Local Politics

Veto Battle Shows Rift Between Easley, Lawmakers

Posted September 4, 2007

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— Gov. Mike Easley's recent veto of a bill that would have provided state grants to Goodyear Tire and Rubber Co. underscores the friction between the governor and the General Assembly, according to political observers.

State lawmakers approved legislation that would have earmarked up to $40 million in state grants over the next decade for Goodyear, provided the company spent $200 million to upgrade its Fayetteville tire plant and didn't reduce work force levels at the plant below set limits.

But Easley said last week that the bill sets a bad precedent by giving a company money while allowing it to lay off as many as 700 workers.

"There's no end to the number of companies who'll say, 'If you don't give us $40 million, we're going to leave.' How do you know?" he said at the time.

In vetoing the bill, he proposed a different program in which existing manufacturers could earn state and local grants for expansion.

"Some legislators are spitting mad about this," Charlotte Observer political columnist Jack Betts said, noting the veto followed Easley's chiding lawmakers for not agreeing on a budget until late July.

"They may just send him a message. You know, if you want to get involved in the legislative process, come on down, but do it earlier," Betts said.

House Speaker Joe Hackney said he planned to call lawmakers to Raleigh next week to override the veto – it would be the first override since the veto became law a decade ago. But it's unclear whether three-fifths of lawmakers would support the override.

"He does have the opportunity to interact with the (General Assembly) members if he chooses to do so," Hackney said, exhibiting the chill some of Easley's legislative allies have felt recently.

Betts said Easley has enjoyed legislative success without back-slapping lawmakers or having them over for dinner parties.

"That's not Gov. Easley's style, hasn't been, probably isn't going to be," he said.

But he said a major economic development policy shift is buried in the political battle.

"(An override means) we'll provide financial incentives for companies to stay – not create new jobs, just to stay," he said. "I think (Easley) might lose this one."

7 Comments

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  • 68_polara Sep 6, 2007

    This whole mess could have been avoided by not giving public tax money to any private businesses in the first place. Now they have quit a mess.

  • bosoxbaby Sep 5, 2007

    hmmm.......we have money for this garbage but not for our schools and our children who attend those schools....

    How exactly does that one work??

  • luv2surffish Sep 5, 2007

    politican is a politican.. no matter what color they are....
    how much did he give dell to move here... now wont help one that has been here 40 years and is well established in the area?? 40mil over the time span is not much...
    but... RE-ELECT NONE

  • The DA Sep 5, 2007

    Outsourcing is a problem for NC economy, but paying these companies the figures being suggested doesn't make sense. Easley is right about this one. We should give them incentives to come or to stay, but $40 million is obsurd. Does the proposed money really benefit NC or is this just Big Business' way of making more money off the poor?

  • benno Sep 5, 2007

    Keep on voting Democrat folks.

  • pbjbeach Sep 4, 2007

    while it isn't a whole lot of things that i do agree with the governor on but this veto for the goodyear expansion plan is one that i do agree with him on. if it is approved there will be every corporation in the nation comming around to north carolina with their hands stuck out talk about welfare receipents . can you say corporate welfare. i personnally think that if a large company wants to locate in north carolina well an good but i don't think that we as a state should bribe them to stay nor expand a business. if you want to stay . then stay if you want to go then go amen.

  • dougalu Sep 4, 2007

    They are All democrats first...can't they listen to Rodney King when he asked. "can't you all just get along.