I mean, it's just extremely competitive. I just wanted to speak to the question that if we go to zero we can do away with them, I don't think so. Film is a good example. The question we have to ask ourselves is do we want the film industry to grow in North Carolina? And if we do, there have to be some competitive incentives. That's the way the business comes to the State. We just have to make a call. What are we after and what's the priority for us. [SPEAKER CHANGES] Follow up to that. I would say that for the film industry in particular, as well as any other, we want that industry to grow as long as it actually is a net contributor to the State of North Carolina's economy and not a net detractor from it. [SPEAKER CHANGES] That's right. We want the economy growing. GDP and jobs, for sure. [SPEAKER CHANGES] Madam Secretary, you've been very generous with your time. I know you've got to get back on a plane to be with your family. We spend a lot of time having a conversation about incentives, but in the economic development world, that's the one percent. Most of the deal is done, 99% of the deal gets done before we even have a conversation about incentives. I think you're coming up with a transparent, very public process to how we do economic development in North Carolina and I would ask every member to research the white paper. Look at the letter that Secretary Decker sent with the white paper and look at the economic development inventory in the library. You will see, will clearly see the problem and the solution that we're trying to achieve. Madam Secretary, with that, thank you for your attendance and this meeting...

is adjourned, and members will get a copy of the slides in your email, and this meeting's adjourned.